what is DSM?

Assessing Demand-Side Management Based on Game Theory for the future Smart Grid in China

By Lin Xiqiao

Energy demand side management is interesting in shifting the peak demand to reduce margin cost. Due to the technique innovation such as  Smart Grid and its encapsulate smart functions , demand side management system will take advantages of the two-way digital communicate system. Therefore the behavior of the energy system will reform in the future. 

Demand side management project  interesting in the effect and payoff of shifting the load from peak demand to lower demand , it have been attracted attention since 1972 world energy crisis. Although supply side management like electrical biding market or tariff control on thermal turbine can have some impact in controlling the energy efficiency, it will be harder to continue in the future when renewable energy play a high proportion on the supply side due to its natural characteristic. 
A DSM project could not only have the effect on shifting the peak load but also have some social impact.Due the the characteristic of electricity(electricity cannot be store)  we can use such characteristic to get a better understanding of our economic by DSM. For example we can estimate the number of  empty houses by calculating the number of low consumption electricity bill's house.In the future ,the appear of some applications like smart car will further enhance the requirement of electricity supply service.  
Our project mainly focus on DSM project in China ,which announce its energy efficiency per GDP will increase 20% in the next 5 year. Further more as the biggest growing economic , China consume a lot of energy and create the horrible pollution. A DSM running for the future scenario could help the people better understanding the trend of electricity grow and shifting, have a better view  for the future policy decision and reduce the pollution.