Load Management
Muhammad Taha Ramzan (18L-1917)
*FAST-NU, B-block Faisal Town, Lahore, Pakistan
Abstract—Rise in urbanization and industrialization has resulted in
unremitting increase in energy demand, especially the generation
sector has faced unceasing strain to meet ever increasing demand. In
the past, the increase in load was rectified by installation of new
power generation facilities which resulted in disastrous
environmental and socio-economic consequences. Widespread
awareness and concern regarding these consequences has forced all
stakeholders to find an ecofriendly long term solution. Load
management techniques and the combine efforts of all the
stakeholders have the potential to address these concerns. Load
management is a widely researched and discussed area and there
exist multiple proposed theories on how to achieve load
management. This paper in an effort to elucidate load management
discusses demand side load management, supply side load
management, facts and details of different aspects of load
management including environmental, economic and ethical aspects.
Careful consideration of all these aspects of load management sheds
a light on the possibilities for a future with efficient use of natural
resources and an ethically and economically sound electricity
infrastructure. The goal for such an infrastructure is to achieve
stability based on policies designed for optimal productivity,
utilization and efficiency.
Keywords— Smart Grid, Load management, Demand Side
Management, Supply Side Management, Load Management
Technologies, Demand Response, Load Reduction, Power
Infrastructure
I. INTRODUCTION
There are numerous problems in the current power
infrastructure and research is ongoing to overcome them. A
significant number of these problems are related to the generation
strain and consumption of electricity. These problems can be
tackled by the use of Load management (LM) techniques. LM
essentially means managing loads in such a way that peak demand
becomes manageable by diverting or even delaying loads by
effective demand and supply side monitoring, scheduling and
responsiveness. LM is a set of goals engineered to manage and
customize the demand patterns of several customers. Such
adaptation allows the supply side to meet the continuously varying
demand in the most economic and efficient way.
The core purpose of LM systems is to decrease peak demand
to a standard and stable value so that it can be met every day, in all
seasons year-round. LM schemes aid in economizing operations
by achieving optimum utilization of transmission and generation
capacities. LM in no way strives to reduce the total electricity
consumption, instead it aims to modify and optimize the electricity
usage pattern.
LM can be applied at both supply (SSM) and demand (DSM)
sides and it plays a crucial role in how our power infrastructure
works and how it may be improved [12]. LM techniques and
methods have two main classifications, direct and indirect load
management. Direct load management (DLM) consists of directly
switching different electric appliances on or off by the use of
technology such as automation and advanced AI systems. In this
way service requirements can be met without the unremitting use
of electricity. Indirect load management (ILM) consists of
economic methods such as multiple pricing and tariffs
mechanisms that encourage customer to optimize demand [12].
This paper covers load management by discussing supply and
demand side load management, different aspects of load
management including economic, environmental and ethical
aspects. Figure 1, outlines the structure of this paper:
Figure 1: Paper Structure
Different sections in this paper examine load management in
an extensive perspective by taking multiple aspects under
consideration. Section II contains literature survey of different
research papers related to LM. Section III and IV discuss the
supply and demand side load management. Section V to VII
contribute to economic, environmental and ethical aspects of load
management respectively. Lastly, Section VIII presents the
conclusions drawn, their implications and future research
potential of LM.
II. LITERATURE SURVEY
A number of papers have been published related to load
management and this number is increasing day by day. The reason
for this increase is that load management is an existing problem
and researchers have yet to agree on a standard approach to solve
this core area of our power infrastructure. In this section we will
be discussing different papers published during recent years
related to load management.
With the help of recent advancements in technology our meters
are more than just a device for recording and billing units, rather
they are beginning to become part of automation and monitoring
infrastructure (AMI) [1]. Smart grid requirements for load
management can be realized by the help of AMI. There is an
important relationship between demand and supply side of our
power infrastructure and without discussing this relationship, the
impact of any research will be incomplete. By simultaneous
demand and supply side load management optimal load
management can be accomplished [2], [16]. The increase in
electricity demand has put substantial strain on the supply side.
Generation is especially affected by constantly exceeding energy
demands [3]. Significant progress can be made by focusing on
supply side control technologies [18]. Unpredictability has been a
serious challenge for the design, development and maintenance of
power infrastructure. Dynamic energy management and
distributed generation when implemented together may help
eradicate load management challenges faced in our current power
infrastructure [4].
Demand side load management can only be achieved by
demand response plans developed and implemented by the supply
side to encourage demand side to change their energy consumption
in response to time and load dependent pricing by awareness and
incentives [5]. Early warning can aid in reducing and eliminating
drastic measures such as load shedding and may help manage
loads in real time. Many existing technologies may be
implemented in an effort to achieve effective grid planning
especially notification of large loads such as ACs [6]. Load
scheduling can impact the overall load management of the system.
