Demand Side Management

Demand Side Management Solutions

Custom-built CHP, Cogeneration, District Energy 
& Trigeneration Energy Systems

Demand Side Management, District Energy, 
Micro-Grid & Net Zero Energy Solutions

Produce the Clean Power & Energy Your Business Requires with a; CHP, 
Cogeneration or Trigeneration energy system for a fuel cost of 4 cents/kWh 
(with natural gas priced at $4.00/mmbtu)

Demand Side Management

What is
Demand Side Management?

According to the Department of Energy, Demand Side Management or "DSM," refers to those "actions taken on the customer's side of the meter to change the amount or timing of energy consumption. Utility DSM programs offer a variety of measures that can reduce energy consumption and consumer energy expenses. Electricity DSM strategies have the goal of maximizing end-use efficiency to avoid or postpone the construction of new generating plants."  Therefore, Demand Side Management, is the process of managing the consumption of energy, generally to optimize available and planned generation resources.

While not every business is a candidate for onsite power generation, such as an onsite cogeneration or trigeneration energy system, however, your company may be a great candidate for other energy-saving solutions. One of these is Demand Side Management, or "DSM". We help commercial, industrial and utility clients by providing cost-effective DSM, clean power and renewable energy solutions.

Clean Power Generation

Clean power generation systems are a superior "micro-grid" and demand side management solution for data centers, hospitals, universities, municipal utility districts and new real estate developments/subdivisions seeking "net zero energy" solutions. 

CHP Systems (Cogeneration and Trigeneration) Plants 
Have Very  High Efficiencies, Low Fuel Costs & Low Emissions

The CHP System below is Rated at 900 kW and Features:
(2) Natural Gas Engines @ 450 kW each on one Skid with Optional 
Selective Catalytic Reduction
system that removes Nitrogen Oxides to "non-detect."

The Effective Heat Rate of the CHP System below is 
4100 btu/kW with a Net System Efficiency of 92%.


CHP Systems may be the best solution for your company's economic and environmental sustainability as we "upgrade" natural gas to clean power with our clean power generation solutions. Our emissions abatement solutions reduce nitrogen oxides (NOx) to "non-detect" and can be installed and operated in most EPA non-attainment regions!

Background information and history of Demand Side Management

Demand-side management (DSM) programs consist of the planning, implementing, and monitoring activities of electric utilities that are designed to encourage consumers to modify their level and pattern of electricity usage. 

In the past, the primary objective of most DSM programs was to provide cost-effective energy and capacity resources to help defer the need for new sources of power, including generating facilities, power purchases, and transmission and distribution capacity additions. However, due to changes occurring within the industry, electric utilities are also using DSM to enhance customer service. DSM refers only to energy and load-shape modifying activities undertaken in response to utility-administered programs. It does not refer to energy and load-shape changes arising from the normal operation of the marketplace or from government-mandated energy-efficiency standards. 

Historical Information of DSM (1999) 

In 1999, 848 electric utilities report having demand-side management (DSM) programs. Of these, 459 are classified as large, and 389 are classified as small utilities. This is a decrease of 124 utilities from 1998.(1) DSM costs were almost unchanged at 1.4 billion dollars in both 1998 and 1999. 

Energy Savings for the 459 large electric utilities increased to 50.6 billion kilowatt hours, 1.4 billion kilowatt hours more than in 1998. These energy savings represent 1.5 percent of annual electric sales of 3,312 billion kilowatthours(2) to ultimate consumers in 1999. 

Actual peak load reductions for large utilities decreased in 1999 to 26,455 megawatts. Potential peak load reductions of 43,570 megawatts were an increase of 2,140 over 1998. 

In 1999, incremental energy savings for large utilities were 3.1 billion kilowatt hours, incremental actual peak load reductions were 2,263 megawatts. 

Technologies Used in Demand Side Management:

These energy conservation technologies are implemented to reduce total energy use. Specific technologies include energy-efficient lighting, appliances, and building equipment, all of which can be found on the EREN Buildings Energy Efficiency page. For energy efficiency at industrial sites, see the EREN Industrial Energy Efficiency page. 

Load Leveling:

These technologies are used to smooth out the peaks and dips in energy demand — by reducing consumption at peak times ("peak shaving"), increasing it during off-peak times ("valley filling"), or shifting the load from peak to off-peak periods — to maximize use of efficient baseload generation and reduce the need for spinning reserves. 

