Demand Side Management (DSM)

and
Energy Efficiency

P. Raghavendra Rao
Financial Commissioner and Principal
Secretary to Govt. of Haryana
Development and Panchayats
 Introduction Definition, Objectives, Legislative Framework and
Indian Context
Barriers
Benefits
Activities
Approach
DHBVN Case Study Measures taken and Benefits
Maharashtra Case Study for Agriculture DSM
BESCOM Case Study for HVDS

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Definition
Demand-Side Management (DSM) is the selection, planning, and
implementation of measures intended to have an influence on the
demand or customer-side of the electric meter, either caused directly or
stimulated indirectly by the utility.
Rational
The most common rationale for DSM in the Energy Sector is that it is
often more cost effective and socially beneficial to reduce or manage
electricity demand through investment in DSM than to increase power
supply or transmission capacity.

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 Distribution
Utility

Meter
Consumers

Generally, the system improvement measures of a discom is limited up

to the consumer meter.
Under DSM, cooperative and interactive relationship between
discom and consumer is established resulting into modification of
consumer load and efficient resource allocation.

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 DSM is the sum of actions taken to Energy Efficiency (EE) consist of
alter the end-use of electricity with actions taken to improve the
the purpose of efficiency of the entire distribution
improving the efficiency of system by
various end users, adoption of energy efficient
conservation of energy and technologies,
prevention of wastage, energy conservation measures,
smoothen the load curve during having energy accounting and
day and seasonal variations, energy audit system.
contributing to environmental
concerns and claiming CDM
(Clean Development
Mechanism) benefits.

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 The Planning Commission has estimated energy saving potential in the electricity
sector of India as 25,000 MW, almost 20% of installed capacity.*
DSM Legislative framework in India
Electricity Act 2003: Pre-amble and section 61C requires regulatory commissions
to set tariff by encouraging the factors which would encourage measures of DSM
and EE.
National Electricity Policy states
the main areas for DSM,
authorises Bureau of Energy Efficiency (BEE) to issue detailed measures,
enacts Energy Conservation Act.
National Electricity Plan
states the plan wise targets for saving energy (4000 MW for Xth Plan, 5500
MW for XIth Plan), and
devotes a whole sub-section to energy conservation & DSM.

* Source: 10th Five Year Plan by Planning Commission of India

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 New urgency and priority has been brought in India by
increasing supply demand gap,
climate change concerns.
Energy Intensity (Total Energy Consumption per unit GDP) of countries-

Source: Energy Intensity Data published by World Resources Institute for the year 2003
*TOE/Million $ -Tons of Oil Equivalent per unit of GDP in Million $ (Constant year 2000)
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CONSUMERS
Ignorance or disbelief regarding DSM
Fear of loss of comfort, quality or productivity
Lack of knowledge about efficient equipment
Perceived risk of adopting a new technology
Lack of financial resources
Misperception of financial risks and return on investment
High up-front costs
Unavailability of DSM technologies/services in regions.

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INTERMEDIARIES
Apprehension of market and profit/ losses
Lack of information/training/know-how about DSM applications
Perception of financial risk
Lack of capital availability to carry out / introduce new efficient products
Limited influence on decision-making process by end-user

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UTILITIES
Apprehension of negative rate impacts
Lack of available resources to allocate to DSM
Prevailing accounting rules
Lack of appropriate DSM culture and know-how

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 250 W MERCURY VAPOUR LAMP REPLACEMENT WITH
125 W VAPOR LAMP
-more than 50% energy saving

PVC SUCTION PIPE (ISI mark) in PLACE OF GI PIPE

20% energy saving

PIPE LINE DIM. & MATERIAL

3 inch pipe diameter pipe replacement with 4 inch

diameter pipe -1/3 friction

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 DELIVERY PIPE HEIGHT REDUCTION BY 2 meter
100 units/ month energy saving

REPLACEMENT OF SHARP DISCHARGE PIPE BEND

WITH ROUND & DOUBLE DIA. BEND
10% energy saving

REPLACEMENT OF 75 W GENERAL LIGHTING SERVICE/

ORDINARY LAMP WITH 20 W COMPACT
FLOUROSCENT LAMP (Light Output of 1100 lumens
each)
approx 75% energy saving

