POTENTIAL AND STRATEGIES FOR DEMAND SIDE MANAGEMENT Dr. Ajay Mathur Director General, Bureau of Energy Efficiency

India Primary Energy Demand Other renewables Biomass Hydro Nuclear Gas Oil Coal WEO-2009 Total: Reference Scenario Total primary energy demand in India grows at 3.1% per year on average in , an overall increase of 127% Source: WEO 2010

India’s Oil Import Historic expenditure on net imports of oil as a share of GDP at market exchange rates (with a projection for 2011) In 2011 India’s oil import burden will exceed 5% of GDP for only the third time in history if prices average the current level of $92/bbl for the entire year Further, 10% of coal demand will be met by imports which will increase to 30% by 2015 Source: WEO 2010

Energy Profile - India Energy Intensity - Industrial SectorGHG Emissions Across Sectors

BEE DSM Programme BEE Schemes Standard and Labeling Energy Conservation Building Code Bachat Lamp Yojana Agricultural DSM Municipal DSM Small and Medium Enterprises National Mission for Enhanced Energy Efficiency

Why Utility Demand Side Management? PROFIT CONSUMER / CUSTOMER Generation / Transmission / Distribution Company Demand Side Management

Implication of DSM in utilities DSM primarily addresses Electricity Companies The activities undertaken by a utility under DSM programme includes Load management, Establishing new applications and uses, Strategic conservation of energy, Increasing clientele Positioning itself on the energy supply market.

Factors driving utility driven DSM DSM reduces cost ( minimize losses) of utility by measures: High cost of peak power. Enhance reliability of system and supply. Increase customer satisfaction. Saved costs (or benefits) are used to incentives customer to act.

Utility Driven DSM Utility Driven measures for peak load reducing DSM are: Energy efficient buildings. Energy efficient air-conditioners. Thermal storage. Thermal Air-conditioning-VAM. Energy efficient lighting. Distributed generation, including standby generation and cogeneration; Dynamic Load management, Power Factor correction;

Instruments to promote Utility Driven DSM Providing “ performance based” billing to end users to promote adoption of (higher cost) appliances- directly or through ESCOs. Rebate on refrigerators, air-conditioners, fans, LEDs etc. Time of use / demand based tariff. Dynamic tariff plan linked to demand reduction on need.

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