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WORKSHOP ON DEMAND SIDE MANAGEMENT
SUMMARY REPORT OF THE PROCEEDINGS
A summary report of the proceedings of workshop held at Panchkula, Haryana on 26th November 2015 under the aegis of IIT Bombay, Shakti Sustainable Energy Foundation and MP ENsystems.
SUMMARY REPORT [WORKSHOP ON DEMAND SIDE MANAGEMENT]
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Table of Contents
Introduction ................................................................................................................................................. 2
Inaugural Session ........................................................................................................................................ 2
Introduction to Demand Side Management ........................................................................................... 4
Introduction to Demand Response ......................................................................................................... 5
DSM Case Studies ....................................................................................................................................... 7
Discussion Session .................................................................................................................................... 10
Introduction to Standard Offers Program (SOP) ................................................................................ 12
Utility and Vendors Experience with Regulatory Perspective in DSM & DR ................................ 13
Vote of Thanks.......................................................................................................................................... 18
Group Photograph ................................................................................................................................... 19
Annexure 1: Workshop Program ........................................................................................................... 20
Annexure 2: List of Participants ............................................................................................................. 21
SUMMARY REPORT [WORKSHOP ON DEMAND SIDE MANAGEMENT]
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Introduction
Energy Science Department at IIT Bombay is working on the project titled “Demand Side
Management – Capacity Building, Assessment and Networking for Successful Implementation”
with the support of Shakti Sustainable Energy Foundation (SSEF). Under this theme, IIT Bombay
organized a one day workshop for the utilities and regulators of Haryana and Punjab.
The workshop was organized with the support of MP ENSystems, a firm working in field of energy
efficiency at Hotel Red Bishop, Haryana Tourism Complex, Panchkula, Haryana, on November
26th 2015. The Workshop was well received by participants across the state from different utilities
and regulatory bodies namely Dakshin Haryana Bijli Vitran Nigam (DHBVN), Uttar Haryana Bijli
Vitran Nigam (UHBVN), Punjab State Power Corporation Limited (PSPCL), Punjab Energy
Development Agency (PEDA), Haryana Renewable Energy Development Agency (HAREDA),
Haryana Electricity Regulatory Commission (HERC) and Punjab State Electricity Regulatory
Commission (PSERC).
In order to create an interaction platform for all stakeholders, private player Godrej & Boyce Mfg.
Coo. Ltd. and Mumbai utilities R-Infra, Tata Power along with regulatory body Maharashtra
Electricity Regulatory Commission (MERC) were also invited to share their experience with DSM
in Mumbai.
A complete list of participants is provided in Annexure2 for reference. The one-day workshop was
successfully conducted with various enriching talks and discussions. This document presents a
detailed report of the workshop proceeding.
Inaugural Session
Welcome Address and Introduction to Workshop
Prof. Suryanarayana Doolla in his welcome address invited all the participants in the workshop.
He gave a brief introduction of various work carried out by IIT in the field of Demand Side
Management (DSM). IIT Bombay association with SSEF has organized various workshops on
DSM which include participation from State utilities, State regulatory, EESL and various private
players involved in the energy business. Further he briefly described the schedule of the workshop
which included introduction to DSM, discussion on two case study - Puducherry and Mumbai;
SUMMARY REPORT [WORKSHOP ON DEMAND SIDE MANAGEMENT]
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followed by experience sharing from utilities in Mumbai and discussion on way forward for
Demand Side Management in the state of Haryana.
Introduction to MP ENSystems by DR. MAHESH PATANKAR
Dr. Mahesh Patankar in his introductory address emphasised the need to develop a favourable
environment for DSM in which all stakeholders can interact on a common platform. He thanked
Haryana Electricity Regulatory Commission (HERC) for their constant support from past two
years for developing various policies and regulation for the state of Haryana.
Dr. Patankar mentioned that the DSM
programs carried out before 2003, which
were supported by bi lateral and multi-
lateral agencies such as World Bank,
witnessed a change after introduction of
Energy Act, 2003. He explained the key
features of Haryana Commission Act for
DSM, in which it took a decision to charge
all customers and carry out DSM project
through that share. He also gave an
overview of DSM programs in Maharashtra, where a unique collaboration of utilities and appliance
suppliers resulted in a successful DSM program to a great extent and expressed that their team
wished to work in other states and particularly in Haryana.
He informed that the Ministry of Power is planning to restructure utilities and distribution
companies under the new scheme Ujwal Discom Assurance Yojna (UDAY) launched on
November 9, 2015. For the first time, the ministry has considered energy efficiency as an energy
resource. While the energy wastage account for around 60,000 Crore annually, ministry has
targeted to reduce 25-30% of this wastage through energy efficiency and Demand Side
Management programs.
