innovative approach to dsm through open access jayant deo md & ceo, indian energy exchange...
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Innovative approach to DSM through Open Access
Jayant DeoMD & CEO, Indian Energy Exchange
Agenda
Background
Maharashtra Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
Agenda
Background
Maharashtra Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
What is Demand Side Management?
Actions taken on the customer’s side of the meter to change: 1. Amount of energy consumption 2. Timing of use
Most impactful levers of DSM
Time of
Use Pricin
g
Technology Innovation
Time-based pricing occurs in a variety of ways to influence our day to day decisions
Thousands of years of tradition of women not venturing out after sunset was broken, when STD tariff was slashed to 1/4th after 9 PM.
Pricing - most potent economic tool to change habits.
Why not electricity?
Agenda
Background
Maharashtra Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
7274
5889
5352
6420
5672
5000
5500
6000
6500
7000
7500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours
20
June 20005672
6420
5352
5889
7274
6100
6932
61726249
7282
5000
5500
6000
6500
7000
7500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Increase in Night Load - 360 MWJune 2000
June 2001
Demand Curve 10 days After Tariff RevisionDemand Curve After one year
Peaking Arrested
Maharashtra Introduced ToD Tariff for Flattening Demand Curve
7274
5889
5352
6420
5672
7282
62496172
6932
6100
5000
5500
6000
6500
7000
7500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours
Peaking Arrested
Increase in Night Load - 360 MWJ une 2000
J une 2001
Demand Rate changed to Time of Consumption
0
50
100
150
200
250
300
350
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Demand Rate Rs.180/KVA/Month Throughout the Day
Demand Rate Enhanced Rs.300 for demand registered during 0600-2200 hours
0
50
100
150
200
250
300
350
400
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Night Off Peak
Morning Off Peak Morning PeakDay Off Peak
EveningPeak
Off P eak Rate Reduced 285 Off P eak Rate Reduced 285E vening Rate Incr eased 375Flat Rate 335
Off Peak Rate Reduced 285
Flat Rate 335
Evening Rate Increased 375
Fixed Rate
Off Peak Rate Reduced 285
Energy Rate Varying as per Time of Consumption
5672
6420
5352
5889
7274
5000
5500
6000
6500
7000
7500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours
Increase in Night Load - 360 MW
June 2000
Demand Curve One Year After
5672
6420
5352
5889
7274
6100
6932
61726249
7282
5000
5500
6000
6500
7000
7500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Peaking Arrested
Increase in Night Load - 360 MWJune 2000
June 2001
210
Night Rate Reduced to Rs.210
Varying rate as per Time of Day
Impact on the System: -Plant Load Factor Improved
7372
74
67
64
66
68
70
72
74
76
1998-99 1999-00 2000-01 2001-02
Annual PLF %
Impact on the System:-Productivity Improved
63756305
5911
6512
5700
5900
6100
6300
6500
6700
98-99 99-00 00-01 01-02
Annual Kwh/KW
Estimated 600 MW Capacity Addition
Agenda
Background
Maharashtra Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
Dynamic pricing has yielded positive results in 70 pilots around the world
International experience in Load Management/ Demand Response Programs
Dynamic pricing can take various forms
TOU is time-of-usePTR is peak-time rebateCPP is critical peakRTP is real-time
Technology boosts price responsiveness
Enabling technologies facilitate much greater demand response participation
Customer demand response can reduce U.S peak demand by 20%
Agenda
Background
Maharashtra Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
• Long Island Power Authority (LIPA) edge program is the largest residential/small commercial direct load control program using two-way communication in the United States
• Thermostats are centrally controlled in air-conditioning to achieve peak load reductions
• Two-way communication allows LIPA to monitor capability and response; it also enables customers to control their individual thermostats via the internet, a benefit that motivates participation
• About 20,400 residential and 3,000 commercial and small industrial customers are enrolled in the LIPAedge program, delivering about 25 MW of peak load reduction
USA Case Study: LIPAedge Direct Load Control Program
Carrier EMi Thermostat
Web-based User Interface
USA Case Study: LIPAedge Direct Load Control Program
Direct Load Control System
USA Case Study: LIPAedge Direct Load Control Program
Agenda
Background
MERC Case Study
International Experience in DSM
USA Case Study
Innovative Solution: Bulk Net
Demand Side Management design relies on 5 inter-related conditions
Enabling-technology innovation
Energy code development
Financial incentives Customer engagement
Electricity price tariff innovation
Bulk Consumers 1 MW & above
*15000+ Consumers *40% Energy Consumption
*Pay 65% of Energy Bills
Energy Efficiency
Demand Side Management
Renewable Portfolio
Standards
Bulk Net
Bulk Net offers an innovative solution for Open Access consumers
AMI for DSM 24X7 Power Supply Each one on express feederBilling, Payment & Loss mapping
Features of proposed Bulk Net
Main Requirements for Bulk Net
Centralized measurement & Control system with two way communication technology
Bulk Net
Monitoring Deviations from
Contracts
DSM/ Charging Time of Use
Energy Conservation
Reduce Commercial Losses Boost to REC
Market
PAT
Developing and Installing Bulk-Net
www.iexindia.com
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0.25
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0.75
1.00
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1.75
2.00
2.25
2.50
Cumulative Capacity Generation in MW
Wei
ghte
d A
vera
ge R
ate
of S
ale
of P
ower
(R
s./
KW
h)
2.36 Rs./ KWh
2.17 Rs./ KWh
117 GW
112 GW
Analysis of Rate of Sale of Power (INR/KWh) for all Generating Stations for 2008-09
5% reduction in peak demand = Rs.11,400 Cr
Conclusion
Bulk net would achieve DSM resulting in:
1. Reduced Capex2. Optimizing Energy cost3. Savings of diesel oil
www.iexindia.com
Every great journey begins with a single step !!!
Power Sector Needs
Millions of minds & Trillions in Capital
www.iexindia.com
Thank you!www.iexindia.com
Promoters
Joint Equity Partners:
Technology :