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Integrated Demand Management

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(Read more about the rebates on Solar Water Heating and Heat Pump)

IDM is the process by which electricity utilities achieve predictable changes in customer demand and load profile, which can be considered as alternatives to the provision of additional generation plant.


The main objective of IDM from an Eskom point of view is to improve efficiency by reducing the average costs of generating electricity and better utilisation of resources.

IDM includes load management, peak clipping and energy efficiency

Integrated Demand Management is a world wide initiative

IDM has changed the use of electricity all over the world and offers a very worthwhile solution to an energy crisis. In line with international best practice in Europe, UK, USA and Australia, Eskom is implementing Integrated Demand Management (IDM) in South Africa together with the Department of Minerals and Energy and the National Electricity Regulator. From research and pilots studies done in 1991, Eskom's IDM programme has grown into a concerted national effort targeting three market sectors - residential, commercial and industrial.

The elements of IDM

Energy efficiency without the help of an ESCO is merely investigating your operation to optimise the behaviour of employees operating equipment in your plant. Even though this is a major factor, you need to do more than that to get substantial savings in energy. Improving on the specifications of old technology or establishing whether there are new developments in the market are much more effective. These actions will reduce your energy cost which is a large part of your input costs. IDM encompasses various means to optimise energy utilisation and reduce costs including load shifting and shedding, and alternative energy forms such as electricity, renewable energy, oil, gas and other fossil fuels.

Elements of this include:

  • Power and energy purchase agreements
  • Fuel switching and energy optimisation
  • Energy management systems
  • Walk through audits
  • Investment grade audits
  • Remote monitoring

Who is IDM for?

IDM is applicable to any customer who, through an initial walk through audit, is identified with potential to implement specific initiatives. This includes sectors such as:

  • Commercial sector e.g. (Hospitality sector, Tertiary institutions, Government & private hospitals, correctional services establishments, office parks)
  • Industrial sector e.g. (mining, steel, petroleum etc)
  • Redistributors & Residential sector e.g. (municipalities, residences)
  • Hospitality sector
  • Hotels
  • Tertiary Institutions
  • Government and private hospitals
  • Correctional services establishments

Eskom Energy Services will perform audits to establish the potential within your plant. The audits are undertaken over a period of time to investigate the possibility of the following initiatives within the scope of IDM.

  • Energy efficiency
  • Load shifting
  • Strategic load growth


IDM Project Approval Process

1.   An audit is completed by Energy Services
2.   A proposal is submitted to Eskom IDM department
3.   The project is evaluated by the IDM Project Evaluation Committee
4.   The project is presented at the Capital Investment Committee
5.   A IDM agreement is signed by you and IDM
6.   Pre measurement and verification is done by the IDM department
7.   Evaluation is done by a tender committee
8.   Signing of a contract by you and IDM
9.   Project implementation
10. Post measurement and verification is done by IDM department

Why IDM as a Cost Saving Alternative?

IDM is mainly focused on the reduction of load through the installation of energy efficient equipment or technology:

1. Energy efficient lighting
2. HVAC controllers
3. Energy management systems
4. New technology
5. Renewable energy
6. Co-generation

Load shifting
Load shifting is achieved through the employment of techniques and tariff optimisation within a plant. This can also be achieved through change in employee behaviour or through controller mechanisms which optimise the operation of equipment.

1. Time of use tariff
2. Changing operational hours
3. Controlling of key loads
4. Employer control to change behaviour

Strategic load growth
Often an initiative involving the installation of new technology which substitutes alternative energy sources will require an increase in your demand. Other techniques and tariff options are then employed to off set the costs and to increase the viability of such an initiative.

Technologies which can be used include:

1. Heat pumps for water heating
2. Infrared dryers for drying, curing and heating
3. Dual fuel systems
4. Thermal oil systems for heating
5. Electrode and element boilers to produce steam
6. Induction heaters for melting and forging.

How are IDM Initiatives Costed?

Through Energy Services customers have access to funds from Eskom's IDM department for the purchase and installation of equipment. Based on the merits of the project capital is provided to you for the purchase of the energy efficient equipment you require. We assist by providing you with a comprehensive management, administration and project management service in the preparation of your proposal to acquire funding through the above mechanism.

Our costs are recovered through a project management fee which the IDM department will cover within the funding approved.