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WORKSHOP ON DEMAND SIDE MANAGEMENT

SUMMARY REPORT OF THE PROCEEDINGS

A summary report of the proceedings of workshop held at Panchkula, Haryana on 26th November 2015 under the aegis of IIT Bombay, Shakti Sustainable Energy Foundation and MP ENsystems.

SUMMARY REPORT [WORKSHOP ON DEMAND SIDE MANAGEMENT]

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Table of Contents

Introduction ................................................................................................................................................. 2

Inaugural Session ........................................................................................................................................ 2

Introduction to Demand Side Management ........................................................................................... 4

Introduction to Demand Response ......................................................................................................... 5

DSM Case Studies ....................................................................................................................................... 7

Discussion Session .................................................................................................................................... 10

Introduction to Standard Offers Program (SOP) ................................................................................ 12

Utility and Vendors Experience with Regulatory Perspective in DSM & DR ................................ 13

Vote of Thanks.......................................................................................................................................... 18

Group Photograph ................................................................................................................................... 19

Annexure 1: Workshop Program ........................................................................................................... 20

Annexure 2: List of Participants ............................................................................................................. 21


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Introduction

Energy Science Department at IIT Bombay is working on the project titled “Demand Side

Management – Capacity Building, Assessment and Networking for Successful Implementation”

with the support of Shakti Sustainable Energy Foundation (SSEF). Under this theme, IIT Bombay

organized a one day workshop for the utilities and regulators of Haryana and Punjab.

The workshop was organized with the support of MP ENSystems, a firm working in field of energy

efficiency at Hotel Red Bishop, Haryana Tourism Complex, Panchkula, Haryana, on November

26th 2015. The Workshop was well received by participants across the state from different utilities

and regulatory bodies namely Dakshin Haryana Bijli Vitran Nigam (DHBVN), Uttar Haryana Bijli

Vitran Nigam (UHBVN), Punjab State Power Corporation Limited (PSPCL), Punjab Energy

Development Agency (PEDA), Haryana Renewable Energy Development Agency (HAREDA),

Haryana Electricity Regulatory Commission (HERC) and Punjab State Electricity Regulatory

Commission (PSERC).

In order to create an interaction platform for all stakeholders, private player Godrej & Boyce Mfg.

Coo. Ltd. and Mumbai utilities R-Infra, Tata Power along with regulatory body Maharashtra

Electricity Regulatory Commission (MERC) were also invited to share their experience with DSM

in Mumbai.

A complete list of participants is provided in Annexure2 for reference. The one-day workshop was

successfully conducted with various enriching talks and discussions. This document presents a

detailed report of the workshop proceeding.

Inaugural Session

Welcome Address and Introduction to Workshop

Prof. Suryanarayana Doolla in his welcome address invited all the participants in the workshop.

He gave a brief introduction of various work carried out by IIT in the field of Demand Side

Management (DSM). IIT Bombay association with SSEF has organized various workshops on

DSM which include participation from State utilities, State regulatory, EESL and various private

players involved in the energy business. Further he briefly described the schedule of the workshop

which included introduction to DSM, discussion on two case study - Puducherry and Mumbai;


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followed by experience sharing from utilities in Mumbai and discussion on way forward for

Demand Side Management in the state of Haryana.

Introduction to MP ENSystems by DR. MAHESH PATANKAR

Dr. Mahesh Patankar in his introductory address emphasised the need to develop a favourable

environment for DSM in which all stakeholders can interact on a common platform. He thanked

Haryana Electricity Regulatory Commission (HERC) for their constant support from past two

years for developing various policies and regulation for the state of Haryana.

Dr. Patankar mentioned that the DSM

programs carried out before 2003, which

were supported by bi lateral and multi-

lateral agencies such as World Bank,

witnessed a change after introduction of

Energy Act, 2003. He explained the key

features of Haryana Commission Act for

DSM, in which it took a decision to charge

all customers and carry out DSM project

through that share. He also gave an

overview of DSM programs in Maharashtra, where a unique collaboration of utilities and appliance

suppliers resulted in a successful DSM program to a great extent and expressed that their team

wished to work in other states and particularly in Haryana.

