Designing a Model for Demand Side Management in Electricity Sector Based on Collaborative Governance

Document Type : Research Paper

Authors

1 Associate Prof., Department of Public Administration, Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Ph.D. Candidate, Department of Public Administration, Faculty of Management & Accounting, Allame Tabataba’i University, Tehran, Iran.

3 Prof., Department of Public Administration, Faculty of Management & Accounting, Allame Tabataba’i University, Tehran, Iran.

Abstract

Objective
Demand Side Management (DSM) in electricity energy is a pivotal strategy for governments aiming to effectively control the timing and amount of energy consumption during critical periods of peak load. While consumers from various groups play a crucial role in the efficacy of DSM, the majority of DSM programs have traditionally focused more on technical aspects, such as the development of intelligent networks or the implementation of smart metering systems. This study, however, aims to shift the focus towards the social aspect of DSM strategy by conducting a thorough analysis of consumer capacities in successful DSM programs. It seeks to develop an innovative model for Demand Side Management in the electricity sector, integrating a collaborative governance framework into its core. This research is both developmental in nature and applied in terms of its specific objectives.
Methods
This comprehensive study unfolded in two distinct stages. The qualitative stage, rooted in a constructivist approach to grounded theory, involved the development of a DSM model. This model emerged from a coding process applied to data obtained through semi-structured interviews with academic and executive experts across universities, government bodies, and the private sector. These experts were meticulously selected through purposive and snowball sampling methods, and the interviewing process was continued until theoretical saturation was attained. A total of 19 interviews were conducted, culminating in a DSM model that takes into account the unique situations and complexities characteristic of Iran’s electricity sector. The quantitative stage aimed to validate the DSM model from the first stage. For this purpose, experts from Iran’s power ministry were invited to provide their insights on the model through a specially designed questionnaire, which was formulated based on the variables of the model. The data thus gathered were analyzed using Structural Equation Modeling (SEM) and SMART-PLS software. The sample comprised 198 individuals, determined as statistically significant according to the Cochran formula, with participants chosen via simple random sampling.
Results
The study's findings highlighted four critical variable categories pertinent to DSM governance: Initiative Conditions, Governmental Strategies, Collaborative Cycle, and Consequences. Each category comprised three essential components, underscoring the complexity and multi-faceted nature of effective DSM governance.
Conclusion
The outcomes of this study underscored the significant role that a collaborative framework plays in the success of DSM programs, particularly under specific and important conditions. The strategies employed by Iran’s power ministry were found to be integral, serving as a key moderating force in aligning DSM programs with the diverse motivations of various consumer groups, encompassing both financial and technical drivers. Moreover, the study revealed that not only do governmental strategies contribute significantly, but the collaborative cycle among consumers also plays a pivotal moderating role in realizing the goals of DSM. This includes effectively reducing peak load during periods of high electricity consumption. Additionally, this collaborative cycle was shown to enhance Initiative Conditions, fostering improved interaction among diverse groups of electricity consumers in DSM programs and defining a clear, structured process for cooperation. Ultimately, the study strongly supports the argument that incorporating the social aspect into DSM can significantly bolster the effectiveness of its programs, offering a more holistic approach to managing energy demand.

Keywords

Main Subjects


 
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