WORLD PRACTICE OF DEMAND SIDE MANAGEMENT PROGRAMS IMPLEMENTATION MECHANISMS

Abstract

The article analyzed the development and best worlds practices in implementation of demand side management programs. The results of the European Union Commissions, the Federal Commission on Energy Regulation, the International Energy Agency, and others reports are presented. Despite significant differences in the production-organizational structure of energy systems in different countries, methods for controlling the activity of energy companies and pricing, the mechanisms of local energy systems functioning must provide the appropriate volume of generating capacity on the basis of expected consumer demand and regime requirements to reserve level with the market pricing mechanism to maintain balance and lower energy losses. Analysis of demand side management programs implementation effects proved that the implementation of such programs at the regional level through the application of indirect methods stimulates not only economic development but also enhances environmental and energy security, creates conditions for market transformation. From the regional level point of view, possible effect of the DSM programs implementation, the use of indirect methods stimulates not only economic development, but also enhances environmental and energy security, creates conditions for market transformation. As for the local effect, it is significant reduction of the new energy facilities construction needs and the increase of the overall level of energy supply reliability. Distributed energy resources management systems will become even more complex by providing new opportunities and functions for energy consumers and energy companies. In Ukrainian realities, the issue of implementing best world practices in the field of demand management programs remains open. Against the background of the new electricity market structure, additional competitive advantages for energy companies and financial benefits for consumers is a promising development factor for new and impelled demand management programs.