Study on the theoretical system of DSM

DSM is an effective tool in energy saving,environmental improvement and GHG mitigating for climate change and is an important strategy choice. IRP is the theoretical fundament of DSM and DSM is an important element of IRP. The two construct IRP/DSM theoretical system. In the last 20 years of the 20th century, DSM has achieved significant effectiveness because of the role of IRP/DSM. If we hope it will continue to play the stronger role in the 21th century, we should study IRSP deeply. The article discusses the IRP theory expansion to national level IRSP and makes it as DSM fundament under the conditions of electricity market reform. IRSP and DSM construct a new theoretical system. The article analyzes the DSM potential to 2020 year under the market environment of the existing price and mechanism.