He informed that the Ministry of Power is planning to restructure utilities and distribution

companies under the new scheme Ujwal Discom Assurance Yojna (UDAY) launched on

November 9, 2015. For the first time, the ministry has considered energy efficiency as an energy

resource. While the energy wastage account for around 60,000 Crore annually, ministry has

targeted to reduce 25-30% of this wastage through energy efficiency and Demand Side

Management programs.

Chief Guest Address by Mr Jagjeet Singh

Mr Jagjeet Singh, chairman of Haryana Regulatory Commission in his inaugural address as the

chief guest of workshop appreciated IIT Bombay, Shakti Sustainable Energy foundation (SSEF)

and Mp ENSystems for the workshop.


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Mr Singh pointed out that, to address the issue of increasing demand, other than establishing new

power generation plants and looking for renewable sources, we need to look at optimization of

existing resources and minimize the cost of energy. He also spoke about the energy policy report

of the planning commission of India which states that we have as much as 50% of energy saving

potential.

He also highlighted the new amendments are undertaken by Haryana Electricity Regulatory

Commission in November 2014 in order to promote DSM in Haryana. A DSM cell exclusively

formulated for the same. DISCOM in Haryana has undertaken various DSM programs under the

amendment as DSM offer cost effective and clean energy solution. It also postpones the need of

new generation sources and expansion of transmission and distribution network.

Introduction to Demand Side Management

Prof. Suryanarayana Doolla, (IIT Bombay, Mumbai)

Professor Suryanarayana Doolla in first session introduced the concept of Demand Side

Management. He discussed the scenario of DSM so far in India, the technological options available

and DSM plans for future.

Prof. S. Doolla mentioned the need for looking at DSM with the perspective of profit making and

benefits. From a consumer perspective they can make a substantial reduction in bills, other than

that they can get energy efficient state-of-the art technology and appliances at a much subsidized

price under the DSM program. There is a huge benefit in terms of energy saving, emission of

greenhouse gases and equity in power distribution if whole society is considered. The third party

involved in the scenario is utilities or DISCOMs. For any large scale implementation of DSM

program, utilities should be involved as they are initiator for successful program. Utilities can

benefits as they will get better and predictable load profile. Also reduction in peak demand will

give huge saving in revenue and avoid the cost of additional infrastructures.

Chairman Mr Jagjeet Singh made the remark to include manufactures, as they are also an important

stakeholder in the scenario.

Prof. S. Doolla explained the process of DSM program implementation. Any DSM program has

an initial planning phase, execution phase and Monitoring and verification (M&V) phase. Out of

three phase planning phase is most crucial one, as project structure depends on planning. In

planning phase, Customers profile, market study is done. Planning phase also include the Cost


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Benefit analysis of project for approval of project. It includes an estimation of overall cost of

project and the benefits on behalf of which project get approved by the regulatory body.

Prof. Doolla pointed out the implementation strategy of DSM in India, up to 1990s, agricultural

pump set replacement and repair were the only popular DSM program. Later in 2000s programs

for CFL lamp came into practice, which became very popular. Post 2007, DSM programs increased

exponentially, one of the reason was Bureau of Energy Efficiency (BEE) which popularized star

rating for efficiency of appliances. Post 2007 various programs for ceiling fans, CFL lights and star

rated pump sets were launched.

One of the first utility driven programs in India was undertaken by Bangalore Electricity Supply

Company (BESCOM), Karnataka, for replacement of incandescent lamp with CFLs in year 2004

with the saving of 18 million units. First street light program was carried out in state of Haryana.

Later, programs for ceiling fan, air conditioner etc. were introduced recently and is quite successful

and popular till now.

Prof. S. Doolla also presented an assessment of energy saving and long term cost benefits. He

highlighted the project of LED, that has less saving initially but overall saving is more due to long

life of product. He suggested that for any DSM program, maturity and life of technology should

be taken into consideration. He pointed out the projects done Himachal Pradesh and Punjab,

which have achieved more energy saving due to the scale of project. He recommended that the

utilities should always keep in mind the scale of program, as the efforts required from regulatory

and utility sides will be more or less the same. Few states implemented multiple DSM programs

but their energy saving is much less than project carried out in Himachal Pradesh. Hence, the

project scale should be as big as possible. He emphasized that the utilities should change their

strategy of project implementation.

