On the possibilities of using demand-side management approach for the power market control in Russian Federation

Abstract

Under current crisis conditions in Russia, operative load management can be considered not only as an alternative to increase of power generation, but also as a survival technique for both utilities and energy consumers. These conditions stipulate the need for new ways of encouraging consumers to participate in demand-side management programs. If load-shedding price suggested by the consumer is lower than that of a generating company, market balancing will take place at a lower electricity cost. The cost savings achieved by reduction of capital and operational expenditures can be invested in innovative upgrade of energy industry.