Demand & Efficiency

In 2008, we will consume 16 trillion kwh of electricity globally. Over the next ten years, demand is expected to grow by 38%. Announced increases in new generation capacity fall far short of the supply required to meet increasing demand. Demand Side Management programs to reduce growth in demand are a critical solution to assure reliable electric supply, vital to sustained economic growth.

There are a number of reasons why the growth of demand is outpacing the ability to supply.

• Higher per capita energy consumption fueling economic growth
• Increased regulatory constraints to protect our environment from global warming
• Increased pressure to keep electricity affordable requiring new solutions to old problems

In addition, the steady quality of power has become as important as the steady supply:

• Increased end-use sensitivity to power quality anomalies, power fluctuations, and brown-outs results in greater customer dissatisfaction
• The digital society requires power quality sensitivity across all customer classes

A proven approach to close the gap between supply and demand is peak demand management. In many cases, ten percent of the electric generating capacity operates less than 80 hours a year to serve peak power demands. Demand can be limited at a fraction of the cost of building a new generation plant. Demand Management is positioned to significantly contribute to bridging the supply and demand gap.