# Presentation: 028617

## Role of DSM in T&D PlanningDilip R. Limaye Senior Advisor, IIEC September 20, 2004

## Outline

- Overview of IIEC
- Changing Utility Market and T&D
- Role of DSM in “New” Utilities
- Indian DSM Case Studies
- Concluding Remarks

## 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.

*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.*

***International Institute for Energy Conservation***

## IIEC Offices

**Washington **
**HQ **

**London**
**HQ**

**Bangkok**

**Johannesburg**

**Mumbai**

**Manila**

**Rio de Janeiro**

**N. Delhi**

## 

Changing Utility Market and T&D

**Changing Utility Market and T&D**

## Distribution Utility Concerns

- Increasing cost of purchased power
- High costs of T&D 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

## High T&D Losses are of Concern to Utilities

**High transmission & distribution losses (10% to 35%)**

## 

Role of DSM in “New” Utilities

**Role of DSM in “New” Utilities**

## 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

## Interplay between Policy & Market is important

- Utility DSM
- Policy Initiatives

- Implementation by Private Sector

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

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

- Customer

**Benefits to Customers**
** ****Reduced costs**
** ****Improved services**

## 

Indian DSM Case Studies

**Indian DSM Case Studies**

##   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)**

## BESCOM CFL Program

- 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

***Lighting up your life – efficiently ...****** ***

## 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

## 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

## 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

##  Thank you!

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