demand side

management
UNDERSTANDING DEMAND AND SUPPLY

Q) Who Demands electricity?
A) The consumer


Q) Who will manage demand for electricity by the
consumers?

A) The Service provider with equal participation
from the Consumer.
2
What is DSM?
DSM is universal and does not only apply to utilities,
electricity or monopolies
DSM encompasses the entire range of management
functions (planning, evaluation, implementation
and monitoring)
DSM = Large-Scale Deployment of Energy Efficient
Equipment by use of specially designed Programmes
Issues Involving the Implementation
Demand Side Management Solutions
Include: Public Benefits Programs, Rate
Schedules, Time-of-Use Rates, Power Factor
Charges, and Real-Time-Pricing

5 August 2014
Public Benefits Programs

Prior to electricity industry restructuring, utilities were responsible for a variety of programs (including DSM) that meet social
objectives. Under restructuring, funding for these programs is typically through a small surcharge ("wires charge" or "system
benefits charge") on utility bills.
Rate Schedules

Utilities can structure their rates to encourage customers to modify their pattern of energy use.

Time-of-Use Rates
Time-of-use rates involve charging higher prices for peak electricity as a way to shift demand to off-peak periods. Interruptible rates
offer discounts in exchange for a user commitment to reduce demand when requested by the utility.

Power Factor Charges
Power factor charges can be implemented to discourage commercial and industrial utility customers from partially loading their
electrical equipment, as this requires the utility to generate extra current to cover the resulting system losses.
Real-Time Pricing
Real-time pricing is where the electricity price varies continuously (or hour by hour) based on the utility's load and the different
types of power plants that have to be operated to satisfy that demand.

5 August 2014
Power Factor Charges
Power factor charges can be implemented to discourage commercial and
industrial utility customers from partially loading their electrical equipment, as this
requires the utility to generate extra current to cover the resulting system losses.
Real-Time Pricing
Real-time pricing is where the electricity price varies continuously (or hour by
hour) based on the utility's load and the different types of power plants that have to
be operated to satisfy that demand.
5 August 2014
Technologies Used in Demand Side Management:

These energy conservation technologies are implemented to reduce total energy use.
Specific technologies include energy-efficient lighting, appliances, and building
equipment, all of which can be found on the EREN Buildings Energy Efficiency page.
For energy efficiency at industrial sites, see the EREN Industrial Energy Efficiency
page.

Load Leveling:

These technologies are used to smooth out the peaks and dips in energy demand by
reducing consumption at peak times ("peak shaving"), increasing it during off-peak times
("valley filling"), or shifting the load from peak to off-peak periods to maximize use of
efficient baseload generation and reduce the need for spinning reserves.

Load control:

Energy management control systems (EMCSs) can be used to switch electrical
equipment on or off for load leveling purposes. Some EMCSs enable direct off-site
control (by the utility) of user equipment. Typically applied to heating, cooling, ventilation,
and lighting loads, EMCSs can also be used to invoke on-site generators, thereby
reducing peak demand for grid electricity. Energy storage devices located on the
customer's side of the meter can be used to shift the timing of energy consumption
The issues!
Load level
a wasteful demand requires too much supply for the
specific needs
Load shape
high peaks,
little reserve capacity,
bottlenecks in transmission and distribution
Market responsibilities
who is the owner of the problem?
Strategic
growth
From this
Strategic
Saving
To This
Or to
this
DSM can change the LOAD
LEVEL
Adapts the system to the environmental requirements
From carbon-fat to carbon-lean
DSM can Change the LOAD
SHAPE
Adapts the load to the capacity of the system
Winter Summer Winter or
Day Night Day
Before
After
Future Business
The two extremes
Technology driven (Adapt and combine
technologies). Stakeholders are already
identified actors who enters when the
incentives are right
Service driven (Adapt business structure).
Some stakeholders are new emerging and
integrated to deliver services in accordance
with needs and regulations)
Source: http://www.mckinseyquarterly.com/Public_Sector/Economic_Policy/Business_strategies_for_climate_change_2125
T
e
c
h
n
o
l
o
g
y

The smart grid A happy marriage ?
Source: An EPRI Initiative to Advance the Efficient and Effective Use of Energy
New Technologies
Business interest in DSM
Actor Peak Load Load Level
Generation company No (prices are set on the margin)
No (loss of sales)
Systems responsible
(regulator)
Yes (to avoid systems break-down)
Possibly regional and in
special situations (to avoid
bottlenecks and to maintain systems to develop
as planned) Transmission and
Distribution
Yes (to maintain systems and avoid
bottlenecks)
Energy supplier
Sometimes (as a business opportunity to
shift loads and operate in pools)
Sometimes (primarily as a marketing
instrument)
ESCOs
EPCs
Sometimes Yes Indeed
Aggregators
Very much Sometimes
Installation and
building companies
Yes yes
Past, Present and Future Tasks
Business interest in DSM
Status of Task Peak Load Load Level
Past, Present
and Future
IEA DSM-
Programme
tasks
Further information
on the activities can
be found at
www.ieadsm.org .
Completed
Task II: Communications Technologies for
Demand-Side Management
Task VIII: Demand-Side Bidding in a
Competitive Electricity Market
Task XI: Time of Use Pricing and Energy
Use for Demand Management Delivery
Task XIII: Demand Response Resources
Task XV: Network-driven DSM
Task I: Subtask 9 Evaluation
Guidebook on the impact of DSM and Energy
Efficiency Programmes
Task III: Technology procurement
Task V: Marketing of Energy Efficiency
Task VI: Mechanisms for Promoting DSM
and Energy Efficiency in Changing
Electricity Businesses
Task VII: Market Transformation
Task IX: The Role of Municipalities in a
Liberalised System
Task X: Performance Contracting
Task XIV: Market Mechanisms for White
Certificates Trading
Current
Task XVII: Integration of Demand Side
Management, Energy Efficiency, Distributed
Generation and Renewable Energy Sources
Task XIX: Micro Demand Response and
Energy Saving
Task XVI: Competitive Energy Services
Task XVIII: Demand Side Management and
Climate Change
Task XX: Branding of Energy Efficiency
Task XXI: Standardisation of Energy
Efficiency Calculations
Proposed
- Utility Carbon Offset Toolkit
- Energy Efficiency Portfolio
Standards
DSM-concept Change agent role Example
Classic
(addressing
utilities as
they are)
Monopolised
markets
Deliver products and services Paradip Port (India)
Customer aggregation Fundraising Public Benefit Charges (USA)
Liberalised markets Mandate utilities to achieve a
set level of energy efficiency
White Certificates (Italy and
some Australian states) and
EE Commitment (UK)
Incentivising utilities to deliver energy
efficiency
Decouple profit from sales
volume
California Investor-owned
Utilities
Energy Efficiency Power Station Aggregate energy efficiency
projects to the scale of a
virtual power plant
Jiangsu, Shanghai and
Guangdong (China) Efficiency
Vermont
Government Deployment schemes Aggregation of purchasing
power
FEMP (USA), Technology
procurement (Sweden)
Change Agents (companies, intermediaries, catalysts)
APPROACH TYPE EXAMPLE
Mandated Standards Minimum performance
(MEPS)
Top-runner standard
Agreed Actions Voluntary Agreements
Technology Procurements
Delegated Actions By actor Regional bodies
Municipalities
By Means Commitments
Certificates
Market
Acceptance
Price-responsive customers Taxes; Tax reduction
Price elasticity (Demand
Response)
Non-price responsive
customers
Commoditising
energy efficiency
Energy Services (ESCO)
Labels
Policy drivers
Climate
Strong policy-drive gives many opportunities
to find support for focused programmes,
especially when fossil fuel is targeted and
renewables promoted
Crosscountry activities in e.g. CDM
Emission rights trade and carbon taxes provide
financial incentives
Energy Efficiency is the first step
on the road to sustainability

Supply

High Density
(e.g. fossil, nuclear)
Low Density
(e.g. solar, wind, bio)
E
n
d
-
U
s
e

o
f

E
n
e
r
g
y

High Efficiency
(Low Intensity)
e.g. CFL and LED lighting;
Adjustable speed drives


UNECONOMICAL


SUSTAINABLE
Low Efficiency
(High Intensity)
e.g. Incandescent lamps,
Direct electrical heating


PRESENT SYSTEM


HARDLY FEASIBLE

Energy Security
Fuel and system diversification is increasingly
important and is coupled to use of distributed
generation
Supplier market position and demand elasticity
is an issue with policy implications (windfall
profits)


Industry development
The ongoing crisis gives policy incentives to
develop new industries, especially related to
smart grid functions
Job creation
Changes requires new partnerships where
technologies meet market skill
Succes at last!?
Today the UN-FCCC supported by the
UNDP and the General Secretary of the UN
will declare that DSM will be mandatory in
all countries from 2010!!
Remember todays date!!
APRIL 1
st
, 2009
Is sustainable growth
possible
..without DSM
and without
global co-
operation?
WHAT IS DEMAND SIDE MANAGEMENT?