Chief Guest Address by Mr Jagjeet Singh
Mr Jagjeet Singh, chairman of Haryana Regulatory Commission in his inaugural address as the
chief guest of workshop appreciated IIT Bombay, Shakti Sustainable Energy foundation (SSEF)
and Mp ENSystems for the workshop.
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Mr Singh pointed out that, to address the issue of increasing demand, other than establishing new
power generation plants and looking for renewable sources, we need to look at optimization of
existing resources and minimize the cost of energy. He also spoke about the energy policy report
of the planning commission of India which states that we have as much as 50% of energy saving
potential.
He also highlighted the new amendments are undertaken by Haryana Electricity Regulatory
Commission in November 2014 in order to promote DSM in Haryana. A DSM cell exclusively
formulated for the same. DISCOM in Haryana has undertaken various DSM programs under the
amendment as DSM offer cost effective and clean energy solution. It also postpones the need of
new generation sources and expansion of transmission and distribution network.
Introduction to Demand Side Management
Prof. Suryanarayana Doolla, (IIT Bombay, Mumbai)
Professor Suryanarayana Doolla in first session introduced the concept of Demand Side
Management. He discussed the scenario of DSM so far in India, the technological options available
and DSM plans for future.
Prof. S. Doolla mentioned the need for looking at DSM with the perspective of profit making and
benefits. From a consumer perspective they can make a substantial reduction in bills, other than
that they can get energy efficient state-of-the art technology and appliances at a much subsidized
price under the DSM program. There is a huge benefit in terms of energy saving, emission of
greenhouse gases and equity in power distribution if whole society is considered. The third party
involved in the scenario is utilities or DISCOMs. For any large scale implementation of DSM
program, utilities should be involved as they are initiator for successful program. Utilities can
benefits as they will get better and predictable load profile. Also reduction in peak demand will
give huge saving in revenue and avoid the cost of additional infrastructures.
Chairman Mr Jagjeet Singh made the remark to include manufactures, as they are also an important
stakeholder in the scenario.
Prof. S. Doolla explained the process of DSM program implementation. Any DSM program has
an initial planning phase, execution phase and Monitoring and verification (M&V) phase. Out of
three phase planning phase is most crucial one, as project structure depends on planning. In
planning phase, Customers profile, market study is done. Planning phase also include the Cost
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Benefit analysis of project for approval of project. It includes an estimation of overall cost of
project and the benefits on behalf of which project get approved by the regulatory body.
Prof. Doolla pointed out the implementation strategy of DSM in India, up to 1990s, agricultural
pump set replacement and repair were the only popular DSM program. Later in 2000s programs
for CFL lamp came into practice, which became very popular. Post 2007, DSM programs increased
exponentially, one of the reason was Bureau of Energy Efficiency (BEE) which popularized star
rating for efficiency of appliances. Post 2007 various programs for ceiling fans, CFL lights and star
rated pump sets were launched.
One of the first utility driven programs in India was undertaken by Bangalore Electricity Supply
Company (BESCOM), Karnataka, for replacement of incandescent lamp with CFLs in year 2004
with the saving of 18 million units. First street light program was carried out in state of Haryana.
Later, programs for ceiling fan, air conditioner etc. were introduced recently and is quite successful
and popular till now.
Prof. S. Doolla also presented an assessment of energy saving and long term cost benefits. He
highlighted the project of LED, that has less saving initially but overall saving is more due to long
life of product. He suggested that for any DSM program, maturity and life of technology should
be taken into consideration. He pointed out the projects done Himachal Pradesh and Punjab,
which have achieved more energy saving due to the scale of project. He recommended that the
utilities should always keep in mind the scale of program, as the efforts required from regulatory
and utility sides will be more or less the same. Few states implemented multiple DSM programs
but their energy saving is much less than project carried out in Himachal Pradesh. Hence, the
project scale should be as big as possible. He emphasized that the utilities should change their
strategy of project implementation.
While discussing various DSM interventions for different consumer categories Professor
presented an overview of existing technological advancement and framework based on consumer
category. The primary targeted customer categories for DSM programs in India are commercial
HVAC loads, agricultural loads, municipal street lighting loads and residential loads of lighting and
ceiling fans.