While discussing various DSM interventions for different consumer categories Professor

presented an overview of existing technological advancement and framework based on consumer

category. The primary targeted customer categories for DSM programs in India are commercial

HVAC loads, agricultural loads, municipal street lighting loads and residential loads of lighting and

ceiling fans.

Introduction to Demand Response


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Prof. S. Doolla emphasized that he does not consider load shedding as a Demand Response, as

from its definition, DR should be voluntary. For example if a customer is given an offer by some

means of communication to curtail electricity consumption for an hour in return for a given

reduction in bill by 1%, and if he/she decides to curtail some of the load it is known as demand

response. He described the problem faced by the utilities. Since, the utilities have around crore of

customers, getting all the information from them and taking a decentralized decision for individual

customers is a complex thing. But the ongoing research on DR made the DR implementation

doable at large scale.

He mentioned the requirements for implementation of DR, the first and foremost requirement is

proper infrastructure; which as of now we don’t have in most utilities. Secondly a standardized

monitoring and verification methodology should be evolved. A method for pricing, which includes

the rates for customers, and accuracy testing of method involved. These are big challenges to find

a trade-off between customer benefit and utility expenses. As far as infrastructure for DR is

considered, smart meters are one of the essential components which can record data up to an

interval of 15-30 minutes. Government is also slowly deploying smart meters across the utilities.

Then secondly is the supporting communication technique. Now we have enough secure and

widely popular mobile communication. So, there is no issue of trust and security any more. At

customer end, we need to have load controllers that can automatically take pre-assigned actions.

Now the remaining aspects are Meter Data Management System (MDMS) and Demand Response

Automation Server (DRAS). Each utility have one or other form of MDMS in place. Hence

deployment of infrastructure for DRAS can kick start a small or medium size DR project.

One of the key challenges for any DR program is interoperability. Taking the small example of

new laptop which has only HDMI ports for projectors Prof. S. Doolla explained that he has to get

a VGI connecting cable to connect the laptop to old projectors. Whether it is due to advancement

of technology or any other reason it often lead to mismatch of existing infrastructure with newly

installed infrastructure. But now across the world, people are working on this challenge of

interoperability and there are various standards in place for MDMS and Smart meters at

international level which can facilitate a smooth operation.

He pointed out some queries which we always face regarding savings achieved, especially from the

financer’s point of view such as – Why does Energy Service Company (ESCOs) hesitate in

participating? How can we be certain that any reduction in consumption is due to a particular


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project and has not happened naturally? For that reason, determination of baseline is very

important. Baseline determination can be done in various ways as suggested in literature.

Challenges for baseline remains the accuracy in prediction. Hence, we have to predict future

increase in demand, then make appropriate calls for DR and further analyse the change in

consumption from the predicted load curve.

One way of ensuring the credibility of the DR program, is to have a large data sets, further

application of data mining and neural networks can give enough reliable results and predictions.

One approach is 5-in-10 baseline technique in which out 10 recent similar days 5 highest energy

consumption days are selected and based on which a baseline curve is obtained. There are various

existing methodologies such as averaging method and regression method. Averaging methods

includes baseline techniques like 10 out of 10, 7 out of 10, 5 out 10, 3 out of 10 etc. In regression

model, dependent ad independent variables are selected and formulated accordingly. It is up to

utilities or regulators to choose one method and stick to it. That way a fair enough dynamic

prediction can be done for future demand.

Prof. Doolla shared his experience with different countries and their level of seriousness for DSM,

one of the reasons he attributed is the very high price of DSM in electricity markets. In his

concluding remark of the session he asserted the need for seriousness for DSM at all levels and

fair inclusion of all the stakeholders in it. He mentioned that we need to take vendors into the loop

even at the planning level to realize untapped business potential. He also suggested that DR

projects in India are at the pilot level, but now we have enough experience to move on to a larger

scale.

DSM Case Studies

Mr Amit Singh, (IIT Bombay, Mumbai)

Mr Amit Singh, in his presentation discussed

two pilot projects implemented in India.