Load control:

Energy management control systems (EMCSs) can be used to switch electrical equipment on or off for load leveling purposes. Some EMCSs enable direct off-site control (by the utility) of user equipment. Typically applied to heating, cooling, ventilation, and lighting loads, EMCSs can also be used to invoke on-site generators, thereby reducing peak demand for grid electricity. Energy storage devices located on the customer's side of the meter can be used to shift the timing of energy consumption. 

Issues Involving the Implementation Demand Side Management Solutions Include: Public Benefits Programs, Rate Schedules, Time-of-Use Rates, Power Factor Charges, and Real-Time-Pricing

Public Benefits Programs

Prior to electricity industry restructuring, utilities were responsible for a variety of programs (including DSM) that meet social objectives. Under restructuring, funding for these programs is typically through a small surcharge ("wires charge" or "system benefits charge") on utility bills. 

Rate Schedules

Utilities can structure their rates to encourage customers to modify their pattern of energy use. 

Time-of-Use Rates

Time-of-use rates involve charging higher prices for peak electricity as a way to shift demand to off-peak periods. Interruptible rates offer discounts in exchange for a user commitment to reduce demand when requested by the utility. 

Power Factor Charges

Power factor charges can be implemented to discourage commercial and industrial utility customers from partially loading their electrical equipment, as this requires the utility to generate extra current to cover the resulting system losses. 

Real-Time Pricing

Real-time pricing is where the electricity price varies continuously (or hour by hour) based on the utility's load and the different types of power plants that have to be operated to satisfy that demand.

What is
Automated Demand Response?

Automated Demand Response is a Demand Side Management solution that is specifically designed for a customer's specific location, energy/power requirements, and also for the specific electric rates for that customer's location. Automated Demand Response does not involve human intervention, but is initiated at a facility through receipt of an external communications signal.  Automated Demand Response is a rather new area of DSM technologies and may provide a lucrative revenue stream for customers who can curtail electric load in response to demand incentives, ICAP payments, and/or commodity prices.  Automated demand response technology seeks to automatically, through software and hardware applications, to respond to variations in the electricity/power market prices. 

Demand Response or Demand Side Management can be achieved through demand reduction, by shifting load to a less expensive time period, or by substituting another resource for delivered electricity (such as natural gas or onsite power generation, also known as "distributed generation." 

Demand Response (DR) is a set of activities to reduce or shift electricity use to improve electric grid reliability, manage electricity costs, and ensure that customers receive signals that encourage load reduction during times when the electric grid is near its capacity. The two main drivers for widespread demand responsiveness are the prevention of future electricity crises and the reduction of electricity prices. Additional goals for price responsiveness include equity through cost of service pricing, and customer control of electricity usage and bills. The technology developed and evaluated in this report could be used to support numerous forms of DR programs and tariffs.

A recent pilot test to enable an Automatic Demand Response system in California has revealed several lessons that are important to consider for a wider application of a regional or statewide Demand Response Program.

The six facilities involved in the site testing were from diverse areas of our economy. The test subjects included a major retail food marketer and one of their retail grocery stores, financial services buildings for a major bank, a postal services facility, a federal government office building, a state university site, and ancillary buildings to a pharmaceutical research company. Although these organizations are all serving diverse purposes and customers, they share some underlying common characteristics that make their simultaneous study worthwhile from a market transformation perspective. These are large organizations. Energy efficiency is neither their core business nor are the decision-makers who will enable this technology powerful players in their organizations. The management of buildings is perceived to be a small issue for top management and unless something goes wrong, little attention is paid to the building manager's problems. All of these organizations contract out a major part of their technical building operating systems. Control systems and energy management systems are proprietary. Their systems do not easily interact with one another. Management is, with the exception of one site, not electronically or computer literate enough to understand the full dimensions of the technology they have purchased. Despite the research teams development of a simple, straightforward method of informing them about the features of the demand response program, they had significant difficulty enabling their systems to meet the needs of the research. The research team had to step in and work directly with their vendors and contractors at all but one location. All of the participants have volunteered to participate in the study for altruistic reasons, that is, to help find solutions to California's energy problems. They have provided support in workmen, access to sites and vendors, and money to participate. Their efforts have revealed organizational and technical system barriers to the implementation of a wide scale program.