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 LARGE SIZE FOOT VALVE IN PLACE OF SMALL SIZE FOOT
VALVE

energy saving, as discharge pressure increases

MOTOR & PUMP ALIGNMENT

energy saving as overloading does not exist

MOTOR EFFICIENCY IMPROVEMENT

Saving = Rated KW X % Loading X No. of hrs X ( 1/n 1-1/n2)

Where, n1 = efficiency of old motor
n2= efficiency of new motor

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Load Surveys
National, State, Utility/city level load profile
Load Strategies
Energy-efficiency programs
- Agricultural DSM
- Municipal DSM
- Small and Medium Enterprises
- Bachat Lamp Yojana
- Standard & Labeling
- Government & Commercial Buildings
- Industries
Peak load reduction programs
- Dynamic/Real Time Pricing
- Time of Use Rates
- Automated Smart Metering
- Web based/Communication System

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Demonstration Studies
design, finance, and install a package of efficiency measures
DSM Financing
Sources
- Grants from government/ governmental agencies
- Self-financing or Recovery of Costs through ARR
- Innovative Financing
DSM Incentive
Incentives for Appliance and Equipment Efficiency
Incentives for promoting Building Energy Efficiency

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Approach

Electricity Service Companies (ESCO) in

DSM

Bureau of Energy Efficiency

Self Sustainable Programmes
Capacity Building
Technical study tours
Develop a toolkit for trainings on energy efficiency/DSM
Conduct methodological training on didactics (lectures)
and presentation to support the role of stakeholders
International conferences for networking.
Build a resource portal, including a comprehensive fund of
literature, information materials, links, and contacts, as well
as an online forum facilitating exchange of know-how and
experiences.

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DSM Measures Taken by DHBVN and Benefits
 T&D loss is 24% (for FY 2010-11) for DHBVN against national level of 30%.
Average hours of supply in FY 2010-11 for DHBVN is 22:20 hrs for urban, 20:19 hrs for
industrial, 7:70hrs for agriculture and 12:37 hrs for rural domestic.
Peak demand can be shifted/clipped as
Maximum and minimum demand gap during day is around 500 MW, and
Average peak demand supply gap is around 350 MW.

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Use of Energy Efficient Equipments as end-users of electricity
Compact Fluorescent Lamp (CFL), Tubular Fluorescent Lamp (TFL) and
Fans
Agricultural pump sets
Lift Irrigation System

Energy conservation measures

Optimal use of street light
Encouraging use of solar power

Mar 12, 2017 Page 22

Sale/Distribution of CFL Other Measures
CFL Program initiated in 2006. Compulsory use of CFLs/efficient
lightning on
MoU with 7 manufacturers - new tube well connections,
- to sell CFL at subsidized rates to - government offices.
consumers at Nigam premises. Incentive schemes to promote CFL for
- Over 19 Lac CFL lamps sold under - Nigam employees,
the program.
- village manager
Instructions for safe disposal of CFLs.
Distribution of CFL to BPL families
Promotional campaigns/ advertisements
under RGGVY.
for use of energy efficient devices, like
- A/C (Star rated),
- Refrigerators (Star rated),
- Fans (Star rated/ISI marked),
- Tube-lights with electronic ballast.

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Sr. Circle No. of CFL Total Total
No. villages CFLs CFLs sold Binaula, Gurgaon is the
provided by Nigam first CFL village in India
1. Hisar 82 1,03,460 45,960 with complete replacement
of incandescent bulbs with
2. Bhiwani 54 61,489 35,957 CFL.
3. Sirsa 322 8,66,000 3,82,000
Bhuna under Sirsa circle
4. Faridabad 61 6,90,918 1,53,682 declared as first CFL feeder
in India.
5. Gurgaon 35 2,83,532 48,132

6. Narnaul 146 98,898 46,124 Sirsa declared as Indias

first CFL district.
DHBVN as a 700 21,04,297 19,06,576
whole

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Sr. Month Consumption Remarks Month Consumption Remarks
No. (Kwh) (Kwh) 2
villages
1. 4/2006 166400 Only
Binola 5/2006 211180 Additional two No.
was made villages namely
complete Dhani Lal Singh and
2. 4/2007 156700 CFL Dhani Mussepur
5/2007 187500 were also made
complete CFL.

