The significance of Demand Side Management (DSM) application in Shangh
ai compared to the present situation of electricity supply shortage an
d enlarged peak load demand, was described, Given the future power dem
and and DSM resource potentials of electricity and power saving, the c
ost-effectiveness of DSM application was assessed by using critical in
dicators, ie averaged unit cost of electricity saving and unit cost of
avoided peak load capacity, The assessment showed that, DSM will cont
ribute to the noticeable saving in electricity and avoiding in peak lo
ad capacity and will mitigate the pressure of the new power supply cap
acity demand on the Utility in Shanghai in a lower cost than the cost
for new capacity installation. (C) 1997 Published by Elsevier Science
Ltd.