Demand Side Management is the modification of
consumers demand of electricity through various
methods such as financial incentives and consumer
education

Usually the goal of DSM is to encourage the
consumers to use less energy during peak hours or to
move the time of energy use to the off-peak hours
viz. night
24
Need for DSM
Saving 1 unit of electricity at consumer end
avoids nearly 2.5 times of capacity addition

1 MW capacity addition of thermal power
requires Rs 6 crores for installation and
another Rs 3 crores for Transmission and
Distribution

25

Need for DSM ..(contd.)

Increasing energy requirement

Increasing threat of climate change and other
environmental considerations

Energy security

Lack of other supply options

Huge scope for energy efficiency measures



26
Demand is minimum
between
12 a.m. and 6 a.m.
Demand is huge between
5:30 p.m. and 9:30 p.m.
Peak Demand at 7.30 p.m.
Since Full Lighting load,
and other Commercial and
Domestic loads
27
Usual Load Curve of an Utility for a 24 Hour
period
Observations
The peak demand of 4,300 MW is there for
only 5-6 hours in the evening

The base demand is 3,000 MW, which is much
less than the peak demand of 4,300 MW

To meet the extra demand utility has to arrange
additional installed capacity or purchase power
at high rate

28
Observations ..(contd.)
Thus utility will always try to encourage
consumers to:

Use less energy during Peak hours (Peak
Clipping)

Shift energy use to off peak hours (Valley
Filling)


29
Therefore consumers too have
a very important role to play
for achieving the objectives of
DSM
DSM
Utility
Consum
er
30
HOW TO DO DSM?
To charge higher prices during Peak Hours

Improving the efficiency of various end uses by using energy
efficient appliances, better house keeping and reducing energy
leakages. This is important for agriculture where energy
efficiency is very low (30-50%)

Promoting use of Energy Efficient Technologies and
addressing Aggregate Technical and Commercial (AT&C)
Losses

31
Benefits of Demand Side
Management




Customer Benefits Utility Benefits Societal Benefits
Satisfy electricity
demands
Lower cost of service
Reduce environmental
degradation
Reduce / stabilize
costs or electricity bill
Improve operating
efficiency,
Flexibility
Conserve resources
Maintain/improve
lifestyle and
productivity
Improve customer
service
Protect global
environment
32
Module 14
Module overview
Demand-side management (DSM) traditionally = reducing electricity
demand to:
Defer building further capacity
Mitigate electrical system emergencies
Reduce dependency on expensive imports of fuel
Reduce emissions
Economic, reliability and environmental benefits
This module will examine:
Why Promote DSM? What Drives DSM?
Types of DSM Measures
Information dissemination of DSM
DSM Programme Challenges
Module 14
Module aims
To introduce the concept of Demand-side management for residential,
commercial and industrial energy users
To give an overview of the different types of DSM
To show how housekeeping and preventative maintenance in
commerce and industry can be used to reduce energy demand
To describe energy auditing and routine data collection and
monitoring, and to indicate their benefits.
To outline information dissemination on DSM
Module 14
Module learning outcomes
To be able to define Demand-side management
To understand the different types of DSM and suitability to various
energy users
To be aware of the benefits of good reliable data for regular
performance analysis, and as an essential part of energy auditing
To appreciate the need for effective information dissemination on
DSM
To understand the challenges facing implementation of DSM
Module 14
Demand-Side Management

DSM refers to Actions taken on the customer's side of the meter to
change the amount or timing of energy consumption. Electricity
DSM strategies have the goal of maximizing end-use efficiency
to avoid or postpone the construction of new generating plants."
[USA Department of Energy]
Module 14
Why Promote DSM?
Cost reduction of meeting energy demand
Environmental and social improvement reduced emissions
Reliability and network issues improve reliability and defer
expansion
Improved markets demand response
Improved national energy security
Module 14
What Drives DSM?
Cost Reduction and Environment:
Reduce utility costs / customer costs
Rising fuel prices
Opposition / financial limitation to building new plants
emission / environmental concerns
Network and Market
Delay or avoid expansion
Competition
Demand shifting
Module 14
Types of DSM Measures
Energy reduction programmes - reducing demand through
more efficient processes, buildings or equipment
Load management programmes - changing the load pattern
and encouraging less demand at peak times and peak rates
Load growth and conservation programmes
Module 14
Energy Reduction Programmes
Improving performance of boilers, steam systems, etc.
Efficient Lighting
CFLs
Using natural light
Appliance Labelling
Building regulations
Efficient and alternative energy use
Efficient use of electric motors
Preventative maintenance
Module 14
Energy Reduction Programmes
(2)
Energy management
Energy purchasing
Metering and billing
Performance measurement
Energy policy development
Energy surveying and auditing
Awareness raising, training and education
Capital investment management
Hiring an Energy Planner
Module 14
Energy Reduction Programmes
(3)
Housekeeping
No cost / low cost measures
Measures requiring some level of investment
Energy auditing
Preliminary audit
Detailed audit
Financial analysis
Module 14
Load Management Measures
Load Levelling:
Peak clipping
Valley filling
Load shifting
Load Control:
Loads (e.g. heating, cooling, ventilation, and lighting) switched on or off,
often remotely, by the utility
Tariff Incentives or Penalties:
Time-of-Use & real time pricing
power factor penalties
Module 14
Load Growth and Conservation
Programmes
Growth diverting other energy sources (fuel) to better (more
efficient) electrical sources
Growth strengthens the utilities capability to load manage
Conservation results in a reduction in sales as well as a change
in the pattern of use
Module 14
Information Dissemination of DSM
Awareness Campaigns
Promoting user benefits
Explaining no cost/low cost actions
Marketing
Most programmes are marketed by personal contact
Talking directly with people important
Media also useful: radio, television, newspapers
Module 14
DSM Programme Challenges
Developing Countries
Awareness
Technical capabilities
Production and Safety Constraints
Cost to Customer
Financing constraints
Module 14
CONCLUSIONS
DSM is important for enabling the more efficient use of base
load capacity
It mitigates electrical system emergencies
Significant economic, system reliability and environmental
benefits
Cheap, fast way to solve electricity problems
Market DSM programmes to show potential customers their life
cycle benefits and often simple techniques for reducing demand
Power utility manages the demand for power among some or all its
customers to meet its current or future needs

Implemented either directly through utility sponsor program or through
ESCOs

In India, DSM can be achieved through:
1. Energy efficiency -- reduction of KWh of energy consumption
2. Demand load management reduction of KW of power demand
3. Displacement of demand to off peak time

Specific type of programs depend on utility objects



In the former category, programs such as awareness programs, efficient
equipment usage, rebates to customers etc.

While the latter one includes time of use tariffs, direct load control etc.