Introduction to Demand Response
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Prof. S. Doolla emphasized that he does not consider load shedding as a Demand Response, as
from its definition, DR should be voluntary. For example if a customer is given an offer by some
means of communication to curtail electricity consumption for an hour in return for a given
reduction in bill by 1%, and if he/she decides to curtail some of the load it is known as demand
response. He described the problem faced by the utilities. Since, the utilities have around crore of
customers, getting all the information from them and taking a decentralized decision for individual
customers is a complex thing. But the ongoing research on DR made the DR implementation
doable at large scale.
He mentioned the requirements for implementation of DR, the first and foremost requirement is
proper infrastructure; which as of now we don’t have in most utilities. Secondly a standardized
monitoring and verification methodology should be evolved. A method for pricing, which includes
the rates for customers, and accuracy testing of method involved. These are big challenges to find
a trade-off between customer benefit and utility expenses. As far as infrastructure for DR is
considered, smart meters are one of the essential components which can record data up to an
interval of 15-30 minutes. Government is also slowly deploying smart meters across the utilities.
Then secondly is the supporting communication technique. Now we have enough secure and
widely popular mobile communication. So, there is no issue of trust and security any more. At
customer end, we need to have load controllers that can automatically take pre-assigned actions.
Now the remaining aspects are Meter Data Management System (MDMS) and Demand Response
Automation Server (DRAS). Each utility have one or other form of MDMS in place. Hence
deployment of infrastructure for DRAS can kick start a small or medium size DR project.
One of the key challenges for any DR program is interoperability. Taking the small example of
new laptop which has only HDMI ports for projectors Prof. S. Doolla explained that he has to get
a VGI connecting cable to connect the laptop to old projectors. Whether it is due to advancement
of technology or any other reason it often lead to mismatch of existing infrastructure with newly
installed infrastructure. But now across the world, people are working on this challenge of
interoperability and there are various standards in place for MDMS and Smart meters at
international level which can facilitate a smooth operation.
He pointed out some queries which we always face regarding savings achieved, especially from the
financer’s point of view such as – Why does Energy Service Company (ESCOs) hesitate in
participating? How can we be certain that any reduction in consumption is due to a particular
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project and has not happened naturally? For that reason, determination of baseline is very
important. Baseline determination can be done in various ways as suggested in literature.
Challenges for baseline remains the accuracy in prediction. Hence, we have to predict future
increase in demand, then make appropriate calls for DR and further analyse the change in
consumption from the predicted load curve.
One way of ensuring the credibility of the DR program, is to have a large data sets, further
application of data mining and neural networks can give enough reliable results and predictions.
One approach is 5-in-10 baseline technique in which out 10 recent similar days 5 highest energy
consumption days are selected and based on which a baseline curve is obtained. There are various
existing methodologies such as averaging method and regression method. Averaging methods
includes baseline techniques like 10 out of 10, 7 out of 10, 5 out 10, 3 out of 10 etc. In regression
model, dependent ad independent variables are selected and formulated accordingly. It is up to
utilities or regulators to choose one method and stick to it. That way a fair enough dynamic
prediction can be done for future demand.
Prof. Doolla shared his experience with different countries and their level of seriousness for DSM,
one of the reasons he attributed is the very high price of DSM in electricity markets. In his
concluding remark of the session he asserted the need for seriousness for DSM at all levels and
fair inclusion of all the stakeholders in it. He mentioned that we need to take vendors into the loop
even at the planning level to realize untapped business potential. He also suggested that DR
projects in India are at the pilot level, but now we have enough experience to move on to a larger
scale.
DSM Case Studies
Mr Amit Singh, (IIT Bombay, Mumbai)
Mr Amit Singh, in his presentation discussed
two pilot projects implemented in India.
Firstly, he presented DELP project from
Puducherry, where he elaborated their M&V
strategy, process of investment and process
of execution of program and recovery of
money. Secondly, he presented Tata Power
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Auto-DR project in which he discussed DR potential assessment and economic valuation of
project.
The projects has two methods of recovery namely: shared saving model and On-bill repayment
model. Shared saving model is necessary as utilities often lack the initial capital and motivation
required for any DR project.
Energy Efficiency Service Limited (EESL) came up as one such funding agency, where they
approach utilities with proposal, draft the project, bring investment and further recover all the cost
by shared saving, and earn on the amount of saving achieved.
In another model, bill payment is implemented. DELP program in Delhi and Kerala have
proposed this method for their DR program.
Mr Singh discussed in detail the working of ESCO, where he described in detail, the sharing
strategy and money recovery from the projects.
