Impact on power planning due to demand-side management (DSM) in commercial and government sectors with rebound effect—A case study of central grid of Oman

This paper presents the results of a study that estimated the DSM energy saving and load management potential in commercial and government/institutional sectors in Oman (central grid area) and evaluated its impact on generation capacity and energy savings. The end-use (lighting and air-conditioning) energy consumption data have been collected in two major segments of the commercial sector for simplicity and to save time and money. Another unique aspect of the study is the inclusion of the energy savings, in transmission and distribution (T&D) losses that are estimated by using generation expansion planning approach. The study has found that DSM is financially beneficial from customers’ point of view as the discounted payback period of investment in efficient lighting and air-conditioning is between 4 and 12 years of the surveyed sample. From the utility point of view the capacity saving at the horizon year is between 372 and 596 MW and the overall energy saving for the whole planning horizon is about 29–44 TWh. The total avoided cost in generation and capacity saving is somewhere between 416 and 597 million dollars.