Scaling Up Energy Efficiency in India: Opportunities in the Electricity Sector Dr. Jayant Sathaye, Dr. Amol Phadke and Ranjit Bharvirkar Energy Analysis Program Lawrence Berkeley National Laboratory Berkeley, CA Presented at the Forum of Indian Regulators September 2008 Work supported by the US Departments of State and Energy, and the ClimateWorks Foundation

Lawrence Berkeley National Laboratory Managed by the University of California for the US Dept of Energy Founded in 1931, about 4000 staff 12 Nobel Prizes – IPCC (2008) – Jayant Sathaye Berkeley India Joint Leadership on Energy and Environment (BIJLEE) program starting in October 2008 Utility programs – — Distribution loss reduction — Demand-side management programs — Load research and generation planning —Transmission reliability — Renewable energy

Motivation l Electricity shortage accompanied by blackouts and load shedding is common across India l In Maharashtra, electricity deficit reached 4800 MW in 2008 or more than 25% of available capacity

Key Issues l Electricity shortage l Affects industrial production quantity and quality, l Lower production and sales lead to reduced sales tax payment l Government loses sales tax revenue l LBNL estimates sales tax loss of Rs. 9 /kWh not served l Shortage met partially by use of inefficient diesel and gasoline micro generators with high CO2 emissions l Savings potential l Energy savings potential of about 6800 GWh/year l CO2 savings potential of 3-5 Mt CO2/year

Project Concept : Improve efficiency of electricity use Marginal cost of procuring new supply: 8-10 Rs./kWh Marginal cost of demand reduction: Rs./kWh demand or 0.6 – 3.2 Rs./kWh supply Assuming 28% supply loss l LBNL Maharashtra study found that energy efficiency is the least expensive and quickest option to reduce shortage

Average Tariff Utility Benefit Consumer Benefit Energy Efficiency Opportunities in Delhi

Jiangsu Province had saved 300 MW at the end of 2007 Jiangsu targeting to save 462 MW or $197 million USD in 2 years, at a cost of Rs. 2.5/kWh Source: State Grid Corporation DSM Instruction Center. Efficiency Programs Being Implemented Worldwide – China (Jiangsu Province), US, Zambia, Thailand ….

Efficiency Programs Being Implemented Worldwide – US (California)

Success story: DSM & Energy Efficiency in California

Pacific Gas and Electric (PG&E) Energy Efficiency Portfolio Goals Are Going Up PG&E and Maharashtra generation capacity is similar ~ GW PG&E’s energy efficiency goals are increasing significantly California expects to meet approximately half of demand growth with energy efficiency through 2013 PG&E energy efficiency budget of ~$1 billion * From CPUC Decision

Demand-Side Management: California Approach California Regulatory Commissions: 1. Public Utilities Commission and 2. Energy Commission California Utility Companies, e.g. Pacific Gas and Electric (PG&E) implement DSM programs Suppliers of efficient equipment Critical Feature: Electricity Savings cannot be metered directly; Important to monitor and verify meter readings before and after efficient equipment is installed Electricity Consumers Commission orders utility companies to pursue DSM programs and allows cost recovery Provides financial and other incentives to suppliers and/or consumers

Project: India Load Research and DSM Programs l Initiated in the state of Maharashtra l Maharashtra has the largest capacity in India – about 19,000 MW l All four major utility companies are participants in the project l Maharashtra State Electricity Board (MSEB) – unbundled into three companies l BEST (Muni) l Tata Power Company (Private) l Reliance Energy (Private) l Maharashtra Electricity Regulatory Commission (MERC) is the primary counterpart l Utility companies have limited capacity for generation planning and load research l No data collection on load components and forecasting

9/10/2015Dr. Jayant Sathaye14 Memorandum of Understanding (MOU): Sharing what works

Maharashtra-California Memorandum of Understanding (MOU) MOU Parties —Maharashtra Electricity Regulatory Commission Chairman Dr. Pramod Deo —California Energy Commission Commissioner Dr. Art Rosenfeld —California Public Utilities Commission Commissioner Dian Grueneich —Lawrence Berkeley National Laboratory Director Dr. Steve Chu Maharashtra MOU signed in December 2007 MOU ready for signature with DERC

Focus Areas for Capacity Building: Regulatory and Utility Roles Regulatory practices and policies for promoting clean energy options to provide appropriate incentives to utilities Load research DSM implementation models —Utility implemented programs —Energy service companies Methodologies for setting baselines and monitoring and verification of savings

Please check this website for LBNL India and related publications Thank you Jayant Sathaye Amol Phadke and Ranjit Bharvirkar