DELP Project Puducherry
DELP Puducherry was launched by EESL in collaboration with the electricity department,
Government of Puducherry (PED) on 7 Feb, 2014 as a standard offer program. 60 Watt
incandescent bulbs (ICL) were replaced with 7 Watt LED bulbs procured from Ecolite
Technologies, Gurgaon. Domestic category consumers with electricity bill arrears less than Rs.
1000 were qualified to enroll for the programs. Maximum of three LED bulbs were replaced per
policy number.
PED maintains an online database of all its customers against a unique policy numbers. This
helped during the enrolment of customers during the three distribution phases conducted through
door to door enrolment and counters set up at PED branch offices.
The vendor for the project handled the warranty issues and 5 shops were arranged for replacement
and warranty of LED bulbs.
Deemed savings approach was used as measurement & verification approach. In order to estimate
the average hourly consumption per day of each bulb, 200 sample bulbs with RFID tags were
installed at government quarters. These bulbs communicated the usage pattern of these samples
to a remote web based monitoring system via 5 RF transmitters located at various points inside
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these quarters. Within three months, the number of these 200 bulbs reduced to 50 and hence it
was decided to use 3.5 Hrs. /day as average operating hours for estimation energy savings that will
accrue during the project period.
ICL bulbs collected during distribution phase are sent for disposal to M/s Ecobirdd Recycling,
Bangalore.
Rs. 10 /LED bulb was charged from customers and rest of the amount (Rs. 310/per LED) was
arranged by EESL. Total project invested was Rs.22.785 crore and was arranged by EESL on a
debt-equity ratio of 7:3.
Total energy savings were estimated to be 48.88 MUs including the T&D losses and pool losses.
The project cost has been planned to be recovered as per the SOP price fixed for the ten years of
the project period. PED has planned to recover the annual pay-out to be made to EESL through
ARR for each corresponding year.
Following observations were made by the project team about the DELP Puducherry Project:
• DELP in Puducherry has effectively demonstrated the potential of EPC (Energy
Performance Contracting) model in India and has helped domestic lighting sector in
leapfrogging to advanced lighting solutions through super-efficient LED lighting.
• Helped domestic lighting sector in leapfrogging to advanced lighting solutions of super-
efficient LED bulbs.
• 200 samples with RFID tags were installed in one place rather than distributed over the
entire project site which could have led to more accurate assessment of usage pattern of
customers.
• LED bulbs distributed to owner of the households were not given to tenants who actually
pay the electricity bill.
• Lack the general awareness about the warranty associated with the LED bulbs.
• Clearing of electricity bill arrears by defaulters so that they can also be eligible to be enrolled
in the project.
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TPDDL Auto-DR Project
TPDDL Auto-DR project included three companies. Honeywell provided communication
infrastructure, third party provided Meter Data Management System (MDMS) system and IBM
provided assistance in the project. 175 odd customers participated in this program, ranging from
cold storage, hotels, flour mills etc.
In this program, a DRAS system was designed which first created a baseline for individual
customers and further based on future demand created certain DR signal 12-24 hours prior to DR
event. At the event duration, smart meters were installed at customer end to record and report
data to MDMS. Comparing it with existing baseline, the savings achieved were estimated.
Total 17 DR events were conducted. The maximum % DR reduction potential was seen in the
packaging industry, automobile industry and flour mills. In terms of actual DR potential, flour
mills were found to have a very huge potential. Thus, one can obtain an idea of targeted sectors
and consumer for any DR program. The baseline calculation method opted was 5-in-10 method
with inclusion of morning adjustment factor. The availability base tariff helped utility to achieve
better frequency control. This DR program didn’t include any financial incentive other than
reduction in bill.
Discussion Session
Mr Jagjeet Singh put forward the question on table to get the views of delegates. How can we
motivate manufacturers for DSM?
Prof. S. Doolla suggested that firstly we should talk to top management authorities and make them
realize the business potential in DSM. Secondly, manufacturers are not interested in small pilot
projects, therefore we should go for large scale implementation, that way economy of scale is
achieved along with fair competition among manufacturers.
Mr Chakravarty from Godrej Appliances added that numbers are very important from our
(manufacturers) perspective as time, energy and resources required for any project, can only be
economized with large scale implementation.
Mr Jagjeet Singh also enquired how we could encourage customers to participate in DSM program.
Mr Malik from Godrej Appliances shared his experience in Mumbai, where they provide incentives
to customers in order to gain popularity and later they recover the cost from utilities. He also
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added that the cost get influenced by implementation method. As the operation for such specific
large scale program will be altogether different.