What is Demand Response and How is it Different from "Demand Side Management"?

"Demand Response" is a subset of Demand Side Management (DSM) or a potential  Demand Side Management program solution which helps make the electric grid much more efficient and balanced by assisting the electric grid's commercial and industrial customers reduce their electric demand, and/or shifts the time period when they use their electricity, and/or prioritizes the way they use electricity, and in so doing, reduces their overall energy costs. A Demand Side Management Program will include measures that promotes the following:

Demand Response has also been defined as a "Demand Side Management" subset that is a set of time dependent activities that reduces or shifts electricity use of selected customers.

Electric power generation and distribution systems are strongly affected by supply-side policies (how, when, and where to generate electricity, how to couple generation into the grid, how to transmit and distribute generated electricity) and demand-side policies (pricing schemes, conservation efforts, customer premises automation, and, in extreme circumstances, rolling blackouts).  Demand-side programs focus on reducing the peak-to-average demand profiles through automation in the customer premises.

What are Demand Response Programs?

Demand Response Programs are programs usually designed and offered by electric utilities that offers those clients that sign-up for specific DR programs with financial incentives and other benefits that help those participating customers to curtail energy use.  These actions by the electric utilities and participating clients provide a reliable, predictable amount of power (megawatts) that the ISO's and RTO's can count on during an emergency when energy supplies are low, and there is an inadequate amount of available power generation. The electric utilities typically require that those customers that enroll in their DR program(s) install certain software and hardware, that communicates with these client's online energy management systems, and can control these client's electric power requirements as needed.

What is
Battery Energy Storage?

Battery Energy Storage, and Battery Energy Storage systems (BESS) use stored electrical power in batteries, and feed this energy to the electric grid (building, or facility) at times when it makes economic sense.

For a "Net Zero Energy" building or facility, a Solar Cogeneration, or Solar Trigeneration energy system is used that stores excess solar power in the Battery Energy Storage system during the daytime, for use when the sun goes down, and during inclement weather.

Battery Energy Storage is an ideal solution for utility-scale wind farms, particularly in Texas, when most of the renewable energy is generated at night when the power isn't needed.

Battery Energy Storage is a leading "dispatchable wind" solution making wind power available 24 x 7.

And, Battery Energy Storage is an ideal demand side management, peak shifting or load leveling solution as well as reducing emissions

According to Sandia Labs in their report titled; "Energy Storage for the Electricity Grid; Benefits and Market Potential Assessment Guide" (February 2010), the market for energy storage exceeds $100 billion during the next ten years.


What is Bulk Energy Storage?

Bulk energy storage refers to various methods to "store" electricity within an electrical power grid.

Electrical energy can be stored during times that electrical generation from power plants exceeds the consumption by customers and the stored energy can then be utilized at times when consumption of electricity exceeds generation of electricity. Bulk energy storage permits power generation to be maintained at a more constant level, avoiding the sharp spikes in power generation so that the power plants can be more efficiently operated - reducing fuel consumption thereby reducing greenhouse gas emissions.

According to Sandia Labs in their report titled; "Energy Storage for the Electricity Grid; Benefits and Market Potential Assessment Guide" (February 2010), the market for energy storage exceeds $100 billion during the next ten years.

What are CHP Systems?

A CHP System - also known as a cogeneration plant, is the simultaneous production of power and thermal energy.

Stated another way, a CHP System integrates an onsite, "decentralized energy" (DE) or "dispersed generation" power and energy system with thermally-activated power and energy technologies such waste heat recovery and/or absorption chillers for heating and/or cooling applications.

CHP Systems achieve these greater energy efficiencies through the conversion of exhaust or reject heat from power generation into needed energy services like cooling and heating of buildings as well as campuses. This is called "Waste Heat Recovery" or "Recycled Energy." Development of "packaged" or "modularized" CHP Systems for end-use applications, such as commercial and institutional buildings, is something the founder of our company has been involved with since the mid 1980's.

In the past, Cogeneration plants have been economically attractive only in sizes above several megawatts. The emergence of a number of small generation technologies, including fuel cells, advanced low emissions engines, and gas turbines with outputs in the 1000 kW - 5000 kW range, should extend the benefits of Integrated Energy Systems to a much larger user base, with a consequent increase in national energy and environmental benefits.

