Demand Side Management

Demand Side Management (DSM) has emerged as a major component of utility planning and operations. It includes the planning, implementation and monitoring of utility activities designed to encourage customers to modify their patterns of electricity usage, including the timing and level of electricity demand.

• DSM programmes are used to eliminate or reduce the need for additional peak or base load generating capacity and/or distribution facilities. It also permits existing generation to meet the needs of a larger number of consumers or defer the requirement for new capacity.

Agriculture Demand Side Management BEE initiated Agriculture DSM scheme in the Eleventh Five year plan as a key strategy to address the existing inefficiencies in the end use segments of agriculture sector. The objective of the programme is to build appropriate framework for market based interventions in agricultural pumping sector. Pump set efficiency up gradation through PPP mode is one the key aspects of this scheme. Municipal Demand Side Management The Government of India, through BEE, has initiated Municipal DSM to cover municipalities in the country by conducting investment grade energy audits and preparation of detailed project reports. Energy Service Companies are being encouraged to take up the implementation of the programme with the help of financial institutions.

Compared with electricity supply options, DSM is disadvantaged by several market barriers – conditions which limit customer uptake of DSM measures or which reduce the incentive for electrical utilities to invest in DSM programmes.

Agriculture Demand Side Management BEE has prepared six DPRs (Detailed Project Reports) in 5 states -- Maharashtra, Gujarat, Punjab, Haryana and Rajasthan. Five more DPRs are in pipeline in the states of Karnataka, Madhya Pradesh and Andhra Pradesh. Consent has been received from the utilities in Gujarat and Punjab to implement the DPR. Agricultural DSM Pilot Project was launched in Solapur District, Maharashtra on February 1, 2009. Municipal Demand Side Management Municipal DSM programme is divided into five different phases. The first phase covers 24 urban local bodies (ULBs), Phase 2 covers 55 ULBs, Phase 3 covers 33 ULBs, Phase 4 covers 31 ULBs and remaining ULBs will be covered in the fifth phase. The basic objective of the project is to improve the overall energy efficiency of the ULBs, which could result in substantial savings in the electrical consumption, thereby reducing the cost/saving for them.