Demand-side management (DSM) studies include demand response evaluations that focus on altering the need for new capacity and energy management, which may include load factor improvement and conservation as objectives. Many energy management programs were initiated in the 1980s to increase the capacity factors of baseload generators. Facing the current needs for new baseload generation, many utilities and regulators are now promoting or requiring aggressive conservation initiatives as a pre-condition for issuance of certificates of need for both new generation and transmission. With the intense focus on climate change, the emphasis on cost-effective DSM has also intensified.
DSM components and definitions