About DSM

About Demand Side Management (DSM)

  • For the first time in India, BESCOM started Demand Side Management activity on 05.11.2007.
  • Demand Side Management is a utility program aiming to fine-tune consumer’s energy consumption pattern according to the utility’s energy demand and distribution capacity without compromising consumers comfort.
  • Demand Side Management relies on a combination of using high efficiency equipment and efficient use of electricity through good operating practice.
  • Demand-Side Management is the implementation of policies and measures which serve to control, influence and generally reduce electricity demand.


  1. Reliability and Stability:
    • DSM provides enhanced reliability to the energy system by reducing overall demand through energy efficiency and by reducing peak demand through dispatchable programs.
    • DSM reduces transmission and distribution costs relative to a supply side resource.
    • DSM increases diversity of energy sources.
  2. Low Cost and Affordability:
    • The DSM programs are technology specific and vary relative to other supply side resources.
    • Dispatchable DSM programs can be are called when their cost is lower than alternative market purchases.
    • DSM programs can also help low-income customers to reduce their energy costs

Types of DSM Programs:
Following three factors reduce energy consumption (kWh) and peak demand (kW), however, emphasis differs.

  1. Energy Efficiency-emphasis is on reducing overall energy consumption and also peak demand over several years.
  2. Peak Load Management – emphasis is on reducing peak demand consistently over a season.
  3. Demand Response – emphasis is on reducing peak demand for short periods of time for a few days during the year.