Mr Chakravarty shared his worry regarding the cost of appliance exchange, as e-disposal have a
huge cost associated with it. He also mentioned their door-to-door operation help them to gain
large customer base and convincing ability for appliance exchange. He also illustrated the example
of unethical trade and loop holes in such programs; where dealers generate false cash memo and
make false money out of such scheme.
Mr Japinder Pal from PSPCL illustrated the case of Punjab where peak demand in summer and
winter varies by 3000 MW. Therefore, they have to keep that reserve even in winter also. He
mentioned Demand Response can help tackle these issues.
Mr Satinder Jain, Dy. Director, PSERC asserted the need for proper advertisement and publicity
of DSM programs through all popular channels of communication. He stressed that consumer
behaviour is very much affected by such advertisement.
Utility from Mumbai supported the point with their experience that public hoarding, advertisement
on electricity bills created a large impact on popularity of scheme.
Mr Jain gave the example of Swachh Bharat
Abhiyan; the way it was advertised and
popularized and created an impact.
Innovative solutions were aired in the
session by delegates for impactful publicity.
Mr Amritpal Singh suggested that putting a
hoarding in a village describing the saving
in bill achieved by replacing old bulbs with
LED can create much larger impact then
some absurd detailed description of these schemes. Prof. Doolla also mentioned that in Mumbai,
public representatives took this campaign for LED bulbs and in depth penetration of the scheme
was possible.
Mr Amritpal Singh placed a question on the table by illustrating the example of Puducherry and
Delhi; as the cost of LED bulb was brought down from Rs. 320 to Rs. 85 but at the same time
warranty period form 10 years to 1 year which led to doubt in the quality of product.
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Mr Patankar expressed his partial disagreement as he said that, with maturity of technology
provided, the warranty reduces. Still he agreed that quality should not be compromised for
economy. As in refrigerator scheme MERC, Mumbai faced a unique problem that consumers
willing to participate in exchange program often need a refrigerator with higher capacity. So we
should be ready to improvise the scheme even after schemes are rolled out.
Introduction to Standard Offers Program (SOP)
Dr. Mahesh Patankar, (MP ENSystems, Mumbai)
Mr Patankar gave a presentation on Standard Offers Programs (SOP) in the third session. He
mentioned that Demand Side Management is an evolving thing; it will always evolve with
advancement of technology. Therefore, we should stick to our aim i.e. energy efficiency and energy
saving. He asserted the need of being technology agnostic, which will make us enable us to use
whichever technology that will solve the purpose. Thus, we should not stick to a particular scheme
or technology.
As in the case of renewable, there is feed in tariff for solar, wind or biomass; in this way utilities
promote renewable energy technologies. Similar things can be done with DSM, which talks about
kWh saving rather than about particular technology. As for the case of Puducherry, the initial
program was for distribution of CFL bulbs but by that time when LED technology came into
market, the regulatory commission in Puducherry took a wise decision; being technology agnostic
gives flexibility to utilities and implementing agencies and implemented LED program. Standard
offer program enable utilities to procure savings from customers at a pre-determined price. This
gives the customer flexibility to adjust their consuming behaviour.
Mr Mahesh also discussed two Standard offer Program (SOP) of Portugal and South Africa, where
utilities procured saving from consumers. He presented in detail, the cost and pricing method and
also determination of procurement cost technique for these programs. If the cost of conserved
energy is less than average price then we can go for that particular Standard Offer Program, as it
will be economically beneficial for Utility.
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He addressed the concern of utilities as they often refrain from any DSM program for industrial
and commercial customers, in spite of knowing that these groups are the revenue generators for
utilities as they pay more than average price of electricity. He mentioned that procurement cost of
peak power is very high, which if reduced can be realized as large savings. He gave example of
slums and hotel in Mumbai, where the average procurement cost of electricity increases due to
hotels not slums; as Hotels contribute towards the peak. In order to meet that peak demand utilities
purchase peak power at even a higher price than the cost commercial consumers are entitled to.
He refuted the fact that commercial consumers subsidize the domestic and agricultural customers;
rather he asserted that domestic customers subsidize the commercial customer and their peak
power.
Mr Patankar also mentioned that procurement price should be different for different customer
categories, due to different usage pattern of electricity. As for example - a split AC for domestic
consumer operate for 5-6 hours for 100 days a year, while for a small commercial setup it is for 8-
9 hours with more than 300 days a year irrespective of the season. He mentioned that by
implementing the SOP program, the price can be fixed which will make it a much predictable
program.
Prof. S. Doolla emphasized that certifying the savings is a challenging method, but baseline
determination on continuous basis can give appropriate results. Also, deemed saving is not same
as marginalized saving which it is often criticized.
