Demand Side Management in India. Jitendra Sood, Energy Economist Bureau of Energy Efficiency, India. Content . Energy trends in India Design for best DSM practices in India Utility driven energy efficiency programmes Super efficient appliances. Energy Trends in India. Growth Pattern.
Jitendra Sood, Energy Economist
Bureau of Energy Efficiency, India
Economic growth has been much faster; energy intensity and carbon intensity has been declining
3.5 BU in 2007-08 and 6.5 BU during 2008-09 is saved
Source: BEE/ NPC Study 2009
Almost all the States are not able to meet the electricity demand of the electrified areas
Demand Side Management initiatives are still in nascent stage
Existing initiatives by various utilities are either pilot programmes or demonstration projects
Very little quality information available about the existing schemes
No information available on post implementation project performance
Undertake load research studies and pursue DSM options in various sectors
Institutional capacity - Create dedicated DSM cells within the utility to plan, implement and monitor DSM measures
Develop necessary infrastructure for implementation
Direct distribution utilities to create DSM cells
Direct distribution utilities to submit DSM Plans along with ARR/APR Proposals for next tariff period
Develop a mechanism to enable utilities to recover the costs incurred in performing DSM related activities
Develop guidelines for evaluating DSM options
Develop guidelines / methodologies to be adopted for integrating DSM options with supply side options
Develop suitable incentive mechanism which will enable sharing of benefits between the consumers and the utilities
National DSM Policy.
Identification of sectors and end-uses suitable for DSM and help create appropriate programme design for ease of implementation.
Identification of DSM measures or technologies within the identified end-use.
Development of appropriate policy/ programme, financial, commercial and regulatory framework for implementation of identified DSM measures.
Coordination with various agencies of Central and State Governments for implementation of DSM measures.
Identification of capacity building requirements for implementation of such DSM programmes within stakeholders as well as implementing partners and make appropriate arrangements for their development and implementation.
Arrange suitable training programmes for stakeholders for design and implementation of DSM programmes for high replicability.
Create awareness among various stakeholders about energy conservation and need for DSM programmes.
Provide necessary support to ERCs/ Utilities.
Financially support the pilot programmes in various sectors to enable the market transformation
Take necessary steps to enhance the effectiveness of SDAs in planning & implementing DSM measures in co-ordination with utilities
Enable fiscal incentives to promote the use energy efficient appliances
The utility driven measures to incentivise DSM are:
Common DSM implementation strategies
No. of agriculture connections in the country : 13.4 Million
Total investment envisaged (INR crores) : 33470
Conservative estimate of Energy savings (in MU) : 27790
Avoided generation capacity (in MW) : 4910
Avoided power purchase (in MU) : 32694
Annual gain due to reduction in power purchase (INR crores) : 11443
Loss of sale to agricultural consumers (INR crores) : 1400
Annual gain due to reduction in subsidy from state govts. (INR crores) : 4200
Total annual gain to Discoms and state govts. (INR crores) : 14200
Simple payback period (Years) : 2.5
Utility / Discom
Government / Regulatory Commission
Policy guidelines & Approvals
Payment Security Package
Third Party Testing
Initial Capital Cost
All figures in Rs. lakhs
Annual subsidy reduction of Rs. 53 lakhs
Payment from savings (30% - 71.62 lakhs)
Annual Savings retained (70% - Rs 167 lakhs)
Annual benefit from savings of 8.8 MU/annum
Special DSM fund approved by state commission (Rs.706 lac)
Annual support of 141.24 lakhs
Operating Expenses for 5 years
Avg. annual Interest Payment
Payback – 4 years
Avg Annual R&M
Total for 2007-08 and 2008-09 : 2128 MW
Could help save 38-40% of household energy consumption
Labeling of ‘super-efficient’ equipments (SEE)
Determination of incentives based on peak load reduction
Monitoring sale of SEE, verification and incentive payout
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