Firstly, he presented DELP project from

Puducherry, where he elaborated their M&V

strategy, process of investment and process

of execution of program and recovery of

money. Secondly, he presented Tata Power


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Auto-DR project in which he discussed DR potential assessment and economic valuation of

project.

The projects has two methods of recovery namely: shared saving model and On-bill repayment

model. Shared saving model is necessary as utilities often lack the initial capital and motivation

required for any DR project.

Energy Efficiency Service Limited (EESL) came up as one such funding agency, where they

approach utilities with proposal, draft the project, bring investment and further recover all the cost

by shared saving, and earn on the amount of saving achieved.

In another model, bill payment is implemented. DELP program in Delhi and Kerala have

proposed this method for their DR program.

Mr Singh discussed in detail the working of ESCO, where he described in detail, the sharing

strategy and money recovery from the projects.

DELP Project Puducherry

DELP Puducherry was launched by EESL in collaboration with the electricity department,

Government of Puducherry (PED) on 7 Feb, 2014 as a standard offer program. 60 Watt

incandescent bulbs (ICL) were replaced with 7 Watt LED bulbs procured from Ecolite

Technologies, Gurgaon. Domestic category consumers with electricity bill arrears less than Rs.

1000 were qualified to enroll for the programs. Maximum of three LED bulbs were replaced per

policy number.

PED maintains an online database of all its customers against a unique policy numbers. This

helped during the enrolment of customers during the three distribution phases conducted through

door to door enrolment and counters set up at PED branch offices.

The vendor for the project handled the warranty issues and 5 shops were arranged for replacement

and warranty of LED bulbs.

Deemed savings approach was used as measurement & verification approach. In order to estimate

the average hourly consumption per day of each bulb, 200 sample bulbs with RFID tags were

installed at government quarters. These bulbs communicated the usage pattern of these samples

to a remote web based monitoring system via 5 RF transmitters located at various points inside


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these quarters. Within three months, the number of these 200 bulbs reduced to 50 and hence it

was decided to use 3.5 Hrs. /day as average operating hours for estimation energy savings that will

accrue during the project period.

ICL bulbs collected during distribution phase are sent for disposal to M/s Ecobirdd Recycling,

Bangalore.

Rs. 10 /LED bulb was charged from customers and rest of the amount (Rs. 310/per LED) was

arranged by EESL. Total project invested was Rs.22.785 crore and was arranged by EESL on a

debt-equity ratio of 7:3.

Total energy savings were estimated to be 48.88 MUs including the T&D losses and pool losses.

The project cost has been planned to be recovered as per the SOP price fixed for the ten years of

the project period. PED has planned to recover the annual pay-out to be made to EESL through

ARR for each corresponding year.

Following observations were made by the project team about the DELP Puducherry Project:

• DELP in Puducherry has effectively demonstrated the potential of EPC (Energy

Performance Contracting) model in India and has helped domestic lighting sector in

leapfrogging to advanced lighting solutions through super-efficient LED lighting.

• Helped domestic lighting sector in leapfrogging to advanced lighting solutions of super-

efficient LED bulbs.

• 200 samples with RFID tags were installed in one place rather than distributed over the

entire project site which could have led to more accurate assessment of usage pattern of

customers.

• LED bulbs distributed to owner of the households were not given to tenants who actually

pay the electricity bill.

• Lack the general awareness about the warranty associated with the LED bulbs.

• Clearing of electricity bill arrears by defaulters so that they can also be eligible to be enrolled

in the project.


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TPDDL Auto-DR Project

TPDDL Auto-DR project included three companies. Honeywell provided communication

infrastructure, third party provided Meter Data Management System (MDMS) system and IBM

provided assistance in the project. 175 odd customers participated in this program, ranging from

cold storage, hotels, flour mills etc.

In this program, a DRAS system was designed which first created a baseline for individual

customers and further based on future demand created certain DR signal 12-24 hours prior to DR

event. At the event duration, smart meters were installed at customer end to record and report

data to MDMS. Comparing it with existing baseline, the savings achieved were estimated.

Total 17 DR events were conducted. The maximum % DR reduction potential was seen in the

packaging industry, automobile industry and flour mills. In terms of actual DR potential, flour

mills were found to have a very huge potential. Thus, one can obtain an idea of targeted sectors

and consumer for any DR program. The baseline calculation method opted was 5-in-10 method

with inclusion of morning adjustment factor. The availability base tariff helped utility to achieve

better frequency control. This DR program didn’t include any financial incentive other than

reduction in bill.