The reduction of energy demands and consumption at the customer end
can free up electricity generation, transmission and distribution capacity

The cost of saved energy can be as low as 10% of the cost of added
capacity


In addition to deferred capacity cost, support for energy efficiency at the
customer end brings utility in close contacts with its clients which result
in better service and better efficient planning process

DSM can mitigate the adverse impact of increased rates on residential,
agricultural and commercial sectors

DSM helps industries to be placed more comparatively in the recent open
market structure


DSM IN INDIA
The problems of Indian power sector can be grouped into 3 major issues:
1. Unacceptable high transmission losses
2. Huge commercial losses due to poor billing, metering, collection at
depth etc.
3. Low induced efficiency of energy used specifically in agricultural sector

The financial status of power sector can be effectively improved by
demand side management


The reasons for power utility to undertake DSM includes:

1. Improve the cash flow revenue of the utility
2. Improve the quality and reliability of power supply
3. Reduce the impact of raising tariff to the subsidized customers
4. Demand out-stepping



ENERGY SECTOR
REFORMS
Coal

Oil & Natural Gas

Electricity
coal
Importing of coal to meet our requirements is
allowed

Private sector has been allowed to extract coal
for captive use only

Creation of competitive environment for the
functioning of various entities in this industry

Amendment of Coal Mines Nationalization
Act
Oil & natural gas
Private investors have been allowed to import and market LPG and
kerosene freely

Private investment has also been allowed on lubricants, which are not
subject to price controls

Prices for naphtha and some other fuels have been liberalized

NELP -- promote investment in the exploration and production of
domestic oil and gas

Private and foreign investors allowed in refinery sectors


electricity
CERC was set up -- regulating the Central power generation utilities

State level regulatory bodies have also been set up to set tariffs and
promote competition

Private investments in power generation were also allowed

SEBs were asked to switch over to separate Generation, Transmission and
Distribution corporations

Plans to link all SEB grids and form a unified national power grid


5 August 2014
Indian Power Scenario



Table 1 : Total Installed Capacity
(MOP website as on 30.6.2010)
Sector MW Percentage
State Sector 80,775 52.5
Central Sector 51,158 34.0
Private Sector 30,434 13.5
Total 1,62,367
5 August 2014
Indian Power Scenario

Table 2 : Total Installed Capacity (fuel-wise)
(MOP website as on 30.6.2010)
Fuel MW Percentage
Total Thermal
104,424 64.6
Coal
86,003 53.3
Gas
17,221 10.5
Oil
1,200 0.9
Hydro
36,953 24.7
Nuclear
4,560 2.9
Renewable
16,429 7.7
Total
1,62,367
5 August 2014
Indian Power Scenario
Table 3 : Total Installed Capacity (MW)
EA website as on 30.6.2010)
Region
Coal Gas Nuclear Hydro R.E.S Total
Northern
21,950 3,563 1,620 13,350 2,690 43,188
Western
28,525 8,144 1,840 7,448 4,850 50,824
Southern
18,573 4.558 1,100 11,157 8,330 44,656
Eastern
16,895 190 0 3,882 335 21,321
North Eastern
60 766 0 1,116 218 2,303
All India 86,003 17,221 4,560 36,953 16,429 162,367
5 August 2014
Indian Power Scenario

Table 4 : Power Supply Scenario (April May 2010: CEA)
Energy
Requirement
(MU)
Energy Availability
(MU)
Energy Deficit
(%)
Northern Region 43,900 37,971 13.5
Western Region 49,035 40,341 17.7
Southern Region 39,398 35,871 9.0
Eastern Region 15,851 14,699 7.3
N E Region 1,438 1,234 14.2
Total for the Country
149,622 130,116 13.0
5 August 2014
Indian Power Scenario

Table 5 : Power Supply Scenario (April May 2010: CEA)
Peak Demand
(MW)
Peak Demand
Met (MW)
Peak Deficit (%)
Northern Region 33,911 31,176 8.1
Western Region 39,560 32,142 18.8
Southern Region 32,214 29,054 9.8
Eastern Region 13,317 11,8011 11.4
N E Region 1,578 1,358 13.9
Total for the Country 119,437 103,003 13.8
5 August 2014
In Indian context the main challenges for power sector:



How to eliminate the power cuts ?


How to ensure quality power to all ?


How to meet the additional demand ?
5 August 2014
One answer which seem to be obvious:

Keep increasing the installed generating capacity
And
Increase T&D network correspondingly

------------------------------------------------

But the reality is:

How much increase is techno-economically feasible?

Is there a natural limit?

5 August 2014

Major Issues with Fossil Fuel Power Plants
(coal, gas, diesel)

Economic
Unsustainable pressure on natural resources such as land, water and
minerals; reduced agricultural production; fast depleting fossil fuels;
costs huge money; Rs. 5 to 7 Crores/MW; increased pressure
on rail and road network


Social
Peoples displacement due to large sizes of power plants; health; decay of
rural India


Environmental
Global Warming; pollution of land, water and air; acid rains; impact
on bio-diversity; mines below forests
5 August 2014

Major Issues with Dam based Hydro Power Plants


Economic
Demands large tracts of forests and fertile land; water logging; affects
the economy of the down stream population; deposition of silt in
dams; deprivation of the same down streams


Social
Peoples displacement and health; community leadership issues



Environmental
Methane emission, submersion and fragmentation of forests; loss
of bio- diversity; downstream areas get deprived of fertile silt
5 August 2014

Major Issues with Nuclear Power Plants

Economic
Demands large tracts of forests and fertile land; huge Capital costs; long
term waste management costs; serious shortages of nuclear fuels


Social
Peoples displacement and health; community leadership issues



Environmental
Mining related pollution; radiation emission during operations and
from nuclear wastes for centuries

5 August 2014
Major Issues with new renewable energy sources


Perceived to be very costly

Technology still evolving

Real potential yet to be determined

Status as a firm power is being questioned

Not much of experience with them


It will be a while before these sources are fully tested.
DSM
5 August 2014


Hence there is an inescapable need to manage the existing resources
well:
Generating Plants

&
Transmission and distribution network

Demand Side Management focuses on this
5 August 2014




BENEFITS OF DSM
CUSTOMER
BENEFITS
Satisfy
needs/wants
Reduce cost
Improve value of
service
Improve lifestyle
& productivity
UTILITY
BENEFITS
Lowers cost of
service
Improve operating
efficiency, flexibility
and services
Reduce capital
needs
CUSTOMER
SOCIETAL
Reduce pollution
Conserve resources
Protect global
environment
Maximize customer
welfare
69
5 August 2014
Different techniques of DSM

Time of day pricing and metering,
multi-utility power exchange model,
load management,
load priority technique,
peak clipping,
peak shifting,
strategic conservation,
energy efficiency improvement
different time zones
Tariff interventions
Rain water harvesting
Time of day pricing and metering
5 August 2014

Different tariff for different hours of the day.

o Already being practiced in India

o For HV Installations / industries /large commercial
installations

o Should be extended to other installations in India;
for all loads above , say, 10 kW

o Much wider practice all over the world

5 August 2014
Multi-utility Power Exchange Model

o Different utilities connected through the grid

o Shifting of loads from one utility to the other

o Optimising the peak load handling capacity

o < 10% difference between peak and average load is desirable
5 August 2014
Load management & load priority technique

o Load shedding;
widely used practice in India;
Through 11 kV & 33 kV feeder control
not very scientific; cannot differentiate between consumers
not a smooth way of managing the load

o Giving priority to important loads

o List of important loads
5 August 2014
Peak clipping & Peak shifting

Shut down loads and shift load demand to off-
peak duration

o Other terms for peak demand control

o Ripple control through identified loads (NZ Example)

o Shifting electricity consumption from peak to non-peak
hours

o Appeal to large consumers for relief during peak hours
5 August 2014
Strategic conservation

o Conservation of power in strategic locations.

