Abstract: In general, reduction of energy usage and its cost is very important to have more reliable efficient system and is one of prime factor in demand side management. Different methods are available to reduce peak demand and in turn to improve the maximum utilization of generated energy and reduction in its cost. This work presents a method of peak clipping used in demand-side management to reduce peak demand and its energy cost. In this method, firstly the values of the maximum and minimum energy demands are determined from daily load duration curve by taking the difference between hourly energy demands on a daily load schedule. Secondly peak clipping is done by the load shifting from period of maximum load to the period of minimum load at various time intervals with approval of customers.

Key Words: Demand side management, Reduction of energy cost, Reduced Peak demand.