Demand-Side Management in China's Restructured Power Industry : How Regulation and Policy Can Deliver Demand-Side Management Benefits to a Growing Economy and a Changing Power System
2005
Hu, Zhaoguang | Moskovitz, David | Zhao, Jianping
China expects its gross domestic product in 2020 to be four times that of 2000. Limits on energy resources and China's environmental needs require that electricity use grow at a much lower rate than the economy. Demand-side management (DSM) is a critical component of China's sustainable development. It is a set of tools and practices taken by utilities to influence the amount and/or timing of customers' energy demand in order to utilize scarce electric supply resources most efficiently. DSM is a proven method of meeting economic goals in an environmentally sustainable way, and it is also a fast and effective way to address power shortages. This report reviews China's experience with DSM, explores the barriers to and the potential for new demand-side investment, and examines successful DSM strategies in other countries. It suggests the near-and long-term regulatory and government policies needed to support substantial new investment in comprehensive, cost-effective programs for end-use efficiency and load management.
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