A realistic framework for load scheduling may aid individuals to
implement operation schedule for household appliances [7]. Role
of communication in smart grid is crucial for automation, control
and data collection. A scalable web service model is needed to
cater ever increasing communication requirements and to reduce
additional load on the current communication infrastructure by
smart grid [8].
Motivation of individuals may vary depending on numerous
economic and non-economic variables [17]. Study of different
levels of altruism can untangle the human factor in load
management [9]. Response time calculation and estimation is
critical for load management and can provide an insight on the
current technological limitations and future requirements [10]. The
dependability and reliability of supply side may be established and
ensured by reevaluation of power factor techniques for nonlinear
loads and effective demand response [11]. Reduction of negative
impact on environment with respect to load and variations in load
can be achieved by studying effects and contribution of load
management on the environment [12], [20].
Load management techniques such as incentives can alter the
load curve and may effectively increase efficiency and reliability
of the power infrastructure [13]. Dynamic and real time
adaptability of distribution system can be realized through short
period load predicting based on support vector regression [14],
[19]. Analyzing the history of load management techniques and
policies provides an insight that is valuable to determine
requirements and changes that need to be addressed in future load
management strategies [15]. Economic growth in a country
demands high level of energy [21]-[23]. To sustain that economic
growth, improved load management policies aimed to progress the
economic conditions of countries should be applied [24]-[27].
III. SUPPLY SIDE LOAD MANAGEMENT
Supply side management (SSM) is the effective management
of electricity generation, transmission, distribution and load
management. Supply infrastructure includes generation facilities,
transmission network, substation, control centers and distribution
network [3].
SSM entails measures taken at the supply side to meet the
demand. Previously, increased generation was the focus of the
supply side and generation was continuously increased in
proportion to the increase in the demand. Nowadays, SSM refers
to designing of various techniques and policies along with their
implementation on the demand side for load management purposes
[11]. These policies, techniques and technologies include direct
load control of agriculture pumps and HVACs, dispatch load
management (DLM) [11], Interruptible load control, time of use
[3], rebate programs, distributed interruptible load shedding
(DILS) [3], smart metering, base and peak load management and
energy storage technologies for example pumped hydro,
compressed air energy storage and thermal storage [12].
Supply side also uses rebate programs by giving incentives for
higher power factor and penalties for exceeding demand threshold
and low power factor. Smart metering is useful for consumption
and demand monitoring as well as effective and accurate billing.
Time of use (TOU) is a powerful tool that supply side can use by
implementing time of day tariffs to influence better load
management by end users.
IV. DEMAND SIDE LOAD MANAGEMENT
Demand side management (DSM) is the smart use of efficient
appliances by the end user in an effort to transfer demand from
peak to off peak hours [3]. Demand side load management
includes actions taken by the end user to manage loads and to
reduce stress on the supply side to meet energy requirements.
Demand side load management is usually stimulated by the
supply side.
DSM refer to the application and employment of policies and
guidelines intended to impact consumers so that load curve of the
supply side may be altered to generate electricity efficiently.
DSM comprises of both technological and socio-economic goals
and measures, since it is directly linked to the behavioral subject
of the society [12].
In some cases of demand side management companies
regulate and control some consumer machines during peak load
[15]. DSM policies are engineered to achieve specific goals and
objectives including planning goals and load shape objectives.
The planning goals comprise of reduction in risk, expenses and
funds requirements in addition to improved financial conditons
and prospects of reduction in charges for customers. The purpose
of the load shape objectives are to achieve load shifting, valley
filling and peak clipping. DSM opportunities that are likely to
increase productivity and efficiency must be determined,
appraised and employed [11].
V. ECONOMIC ASPECTS OF LOAD MANAGEMENT
A suitable and steady supply of power or better load
management may prove to be one of the critical factors which
may result in economic growth in developing countries. The
relationship between load management and economic
development is extremely important.
Whenever there is economic growth in a country it demands
high level of energy and vice versa. In order to sustain that
economic growth, improved load management policies aimed at
progress to the economic conditions of countries should be
applied. Such policies may be attained through appropriate mix
of energy taxes and subsidies [21]. A determining role in
achieving competitiveness, security of supply, and environmental
protection is played by the energy policy. Similarly, it is a crucial
element in the economic and social consistency of the economic
market. If the industrial customers exercise load management,
they can evade higher energy buying costs and can also benefit
from evaded support costs related with the network. This can be
done either through a contract arrangement with the supplier or
through avoided maximum demand charges.
The load management can directly impact the economic
development situation in an economy. This important function of
load management in financial growth and development is visible
in the quantity of empirical research and policy interest it has
generated over the recent years. For policy makers to locate
methods of enhancing energy use, efficiency, and electricity
saving policies for sustainable development, it is of instructional
and empirical importance to research and unquestionably admire
the link between energy consumption and industrial growth.
