REGULATOR’S PERSPECTIVE OF DEMAND SIDE MANAGEMENT

Pravinbhai Patel Member Gujarat Electricity Regulatory Commission

POWER SYSTEM MANAGEMENT SUPPLY SIDE STRATEGIES DEMAND SIDE MANAGEMENT

What is DSM?

• DSM can be defined as a set of initiative taken by the utility on the consumer side of the meter to bring about a desired change in consumer demand and/or demand profile.

• It should result in conservation of electricity or its efficient utilization which could be either reduction of kWh consumption or load (kW Demand) or combination of both.

Reasons for Non-deployment of DSM Program

• Lack of clarity about obligations on Distribution Utilities • Absence of Regulations/guidelines for DSM implementation • Lack of Public awareness/participation • No clarity on financial incentives

Requirement for successful DSM implementation

• Creation of DSM cell in each Distribution Company • Systematic Load Research • Preparation of DSM plan and provision of adequate budget to support the plan • Mechanism for recovery of DSM related cost

Promotion of DSM through tariff

• Inverted Block Tariff o Tariff increases with the increase in consumption • Time of Use Tariff o Higher tariff during peak time o Night time (or off-peak) rebate • Power Factor Incentive and Penalty

Financing of DSM initiatives

• Self financing or Recovery of cost through ARR • Deployment of Special Fund • Grants from Government agencies • International financial institutions/development agencies

Efforts so far in Gujarat

Various actions have been taken by Discoms to promote DSM: • Providing energy efficient lighting fixtures to the consumers • Providing LT Capacitors on installation of Ag. Consumers • Providing Energy Efficient Pump sets on Agriculture connections under Govt. scheme • Load Curve made flat by segregation of Agriculture load through Jyotigarm Yojna

Apparent Energy (kVAh) Tariff

• The GERC vide its Tariff order dated 31/03/2010 directed its distribution company MGVCL to carry out a pilot project to study the impact of shifting from the active energy based billing system to apparent energy based billing system specially for the street light and small residential consumers.

• Based on the results of the Pilot project, the GERC vide its Tariff order dated 06/09/2011 introduced an optional kVAh tariff (for all the Distribution Companies) applicable to street light system operated by local authorities and industrial estates consumers if they so opt to be charged in place of existing kWh based charges.

SERC Guidelines and Regulations Goal and Target setting Approval of DSM Plan Approval of DSM Project Funding Evaluation, Measurement & Verification DSM framework Responsibilities of Utility Technical Potential Assessment Load research and Market Research Economic Potential Assessment Preparation and Design of DSM Plan Preparation and Design of DSM Projects Project Implementation Monitoring and Reporting

Thank You