Abstract: This paper deals with the energy management system. It includes the study of energy efficiency by Demand Side Management (DSM) scheme. DSM represents a revolutionary approach to planning at electric utilities. It introduces the concept of DSM for residential, commercial and industrial energy users. In the later section implementation of DSM, challenges faced by DSM, and benefits of DSM have been discussed which clearly proved that DSM is boon for users, customers and at environment end.

Keywords: DSM, HVAC, IEA, off-peak.