REGULATOR’S PERSPECTIVE
OF
DEMAND SIDE MANAGEMENT
Pravinbhai Patel
Member
Gujarat Electricity Regulatory Commission
POWER SYSTEM MANAGEMENT
SUPPLY SIDE
STRATEGIES
DEMAND SIDE
MANAGEMENT
What is DSM?
• DSM can be defined as a set of initiative taken by the
utility on the consumer side of the meter to bring about a
desired change in consumer demand and/or demand
profile.
• It should result in conservation of electricity or its efficient
utilization which could be either reduction of kWh
consumption or load (kW Demand) or combination of both.
Reasons for Non-deployment of DSM Program
• Lack of clarity about obligations on Distribution Utilities
• Absence of Regulations/guidelines for DSM implementation
• Lack of Public awareness/participation
• No clarity on financial incentives
Requirement for successful DSM
implementation
• Creation of DSM cell in each Distribution Company
• Systematic Load Research
• Preparation of DSM plan and provision of adequate budget
to support the plan
• Mechanism for recovery of DSM related cost
Promotion of DSM through tariff
• Inverted Block Tariff
o Tariff increases with the increase in consumption
• Time of Use Tariff
o Higher tariff during peak time
o Night time (or off-peak) rebate
• Power Factor Incentive and Penalty
Financing of DSM initiatives
• Self financing or Recovery of cost through ARR
• Deployment of Special Fund
• Grants from Government agencies
• International financial institutions/development agencies
Efforts so far in Gujarat
Various actions have been taken by Discoms to promote
DSM:
• Providing energy efficient lighting fixtures to the
consumers
• Providing LT Capacitors on installation of Ag. Consumers
• Providing Energy Efficient Pump sets on Agriculture
connections under Govt. scheme
• Load Curve made flat by segregation of Agriculture load
through Jyotigarm Yojna
Apparent Energy (kVAh) Tariff
• The GERC vide its Tariff order dated 31/03/2010 directed
its distribution company MGVCL to carry out a pilot project
to study the impact of shifting from the active energy
based billing system to apparent energy based billing
system specially for the street light and small residential
consumers.
• Based on the results of the Pilot project, the GERC vide
its Tariff order dated 06/09/2011 introduced an optional
kVAh tariff (for all the Distribution Companies) applicable
to street light system operated by local authorities and
industrial estates consumers if they so opt to be charged
in place of existing kWh based charges.
DSM framework
SERC
Responsibilities
of
Utility
Guidelines and
Regulations
Technical Potential
Assessment
Goal and Target setting
Load research and
Market Research
Approval of DSM Plan
Economic Potential
Assessment
Preparation and Design of
DSM Plan
Approval of DSM Project
Funding
Preparation and Design of
DSM Projects
Project Implementation
Evaluation, Measurement
& Verification
Monitoring and Reporting
Thank You