o Aims at peak voltage management

o Reducing kVAR loads at tail ends

o Appeal to energy intensive industries

o Photo sensitive switches for street lights
5 August 2014
Energy efficiency improvement

o T&D loss reduction; biggest source of DSM

o Efficiency improvement in end use applications

o Improvement in agricultural pumping sets

o Usage of CFLs/LEDs in place of bulbs

o BEEs estimation of savings: 10,000 MW

o Prayas Energys study: 30 % savings in households;
corresponds to about 25,000 MW of avoided
generating capacity
5 August 2014
Different time zones

o Appears to be necessity

o Indias large spread across longitude; 80 Minute spread

o Shifting of peak load from one to other time zone

o Needs adequate transmission capacity

o HV DC lines and UHV systems
Tariff interventions

5 August 2014

o To discriminate between legitimate use and luxuries/
wastages

o Should discourage wastage and encourage efficiency

o Very high tariff for higher usage in commercial and
domestic usage

o Much higher demand charges for higher connected loads

o Early introduction of feed-in tariff for renewable energy
sources

DSM: Organisational level
Management Issues

5 August 2014

o Organizational issues; why DISCOMs are not keen

o Need for national/state level initiatives

o Energy Conservation awareness Programs

o Media coverage

o Need for adequate incentives; DISCOMs and consumers
DSM in Lighting

Lighting System

01. One of the best energy-saving devices is the light switch. Turn off
lights when not required.
02. Many automatic devices like dimmers, automatic timers, motion
sensors etc., wherever applicable can be used.
03. As for as possible use task lighting, which focuses light where it's
needed. Eg., A reading lamp.
04. Dirty tube lights and bulbs reflect less light and can absorb 50 percent
of the light; dust your tube lights and lamps regularly.
05. Fluorescent tube lights and CFLs convert electricity to visible light up
to 5 times more efficiently than ordinary bulbs and thus save about 70% of
electricity for the same lighting levels.
06. Replace your electricity-guzzling ordinary bulbs (incandescent lamps)
with more efficient types.
07. A 15-watt compact fluorescent bulb produces the same amount of
light as a 60-watt incandescent bulb.



5 August 2014
DSM in lighting
Reduce excessive illumination levels to standard levels using switching.

Install efficient alternatives to incandescent lighting, mercury vapor lighting,
etc. Efficacy (lumens/watt) of various technologies range from best to worst
approximately as follows: low pressure sodium, high pressure sodium, metal
halide, fluorescent, mercury vapor, incandescent.

Select ballasts and lamps carefully with high power factor and long-term
efficiency in mind.

Consider daylighting, skylights, etc.

Consider painting the walls a lighter color and using less lighting fixtures or
lower wattages.

Change exit signs from incandescent to LED.




5 August 2014
5 August 2014
Energy Efficient Lighting
Controls
Occupancy Sensors
Timed Based Control
Daylight Linked Control
Localized Switching
5 August 2014
Electronic Ballast
DSM in Computer usage
Computers
Turn off your home office equipment when not in use.

2. If your computer must be left on, turn off the monitor; this device alone
uses more than half the system's energy.

3. Setting computers, monitors, and copiers to use sleep-mode when not in
use helps cut energy costs by approximately 40%.

4. Battery chargers, such as those for laptops, cell phones and digital
cameras, draw power whenever they are plugged in and are very
inefficient. Pull the plug and save.

5. Screen savers save computer screens, not energy. In fact, shutting
computers down when you are finished using them actually reduces
system wear - and saves energy.

6. Use TFT monitors instead of CRT monitors.



5 August 2014
DSM in Distribution system
Electricity Distribution System

Optimize the tariff structure with utility supplier
Schedule your operations to maintain a high load factor.
Shift loads to off-peak times if possible.
Minimize maximum demand by tripping loads through a demand controller
Stagger start-up times for equipment with large starting currents to minimize
load peaking.
Use standby electric generation equipment for on-peak high load periods.
Correct power factor to at least 0.90 under rated load conditions.
Relocate transformers close to main loads. .
Consider on-site electric generation or cogeneration.
Export power to grid if you have any surplus in your captive generation

5 August 2014

Automatic Power Factor Controllers

5 August 2014
DSM with Electric motors
Motors
Properly size to the load for optimum efficiency.
(High efficiency motors offer of 4 - 5% higher efficiency than standard
motors)
Use energy-efficient motors where economical.
Use synchronous motors to improve power factor.
Check alignment.
Provide proper ventilation
(For every 10
o
C increase in motor operating temperature over
recommended peak, the motor life is estimated to be halved)
Check for under-voltage and over-voltage conditions.
Balance the three-phase power supply.
(An imbalanced voltage can reduce 3 - 5% in motor input power)
Demand efficiency restoration after motor rewinding.
(If rewinding is not done properly, the efficiency can be reduced by 5 -
8%)



5 August 2014
5 August 2014
Energy Efficient Motors
5 August 2014 A.Kumar, BNMIT
5 August 2014
Design changes
Table 10.1 Watt Loss Area and Efficiency Improvement
Watt loss area Efficiency Improvement
1. Iron Use of thinner gauge, lower loss core steel reduces
eddy current losses. Longer core adds more steel to
the design, which reduces losses due to lower
operating flux densities.
2. Stator I
2
R Use of more copper and larger conductors
increases cross sectional area of stator windings.
This lowers resistance (R) of the windings and
reduces losses due to current flow (I).
3. Rotor I
2
R Use of larger rotor conductor bars increases size of
cross section, lowering conductor resistance (R)
and losses due to current flow (I).
4. Friction &
Windage
Use of low loss fan design reduces losses due to air
movement.
5. Stray Load
Loss
Use of optimised design and strict quality control
procedures minimizes stray load losses.


For the first time in India, BESCOM started Demand Side
Management activity vide General Manager(Tech) Bescom order
No. BESCOM/BC-9/310/05-06 dated 09-02-2007.

M/S.International Institute for Energy Conservation(IIEC),
Washington were consultants for BESCOM.


91






Demand Side Management is a mechanism to influence customers
CAPABILITY and WILLINGNESS to reduce electricity consumption.

Demand Side Management is a utility program aiming to fine-tune
consumers energy consumption pattern, according to the utilitys
energy production and distribution capacity.

Demand-side management(DSM) programs consist of the planning,
implementing and monitoring activities of electric utility that are
designed to encourage consumers to modify their level and pattern of
electricity usage.





92
Demand Side Management relies on a combination of using high
efficiency equipment and efficient use of electricity through good
operating practice.

Demand-side management(DSM) is the implementation of policies and
measures which serve to control, influence and generally reduce electricity
demand.

DSM aims to improve final electricity-using systems, reduce consumption,
while preserving the same level of service and comfort.






93
OBJECTIVES OF DSM
1: Reliability and Stability
DSM provides enhanced reliability to the energy system by reducing
overall demand through energy efficiency and by reducing peak demand
through dispatchable programs.

It also reduces transmission and distribution costs relative to a supply side
resource.

DSM increases diversity of energy sources.
94
OBJECTIVES OF DSM
2: Low Cost / Affordability
The cost of DSM is technology specific and varies relative to other supply
side resources.

Dispatchable DSM programs can be called when their cost is lower then
alternative market purchases.

Cost-effective resource planning can ensure that DSM is only procured up
to the point where it is cheaper than supply alternatives.

DSM can also help low-income customers reduce their energy costs.
95
Following three factors reduce energy consumption(kWh) and peak
demand (kW), however, emphasis differs

i. Energy Efficiency emphasis is on reducing overall energy
consumption and also peak demand over several years.

ii. Peak Load Management emphasis is on reducing peak demand
consistently over a season.

iii. Demand Response emphasis is on reducing peak demand for
short periods of time for a few days during the year.


96
For Promotion of various Energy Efficient / DSM methods in the state
following steps were taken:

i. National Energy Conservation Day observed on 14
th
December.
(G.o.I has enacted The Energy conservation act 2001).

Earth Hour observed by all the employees of BESCOM in offices and
their residences. Public were also requested to participate.

(Earth Hour was observed on 23
rd
March 2013 from 8.30PM to 9.30PM
by switching off all the unnecessary lights).