For example, the application of CHP Systems (including Absorption Chillers - or - ADsorption Chillers) in commercial buildings could reduce commercial building energy consumption by 30%.

Application of such smaller-scale packaged CHP Systems provides a major breakthrough in energy efficiency technology, energy savings as well as reduced greenhouse gas emissions. And, by locating the power generation at or near the end-user/consumer, i.e. their facility, building, or campus, the difficulties in siting and building new electric transmission and electric distribution infrastructures to meet today's increasing power demand are minimized.

There are numerous markets for Cogeneration / Trigeneration plants, CHP Systems, District Energy Systems for commercial or institutional buildings, government facilities, and district energy systems that distribute thermal energy to buildings in a college campus, hospital complex, industrial park, food processing operations, refrigerated warehouses, and also very attractive for cities.

What is "
Decentralized Energy"?

Decentralized Energy is the opposite of "centralized energy."  

Decentralized Energy energy generates the power and energy that a residential, commercial or industrial customer needs, onsite. Examples of decentralized energy production are natural gas fueled CHP Systems, Rooftop PV and solar cogeneration energy systems.

Today's electric utility industry was "born" in the 1930's, when fossil fuel prices were cheap, and the cost of wheeling the electricity via transmission power lines, was also cheap.  "Central" power plants could be located hundreds of miles from the load centers, or cities, where the electricity was needed. These extreme inefficiencies and cheap fossil fuel prices have added a considerable economic and environmental burden to the consumers and the planet.

Centralized energy is found in the form of electric utility companies that generate power from "central" power plants. Central power plants are highly inefficient, averaging only 33% net system efficiency.  This means that the power coming to your home or business - including the line losses and transmission inefficiencies of moving the power - has lost 75% to as much as 80% energy it started with at the "central" power plant.  These losses and inefficiencies translate into significantly increased energy expenses by the residential and commercial consumers.

Decentralized Energy
is the Best Way to Generate Clean and Green Energy!

How we make and distribute electricity is changing!

The electric power generation, transmission and distribution system (the electric "grid") is changing and evolving from the electric grid of the 19th and 20th centuries, which was inefficient, highly-polluting, very expensive and “dumb.”

The "old" way of generating and distributing energy resembles this slide:

Some customers will choose to dis-connect from the grid entirely. (Electric grid represented by the small light blue circles in the slide below.)

Typical "central" power plants and the electric utility companies that own them will either be shut-down, closed or go out of business due to one or more of the following: failed business model, inordinate expenses related to central power plants that are inefficient, excessive pollution/emissions, high costs, continued reliance on the use of fossil fuels to generate energy, and the failure to provide efficient, carbon free energy and pollution free power.

Carbon free energy and pollution free power reduces our dependence on foreign oil and makes us Energy Independent while reducing and eliminating Greenhouse Gas Emissions.

What is Peak Shifting?

Peak Shifting is a highly cost-effective method of reducing electric utility expenses. When electric utility commercial or industrial customers use electricity can make a big difference on their monthly electric bills. By shifting the time of day that electric power is used, a commercial or industrial customer can reduce their " demand charge" portion of their electric bill during peak times of the day. This reduces the overall cost of power each month for the customer.

Unlike most products, electricity can’t be stored after it's generated. Electricity must be generated - and consumed - at the time of demand by a utility's customer. Electricity usage continuously varies throughout the day, and varies from month-to-month and season-to-season. Each day, there are "peak" demand periods of usage during which time the electric utilities must generate additional amounts of electricity to meet these peak demands for all of their customers.

To meet this additional peak demand for electricity utilities use “peaking generators” also called "peaking plants" or simply "peakers." These peaking plants are the least efficient methods of generating power, meaning they generate less power with more fuel (and their associated greenhouse gas emissions) compared with the utility's base-load generators. These peaking plants typically burn oil or natural gas to produce the electricity and are brought on line only during "peak periods" of the day and run for short periods.

While peaking generators generally cost less to build than other types of generators, they also have relatively high fuel costs because they are typically much less efficient in the use of fuel.

Therefore, "
Peak Shifting" is a method that addresses shifts the time of day when electricity is used, reducing the need for peaking plants and can reduce a commercial or industrial customer's electric bills, if correctly implemented.

