POTENTIAL AND STRATEGIES FOR DEMAND SIDE MANAGEMENT

Dr. Ajay Mathur

Director General, Bureau of Energy Efficiency

India Primary Energy Demand

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

0

250

500

750

1 000

1 250

1 500

Mto

e

Other renewables

Biomass

Hydro

Nuclear

Gas

Oil

Coal

WEO-2009 Total:Reference Scenario

Total primary energy demand in India grows at 3.1% per year on average in 2008-2035, an overall increase of 127%

Source: WEO 2010

India’s Oil Import

1971

1977

1983

1989

1995

2001

2007

0%

2%

4%

6%

8%

India

China

OECD average

Historic expenditure on net imports of oil as a share of GDPat market exchange rates (with a projection for 2011)

1971

1975

1979

1983

1987

1991

1995

1999

2003

2007

2011

0%

1%

2%

3%

4%

5%

6%

7%

8%

In 2011 India’s oil import burden will exceed 5% of GDP for only the third time in history if prices average the current level of $92/bbl for

the entire yearFurther, 10% of coal demand will be met by imports which will

increase to 30% by 2015

Source: WEO 2010

Energy Profile - India

2004-05 2005-06 2006-07 2007-08 2008-093

3.05

3.1

3.15

3.2

3.25

3.3

140

145

150

155

160

165

170

175

180

185

190

Energy Intensity of industry sector (mtoe per Billion Rs. GDP)

Commercial energy consumption in Industry (in mtoe)

Energy Intensity - Industrial SectorGHG Emissions Across Sectors

BEE DSM Programme B

EE

Sch

emes

Standard and Labeling

Energy Conservation Building Code

Bachat Lamp Yojana

Agricultural DSM

Municipal DSM

Small and Medium Enterprises

National Mission for Enhanced Energy Efficiency

Why Utility Demand Side Management?

PROFIT

CONSUMER / CUSTOMER

Generation / Transmission / Distribution Company

Demand Side Management

Implication of DSM in utilities• DSM primarily addresses

Electricity Companies• The activities undertaken by

a utility under DSM programme includes • Load management, • Establishing new applications

and uses,• Strategic conservation of

energy,• Increasing clientele• Positioning itself on the energy

supply market.

Factors driving utility driven DSM• DSM reduces cost ( minimize losses) of utility by

measures: • High cost of peak power.• Enhance reliability of system and supply.• Increase customer satisfaction.

• Saved costs (or benefits) are used to incentives customer to act.

Utility Driven DSM• Utility Driven measures for peak load reducing DSM are:

• Energy efficient buildings.• Energy efficient air-conditioners.• Thermal storage. • Thermal Air-conditioning-VAM.• Energy efficient lighting. • Distributed generation, including standby generation and

cogeneration;• Dynamic Load management,• Power Factor correction;

Instruments to promote Utility Driven DSM

• Providing “ performance based” billing to end users to promote adoption of (higher cost) appliances- directly or through ESCOs.

• Rebate on refrigerators, air-conditioners, fans, LEDs etc.• Time of use / demand based tariff.• Dynamic tariff plan linked to demand reduction on need.

THANK YOU FOR YOUR KIND ATTENTION