Advantages and Operating Principles
Since electrical energy is a form of energy that cannot be effectively stored in bulk, it must be generated, distributed, and consumed immediately. When the load on a system approaches the maximum generating capacity, network operators must either find additional supplies of energy or find ways to curtail the load, hence load management. If they are unsuccessful, the system will become unstable and blackouts can occur.
Long-term load management planning may begin by building sophisticated models to describe the physical properties of the distribution network (i.e. topology, capacity, and other characteristics of the lines), as well as the load behavior. The analysis may include scenarios that account for weather forecasts, the predicted impact of proposed load-shed commands, estimated time-to-repair for off-line equipment, and other factors.
The utilization of load management can help a power plant achieve a higher capacity factor, a measure of average capacity utilization. Capacity factor is a measure of the output of a power plant compared to the maximum output it could produce. Capacioty factor is often defined as the ratio of average load to capacity or the ratio of average load to peak load in a period of time. A higher load factor is advantageous because a power plant may be less efficient at low load factors, a high load factor means fixed costs are spread over more kWh of output (resulting in a lower price per unit of electricity), and a higher load factor means greater total output. If the power load factor is affected by non-availability of fuel, maintenance shut-down, unplanned breakdown, or reduced demand (as consumption pattern fluctuate throughout the day), the generation has to be adjusted, since grid energy storage is often prohibitively expensive.
Smaller utilities that buy power instead of generating their own find that they can also benefit by installing a load control system. The penalties they must pay to the energy provider for peak usage can be significantly reduced. Many report that a load control system can pay for itself in a single season.
Read more about this topic: Load Management
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