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Load Management

Muhammad Taha Ramzan (18L-1917)

*FAST-NU, B-block Faisal Town, Lahore, Pakistan

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

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