Author/Contributor: Pembina Institute
Alberta Context: This report, produced in partnership with Alberta Ecotrust, compared demand-side management (DSM) frameworks across four jurisdictions: Wisconsin, Ontario, California, and Texas. As Alberta currently has no formal DSM programs, the comparative analysis explores how DSM could be applied in Alberta.
Summary:
Demand-side management (DSM) programs are widely used across electricity systems to reduce peak demand and manage overall system costs by influencing electricity consumption. These programs typically include energy efficiency and demand response, as well as other demand-side resources that help electricity systems meet customer demand more efficiently. As electricity demand grows and grids evolve, many jurisdictions are expanding DSM as part of broader electricity system planning.
The assessment highlights several structural elements that could inform future discussions on DSM legislation and implementation in Alberta. The jurisdictions examined demonstrate multiple approaches to program administration, regulatory oversight and program funding that could be adapted to different electricity system structures.
Key findings:
- Institutional arrangements vary across jurisdictions, including how DSM programs are funded.
- DSM programs are established through legislation or ministerial direction, establishing the institutions responsible for program delivery, oversight and funding.
- Regulatory oversight and independent program evaluation are core components of DSM frameworks.
- DSM programs have demonstrated measurable customer and overall system benefits, including reduced electricity consumption, reduced peak demand, avoided infrastructure investments, and bill savings for all customer classes.