97
Operational Metrics
BESCOM Load Curve
98
Many workshops on DSM measures conducted.
Following are the various NGOs / corporations who involved in saving
of Energy Efficient / DSM measures:
i. BBMP (By using automatic timers)
ii. NGOs (By spreading the awareness programmes)
iii. Industrial / Commercial Advertisers (By adopting energy efficient
measures)
iv. Out door advertising agencies for hoardings (By using energy
efficient lighting & dimming hoarding lighting after 10PM)
Energy Auditing of BESCOM Corporate Office done by M/s. Centre
for Sustainable Development, Bangalore.









99
100








1. BESCOM EFFICIENT LIGHTING PROGRAM
A Pilot Project was undertaken during 2005-06 for the first time in
India under USAID in Bangalore city as desired by BEE.,MOP.
M/S. International Institute for Energy Conservation(IIEC),
Washington were consultants for BESCOM

CFL Purchase Options
Under this scheme consumers were encouraged to purchase CFLs directly from
suppliers or from BESCOM on a monthly instalment basis paid through
electricity bills.

Benefits derived

Estimated that about 1.81 Lakhs additional CFLs were sold during the
scheme implementation.

About 100% increase in sales of CFLS was observed compares to the
previous year which resulted in:
Reduction in residential demand to an extent of 10.46MWs.
This Pilot Project encouraged in formulation of Bachat Lamp Yojana in
the country.
It enforced manufacturers to give one year warranty to the customers.
This scheme lead to regulation stipulating a minimum power factor of
0.85 for CFLs.


101
1.a. Bachat Lamp Yojane Scheme :-

Bachat Lamp Yojane, a scheme to promote replacement of
CFLs in the place of incandescent lamps under CDM project
promoted by M.o.P., G.o.I., was implemented during 2011.

The difference amount of CFL cost to be obtained by the
implementing agency through CDM in the form of trading
CERs.

M/S. HPL Socomac private Lt., Bangalore 560001, was
entrusted for two rural Circles namely Bangalore rural Circle
and Kolar Circle covering 4 districts wide GM(Proc),
BESCOM order no. BC-51/F-485/08-09 Dated: 22.05.2010
as follows.




102
103
A total no. Of 37.01,368 CFLs were distributed during 2011 as detailed are shown
below:
The Salient features of the scheme are as follows:

i. The warranty period shall not be less than 18 months from the date of
fixing of CFL to the household.

ii. The power factor shall not be less than 0.85

iii. Free replacement of fused distributed CFLs within two years for 6000
hour CFLs and within three years for 10,000 hour lamps during the
life of the CDM project. It will be the responsibility of the successful
firm for collection of fused CFLs through buy-back scheme and
arrangements for their safe disposal as per environmental guidelines.

iv. A maximum of 4 CFLs shall be replaced in exchange of an
incandescent lamp (ICL) at a cost of INR 15 per house hold. These
CFLs shall be compliant with the existing National Regulations in
force viz. IS-15111:2012 (As per BEE and BLY guidelines)
104
105

2.a. BESCOM EFFICIENT IRRIGATION PUMP SETS PROGRAM
A Pilot Project was conducted during 2005-06 for the first time in
the country as follows:

Innovative Bescom Efficient Irrigation Pump Sets Program (BEIP) scheme
was launched, supported by International Copper Promotion Council (India).
M/S International Institute for energy conservation(IIEC), Washington were
consultants for BESCOM.
The official suppliers were (selected through tender)
i. M/s Kirloskar Brothers Ltd
ii. M/s KSB Pumps Ltd
iii. M/s Crompton Greaves Ltd

A total number of 1074 nos of submersible pump sets were replaced by
Energy Efficient IP Sets under the scheme.
Manufacturers offered a warranty of 18 months for pump and offered
attractive rates for energy efficient I.P.sets.



106

2.b. Agriculture Demand Side Management, WENEXA-USAID

On 06.07.2009, BESCOM launched Distribution Reform Upgrades
Management (DRUM) project, water and energy Nexus activity phase II
(WENEXA II) both conducted under the aegis of Indias Ministry of Power
(MoP) and United States International Development Agency (USAID) / India.

The DRUM project established a pilot site at Doddaballapur to help
BESCOM. Create of excellence which will serve as a model to be sealed up
and replicated else where.

Electricity used for irrigation pumps is highly inefficient with pump
efficiencies of 30% and less. However farmers are unwilling to invest in these
improvements because the present tariff regime does not provide financial
incentive to do so. Therefore BESCOM has designed and implemented an
integrated system improvement and demand side management.


107

Hence BESCOM planned an initiative called replacing inefficient irrigation
pump sets by high efficient pump sets on HVDS feeders at Doddaballapur Sub-
Division as a pilot project

M/s ENZEN Global Solutions, an ESCO was engaged for replacement of
existing IP sets in Doddaballapura on11KV feeders under USAID -
WENEXA. This ESCO Agriculture Demand Side Management model was
designed by BESCOM in association with USAID-PA Consulting.

BESCOM was able to successfully establish a system of appointing ESCO
and has been awarded with National Power Award-2009 under category
ENERGY EFFICIENCY, CONSERVATION AND DEMAND SIDE
MANAGEMENT for Agriculture Demand Side Management initiative.



108

This pilot is the first of its kind in India to undertake Agriculture.
Demand Side Management under ESCO model.

A total number of 277 inefficient Pump sets at metered locations in
Doddballapura Sub-Division were replaced by High Energy Efficient
Pump Sets.

BESCOM has saved 29.23 Million units from this project between April
2011 to June 2013 at Doddaballapura and the project details are mentioned
in the following slide:




109
Energy Savings of Agricultural Demand Side
Management
110

A contract agreement was signed on 07-08-2013 between BESCOM and
M/S. Energy Efficient Service Ltd., a joint venture company of public
sector units (PSUs) of Ministry of Power, New Delhi for Agriculture
Demand side Management i.e., for preparation of DPR to replace one lakh
nos. of less efficient IP sets by highly efficient pump sets without any
financial commitment to BESCOM as follows:




111

3. Solar Water Heaters



Government of Karnataka has issued Order No :
EN396/NCE2006 dated 13.11.2007 for the use of Solar
Water Heaters as mandatory for the buildings
constructed in sites measuring more than 1200sft area.

Circulars and instructions have been issued to the field
officers to educate and bring in awareness about the
advantage of installing Solar Water Heating systems as
per above circular.

Notification No. K.E.R.C/COS/D/07/10
Dated:01.07.2010 published in Karnataka Gazette dated:
22.07.2010.




112
Government of Karnataka has issued the notification no:
EN 396 NCE 2006
Dt: 13.11.2007 wherein the solar water heating system is
mandatory for
categories of buildings mentioned below:
i. Industries where hot water is required for processing or
for auxiliary purposes.
ii. Hospitals and Nursing homes including government
hospitals.
iii. Jail Barracks, Canteens.
iv. Housing complex set up by Group housing
societies/housing boards/other developers.
v. All residential buildings with built-up area of 600 Sq.feet
and above constructed on sites measuring 1200 Sq.feet
and above falling within the limits of
Municipalities/Corporations and Bangalore Development
Authority sectors.
vi. All Government buildings/Residential schools/All
educational institutions/Technical/Vocational Education
Institutions/ All training institutions/ Hostels/ Tourism
complexes/ Universities/ Community centers/ Kalyana
Mantapas where facility for stay is provided.





113
Aditya Solar shop of Karnataka Renewable Energy
Development Limited will act as an approved source for
supply and installation of solar water heating systems in the
state to ensure the installation of optimally designated quality
systems as per the specifications.

All the departments like Urban Development Department,
Public Works Departments , Housing Department, Health and
Family Welfare Department and Agriculture & Horticulture
Department will amend their rules / bye-laws within a period
of two months from the date of issue of this order to make use
of the solar water heating systems mandatory.

These departments will also designate a district and a state
level nodal officer to monitor and report the progress of
enforcement of the State Government decisions to the
Karnataka Renewable Energy Development Limited on
Quarterly basis the prescribed format.





