Demand-Side Management in China's Restructured Power Industry : How Regulation and Policy Can Deliver Demand-Side Management Benefits to a Growing Economy and a Changing Power System
China expects its gross domestic productin 2020 to be four times that of 2000. Limits on energyresources and China's environmental needs require thatelectricity use grow at a much lower rate than the economy.Demand-side management (DSM) is a critical component ofChina's sustainable development. It is a set of toolsand practices taken by utilities to influence the amountand/or timing of customers' energy demand in order toutilize scarce electric supply resources most efficiently.DSM is a proven method of meeting economic goals in anenvironmentally sustainable way, and it is also a fast andeffective way to address power shortages. This reportreviews China's experience with DSM, explores thebarriers to and the potential for new demand-sideinvestment, and examines successful DSM strategies in othercountries. It suggests the near-and long-term regulatory andgovernment policies needed to support substantial newinvestment in comprehensive, cost-effective programs forend-use efficiency and load management.