Saving = 9700 units (6%)

Saving = 23680 units (11%)

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 Sr. No. Financial Year Total Consumption Growth w.r.t last year
(LUs) (%)
1. 2002-03 5453.42

2. 2003-04 5754.04 5.51%

3. 2004-05 6122.76 6.41%

4. 2005-06 6555.51 7.06%

5. 2006-07 6763.89 3.18%

Growth observed during 06-07 = 3.18%, against average growth rate of 3 yrs
(02-03 to 05-06) = 6.3% ,

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CFL Project Media Coverage and Appreciation

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CFL Project Media Coverage and Appreciation

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 4.50 Lakhs irrigation pump (IP) sets in Haryana, consuming more than 640 Crore
units of electricity annually.
Recent surveys done by BESCOM have pointed out that majority of the installed IP
sets are locally made having very low efficiency of up to 25%.

DHBVN is promoting use of wide voltage range motors, power factor correction
units (capacitors) and optimum winding techniques etc
- through retail outlets at Nigam premises.
- Incentives to consumers for use of the above.
Improvement in pumping efficiency on Electricity Service Company (ESCO) model
is being planned.
Nigam is in process of preparing Request For Proposal (RFP) documents for the
above.

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 Resistance by farmers to replace existing sets, especially on un-metered consumers.
Financing options for farmers and or Nigam to replace pump sets.
Estimated cost benefit analysis for Nigam/farmer/Govt. for the model of 50% cost
born by Nigam and 50% by farmer.

Beneficiary Parameter Value

DHBVN Cost of replacement of all sets (Rs. crores) 201
Annual savings in energy (LUs) 8352
Reduction in connected load (KW) 464
Annual savings (Rs. crores) 198
Pay back period (yrs.) 1.01
Farmers Avg. cost of replacement per HP (Rs.) 1150
Avg. annual savings for metered consumers in bills per HP (Rs.) 700
Haryana Govt. Savings in Govt. subsidy (Rs. crores) 834

Based on actual data of pump sets in DHBVN and assumptions from BESCOM study.

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Mar 12, 2017 Page 35
Scope Steps taken
Lift Irrigation Canal System Consultants appointed for
in Haryana is obsolete conducting energy and
Most of pumping sets are engineering audit of old
25-30 years old. pumping system.
Efficiency of these sets as Study report has been
low as 20% forwarded to Irrigation
Department, Haryana.

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 Sample study of 56 pump sets carried out.
Recommendation for replacement of all pump sets with new efficient pump sets.
Cost-benefit analysis for replacement given below:

Parameter Value
Replacement Cost for 56 sets (Rs.) 2,16,22,000
Annual Saving in Energy Units (KW-hr) 55,26,207
Saving in Connected Load (KW) 1825.08
Amount saved at present average tariff of 2,41,49,525
Rs. 4.37 in one year (Rs.)
Pay Back Period 10.8 months

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 Following technologies are being tested on Pilot scale (Hisar circle) -
Automated SWITCH-ON-SWITCH-OFF control mechanism using photo
sensors.
Use of alternate street lights using automated circuitry during late night
hours.
Use of single phase transformers.

Mar 12, 2017 Page 38

DHBVN is exploring the setting up of 1MW
Solar Power Generation plant at Hisar
Features of SPP:
Capital cost: Rs 30 Crore (indicative)
Cost of generation: Rs 16 -18 /kWh
Area required: 8000 m2
electricity units generated/ year: 1.5 MU
CO2 mitigation 100 Ton/ year
CDM benefits can be availed
Help to meet HERC requirements for purchase of RE
based power
Generation based incentive offered from MNRE
Rs 12/ kWh for Solar PV
Rs 10/ kWh for Solar Thermal Power Plants
Solar Water Heater System (SWHS) Solar powered street light
Promotion: Regular awareness Pilot project initiated in Hisar, wherein
campaigns through media. 180 Solar PV Powered street lights
have been installed.
Enforcement: Mandatory use of Awareness campaigns for solar
SWHS systems in all commercial power/efficient lightning in street
establishments. light.

Incentive: Rebate is given in the

monthly bills to the domestic
consumers using SWHS .

Some incentive is also offered from

the Government of Haryana.

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Energy Efficiency (EE) Measures Taken by DHBVN
Energy Efficiency Improvement of distribution system
Conversion to HVDS & Segregation of Feeders
Amorphous Core Transformers
Power Factor Improvement
Energy audit program

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High Voltage Distribution System Segregation of feeders
Smaller capacity transformers are being Physical and Logical segregation
installed having following benefits- Physically separate feeder for high
Reduction in technical line loss, number of tube wells.
Reduction in theft.
Logical segregation of feeder -Rural
Load Management System (RLMS)
Conversion of LT to HVDS system in
units on DTs, for low number of tube
both urban and rural areas.
well feeder.
Work in villages having high losses In Haryana, feeders with
under progress.
predominantly agricultural load has
Release of new tube well connections on being physically segregated from
HT only. domestic load.