Discussion Session

Mr Jagjeet Singh put forward the question on table to get the views of delegates. How can we

motivate manufacturers for DSM?

Prof. S. Doolla suggested that firstly we should talk to top management authorities and make them

realize the business potential in DSM. Secondly, manufacturers are not interested in small pilot

projects, therefore we should go for large scale implementation, that way economy of scale is

achieved along with fair competition among manufacturers.

Mr Chakravarty from Godrej Appliances added that numbers are very important from our

(manufacturers) perspective as time, energy and resources required for any project, can only be

economized with large scale implementation.

Mr Jagjeet Singh also enquired how we could encourage customers to participate in DSM program.

Mr Malik from Godrej Appliances shared his experience in Mumbai, where they provide incentives

to customers in order to gain popularity and later they recover the cost from utilities. He also


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added that the cost get influenced by implementation method. As the operation for such specific

large scale program will be altogether different.

Mr Chakravarty shared his worry regarding the cost of appliance exchange, as e-disposal have a

huge cost associated with it. He also mentioned their door-to-door operation help them to gain

large customer base and convincing ability for appliance exchange. He also illustrated the example

of unethical trade and loop holes in such programs; where dealers generate false cash memo and

make false money out of such scheme.

Mr Japinder Pal from PSPCL illustrated the case of Punjab where peak demand in summer and

winter varies by 3000 MW. Therefore, they have to keep that reserve even in winter also. He

mentioned Demand Response can help tackle these issues.

Mr Satinder Jain, Dy. Director, PSERC asserted the need for proper advertisement and publicity

of DSM programs through all popular channels of communication. He stressed that consumer

behaviour is very much affected by such advertisement.

Utility from Mumbai supported the point with their experience that public hoarding, advertisement

on electricity bills created a large impact on popularity of scheme.

Mr Jain gave the example of Swachh Bharat

Abhiyan; the way it was advertised and

popularized and created an impact.

Innovative solutions were aired in the

session by delegates for impactful publicity.

Mr Amritpal Singh suggested that putting a

hoarding in a village describing the saving

in bill achieved by replacing old bulbs with

LED can create much larger impact then

some absurd detailed description of these schemes. Prof. Doolla also mentioned that in Mumbai,

public representatives took this campaign for LED bulbs and in depth penetration of the scheme

was possible.

Mr Amritpal Singh placed a question on the table by illustrating the example of Puducherry and

Delhi; as the cost of LED bulb was brought down from Rs. 320 to Rs. 85 but at the same time

warranty period form 10 years to 1 year which led to doubt in the quality of product.


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Mr Patankar expressed his partial disagreement as he said that, with maturity of technology

provided, the warranty reduces. Still he agreed that quality should not be compromised for

economy. As in refrigerator scheme MERC, Mumbai faced a unique problem that consumers

willing to participate in exchange program often need a refrigerator with higher capacity. So we

should be ready to improvise the scheme even after schemes are rolled out.

Introduction to Standard Offers Program (SOP)

Dr. Mahesh Patankar, (MP ENSystems, Mumbai)

Mr Patankar gave a presentation on Standard Offers Programs (SOP) in the third session. He

mentioned that Demand Side Management is an evolving thing; it will always evolve with

advancement of technology. Therefore, we should stick to our aim i.e. energy efficiency and energy

saving. He asserted the need of being technology agnostic, which will make us enable us to use

whichever technology that will solve the purpose. Thus, we should not stick to a particular scheme

or technology.

As in the case of renewable, there is feed in tariff for solar, wind or biomass; in this way utilities

promote renewable energy technologies. Similar things can be done with DSM, which talks about

kWh saving rather than about particular technology. As for the case of Puducherry, the initial

program was for distribution of CFL bulbs but by that time when LED technology came into

market, the regulatory commission in Puducherry took a wise decision; being technology agnostic

gives flexibility to utilities and implementing agencies and implemented LED program. Standard

offer program enable utilities to procure savings from customers at a pre-determined price. This

gives the customer flexibility to adjust their consuming behaviour.

