Research On Shandong DSM Economic Incentive Mechanisms

As China’s economy continues to develop, power industry as the vanguard of the policy---electric power develop first to support economic development, also has been developed by strides. Despite the fact that the amount of energy production and consumption in China has reached a greatly high level, the reality is that the average energy resources per capital and energy efficiency are still very low, and the energy use has incurred serious environment pollution. The rough economic development mode(high energy and resource input, high emission, low energy efficiency)has not yet changed. Recently as the economy continues to grow, the bottle-neck problem in electric power industry has become more and more dramatic, which can be demonstrated as follows:more and more inharmonious relationship between electric power price and coal price, regular and occasional electricity-cut time. The problem has posed great bad effect on the normal economic development and people’s regular lives. To solve the problem, not only we should build more power plants, but also we should strengthen demand-side management.Demand-side Management is designed to develop power projects reasonably, allocate power resources efficiently, improve energy end-use efficiency and save electric power and energy. Demand-side Management will not only solve the shortage of electricity supply, it is also an important mean for China to execute the national policy that China should put energy-saving in a priority status. In addition, Demand-side Management is an important way to reduce pollution, protect the environment, reduce enterprise costs and promote social and economic sustainable development. So it is of great significance to strengthen demand-side management.This paper includes five main chapters:the concept, origin and the development of demand-side management and so on will be introduced in Chapter1; In chapter2, the management goal and characteristics of DSM are analyzed, and the technique means and related ancillary support means are summarized at the current social development level. In chapter3, the subjects that were analyzed are as follows:the present economic situation, the characteristics of Shandong power source and Shandong power grid, and Shandong seasonal and daily load characteristics.in the fourth part, the policy design intended for industrial institutions and inhabitants is introduced from the radical economic perspective, referring to governmental compensation, bank interest rate credit, finally the models of technique economic on DSM investment is given.In chapter5,some suggestions and the foresee on DSM are given.