What is "Trigeneration"?

Trigeneration is the simultaneous production of three forms of energy - typically, Cooling, Heating and Power - from only one fuel input. Put another way, our trigeneration power plants produce three different types of energy for the price of one.

Trigeneration energy systems can reach overall system efficiencies of 86% to 93%.  Typical "central" power plants, that do not need the heat generated from the combustion and power generation process, are only about 33% efficient.

Trigeneration Diagram & Description
Trigeneration Power Plants' Have the Highest System Efficiencies and are 
About 300 % More Efficient than Typical Central Power Plants

Trigeneration plants are installed at locations that can benefit from all three forms of energy.  These types of installations that install trigeneration energy systems are called "onsite power generation" also referred to as "decentralized energy."   

One of our company's principal's first experience with the design and development of a trigeneration power plant was the trigeneration power plant installation at Rice University in 1987 where our trigeneration development team started out by conducting a "cogeneration" feasibility study.  The EPC contractor that Rice University selected installed the trigeneration power which included a 4.0 MW Ruston gas turbine power plant, along with waste heat recovery boilers and Absorption Chillers.  A "waste heat recovery boiler" captures the heat from the exhaust of the gas turbine.  From there, the recovered energy was converted to chilled water - originally from (3) Hitachi Absorption Chillers - 2 were rated at 1,000 tons each, and the third Hitachi Absorption Chiller was rated at 1,500 tons. The Hitachi Absorption Chillers were replaced shortly after their installation by the EPC company.  The first trigeneration plant at Rice University was so successful, they added a second 5.0 MW trigeneration plant so today, Rice University is now generating about 9.0 MW of electricity, and also producing the cooling and heating the university needs from the trigeneration plant and circulating the trigeneration energy around its campus.

Trigeneration Chart
Trigeneration's "Super-Efficiency" compared 
with other competing technologies
As you can see, there is No Competition for Trigeneration!

Trigeneration power plants are the ideal onsite power and energy solution for customers that include:  Data Centers, Hospitals, Universities, Airports, Central Plants, Colleges & Universities, Dairies, Server Farms, District Heating & Cooling Plants, Food Processing Plants, Golf/Country Clubs, Government Buildings, Grocery Stores, Hotels, Manufacturing Plants, Nursing Homes, Office Buildings / Campuses, Radio Stations, Refrigerated Warehouses, Resorts, Restaurants, Schools, Server Farms, Shopping Centers, Supermarkets, Television Stations, Theatres and Military Bases.

At about 86% to 93% net system efficiency, our trigeneration power plants are about 300% more efficient at providing energy than your current electric utility. That's because the typical electric utility's power plants are only about 33% efficient - they waste 2/3 of the fuel in generating electricity in the enormous amount of waste heat energy that they exhaust through their smokestacks.

Trigeneration is defined as the simultaneous production of three energies: Cooling, Heating and Power.  Our trigeneration energy systems use the same amount of fuel in producing three energies that would normally only produce just one type of energy. This means our customers that have our trigeneration power plants have significantly lower energy expenses, and a lower carbon footprint.


Press Release
Feb 14, 2012 
Washington, D.C. 
by the Renewable Energy Institute 

HR 4017, the Smart Energy Act, was introduced in the U.S. House of Representatives by Representatives Charles Bass (R-NH) and Jim Matheson (D-UT).  The Smart Energy Act seeks to establish financing mechanisms for energy efficiency retrofits for buildings and also to set a national goal to double the amount of power generated by CHP Systems which includes cogeneration and trigeneration systems, to 170 Gigawatts by 2020.

"Net Zero Energy" to Become $1.3 Trillion/year Industry by 2035

Demand Side Management Solutions

Absorption Chillers  * CHP Systems  *  Net Zero Energy  *  Solar Cogeneration  Trigeneration

"Changing the Way the World Makes and Uses Energy"






Net Zero Energy Market to Become $1.3 Trillion/year Industry by 2035

Net Zero Energy Buildings Are Coming - What About The Buildings Already Standing?

CHP Systems  *  EcoGeneration  *  Geothermal  * Net Zero Energy 
Solar Cogeneration  *  Solar Trigeneration  *  Waste Heat Recovery




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