Mr Mahesh also discussed two Standard offer Program (SOP) of Portugal and South Africa, where

utilities procured saving from consumers. He presented in detail, the cost and pricing method and

also determination of procurement cost technique for these programs. If the cost of conserved

energy is less than average price then we can go for that particular Standard Offer Program, as it

will be economically beneficial for Utility.


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He addressed the concern of utilities as they often refrain from any DSM program for industrial

and commercial customers, in spite of knowing that these groups are the revenue generators for

utilities as they pay more than average price of electricity. He mentioned that procurement cost of

peak power is very high, which if reduced can be realized as large savings. He gave example of

slums and hotel in Mumbai, where the average procurement cost of electricity increases due to

hotels not slums; as Hotels contribute towards the peak. In order to meet that peak demand utilities

purchase peak power at even a higher price than the cost commercial consumers are entitled to.

He refuted the fact that commercial consumers subsidize the domestic and agricultural customers;

rather he asserted that domestic customers subsidize the commercial customer and their peak

power.

Mr Patankar also mentioned that procurement price should be different for different customer

categories, due to different usage pattern of electricity. As for example - a split AC for domestic

consumer operate for 5-6 hours for 100 days a year, while for a small commercial setup it is for 8-

9 hours with more than 300 days a year irrespective of the season. He mentioned that by

implementing the SOP program, the price can be fixed which will make it a much predictable

program.

Prof. S. Doolla emphasized that certifying the savings is a challenging method, but baseline

determination on continuous basis can give appropriate results. Also, deemed saving is not same

as marginalized saving which it is often criticized.

Mr Patankar questioned utilities whether they are power deficit or power surplus? All utilities

asserted univocally that they are power surplus. In spite of having having system constraints,

transformer overloading, they are not power deficit; this further supports the cause of Demand

Side Management. Peak load management is an issue for all utilities, which can also be addressed

with DSM programs. One of the delegates mentioned that even solar energy creates trouble as the

peak hours are evening and PV units provide power in off peak hours at afternoon. Mr. Patankar

mentioned that with a change in demography, peaks are also shifting from evening to afternoon.

Utility and Vendors Experience with Regulatory Perspective in DSM & DR

Mr Mukesh Bhanushali (R-Infra, Mumbai)


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Post lunch session started with the

experience sharing from Mr Mukesh

Bhanushali representing Reliance-Infra,

a utility operating in Mumbai. R-Infra

has conducted various DSM programs

through Appliance exchange schemes.

He discussed the designing of DSM

program, financial resource allocation

process, approval from MERC

regulatory body in Mumbai, execution

process and newly adopted demand

response program.

Load research is the first step for any DR/DSM program. This gives data and pressure points

which we can target in terms of customer, load type and specific appliances. In selection of

technology; factor such as average rating of appliances, duration of use, whether that particular

load is contributing in peak demand or not are considered. Now, after extrapolating this load

research, a proposal is drafted with a particular technology, the saving is then calculated in terms

of demand and energy.

There are three pre-requisite tests provided by MERC for any proposal to be entertained:

Participant cost test: Benefit and cost to consumers for any particular program.

Total Resource Cost (TRC) test: Investment to be made by utility and estimated

benefit earned from the project in the entire span of its life.

Rate pair impact test: To assess any extra burden if coming on non-participant

consumers.

Any program can be approved by MERC only if it qualifies these tests. After that bidding for

program take place, followed by MOU between utility and successful vendor in the bidding. The

marketing phase of the program is often executed at different levels for interested third parties

through sending emails, newspaper advertisement, promotion through electricity bill, customer

care centres for full faced publicity and promotion.

In one program, 6 lakh CFL bulbs were distributed; the cost for which was recovered from the

bill in 10 equal instalments. In another program, a replacement program was carried out in which

40,000 street lights (80-150 W Mercury Lamps) were replaced with 70 W sodium lamps. Through


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this program, municipality was able to achieve a saving of 4 million units annually. An energy audit

was also conducted by R-Infra, for 50 different customers. For this program only 25% of the cost

incurred was attributed to customers; utility paid rest of the cost in order to promote energy

auditing. In another program for 5 star ceiling fan, in 2 phases 25000 ceiling fans were replaced.

