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Designing Industrial DSM Programs that Work
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There are many reasons why industrial customers do not implement all cost-effective efficiency measures on their own. Utility demand side management (DSM) programs can help overcome some of these barriers. DSM programs provide an opportunity for utilities to reduce the cost of providing energy services while helping customers to reduce their energy bills and thereby increase profit margins and competitiveness. A review of utility experience with industrial DSM programs shows that some types of programs work much better than other types. Successful efforts include both custom and prescriptive components that show an understanding of the customers perspective, use marketing that is personal and user-friendly, provide flexibility, and include financial incentives. Among the less successful programs are programs that do not address customer needs, including information-only, loan, and shared savings programs. A number of other program approaches are largely untested and merit further experimentation. Based on these findings, we recommend that utilities and industrial customers work together to design DSM programs that serve the needs of industrial customers.
Nadel, S. M.; Jordan, J. A. (1994). Designing Industrial DSM Programs that Work. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from