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 Amorphous Metal Distribution Transformer (AMDT) uses metallic glass alloy in their
cores.

Amorphous metals are bulk, structural, metallic materials whose microstructure in the
solid state is non-crystalline, amorphous or 'glassy'.
Amorphous alloys exhibit unique combinations of properties such as magnetic
performance, hardness, strength, damage tolerance and corrosion resistance.

Hence, AMDT has reduced iron losses and enhanced efficiency.

24,500 no. transformers of this type (total capacity 1488 MVA) have been procured.

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 Program is primarily focused on DHBVNs large industrial but also extended to
commercial customers.
Presently all large industrial consumers are being billed at kWh with
penalty/rebate on power factor.
Hence, a win-win situation for the consumer and the Discom as
- Discom shall improve the system efficiency and
- Consumers would be relieved from unnecessary penalty owing to low
power factor.
- Capacitor Banks/ Automatic Power Factor Correction (APFC) Panels are
installed at substations for improvement of power factor.

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Energy Accounting Program Energy Audit Program
Metering of all feeders Program targets specific customer
completed and of DTs is in segments in the commercial sector,
progress. may also be offered to residential and
Heavy loss segments would be industrial customers.
identified. A pilot audit program targeting
Suitable steps for efficiency selected buildings like hotels/motels,
improvement like replacement shopping mall and government
of cables, DTs would be taken. buildings, has been initiated.
Aim is to identify cost-effective
energy efficiency opportunities and
set up a mechanism for financing
the audit recommendations.

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Public Awareness Measures Taken by DHBVN for
DSM and EE
 DHBVN conducts such melas annually during the month of
December.
Various stalls are organized for awareness of energy efficient devices
Cultural Events like Drawing Competition are held for increasing
general awareness on energy conservation
 DHBVN is working towards establishing
DSM centre in various circle offices
They will a one stop shop for all
technologies and information related to
Energy Efficiency / conservation with
display of equipments by manufacturers/
ESCOs
There is also a proposal to sell the
Energy Efficient Appliances and Solar
Water Heaters at discounted rate
 DHBVN is working towards
establishing an Energy Park in Hisar
A plot with an area of 650X230
square feet has been identified in
Hisar for setting up Energy Park
The objective will be public
education on issues of energy
conservation, energy efficiency, and
renewable energy in a friendly and a
non-technical atmosphere
 The likely themes/ concepts which
will be demonstrated in the park
will include the following: -

Working models, actual operational devices, charts, and posters that explain
not only principles but also the benefits of energy efficiency and renewable
energy.
Hands-on-experimental set ups for children to learn the basic features and
principles
Solar powered fountains, garden lights, solar vehicles etc
Indoor displays on energy-efficient and green building
Dedicated corner for manufacturers to display and sell their products
Solar Cooker Program
A box type cooker can cook for 4-5 people and cost around Rs. 3000 while SK-
14 dish type cooker can cook for 10-15 people and costs around Rs. 5800
For both types of cooker, subsidy of Rs1500 per cooker is provided by State
Government.
Solar Lantern Program
HAREDA is providing solar lantern of 10W capacity at subsidized rates of Rs.
1800 after providing subsidy of Rs.1500 per lantern.
During FY 2008-09, 1000 such lanterns have been distributed
Spy Domestic Lighting Model
System used for lighting one tube and one DC fan
GoI provides subsidy of Rs. 4800, State Govt. provides subsidy of Rs .3000 per
system while consumer bears balance cost of Rs. 4200 per system

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Community/ Institutional/ Night Soil Biogas Plant
State Government is providing subsidy @40% of the cost of biogas plant.
Till date, 98 such biogas plants have been installed in Gaushalas/Institutions
with a cumulative capacity of 5685 cu.m.
Wind Energy Program
Under this program, small size solar power plants mixed with wind energy
generators are installed in areas with wind velocity of 4 m/s and good sunshine
A 10 kW system has been installed in Morni Hills, Panchkula at cost of Rs.
34.30 lakhs to provide electrification to 2 villages
Energy Efficient Buildings Program
State Government has decided that all new buildings to be constructed in
Govt./Govt aided sector will incorporate energy efficient building design
concepts including renewable design concepts w.e.f 30.06.2006.
MNRE, GoI provides 50% of cost of DPR

