Smart Grids and Energy Storage Systems: Powering the Future of Energy In today’s rapidly evolving energy landscape, the push towards sustainability, efficiency, and reliability is stronger than ever. Traditional power grids, though robust in their time, are no longer sufficient to meet the demands of a modern, digital, and environmentally conscious society. This is where smart grids and energy storage systems (ESS) come into play — revolutionizing how electricity is generated, distributed, and consumed. What is a Smart Grid? A smart grid is an advanced electrical network that uses digital communication, automation, and real-time monitoring to optimize the production, delivery, and consumption of electricity. Unlike conventional grids, which operate in a one-way flow (from generation to end-user), smart grids enable a two-way flow of information and energy. Key Features of Smart Grids: Real-time monitoring of power usage and quality. Automated fault detection and rapid restoration. Int...
If there is no demand for a good there is no need to produce that good. Also if the demand for a good exceeds it's supply there may be need to expand it's production.
Demand Analysis seeks to identify and analyse the factors that influence the demand. Effective demand has three crucial characteristics
* Desire to have a good.
* Willingness to pay for that good.
* Ability to pay for that good.
In the absence of these three characteristics there is no demand.
Definition of Demand:
" Demand indicates the quantities of product which the firm is willing and financially able to purchase at various prices holding other factors constant".
" Demand is a relation showing the various amount of the commodity that buyer would be willing and able to purchases at possible alternative prices during a given period of time, all other things remaining the same".
Types of Demand:
There are large number of goods and services available in every economy classification of demand is important inorder to carry out a meaningful demand analysis for Managerial decisions. The classification of demand includes the following
a) Demand for consumer's goods and producer's goods.
b) Demand for perishable goods and durable goods.
c) Autonomous (direct) and derived (indirect) demand.
d) Individual buyer's demand and all buyer's (aggregate/market) demand.
e) Firm & Industry demand.
f) Demand by market segments and by total market.
a) Consumer's goods and Producer's good's:
Good's and services used for final consumption are called consumer's goods. These include those consumed by human beings (eg: food items). Producer's goods refer to the ones used for production of other goods. (eg: plants& machines, raw materials). Demand for consumer goods depend on individual income and demand for producer's goods depend on production level.
2. Perishable and Durable goods:
Perishable goods are those which perish or unusual after sometime (eg: milk, fish). It can be consumed only once.
Durable goods are used for a long period. In durable goods the services alone can be consumed. (eg: car, refrigerator).
Sales of non durable are made largely to meet current demand. Which depends on current conditions. In contrast sales of durable goods go partly to satisfy new demand and partly to replace old items.
3. Autonomous and Derived demand:
The goods whose demand is not tied with the demand for some other goods are said to have autonomous demand. While the rest have derived demand.
Demand for all producers good's are derived demand.
4. Individual demand and Market demand:
The demand for a good by an individual buyer is called individuals demand.
While the demand for all buyer's in a market is called market demand.
5. Firm and Industry demand:
Most goods today are produced by more than one firm that is called Industry demand.
For eg: car in India are manufactured by Maruti udyog, Hindustan motors, TATA etc.
Demand for one particular company's good is called firm's(company) demand .
eg: Demand for maruti car alone.
The distinction is very important because while there are close substitutes for firms products no such close substitute exists for Industry's product.
6. Demand by market segments and by total market:
If the market is large in terms of geographical spread, product uses, distribution channels, customer sizes etc. The total market demand would mean the total demand for the product from all market segments.while a particular market segment demand would refer to demand for the product in that specific market segment.
eg: Demand for steel for household market segments
Demand for steel for industrial uses total market.