Page 25 - Energize March 2021

VIEWS AND OPINION

Using demand-side

management to insulate

against rising energy costs

by Philip König, Royal HaskoningDHV

With the National Energy Regulator of South Africa (NERSA) having
recently reached a settlement with Eskom, paving the way for the
utility to increase its electricity tariff by more than 15%, businesses

and homes alike are faced with soaring utility bills.

nstalling renewable energy options which cover energy needs at lower tariffs is not
feasible for all users yet, despite falling costs of these solutions and improved storage
Isolutions. Implementing demand-side strategies could help businesses reduce the
impact of higher energy costs.
Demand-side management is much more strategic than installing motion-sensitive
light switches throughout an office or factory – although that is indeed part of it.
A comprehensive demand-side strategy starts by understanding the consumer’s
demand profile. This is the amount of energy that is consumed at the consumer site over
a certain period (typically 24 hours). This profile is compared with the utility tariff structure
for the same period, with the purpose of reducing and optimising the demand during the
higher tariff periods.
Philip König
This demand profile is also compared to the contracted maximum demand to verify
if it was exceeded and for how long, as this is usually charged at premium tariff, often
leading to unnecessary and unexpected extra costs. Demand side management is, however,
A good start is to examine manufacturing and business processes, to determine not a one-size-fits-all solution for all
what is operating when and for how long. Sometimes a simple change like not starting markets and should be applied as part
all the machinery at the same time can make a difference, as can running some of a more holistic energy management
processes consecutively, instead of in parallel. Shifting production times can also make approach, used to review not only the
a difference, as the utility charges higher tariffs in the early morning and evening peak energy demand, but also energy losses.
demand times. Some industries have already adapted to this and run their high energy These interventions include tariff-linked
processes during the late morning or early afternoon off-peak periods. strategies, thermal capacity approaches,
The possibility of using renewable energy resources and associated storage or even upgrading the insulation of
solutions to supplement or replace the demand during those peak tariff times and roofs, walls, and windows of buildings.
turning to the utility’s power during less expensive off-peak times, is becoming more Implementing steps to avoid losing energy
attractive as the utility tariff increases. via uninsulated buildings, for example,
Smart energy management is one of the solutions which could help commercial could in turn reduce demand – which in
and retail markets manage their demand more effectively. For example, aligning climate turn could reduce costs in line with the
control systems in an airport with the passenger and air traffic can help reduce energy user’s tariff profile.
costs by adjusting the HVAC system’s energy demand based on the number of people Engaging with an expert in energy and
in the facility. demand side management is the most
Information from an airline booking system could predict passenger volumes, cost-effective approach to finding new
which, together with the known thermal capacity of the building, allows a smart ways of working and living; using smart
energy management system to adjust and optimise building systems, saving on asset management to optimise productivity
the energy demand. – and keep energy costs under control. n
Similarly, a smart energy management system could reduce the HVAC energy
demand in shopping malls, which depend on air conditioning for the comfort and Send your comments to
safety of shoppers. rogerl@nowmedia.co.za

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