A structural model signifying that price range or investment
in energy systems in Sub-Saharan Africa has been liable for one
1/3 of general financial growth [27]. Additionally, use of
lightning density as a device to measure electricity shortages in
Sub-Saharan Africa resulted in the conclusion that during 1995
and 1997, a one percent boom in outages decreased long run GDP
per capita by way of 2.86 percent [24].
Investment in load management plays a crucial function in
economic prosperity and stability of a country. Rural electricity
right of entry have pronounced to have reached 61% through
1978, despite the fact that the great quantity of deliver is limited.
A massive-scale funding application brought rural energy
admission to 97% through 1997 [26]. Improvements in the
reliability of supply can additionally contribute to economic
growth. Countries with greater funding in rural power
infrastructure and load management experienced quicker poverty
reduction and higher incomes [25].
The World Bank (2016) concludes that investment in
electricity load management has been the key structural
motivation force of Ethiopia’s boom. Ethiopia is currently
constructing the biggest hydroelectricity facility in Africa, the
Grand Ethiopian Renaissance Dam and has simultaneously
invested heavily in the load management schemes.
Pakistan suffered with unadorned scarcity of energy supply
and load shedding in the last decade. The lack of electricity load
management is one of the foremost hindrance to the country’s
financial development. With better load management Pakistan
can eradicate load shedding and annual gross domestic product
can increase by almost 7 percent. The dreadful outcomes of lack
of load management have been seen in the decline of financial and
economic investment in the country. With better load
management, investment could have been forty eight percent
higher which would have improved Pakistan’s economy greatly.
Without a planned and standardized load management scheme,
Pakistan will continue to go through heavy monetary losses.
VI. ENVIRONMENTAL ASPECTS OF LOAD MANAGEMENT
The dawn of industrialization has resulted in continuous surge
in energy consumption all over the globe. Even though, this
unremitting growth plays a significant part in the socio-economic
progress of the world it has also resulted in numerous harmful
effects on the environment including disastrous surge in emissions
and over exploration and exploitation of natural resources.
Electricity generation and resource allocation continuously
fluctuates with respect to the electricity demand. Multiple
generation sources may be engaged to balance the load (demand)
which results in varying environmental impact. Environmental
aspects of load management become abundantly clear when LM is
thought of as a substitute to installation and operation of fossil fuel
powered generator for compensation of peak loads. The
advantages of LM become further illuminated by consideration of
CO2 emissions and the reduction of these unfavorable gases which
can be achieved by using LM as an alternative to generator peak
power production.
Employment of energy conservation methods such as usage of
energy efficient light bulbs may aid in the reduction of peak
demand and load consumption. In such scenarios energy
conservation and efficiency efforts can be thought of as LM
measure. Figure 2, illustrates the analysis strategy and relationship
between LM and its environmental impact:
Figure 2: Analysis Frame [12]
Supply side developed LM policies such as strategic
conservation plans which focus on energy efficiency may
encourage demand side to reduce load during peak and off peak
hours alike. This can potentially decrease fuel utilization for
increased generation and hence reduce emissions [12].
 It is in the strategic interest of every nation of the world to
implement ecofriendly renewable electricity generation and
supply infrastructure which may enable continuation of socio-
economic progress along with conservation of natural resources
and protection of the environment.
Efficiency and renewable power sources are of crucial significance
for achieving environmental protection, stability and sustainability
with respect to power infrastructure. The implementation of
reliable, imaginative and consolidated load management policies
is tremendously significant in order to achieve sustainable
environment without creating substantial socio-economic burden.
Figure 3: Influence of load management on environmental
performance of electricity infrastructure [12]
The objective of the figure 3, is to categorize different
approaches through which LM impacts the environment. LM aids
in accomplishing the following effects in the electricity
infrastructure: reduction in peak unit operation, avoidance of
additional production sources, optimal base generation unit
operation and motivation for renewable distributed generation.
These effects of LM result in impacting the environment by
preservation of landscape and reduction in emissions.
In order for the future generations to see landscapes and
historical assets in the same way that preceding generations have
done, all stake holders should ensure compliance with increasing
energy management requirements such as the Revised Energy
Saving Act ISO14000, and ISO50001. Additionally, they have to
respond to the carbon footprint system that requires marking for
CO2 emissions [20].
VII. ETHICAL ASPECTS OF LOAD MANAGEMENT
The environmental costs of electric power production are
substantial and all stake holders have an ethical duty and
responsibility for the results of these concerns. From the
perspective of the user, demand side load management plans
embody a non-coercive methodology towards efficient use of
electricity when taken in contrast with government enforced
efficiency guidelines and regulations. The load on the grid is
caused by the consumer and this problem is uniquely in control of
the user. In this regard consumer financed LM policies have
ethical basis in the principal that the polluter should pay. Another
argument in favor of consumer funded LM policies is that
promotion and awareness will benefit the consumer because DSM
policies depend on voluntary participation of the consumer.
