DA/DSM profitability in a deregulated market environment

The electric utility industry is undergoing a tremendous change in Norway as well as in other countries world-wide. There is currently a rapid movement towards privatisation and competition, and major structural changes in the industry are leading to changes in the role of utility-sponsored demand side management (DSM). These changes may affect utility motivations and perspectives and further, also influence the roles played by other parties, such as governments and energy suppliers. This paper has two primary objectives. The first is to discuss the motivation for implementing distribution automation and sponsored demand side management (DA/DSM) in a deregulated market environment. The second is to discuss the benefits of DA/DSM in the Norwegian deregulated market environment.