114
Mandatory use of Compact Florescent Lamp (CFL)
in Government Buildings / Government aided
Institutions/Boards/Corporations.

The use of incandescent lamps in all new
buildings/institutions constructed in Government Aided
Sector/Board and Corporation / Autonomous bodies is
banned with immediate effect.

It will be mandatory that in existing buildings the
defective incandescent lamps when replaced would be
replaced by only compact florescent lamps (CFL).

Power utilities will affect necessary modification in the
load demand notices within two months time from the
date of issue of this order to promote the use of Compact
Florescent Lamps instead of conventional bulbs while
releasing/ sanctioning new connections/loads.





115
Mandatory use of ISI marked motor pump sets, Power
capacitor, Foot/Reflex valves in Agriculture Sector.

For all new tube well connection the use of ISI marked
pump sets and accessories will be mandatory.
All ESCOMS and KPTCL will make the amendments in the
load demand notices for tube well connections within two
months from the date of issue of this order to ensure use of
only ISI marked pumps in the state.

Promotion Of Energy Efficient Building Design.

All the new buildings to be constructed in the Government/
Government Aided Sectors will incorporate energy efficient
building design concepts including Renewable Energy
Technologies with effect from one year from the date of issue
of this order.





116
The Public Works Department will ensure the incorporation of energy efficient
building concept in all buildings to be constructed in future in the Government
/Government Aided sector. A committee shall be formed in the Public works
Department to examine all new building plans/drawing to be constructed in the
Government / Government Aided Sector to ensure that all the features of the Energy
Efficient design concepts have been incorporated in these.

The Public Works Department will designate a nodal officer for coordination and
monitoring of these measures who will report the progress in this regard to the
Managing Director, Karnataka Renewable Energy Development Limited.

- By order and in the name of Governor of Karnataka
-Sd/-
Suresh.B.Krishnappanavar
Under Secretary to Government,
Energy Department.




117
A rebate of 50 paise per unit of electricity consumed subject to a maximum of
Rs.50/- per installation per month will be allowed to Tariff schedule LT 2(a), if
solar water heater are installed and used. Where bulk solar water heating system
is installed, solar water heater rebate shall be allowed to each of the individual
installations, provided that, the capacity of solar water heater in such
apartment/group housing shall be a minimum capacity of 100 Ltr. Per household.

Regarding the installation of Solar Water Heaters, the following directions are
issued as per Circular No: BESCOM/BC-9/1554/2010-11.





118
Solar Water Heaters:

The public are being enlightened on this in various
forums especially in Janasamparka Sabhas, Customer
meets etc., We have also instructed the Meter Readers
and the Linemen who are visiting the customer
premises during the meter readings and while
attending to the customer complaints to explain about
the advantages of Solar Water Heating systems in the
form of saving energy and consequential reduction in
the electricity bills.

We have issued strict directions to the field officers to
adhere to the notifications issued regarding
mandatory use of Solar Water Heating systems by the
customers as per the guidelines of Government of
Karnataka.

119
Solar Water Heaters:

No. of Solar Water Heating Systems installed in BESCOM are as follows:

2008-09 : 6,187
2009-10 : 47,218
2010-11 : 52,491
2011-12 : 72,084
2012-13 : 95,819
As on 31.07.2013 : 1,20,791.
120
3.a. Installation of Solar RTPV grid connected power plant in the premises of Corporate
Office, BESCOM, Bangalore (as a Pilot scheme to promote large scale grid connected
rooftop solar photovoltaic projects in Bangalore).

Scope of Work: Design, manufacture, supply, Installation, testing, commissioning including
warranty, operation and maintenance for a period of two years for providing 100 Kwp Solar
grid interactive power plant of 30 Kwp capacity on flat roof of block no I, 70 Kwp capacity
on the slanted roof of block no.II, Solar PV Grid interactive power plant in the premises of
Corporate Office, BESCOM, Bangalore (as a pilot scheme to promote large scale grid
connected rooftop solar PV projects in Bangalore)

Contract Value: Rs.58.10 lakhs (Rupees fifty eight lakhs and Ten thousand only) after
availing 30% subsidy from Solar Corporation of India.

LOI: BESCOM has issued LOI vide no. BESCOM/GM(DSM)/DGM/AGM/BC-51/2013-14
428-35 Dt: 29.07.2013 on M/s. Thermax Ltd., Pune for implementation of this project.

121

3.b. Time of Day Tariff

KERC has decided to make Time of Day Tariff compulsory for HT2(a) and HT2(b)
consumers with a contract demand of 500 KVA and above.
Further, the optional ToD would continue as existing earlier for HT2(a) and HT2(b)
consumers with contract demand of less than 500 KVA.
Also the ToD for HT1 consumers on optional basis would continue as existing
earlier.
Details of TOD tariff are indicated under the respective tariff category.
BESCOM has replaced all the 1278 nos of ToD feature meters for HT2(a) and
HT2(b) consumers with a contract demand of 500 KVA and above as on 30
th

September 2012.
TOD Tariff applicable to HT 2(a)(i) & HT2 (b) category

122
TOD tariff applicable to LT5(a) & (b): At the option of the consumer as
follows.
123
4. Lifestyle change approach to Best Energy Conservation Practices- a pilot by
M/s CSD :

M/s. Centre for Sustainable Development were engaged for bringing in awareness
among residential / commercial customers for adoption of Energy Efficient methods
in their daily lifestyle as a pilot project in Brigade Road, M.G. Road, Residency
Road and Halasur.

About 1601 customers have participated in this project.

M/s CSD have submitted the final report and the results are encouraging which
indicate a saving of an average 8-10% of energy by all participating customers in
this scheme.

This pilot is the first of its kind in India conducted by a public utility using an
NGO.
124
5. Replacement of Copper Chokes by Electronic
Ballast

BESCOM has undertaken replacement of existing
Copper chokes in Fluorescent tube light fittings of
BESCOM buildings by energy efficient electronic
ballast through M/s. KEONICS a State
Government undertaking.

During 2011 2012, BESCOM has replaced 5,298
nos. of existing 50 Watts copper ballast by 28
Watts electronic ballast chokes (with 8 years
warranty period) in various BESCOM building at
a cost of Rs. 66.90 lakhs.

This resulted in saving of energy to the tune of
0.35 million units per year considering average
usage of TL fittings of 10 hours per day for 25
days in a month.
125
6. Involvement of BBMP:-
BBMP was requested to reduce energy consumption in street lights, hoardings
and parks etc.

BESCOM is insisting on BBMP and Bangalore Metropolitan Area Zone for fixing
automatic timer switches to street light circuits as mandatory. Studies show the usage
of electronic timer switches saves energy upto 30%. And also it ensures timely
switching streetlight circuits ON at 6 PM and switching off at 6 AM exactly.
To switch ON the street lights just at the dusk i.e. 6.30 pm and switch OFF just before
the sunrise i.e. by 5.30 am (During summer).
To switch OFF lights (except for security lighting) in parks and gardens immediately
after exit of public in the evenings i.e. by 8.00 pm.
To take action for reduction of 50% of power in respect of hoardings, boards and
advertising illuminations. (Make provision for dimmers to lighting after 10 PM or to
switch off after 10 PM).
Make provision for dimmers, for street lights and put them on 3 phases in such a
manner that alternative street lights are ON in different phases with a facility to switch
off the lights whenever required.
To switch off 1/3rd of the street lights on high masts after 10.00pm.


.
126
7. Involvement of Hoardings and Advertising Agencies:

To Switch OFF illumination on hoardings not given to the clients.

By using energy efficient lighting & dimming hoarding lighting after 10 PM/
Switching OFF illumination after 10.00 pm.

Reduce 1/3rd of the illumination.

To use LEDs for illumination.
127
8. Involvement of Commercial Establishments:
( By advertising through Doordarshan, ATR, Documentary Films, Hoardings etc.,)

To reduce lighting illumination by 25%.