Funding for load management and electricity efficiency
policies is a very important question and only an ethical solution
to this problem can result in wide spread adaption of LM policies.
Numerous arguments can be presented in favor and in
contradiction of funding from all the stake holders including
utilities, consumers and the government.
Historical, supply side had exceptional advantages and
abilities to encourage public awareness towards load management
and energy efficiency policies including access to investment,
appreciation among consumers, acknowledgment of competency,
and access to comprehensive usage data and structure for
charging consumers for services. Retail monopolies have reigned
over the energy sector’s supply side. Lack of oversight and
disinterest of the local government left utilities to their own
devices and public interest were neglected including ethical
obligations of the supply side to provide the best possible service
at optimal and competitive rates. Supply side in principal operates
on behalf of the demand side and LM can only be possible if
supply side ethical obligations are aligned with their financial
interests [15]. This also gives rise to the question that should
supply side continue to have monopoly and significant control
and if they will have enough motivation to install DSM policies
for the good of the public instead of their personal benefit.
The ethical dilemma of control and administration of demand
side programs is a serious concern for all the stake holders and by
insuring fairness LM can see widespread adaption. Demand side
funding for DSM plans nurtures the question of who would
control DSM plans in the future.
LM policies focused on ethics and justice should contain
emphasis on fairness of energy distribution and equality in the
quality of service. This fairness will enable right to policymaking,
nurturing of contribution of smaller stake holders and a broader
discussion on the reasons and types of inequality in the current
structure. It can also indicate plans and goals for the future. Load
Management resolutions are often made in a moral void,
climaxing in a strong normative situation for uniting the
transitions of technology with notion of energy and load
management justice. Fairness needs to be at the core of strategy
for rising energy demand.
VIII. CONCLUSIONS
Load management has to be a key part of the present and
future of our energy infrastructure. Focusing on the technologies
being utilized in the execution of load management we can
conclude that different technologies will have to be employed in
order for LM to be effective at a larger scale. With regards to
technology load management has five major concerns in
collection of accurate and reliable, communication of collected
data related to load, processing of the large quantity of data in real
time, automation and response time for taking dynamic actions in
real time based on the processed data. Smart meters in automation
monitoring infrastructure in order to gather data that can be used
for automation and prediction. Scalable web service model for
communication challenges may help remove overwhelming strain
on the current communication infrastructure. Unpredictability is
an important issue in load management and can be solved by early
warning, load scheduling & dynamic load management.
There is a complex but vital Relationship between supply and
demand side and focus on the supply side includes development
of policies and strategies whereas demand side refers to user,
where these policies and strategies are implemented. Supply side
should plan more incentives in order to encourage demand side to
apply the required LM scheme. The supply side must make
sacrifices through rate reductions or interest-free funding for Introduction
particular technologies linked to load management and consumers
must sacrifice by changing their routine and lifestyle. LM can
make utilities internationally competitive and this will result in
modernization of the power infrastructure. Financial sacrifices by Literature Survey
government are necessary to encourage load management actions
from both utilities and end users. In simpler terms, LM is a give-
and-take practice. Simultaneous supply and demand side
Supply Side Load Management
management will allow for optimal load management.
Economic and political motivation has a key impact on load
management including the question of funding and willingness of
government, utilities and end users. There is a strong association Demand Side Load Management
among electricity load management and economic development.
Consumers can evade higher energy buying costs and can also
benefit from evaded support costs related with the network by
using LM techniques. Interest in load management can be Economic Aspects of Load Management
increased by motivating users through effective campaigns,
policies and incentives. This can help increase the adoption and
participation in LM. Human factor and altruism i.e. selfless
concern for the well-being of others in another important part of Environmental Aspects of Load Management
understanding the complexities of load management for example
change in lifestyle of end user in order to implement load
management techniques by sacrificing their individual
preferences over public benefit. Ethics is a chief concern in load Ethical Aspects of Load Management
management and it raises valid questions regarding the
administration, control, fairness and accountability of LM
policies. Every stake holder must accept and realize their rights
and responsibilities. Ethical standardization of polices and Conclusion
Incentives is vital for visibility, which will result in improvement
of policies. Fairness needs to be at the core of strategies and Figure 1: Paper Structure
policies for load management. Reduction of negative impact on
environment can be achieved by load management by reduction
in emissions and wastage. All stake holders should adopt load
management and ensure compliance with environmental
regulations and standards in order for the future generations to see
landscapes, experience nature and breathe in a clean atmosphere
in the same way that preceding generations have done. Load Effects in Environmental
Management energy sector impact

Figure 2: Analysis Frame [12]


Figure 3: Influence of load management on environmental
performance of electricity infrastructure [12]
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