Abstract
M.Comm.
The aim of this dissertation was to determine the potential of Demand Side Management (DSM) and its merits as a short to medium term response in wake of the current electricity supply crisis in South Africa. The research focussed on the different types of DSM alternatives used locally and internationally.
Electricity is of great importance to any economy, and is the key input to industrial processes and hence economic growth. Since 2008, South Africa is facing a shortage of generation capacity. The study focussed on demand for electricity by sector and discussed the different types of DSM measures which have been used successfully in countries such as Brazil and Mexico.
The results of the study indicate that the residential sector has the most potential for DSM savings. These are savings which can be made without any implementation costs, and merely by changing behaviour and attitudes toward energy efficiency. The target for the residential sector savings is 10%. Results show that this 10% saving in the residential sector is a target which can be easily attained.
In addition, the residential sector has a poor load shape, with high demand during morning and evening peak, placing a burden on the national grid and resulting in the use of expensive peak generation capacity. Reducing residential sector demand for electricity will result in the added benefit of improving load shape.
The study concludes with recommendations to overcome barriers faced by DSM, and also discusses benefits of rolling out RTP pricing to the residential sector.