Non usage of more decorative lights.

To reduce usage of Air conditioning.

Stoppage of downward escalators during peak hours.

To reduce hoarding lights.

To reduce lights in car parking area and passage area.
128
9. VIDHYUTH JAGRUTHI YOJANE

Vidhyuth Jagruthi Yojane an awareness program introduced for Higher Primary &
High school children to bring in awareness among the children who in-turn
communicate this in their families.

A booklet with information of Electricity Generation, Transmission, Distribution,
Regulators and Energy Conservation methods was distributed among the children.

An objective and pick and speak test were conducted after a week and cash prizes
awarded for the top three students in both the test.


129
Under Vidyuth Jagruthi Yojane, a tender amounting to Rs.1.5 Crores (approximately)
has been called for Design and implementation of conducting energy efficiency
measures and demand side management awareness activities in selected 100 schools
in Bangalore Urban District and to sensitize approximate one lakh students and to
bring down energy consumption on contract period of two years. This tender was
closed on 24.06.2013 and tender evaluation is under progress.

The bidders have to collect last two years electricity consumption data of selected
schools and from one lakh students (preferably).

The bidders has to prepare a working model study material / booklets / exhibits /
drawings / posters / ppt models / awards / prizes to school on energy conservation
measures that the bidder is going to adopt, duly approved by GM (DSM) to be
distributed among all the 100 schools covering approximately One lakh students
in the Bangalore Urban District.

The bidder shall identify means to reduce energy consumption through evolving
innovative ideas.

130
10. Energy Awareness Program:

Energy Awareness programs are being conducted regularly on the following
issues :

Necessity of energy saving and energy conservation.
Benefit of using energy efficient appliances.
Use of CFLs / LEDs.
Use of Solar Water Heaters.
Dos and Donts
Climate change reduction of Carbon print.


131
11.a. Awareness Program:

Communication Modes Utilized:

Advertisements in Newspapers, Magazines, Souvenir etc.
On Hoardings, Bus shelters.
Jingles in Doordarshan, AIR, Big FM etc.
Posters, Pamphlets, Brochures, Car Stickers etc.
Street plays in 400 villages across BESCOM.
20 Minute documentary film developed and displayed in Rural areas through
Department of Information, GOK.
Through Janasamparka sabhas by Section Officers / Sub Division officers
with Grama Panchayath and Zilla Parishat offices.
Through Interaction meetings at Taluk development / District development
meetings.


132
12. NIRANTHARA JYOTHI SCHEME:

Niranthara Jyothi project is a prestigious scheme of Government of Karnataka
where in segregation of Non - Agricultural loads and Agricultural loads in Rural
areas was undertaken to provide 24 hrs 3 phase power supply to non agricultural
loads like domestic, commercial, water supply, street light, rural industries, milk
diaries etc.

This will enable BESCOM to give 24X7 supply to Non-Agricultural loads in Rural
areas and also following advantages .

Reduction in distribution transformer failures
Increase in metered sales
Reduction in technical losses
Improved load management
Improves standard of living in rural areas.

133
12.a. Stages of implementation of Niranthara Jyothi scheme
(as part of DSM activity)

A pilot project on Niranthara Jyothi Scheme was undertaken in 2011 at Malur in
Kolar district covering 272 villages by drawing 10 new 11 KV feeders at a cost
of Rs. 18.67 crores.

Details of Physical and financial progress of Niranthara Jyothi Scheme (As on
30.06.2013)


134
Usage of LED lamps in Corporate Office, BESCOM

BESCOM undertook replacement of existing tube lights and CFLs vide
order No. BESCOM/BC-51/3410/11-12/2135 Dated:22.03.2012
amounting for Rs.5,35,344/- as follows


135
Pressure points of contemporary electric utilities:

Peak demand and energy crisis in many
utilities due to ever rising demand supply
gap
Need for optimization of generation and
network utilization
Regulator led energy efficiency mandates
Strong lobbying from environmental groups
Resource constraints and customer
demands for cheaper rates
I ncreased operational flexibility needs
Competition, thanks to reform process and
open access

Traditional Utility Planning process, needs & tools

Supply side
alternatives
Capital Costs
Fuel costs
Other O& M costs
Load
forecasting
Generation
Planning
Production
Costing
Financial
Analysis
Rate
Allocation
Iterate as
necessar
y
Need to Predict & Provide for:
Long Term Planning
More Lead time
Rising Costs
Environmental Impacts
Tools: Least Cost
Planning &
Demand Side
Management
Least Cost Planning:

How much energy efficiency could we achieve if all the potential end-
use energy efficiency were achieved which is economically
competitive with conventional forms of energy--- Roger Sant W. -- The
Energy Productivity Center
Four basic steps of Least Cost Planning(LCP)are:
Understand how energy is used (end-use energy)
Identify technical potential of high end-use efficiency
Evaluate the benefits and costs from societal perspective
Apply engineering & economic analysis
Introduced to persuade energy planners & policy makers that there is sizeable
potential to improve EUE with following considerations
Customer & Utility
Considerations
Financial commitments involved
Program
Implementation
Monitoring &
Evaluation
What Is Demand Side Management ?

DSM is planning, implementation & monitoring of Utility activities
designed to influence consumer use of electricity in ways that will
produce desired changes in the magnitude and pattern of load either
directly caused or indirectly stimulated by the utility.
---Clark W. Gellings, Electric Power Research Institute
Broad purview of DSM
will influence customer use
must achieve selected objectives
should be evaluated against non - DSM alternatives
identify customers response
evaluation process



How to achieve DSM?

Load Management
End Use efficiency Improvement
Development & Promoting EETs.
DSM LINKAGES-INDUSTRY SECTOR

Utility Load
Shape
Objectives
DSM
Implementation
Methods
Industry
sector
potential End
Uses
DSM
Technology
Options
DSM FRAME WORK

DSM OBJ ECTIVES
DEFINED/REDEFINED
DSM
ALTERNATIVES
IDENTIFIED
DSM PROGRAM
IMPLIMENTED
DSM PROGRAM
MONITORING
DSM EVALUATION
& SELECTION
Broad options and technologies for industrial DSM

Tariff and revenue related
Static metering, reactive power billing, maximum demand charges, TOU
tariffs, incentives etc.
Low /medium cost technical retrofits in:
Plant/Process utilities, drive side modernization ,furnace controls and
automation.
Illumination system improvement options including:
LEDs, CFLs, low loss ballast's, microprocessor based controls, high
efficiency reflectors etc.
New plant / large capital measures
Process r & m, retrofits, adoption of distributed controls, automation etc.
Energy Management Techniques
monitoring & targeting, EM staff training & motivation, mandating and
sponsoring energy audits

Evaluation of dsm options
As seen from the above, various identified end use
efficiency,DSM measures, offering energy and
demand saving opportunities qualify to be
assessed for supply side impact, benefits and
costs,(as cost of saved capacity and cost of saved
energy).The results relate to local utility attributes
and considerations .

These are then compared with alternative,
corresponding, supply (utility) side costs of
capacity addition and long run marginal cost of
generation.

Only those options of DSM are shortlisted, which
are cheaper than supply side costs.

To arrive at cost of saved capacity CSC,and cost
of saved energy, following relations, criteria can
be adopted.

Relations and criteria..
Capital recovery factor (CRF)
=d (1 +d)
n
/ [(1 +d)
n
- 1]
where d =utility discount rate & n =measure life
Total DSM measure cost
=initial cost [ 1 +(1/(1+d/100)
m
) +(1/(1+d/100)2
m
+ ...)
where d =utility discount rate & m =device life & the series
includes all terms where exponent is less than the measure life
Cost of saved capacity (CSC) Rs/kW or Rs/kVA=
(Total measure cost (Rs))
((Saved capacity kVA or kW PCF) / (1-TDLF) (CUF))
Cost of saved energy (CSE) Rs/kWh=
(Total measure cost (Rs) CRF)
(Annual Energy Savings (kWh))

...Relations and criteria
T & D loss factor of local HT & EHT segment for measures relates to HT
or EHT segment end use =TDLF (HT)
T & D loss factor of local LT segment for measures relates to LT segment
end use=TDLF (LT)
Capacity utilization factor (CUF)is also PLF of the local power plants.(A
low CUF say in hydro power plants as against base load thermal plants
can influence measure cost benefits)
Peak Coincidence Factor (PCF), indicates proportion of the end use
equipment actually operational, during system peak hours.
Utility discount rate, is denoted here as, d.
Each DSM measure cost is assessed for a measure life of 25 years, for
parity with considered utility plant life in account books, and equals the
net present value of measure cost for 25 years of measure life where m
is number of replacements within 25 years, and d is the discount rate.