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 Maharashtra Case Study
Agriculture DSM Pilot Project
Objective
To create appropriate framework for market based interventions in agricultural
pumping sector through Public Private Partnership (PPP) mode
Till date, 98 such biogas plants have been installed in Gaushalas/Institutions
with a cumulative capacity of 5685 cu.m.
Status of Project
The pilot project was launched at Mangalvedha Subdivision in Solapur District
of Maharashtra in February, 2009.
DPR for HVDS implementation under Part A and B of R-APDRP was
submitted for funding by MSEDCL to Power Finance Corporation (PFC) in
January, 2009.
Energy audit of all the pumps (2221 numbers) connected to 4 feeders have
been carried out to evaluate their operating efficiency and to estimate the
savings by replacing the inefficient pumps with star labeled energy efficient
pumps.

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Methodology 1: Avoided Power Purchase Cost (at avg. Power Purchase Cost)
Agriculture consumers are supplied at Rs. 1.10 per kWh
Average power purchase cost for MSEDCL Rs. 2.10/kWh (FY 2008)
Reduction in MSEDCLs revenue @ 60% collection efficiency
Methodology 2: Sale of Saved Energy to Industry (at avg. industrial tariff)
Owning to energy short situation in the state, the saved energy could be sold to
the Industry
Saved energy can be sold to industrial consumer @ Rs. 4.25/kWh FY 2008
Reduction in MSEDCLs revenue @ 60% collection efficiency
Methodology 3: Sale of Saved Energy to all Consumers (at average tariff)
Owning to energy short situation in the state, the saved energy could be sold to
all consumers
Saved energy can be sold to all consumer @ Rs. 3.62 /kWh (average tariff) FY
2008
Reduction in MSEDCLs revenue @ 60% collection efficiency

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 Particulars Option 1 Option2 Option3
Monetary savings per annum (Rs. Lakhs) 137 205 178
Reduction in MSEDCL's revenue from Agricultural
Consumers (@ collection efficiency of 60%) 32 32 32
Net benefit to MSEDCL per annum (Rs. Lakhs) 105 173 146
Actual Pump Cost Including VAT @ 12.5 % (Rs. Lakh) 400 400 400

Dismantling & Installation Cost (Rs Lakh) 9.8 9.8 9.8

Cost of Foot Valve Replacement (Rs Lakh) 7 7 7
Repair & Maintenance Cost (Rs Lakh) 36 36 36
Efficiency Testing Pre & Post Installation (5 % Sample) 2 2 2

GI Pipe & bend Replacement (Rs Lakh) 12 12 12

Total investment (Rs. Lakhs) 467 467 467

Simple payback period (years) 4.4 2.7 3.2

Slide 60
 Solapur Pilot
Particulars Project
Estimated investment (Rs Lakhs) 6201
Loan Convertible to Grant (Rs. Lakhs) 3100
Reduction in technical losses (%) 33%
Total annual benefit (Rs. lakhs) 304
Simple payback period considering grant (years) 10

Slide 61
Bangalore Electric Supply Company
(BESCOM) Case Study
High Voltage Distribution System
 Two 11 kV feeders DF 12 and DF 13 were
selected for HVDS which are rural agricultural
feeders emanating from 66/11 kV D cross sub-
station situated on the outskirts of Doddaballapur
town.
Scope of work included:
Conversion of existing LT line to HT lines
Erection of new HT lines
Erection of 25 kVA DTs
Extension of LT lines
The LT:HT ration improved from 1.65 to 0.29 on
feeder DF1 and from 2.10 t0 0.40 on feeder DF2

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Mar 12, 2017 Page 64
 HAREDA website (http://www.hareda.gov.in/)
Ministry of Power (MoP) website (http://www.powermin.nic.in/)
Bureau of Energy Efficiency -12th Five Year Plan Suggest Energy
Conservation Measures through Demand Side Management.
NPTI training material on DSM

Mar 12, 2017 Page 65

1. Sh. M.B. VASHISHTA
Advisor, Dakshin Haryana Bijli Vitran
Nigam
Hisar (Haryana)
INDIA

2. Dakshin Haryana Bijli Vitran Nigam

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