DSM

Jay Shankar Tewary

Complexities in Energy Efficiency

y Focus on supply side- Due to visible Consequences. y Less focus on demand side and availability of services. y Renewable energy- Huge investment, less conversion

y y y y

efficiency, land acquisition, intermittent availability, aesthetics. Technology up gradation and R&D Financing Constraints Lack of awareness & poor enforcement of Laws Sustainable development.

Demand side Intervention Potential and Opportunities

Source: BEE, MOP, GOI

Conventional Method of DSM in India

y Municipal Corporations

y Water Pumping, Street Lighting & Office Lighting

y Hospitals & Commercial Buildings

y HV AC & Building Lighting

y Residences

y Building services & Lighting

y Power Utilities
y Demand Side Management of distribution of power (generally

limited to CFL lamp schemes etc)

y Manufacturing Companies
y Machinery & improvement in system efficiencies / productivity

Utility Driven - DSM

Challenges for utility

Wide gap in Demand and supply High AT&C loss Political Pressure to ensure reliability of supply High Power Purchase Cost (Rs. 7.2 / unit for frequency 49.2 Hz) during Peak Loading y Additional penalty for drawing unscheduled power at frequency below 49.2 Hz to ensure grid discipline y New CERC guidelines Restricting the utility to pass the penalty in ARR y Poor Quality of Power Low Voltage situation
y y y y

Opportunity in Peak Clipping

Challenges
y During Peak Frequency normally falls below 49.2 Hz y Additional Short Term Power Purchase agreement Cost

varies between Rs6 Rs 18 / unit y Limited Capacity of Power Corridor Forcing utility to carry out DLR ( Distress Load Relief)

Opportunity for high end consumer

y 5-10 % of Consumer of an utility consumes 40 -60 % of the y

y y

electricity of an urban utility Normally these HRB (High Revenue Billing) consumer are concerned with quality and continuity of Power and agreed to extend additional support We can design a system in agreement with these utility and their high end consumer so that during peak period A message can be passed on to these consumer for reduction of load and an incentive to be paid for the amount of energy not used during such peak loading condition. Probable solution may be AMI for such consumer We can take lead for all such effort and can be a mediator between utility and consumer

Opportunity for Domestic Consumers

y y

During power crisis situation, load shedding on rotational basis is being carried out at an utility Load shedding to a consumer normally reflects as a discomfort and as soon as the load shedding is restored Normal tendency of a consumer is to switch ON power hunger equipment (AC , heater etc) at their full capacity so that during next load shedding period, they may get an relief to a some extent Repeated load shedding become s a cause of man handling, consumer protests etc for an utility Thus, During entire power crisis situation At some point of time consumer consumes additional electricity and at some duration No electricity is available to them Some consumer had taken temporary arrangement such as inverter / generator etc at their end It has been found that a consumer is happy to get emergency lighting load for 24x7, and will not mind for shedding of their power equipment ( AC, heater etc) during peak load condition We can take a lead and propose to install a system so that during normal condition, a consumer gets entire electricity, but during some emergency period / power crisis situation, though the supply for consumers essential load is uninterrupted but the supply for their power hunger equipment will be disrupted Benefits y No need for inverter with a slight wiring modification uninterrupted supply to their essential loading is ensured y No need to purchase additional costly power Utility can able to serve the minimum requirement of their consumer on 24x7 basis

y y y y y

Opportunity in AT&C Loss Reduction

Challenges
y High AT&C Loss ~ 35 % in India y 24-25 % of energy is lost due to theft and rest is accountable for technical losses y Cause of Technical loss y Lower size conductor y Overloaded transformers and line y Poor Voltage and power Factor y High Resistance Joints y Cause of commercial losses y Sluggish energy meter y Pilferage of meter y Direct Theft y Poor Billing efficiency y Poor collection efficiency

Opportunity
y Higher the loss easier to reduce y It is established that with reduction of AT&C loss, the

demand decreases y We can develop a business model with R-APDRP , Financial Institution, Regulators and utility for reduction of Loss and sharing of profit ( 1% loss reduction for NDPL generates addition revenue of (~) Rs. 26 Cr.) y Some of the steps may include replacement of energy meter, pillar box metering, IT intervention in commercial processes, GIS based consumer audit, Energy audit, DT metering , HVDS, LTABC etc. (depends upon utility profile)

Oppurtunity in consevation of Energy

Conservation of Energy Bulk Player

y 5 -10% of the consumer accounts for 40-50 % of Revenue y We can tie up with utility and may provide free energy

audits to these consumer y The report can be submitted clearly mentioning the ROI y If the consumer agreed to implement We can share the profit generated from the project y Finance can be arranged by us and the repayment may be explored through utility bills ( from the energy saving in monthly bill through the project)

Conservation of Energy Agricultural Load

y Over 35 % of electricity consumed by Municipal and y y y

y y y

agriculture Agricultural consumers enjoys subsidy on electricity Gap between power purchase and energy sold to agricultural consumer is between Rs 1 -3 Saving in electricity to agricultural load may generate additional revenue for an utility with simultaneous saving in electricity bill for farmers Huge scope of energy savings in agricultural load in India we can develop a model with partial funding from utility and farmer with guaranteed savings in electricity We can also implement a system to ensure agricultural loading only during off peak hour which can reduce the

Conservation of Energy small consumers

y Though CFL lamps, T5 tubes, electronics ballast provides a

mean for energy savings but its effects are limited in spite of offering discount on its purchase y We can tie up with utility and meet with RWA / its consumer for proving a complete energy saving packages for domestic consumers y To implement above, we can train local personnel and may create a channel / franchise, who can offer such services on behalf of utility y Cost of such project may be collected through utility bill

Opportunity in Renewable Energy

Opportunity
y Preferential tariff for green energy y Government subsidy / fiscal and financial incentive for

green energy y By 2012 It will be mandatory for a DISCOM to procure 10 % of its energy from renewable source

Solar Power
y High Installation Cost - Commissioning cost of a 5 KW plant

is approx 7 Lakh y Financially viable, only if government subsidy and preferential tariff for solar power is available y Assuming a subsidy of 50% on purchase and preferential tariff of Rs 5 / unit - ROI is around 12 years y We can develop a model with consumer, utility , regulator and government so that special preference is available for solar power with a provision to pump additional power to Grid with preferential rate

Other Oppurtunity

Other Opportunity
y Normally in Industries the energy cost is around 5 -10 %

y y y

of total turnover and profit of the organization is matching with above. Thus 20 % saving in electricity means a 20% rise in profit We can tie up with Business Body / Business Group and can offer free energy audits to its member and Offer Solutions based on our products Based on report - if energy savings project is implemented, We can share the savings Street Lighting Special LED lamps etc depending upon situation Municipal Pumps etc.

Thanks