Mr Patankar questioned utilities whether they are power deficit or power surplus? All utilities
asserted univocally that they are power surplus. In spite of having having system constraints,
transformer overloading, they are not power deficit; this further supports the cause of Demand
Side Management. Peak load management is an issue for all utilities, which can also be addressed
with DSM programs. One of the delegates mentioned that even solar energy creates trouble as the
peak hours are evening and PV units provide power in off peak hours at afternoon. Mr. Patankar
mentioned that with a change in demography, peaks are also shifting from evening to afternoon.
Utility and Vendors Experience with Regulatory Perspective in DSM & DR
Mr Mukesh Bhanushali (R-Infra, Mumbai)
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Post lunch session started with the
experience sharing from Mr Mukesh
Bhanushali representing Reliance-Infra,
a utility operating in Mumbai. R-Infra
has conducted various DSM programs
through Appliance exchange schemes.
He discussed the designing of DSM
program, financial resource allocation
process, approval from MERC
regulatory body in Mumbai, execution
process and newly adopted demand
response program.
Load research is the first step for any DR/DSM program. This gives data and pressure points
which we can target in terms of customer, load type and specific appliances. In selection of
technology; factor such as average rating of appliances, duration of use, whether that particular
load is contributing in peak demand or not are considered. Now, after extrapolating this load
research, a proposal is drafted with a particular technology, the saving is then calculated in terms
of demand and energy.
There are three pre-requisite tests provided by MERC for any proposal to be entertained:
Participant cost test: Benefit and cost to consumers for any particular program.
Total Resource Cost (TRC) test: Investment to be made by utility and estimated
benefit earned from the project in the entire span of its life.
Rate pair impact test: To assess any extra burden if coming on non-participant
consumers.
Any program can be approved by MERC only if it qualifies these tests. After that bidding for
program take place, followed by MOU between utility and successful vendor in the bidding. The
marketing phase of the program is often executed at different levels for interested third parties
through sending emails, newspaper advertisement, promotion through electricity bill, customer
care centres for full faced publicity and promotion.
In one program, 6 lakh CFL bulbs were distributed; the cost for which was recovered from the
bill in 10 equal instalments. In another program, a replacement program was carried out in which
40,000 street lights (80-150 W Mercury Lamps) were replaced with 70 W sodium lamps. Through
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this program, municipality was able to achieve a saving of 4 million units annually. An energy audit
was also conducted by R-Infra, for 50 different customers. For this program only 25% of the cost
incurred was attributed to customers; utility paid rest of the cost in order to promote energy
auditing. In another program for 5 star ceiling fan, in 2 phases 25000 ceiling fans were replaced.
The fans were provided at 50% of the actual cost to customers. In 5 star refrigerator program
initially the approved program was for 5000 customers later it included more 1500 consumers. To
encourage the exchange and new purchase, an incentive of Rs 4500 were given on refrigerators.
The old programs were not successful as they talked about only exchange of appliances, whereas
the new drafted program for refrigerators and Air-conditioners also covered new purchases. After
completing these pilot projects, they designed two large scale program for 15000 refrigerator and
2000 ceiling fans, which will be launched in January 2016.
R-Infra also has tried the Demand Response method recently. Mr Bhanushali said Demand
Response is like a virtual power plant in the utility’s end. It facilitates active interaction with
customers. We have many consumers participating with their secondary loads such as one chiller
out of five and so on. For particular DR event customer can curtail these loads which do not affect
their comfort substantially. Moreover these programs were beneficial from utility’s perspective as
high purchase cost of peak power could be saved to some extent. Some customers preferred load
manipulation rather than curtailing; as for example in the peak hour Air conditioner temperature
can be increased from 160 to 200, water chiller can be set to 8-100 from earlier setting of 60. These
programs maintain the comfort of customer and also provided energy savings. Specific meters
were installed at the load end which was participating in DR program, which measured the load
reduction precisely. The DR program in its first test run got a saving of 135 KW. DGs sets were
also integrated into this DR program successfully.
He credited the success of program to customer motivation towards energy saving. But at the same
time he mentioned barriers at customer end in form of reluctance to adopt changes, higher cost
of star-rated products, lack of substantial reduction in bill, poor penetration of programs etc. Later
Mr Bhanushali discussed various on-ground issues pertaining to installation, cost recovery,
customer mind-set etc. in detail from his experience as a utility. He also mentioned various energy
awareness programs initiated by R-Infra to promote energy saving among all categories of
customers.
Mr Amol Bhutad (Tata Power, Mumbai)
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Mr Amol Bhutad from DSM cell of Tata
Power, Mumbai presented the case and
experience of the utility in Mumbai.