NEXT STEPS IN DSM
PROCESS:

Analyze and merit rate each of the choices, where the cost of
saved capacity & cost of saved energy of DSM measure is less, as
compared to cost of capacity addition and long run marginal cost
of generation(being utility side SSM costs).

Once all the DSM interventions are merit rated, the logical next
step is the development of Detailed Project Reports and plans for
implementation of short listed DSM interventions, in a
programmatic manner, adopting a standard project management
cycle.





ILLUSTRATIVE CASE STUDY OF DSM OPTION EVALUATION..
(Application of lighting voltage regulators in municipal water pump
houses)

The Fluorescent tube manufacturers list the rated or nominal wattage on any given
tube as the objective wattage which the tube should dissipate under prescribed
conditions of operation.
The actual wattage, invariably higher, however depends upon factors such as
supply voltage.
A lighting voltage controller operates on the well known principle that reduction
in input power can be achieved by voltage optimization without significant drop in
light output.
A typical device operates by bringing in, an impedance across the lighting circuit,
to control supply voltage and current.
The lighting voltage controllers are modular in configuration and can be used on
lighting circuits and are applicable for Sodium Vapor and Mercury vapor lamps as
well.
Based on end user feedback, Energy Savings of 10% and Demand Savings of 15%
are envisaged through application of the Lighting Voltage controllers.

Lighting System kW Load =24
PF of Lighting circuit =0.85
Lighting system kVA Load =28.2
Hours of annual operation =8760 (indoor application)
Peak coincidence factor = 1.0
Utility discount rate =0.09
End User Electricity Cost = Rs.2.46/kWh
Demand Charges =Rs.170/kVA
Capital Recovery factor =0.102
Transmission and Distribution Loss Factor for HT Industry (TDLF) =
0.3132
Capacity Utilization Factor (CUF) =0.725
Energy Savings (kWh) scope =10%
Demand Reduction (kVA) scope = 15%
Investment in Rs/kVA rating =1800
Measure Life, Years =25 Years
Device life, hours =100,000
Total Measure Cost =Rs.71,144 ,being initial investment +
discounted costs of future replacements over measure life period
.APPLICATION ANALYSIS RESULTS IN A MUNICIPAL WATER
PUMPING STATION

Present annual energy consumption kWh =181332
Annual electricity savings, kWh@ 10% =18133
Annual Demand savings @ 15% =4 kVA * 12 months
Rupee value of annual electricity (kWh) savings =Rs44608
Rupee worth of annual demand (kVA) savings =Rs8160
Total annual savings =Rs52768
Investment for lighting controller (Rs.1800/KVA*Lighting system
kVA Load) =50800
Simple Payback Period Years =
(Investment/Rupee value of annual electricity cost savings)
=less than 1 year
End User Cost Benefits..










Cost of Capacity saved (CSC) in Rs/kW=
(Total Measure Cost (Rs.)) / ((kW Capacity Saved*PCF)/ (1-TDLF)(CUF))
=(71144) /((2.4 * 1)/ (1-.3132)( 0.725))
=Rs. 14760 / kW
Cost of Energy Saved (CSE) in Rs. /kWh=
(Total Measure Cost(Rs.)*(CRF)/(Annual Electricity Savings in kWh)
=(71144 * 0.102)/(18133)
=Rs. 0.40 / kWh

The end user simple payback period of less than 1.0 Year, alongside attractive
utility side costs of Rs. 14760 per kW saved capacity ,as against utility side cost
of Rs 40,000 per kW of capacity addition; and, Rs0.40/kWh cost of saved energy,
as against Rs 2.00/kWh average utility cost of supply, render the DSM measure a
win-win option.
The state Utility / DISCOM could develop a DSM program for all municipal
pump houses in its coverage area and incentivize stakeholders suitably.
It may be appreciated that a well designed DSM program can address energy
efficiency improvement at macro level, considering all local factors.
Analytics in an iterative manner, for sensitivity factors like peak coincidence
factor, TDLF,CUF, discount rate, can be attempted for customized, localized,
program design for various options.
..Supply Side Costs.



generic DSM measures in load management,
process/plant Utilities in industry sector

Power factor
improvement
Conventional ballast's on
FTLs replaced by low
loss ballasts
Adoption of energy
efficient CFLs/LEDs
,Magnetic induction
lamps, LPSV, HPSV lamps
Adoption of Lighting
voltage controllers
Motor Soft
starters/Energy savers
adoption
Replacement of old
pumps by high efficiency
pumps
Replacement of old fans
by high efficiency fans



Application of VSDs, cogeneration etc, for EE
Replacement of old compressors, chillers, by energy
efficient compressors, chillers.
Distribution system upgrades in water pumping,
compressed air, chilled water systems for EE
Material handling system upgrades for EE.
Adoption of distributed control systems, process
automation for EE
Furnace, heater upgrades for EE.
Replacement of old rewound motors by new high
efficiency motors. motors




BARRIERS TO DSM

Limited Information & Awareness
Lack of adequate infrastructure
Perceived risk of implementing new EE technologies
Absence of codes/standards on EE.
Lack of reliable and credible service organizations that can
provide full range of project implementation services
Limited Availability Of Capital for financing EE Projects
High costs for consumers to implement EE projects
Administered energy tariffs which distort economics.
Absence of any regulatory mandate to review all options on DSM
& Supply Side Management to develop a least cost capacity
expansion plan
.BARRIERS TO DSM

Problems with quality of power
Lack of experience in planning, designing
& implementing DSM programs
Absence of load research information,
databases on energy end use segments,
reliable data on peak coincidence factors
etc.
Lack of resources specifically allocated
for EE
Lack of adequately skilled staff to initiate
EE measures
Inadequate participation and attention
from Govt. and policy makers.
Enablers for DSM markets a
wish list:

Regulators and utilities start introducing
the concept of LCP,DSM in the power
sector planning frame work
Developing nations initiate programs on
EE in electricity generation,
transmission, distribution and industry
sectors
Developing nations initiate design and
adoption of appropriate energy
conservation laws and regulations,
efficiency standards & labeling, rational
electricity pricing and incentive schemes
for EE
Regulators and utilities initiate regular
load research and development of
customer databases on energy use and
efficiency improvements for analytics and
planning.
Promotion of energy conservation through
mass media - based awareness campaigns

CONCLUSIONS

DSM is a viable, win-win cost effective alternative to SSM.
There is a good case for DI SCOMs to develop customized DSM programs
for end users like industry clusters, agricultural pump sector, municipal
water pumping, street lighting, PSU townships, industrial estates, special
economic zones, commercial buildings etc., due to diffused yet significant
bulk nature of these end user entities and energy efficiency margins.
DISCOMs may also consider developing customized DSM programs,
involving distribution upgrades, automation, kVAh billing, static
metering, TOD tariffs etc, to bridge demand supply gaps efficiently,
without revenue losses.
Current crunch times at utilities call for load research and
comprehensive re-visit to various end use segments for structured DSM
program design and implementation, which could be highly cost effective,
as against supply side capacity augmentation initiatives.

In Summary
Generation is not the only solution for the todays
power crisis. Efficient utilization of available
resource is the key. Hence lets take a decision to
implement DSM at our home first in the interest
of better world....The Journey begins

Thank You
5 August 2014