1 / 10

DSM Regulations in Maharashtra

DSM Regulations in Maharashtra. Presentation to Delegation of Indian Regulators June 8, 2010. Outline. Mandate and two regulations Regulation - Implementation framework Regulation - Cost-effectiveness assessment Process and timeline. Mandate and two regulations.

yeriel
Download Presentation

DSM Regulations in Maharashtra

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DSM Regulations in Maharashtra Presentation to Delegation of Indian Regulators June 8, 2010

  2. Outline • Mandate and two regulations • Regulation - Implementation framework • Regulation - Cost-effectiveness assessment • Process and timeline

  3. Mandate and two regulations • Sub-section (1) of Section 181 and clause (zp) of sub-section (2) of Section 181 of the Electricity Act, 2003 • National Energy Policy • MERC’s vision: • DSM Implementation framework (released) • Cost-effectiveness assessment (released) • Evaluation, measurement& verification (planned)

  4. Regulation – DSM Implementation Framework • Clause 3 – basic principles • Licensees to make DSM a part of day-to-day operations • Licensees allowed to “recover” costs in ARRs • Program investments to be “cost-effective” to licensee (avoided cost); consumer (reduced bills) • Reduction in overall tariff • Clause 4 – Guiding principles • Quick-gain; long-term savings • Stakeholder consultation • Align programs with BEE’s EE/EC efforts • Create a separate DSM Consultation Committee

  5. Planning DSM implementation • Clause 6 – Development and submission of DSM portfolios and plans • Evolve DSM plans based on Load Research activity • Multi-year planning aligned with multi-year tariff process • Develop funding requirement for utility incentives

  6. Approval process • Clause 7 - DSM Consultation Committee • Moderated by Secretary, MERC with participation by utilities, consumer representatives, education/research institutions, MEDA and BEE • Functions • Assist Commission in DSM program evaluation • Advise licensees to carry out Load Research • Promote cross-learnings • Support development of databases • Support E&MV setting-up and review

  7. DSM funding, program formats and EM&V • Clause 9 – Funding of budgets • Funding through ARR ~ prior approval for programs – portfolio – plans • Licensee’s investments in EE projects at customer’s premises to be allowed Return on Investment (9.1 (e)) • Clause 10 – Description of programs, program development documents • Standard formats Annexed • Clause 11 – EM&V – Program/plan-based M&V formats to be submitted by licensees; MERC to appoint Independent Verification Contractors

  8. Regulation 2 – Cost-effectiveness tests • Three tests proposed around the Net Present Value (NPV) of Benefits - Costs: • Total Resources Cost (TRC) Test (Hurdle Test) • Compares total cost of technology and benefits over its life cycle • Ratepayer Impact Measure (RIM) • Compares utility expenditure and avoided costs • Life-cycle revenue impact (LRIIRM) • Should be less than INR 0.01/kWh or less than 1% of existing tariff • Other two supporting tests for structuring incentives • Participants’ Cost Test (PCT) and Societal Cost Test (SCT)

  9. Cost-effectiveness assumptions • Avoided cost of power purchase for TRC, RIM and PCT tests • Weighted Average of Highest Marginal Cost of Power Purchase related to top 10% of energy use stack for the past one year as computed by Maharashtra State Load Despatch Centre • Avoided cost of power purchase for SCT – Rs. 10.6/kWh • Escalation rates – 5% CAGR • Discount rates – 10.5% (TRC and RIM); 13% (PCT) and SCT (10%) MERC to review/revise above year-on-year

  10. Thank you! Mahesh Patankar, PhD Consultant – LBNL and Regulatory Assistance Program (RAP) (mahesh.patankar09@gmail.com)

More Related