Mumbai city has a very shrewd load
curve. Therefore, DSM is a critical issue
from the perspective of utility.
He mentioned that DSM is in the guiding
principle of Tata power. In 2007, Tata
power conducted extensive load research
in order to understand and articulate the
entire load pattern and behaviour. This load research inspired them to have a dedicated DSM cell
in their utility. Tata power has plans for appliance exchange, new appliance purchase, and specific
DR program for industrial and commercial loads. Tata power also had one program for LED tube-
lights for municipality street lighting. He also stressed the importance of energy audit for energy
management. They have conducted energy audit for more than 100 customers where only 25% of
the cost is paid by customers. The findings of energy audits showed a saving in terms of energy
and bill from 20-40%.
One unique initiative undertaken by Tata power was for chillers, in which thermal storage was
installed which turn the water into ice at night when the demand is low. Later in the day time latent
heat stored in form of ice was used to cool the temperature in chiller. This additional installation
of a tank with chiller works well for centralized conditioning system such as those in hotels and
corporate buildings.
Thermal storage has its charging cycle in night time, when the cost of electricity is cheaper. Cooling
alone constitutes for about 80% of total consumption for commercial building, this opportunity
came as a boon to substantially achieve energy saving and reduction in bills. Mr Amol presented
the case of NSE building, Hotels in Mumbai where the load curve shows a significant change after
installation of thermal storage. The clear shift in load curve asserts the case of thermal storage for
such buildings.
To conclude, Mr Bhutad mentioned that their utility is very serious about DSM. They are not
taking DSM as their Corporate Social Responsibility (CSR) activity but a proper business activity
from all sides including customer, manufacturers or third parties. He also mentioned that, Tata
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power keep pace with state-of-the art technology as is the case with thermal storage and LED tube
light discussed above.
Mr Siddharth B. Rokade (MERC, Mumbai)
Mr Siddharth B. Rokade presented the perspective of regulators in terms of DSM programs. Mr
Rokade was representing Maharashtra Energy Regulatory Commission (MERC). He is working as
dy. Director of the regulatory body looking into the affairs of Mumbai DISCOMs.
Mr Rokade mentioned that DSM is not a solution for power surplus or power deficit. He explained
that DSM has three drivers namely-
Market Drivers: Peak power purchase
Environmental Drivers: Green House gas emission
Network Drivers: Transmission constrain, transformer overloading
Mr Rokade discussed in detail the legal
framework involved in DSM. After the
energy conservation act of 2001, various
state regulatory bodies were formed.
Electricity Act of 2003, do not have any
particular provision for DSM as such.
However various guidelines direct
towards energy efficiency and DSM.
Tariff policy also talks about efficiency in
operation and quality of service.
First time planning commission report talked about DSM specifically, where they recommended
to utilities having specific cell for DSM. MERC was formed in 2010 was among the initial
regulatory bodies in the country. In 2010, MERC was the first in country to provide regulation for
DSM, in which Mr Patankar provided his consultancy. Distribution licencing was mandated with
proper inclusion of DSM programs. Demand Side Management consultation committee was also
formed under MERC having academic and industrial experts in their loop, in order to provide a
holistic approach towards the programs.
In Maharashtra under regulation act of 2010, it was mandated that every distributer should project
their power purchase requirement with consideration of DSM saving. Tariff orders to utilities were
also made in terms of energy efficiency. Maharashtra has one of the largest numbers of DSM
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programs in the state which were approved by MERC. As for year 2014, 1.63 Million units were
saved in agricultural DSM and ceiling fan program alone. For year 2014, MSEDCL achieved a
saving of 1.63 million units, Tata power 5.99 million units and R-infra achieved saving of about
1.52 million units.
MERC continuously monitors utilities for their DSM program. They arrange quarterly meetings
with utilities regarding the progress of work. The thermal storage program provided a shifting of
around 5.7 million unit of load from peak hours to off peak hours. Recently a DELP program is
approved by MERC for all DISCOMs, which is undertaken by EESL. Mr Rokade reinstated the
need of commercial awareness and suitable pricing mechanism which can accelerate the progress
of DSM programs.
Mr. Nirjhar Chakravarty (Godrej & Boyce Mfg. Co. Ltd.)
Mr Nirjhar Chakravarty from Godrej Appliances in his
short discussion presented the perspective of vendors in
the whole DSM scenario, specifically in appliance
exchange programs. He also presented the perspective of
consumers with his ground experience in sales of Godrej
appliances. Programs implemented in general lack very
much in their appeal to customers. Thus, he presented
the approach taken by Godrej to get the programs to
customers.
