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DSM bidding in competitive markets Dr. Kathrin KALKÜHLER

By Stadtwerke Düsseldorf Ag, Stefan Thomas and Wolfgang Irrek


In competitive electricity and gas markets, DSM bidding can be a good tool for a utility in the product development of energy services for the industrial and commercial sectors. Demand-side management (DSM) bidding has been developed and successfully used in the USA as an innovative type of DSM programme. An electric and/or gas utility issues a call for tenders to large customers and private energy service companies who bid to implement energy efficiency measures at the utility's customers. Thus, DSM measures are delivered in a competitive way, ensuring lower costs and using the full spectrum of available energy efficiency technologies. Such a DSM bidding scheme has been tested for the first time in Europe in a SAVE-sponsored project of Stadtwerke Düsseldorf (a municipal utility serving 600,000 people) with assistance from the Wuppertal Institute for Climate Environment Energy. As the electricity and gas market in Germany is now open for full retail competition, it is not possible to fund the DSM measures delivered in the bidding scheme via the electricity and gas prices as before. Therefore, new ways to realign the business interests of the utility, the bidders, and the customers had to be found. The utility, e.g., is offering to finance cost-effective energy efficiency measures with third-party financing schemes. It is furthermore expecting to contribute to its CO 2 reduction targets and to gain experience in DSM technologies to use in product development for its own energy service activities

Year: 2011
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