home ENERGY EFFICIENCY Industry Investments in Energy Suppliers’ Demand-side Management (DSM)

Investments in Energy Suppliers’ Demand-side Management (DSM)


This program encourages energy suppliers in different sectors of energy sources to increase their investments in efficiency improvement projects for direct demand-side energy management. This helps them to conserve energy, accelerate technological development and enhance their competitiveness.


  • Jan ‘95
    The Energy Utility DSM Investment Plan was first established through the amendment of the Energy Use Rationalization Act
    • - Target utilities were Korea Electric Power Corporation (KEPCO), Korea Gas Corporation (KOGAS) and Korea District Heating Company (KDHC)
  • June ‘01
    Due to the structural reform in electricity industry, electricity demand-side management program was run separately on the Electricity Industry Fund pursuant to Electric Utility Act
  • Sep ‘02
    KEPCO was excluded from the target companies due to its plan to be privatized
  • Aug ‘08
    KEPCO was re-designed as the target company
  • Oct ‘10
    Amendments were made to the regulations on the operation of DSM Investment projects
  • Jan ‘11
    The guidelines for the assessment and evaluation of the DSM Investment projects were developed
  • Mar ‘12
    Amendments were made to the regulations on the operation of DSM Investment projects
Definition of demand management of energy suppliers

DSM is management activities of energy suppliers for changing energy consumption patterns of their energy consumers, increasing efficiency in production, transformation, transportation, storage and usage of energy and to lower energy demand and GHG emission.

  • Energy efficiency improvement program
    • - This program is designed to reduce total energy consumption by encouraging energy consumers to use less energy or delivering the same service while using less energy. Investments are made in energy conservation projects including deploying high efficiency facilities and equipment, retrofitting obsolete facilities, promoting high-efficiency technologies and cash-back schemes and installing smart meters.

Energy efficiency improvement program
Concept Overview Projects
graph1 Save energy and increase efficiency

reduce energy consumption and prevent energy load
Encourage energy conservation by replacing existing facilities or insulating new facilities - Cash-back schemes - Installing smart meters - Financial support for insulation of high efficiency equipment - Energy facility audit - Energy efficiency labeling - High-efficiency appliance certification system
  • Energy Load Management Program
    • - This program is designed to increase energy efficiency by minimizing peak load and generating base load so that the efficiency of the energy supplying facility can be increased. Related projects are load levelling projects such as running electricity bill subsidy programs to level loads, applying load clipping technology and promoting fuel conversion technology to create new demand.

Energy Load Management Program
Concept Overview Projects
graph2 Efficient energy supply through load levelling

Minimize peak load and generate base load
Increase efficiency of energy supplying and transportation facilities and minimize energy supply cost through energy demand levelling - Adopting load management technology - Create electricity bill plans by time and season - Promote fuel conversion technologies - Create more base load demand