Vote of Thanks
Prof. Suryanarayana Doolla, IIT Bombay
Professor Doolla expressed his gratitude to Honourable Chairman, Mr Jagjeet Singh (Haryana
Electricity Regulatory Commission (HERC), for his esteemed presence throughout the workshop.
Mr Doolla also thanked the delegates from utilities of Haryana and Punjab for their attentive
participation.
Mr Singh in his concluding remark mentioned the role of such workshops for utilities as it provides
them with a broader perspective of DSM programs. He further insisted that collaboration of
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academic research and industries can improvise DSM programs. He thanked Prof. Suryanarayana
Doolla and Dr. Patankar for the successful completion of workshop. He showed his willingness
to work on the suggestions and recommendation that emerged from the workshop.
Group Photograph
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Annexure 1: Workshop Program
Program_ Chandigarh Workshop_26th November 2015
9:30 to 10:00 am Registration
10:00 to 10:30 am
Inauguration
Introduction to workshop by Prof. Suryanarayana Doolla, IIT
Bombay
Introduction to MP Ensystems by Dr. Mahesh Patankar.
Chief Guest address by Shri Jagjeet Singh, Chairman, HERC.
10:30 to 11:00 am High Tea
11:00 to 12:00 am
Session 1: Demand Side Management (DSM)
Basics, Literature Review
Technology Options
Demand Response (Case Study – TPDDL)
Case Study Presentation:
DELP Puducherry and TPDDL Auto-DR Project
Speakers:
Prof. Suryanarayana Doolla, IIT Bombay
Mr Amit Singh, IIT Bombay
12:00 to 1:00 pm
Session 2: DSM Tools
Introduction to Standard Offers Program (SOP)
E-Learning modules for DSM.
Speaker: Dr. Mahesh Patankar, MP Ensystems, Mumbai.
1:00 to 2:00 pm Networking lunch
2:00 to 2:45 pm
Session 3: Utility experiences& Regulatory perspective in DSM
Speakers: Mr Mukesh Bhanushali, R-Infra, Mumbai
Mr Amol Bhutad, Tata Power, Mumbai
Mr Siddharth Rokade, MERC, Mumbai
2:45 to 3:30 pm Discussion and way forward
3:30 to 4:00 pm Tea/Coffee
4:00: to 4:15 pm Vote of Thanks by Prof. Suryanarayana Doolla
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Annexure 2: List of Participants
Sr. No. Name Designation Organization
1 Mr Jagjeet Singh Chairman HERC
2 Ms. Harleen Kaur Junior Consultant HERC
3 Mr Harsh Pant Deputy Director HERC
4 Mr Prateek Puri Junior Consultant HERC
5 Mr S. L. Kansal Director (Tech) HERC
6 Mr S. S. Walia Engr. In Chief (Rtd.) HERC
7 Mr Vikas Bangard Deputy Director HERC
8 Mr Vikas Kadian Joint Director (Distribution) HERC
9 Mr Atul Pasrija Executive Engineer DHBVN
10 Mr Ajay Kumar Bansal AE, Panchkula UHBVN
11 Mr Madan Gopal Jindal Dy. Secy./Projects UHBVN
12 Mr Pardeep Saini Executive Engineer UHBVN
13 Mr Amritpal Singh Sidha Executive Engineer (Tech.) PEDA
14 Mr Paranjeet Singh Manager PEDA
15 Mr Kamal Joshi Deputy Director PSERC
16 Mr S. K. Jain Deputy Director Regulations PSERC
17 Mr Japinder Pal AE/DSM PSPCL
18 Er. Sandeep Alipuria Sr. Executive Engineer PSPCL
19 Mr Nirjhar Chakravarty Sr. GM & Nation Head Godrej
20 Mr Sumit Malik Dy. GM- Direct Sales Godrej
21 Mr Mukesh Bhanushali Deputy General Manager R Infra
22 Mr Amol Bhutad Lead Engineer Tata Power
23 Mr Siddharth B. Rokade Deputy Director MERC, Mumbai
24 Mr Ishan Mouli Paliwal Project Associate MP ENSystems
25 Miss Sonia Shukla Senior Analyst MP ENSystems
26 Dr. Mahesh Patankar Managing Director MP ENSystems
27 Prof. Suryanarayana Doolla Professor IIT Bombay
28 Mr Amit Singh Research Associate IIT Bombay
29 Mr Pranav Sharma Research Assistant IIT Bombay
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