Role of DSM in T

1
Role of DSM in TD PlanningDilip R. Limaye
Senior Advisor, IIEC September 20, 2004

2
Outline

• Overview of IIEC
• Changing Utility Market and TD
• Role of DSM in New Utilities
• Indian DSM Case Studies
• Concluding Remarks

3
International Institute for Energy Conservation

• Mission
• Accelerate the global adoption of energy
  efficiency policies, technologies and practices
  to enable economic and environmentally
  sustainable development.
• Develop local solutions to global problems
  through the establishment of sustainable
  institutions.
  

4
IIEC Offices
London HQ
N. Delhi
Washington HQ
Bangkok
Mumbai
Manila
Rio de Janeiro
Johannesburg
5

• Changing Utility Market and TD

6
Distribution Utility Concerns

• Increasing cost of purchased power
• High costs of TD expansion - Cost of
  distribution line extension is close to 400,000
  per mile
  
• Due to high losses, a kWh saved can save up to 2
  to 3 units of purchased energy
  
• Subsidies to consumers lead to losses for every
  kWh sold in certain sectors

7
High TD Losses are of Concern to Utilities
High transmission distribution losses (10 to
35)
8

• Role of DSM in New Utilities

9
DSM Initiatives Complement Utility Services

• DSM is a cost-effective mechanism to
• Reduce purchased power costs
• Reduce financial losses
• Reduce distribution investment needs
• Involves multiple actors equipment suppliers,
  manufacturers, Financial institutions, ESCOs
  
• Links policies and markets, a combination of
  top-down and bottom-up market transformation
  effort
  

10
Interplay between Policy Market is important
Utility DSM Policy Initiatives

• Benefits to Utility
• - Reduced losses
• - Reduced investment
• Improved customer
• relations

• Benefits to Private
• Sector
• Increased Sales
• Improved Customer
• satisfaction

Implementation by Private Sector
Customer

• Benefits to Customers
• Reduced costs
• Improved services

11

• Indian DSM Case Studies

12
Utility Information

• Bangalore Electricity Supply Company (BESCOM)
  largest distribution company in State of
  Karnataka
  
• Total customer base of 13 Million
• Connected load of 4,000 MW with a peak deficit of
  about 900 MW in the morning and evening
  
• Program targets subsidized sectors (residential
  and municipal)

13
BESCOM CFL Program
Lighting up your life efficiently

• Target 1 million CFLs
• Cost recovery through billing mechanism
• Competitive selection of suppliers
• Joint promotional campaign
• Expected benefits 48 MW
• Customer benefits
• Extended warranty
• Better pricing
• Reduced costs
• No up-front investment

14
DSM in Municipal Water Pumping

• Technical interventions
• Right-sizing of pump-sets
• Efficient motors
• Demand control system
• Pilot program covers 4 water supply stations
• Cooperative effort between BESCOM Water Board
• Implementation by ESCOs
• Expected peak load reduction with a scaled-up
  program - 10 MW

15
Solar/LPG Water Heating Program

• Program targeted at reducing BESCOM morning peak
  due to storage and instant water heaters (Total
  Load 200 MW)
  
• Innovative hybrid system with a combination of
  solar water heating system and LPG fired water
  heaters to replace point-of-use electric WH
  systems
• IIEC program targets development and testing of
  prototype and branding by the utility

16
Concluding Remarks

• Indian distribution utilities are responding to
  changing financial and service challenges DSM
  integrated with the distribution system expansion
  plans
• Electricity sector reforms are attempting to make
  the business environment conducive to DSM
  initiatives
  
• Effective use of policies and strategies can
  encourage private sector participation and
  development of sustainable markets

17
Thank you!

• Dilip Limaye
• Senior Advisor
• Nitin Pandit, Ph D
• President
• International Institute for Energy Conservation