The fans were provided at 50% of the actual cost to customers. In 5 star refrigerator program

initially the approved program was for 5000 customers later it included more 1500 consumers. To

encourage the exchange and new purchase, an incentive of Rs 4500 were given on refrigerators.

The old programs were not successful as they talked about only exchange of appliances, whereas

the new drafted program for refrigerators and Air-conditioners also covered new purchases. After

completing these pilot projects, they designed two large scale program for 15000 refrigerator and

2000 ceiling fans, which will be launched in January 2016.

R-Infra also has tried the Demand Response method recently. Mr Bhanushali said Demand

Response is like a virtual power plant in the utility’s end. It facilitates active interaction with

customers. We have many consumers participating with their secondary loads such as one chiller

out of five and so on. For particular DR event customer can curtail these loads which do not affect

their comfort substantially. Moreover these programs were beneficial from utility’s perspective as

high purchase cost of peak power could be saved to some extent. Some customers preferred load

manipulation rather than curtailing; as for example in the peak hour Air conditioner temperature

can be increased from 160 to 200, water chiller can be set to 8-100 from earlier setting of 60. These

programs maintain the comfort of customer and also provided energy savings. Specific meters

were installed at the load end which was participating in DR program, which measured the load

reduction precisely. The DR program in its first test run got a saving of 135 KW. DGs sets were

also integrated into this DR program successfully.

He credited the success of program to customer motivation towards energy saving. But at the same

time he mentioned barriers at customer end in form of reluctance to adopt changes, higher cost

of star-rated products, lack of substantial reduction in bill, poor penetration of programs etc. Later

Mr Bhanushali discussed various on-ground issues pertaining to installation, cost recovery,

customer mind-set etc. in detail from his experience as a utility. He also mentioned various energy

awareness programs initiated by R-Infra to promote energy saving among all categories of

customers.

Mr Amol Bhutad (Tata Power, Mumbai)


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Mr Amol Bhutad from DSM cell of Tata

Power, Mumbai presented the case and

experience of the utility in Mumbai.

Mumbai city has a very shrewd load

curve. Therefore, DSM is a critical issue

from the perspective of utility.

He mentioned that DSM is in the guiding

principle of Tata power. In 2007, Tata

power conducted extensive load research

in order to understand and articulate the

entire load pattern and behaviour. This load research inspired them to have a dedicated DSM cell

in their utility. Tata power has plans for appliance exchange, new appliance purchase, and specific

DR program for industrial and commercial loads. Tata power also had one program for LED tube-

lights for municipality street lighting. He also stressed the importance of energy audit for energy

management. They have conducted energy audit for more than 100 customers where only 25% of

the cost is paid by customers. The findings of energy audits showed a saving in terms of energy

and bill from 20-40%.

One unique initiative undertaken by Tata power was for chillers, in which thermal storage was

installed which turn the water into ice at night when the demand is low. Later in the day time latent

heat stored in form of ice was used to cool the temperature in chiller. This additional installation

of a tank with chiller works well for centralized conditioning system such as those in hotels and

corporate buildings.

Thermal storage has its charging cycle in night time, when the cost of electricity is cheaper. Cooling

alone constitutes for about 80% of total consumption for commercial building, this opportunity

came as a boon to substantially achieve energy saving and reduction in bills. Mr Amol presented

the case of NSE building, Hotels in Mumbai where the load curve shows a significant change after

installation of thermal storage. The clear shift in load curve asserts the case of thermal storage for

such buildings.

To conclude, Mr Bhutad mentioned that their utility is very serious about DSM. They are not

taking DSM as their Corporate Social Responsibility (CSR) activity but a proper business activity

from all sides including customer, manufacturers or third parties. He also mentioned that, Tata


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power keep pace with state-of-the art technology as is the case with thermal storage and LED tube

light discussed above.

Mr Siddharth B. Rokade (MERC, Mumbai)

Mr Siddharth B. Rokade presented the perspective of regulators in terms of DSM programs. Mr

Rokade was representing Maharashtra Energy Regulatory Commission (MERC). He is working as

dy. Director of the regulatory body looking into the affairs of Mumbai DISCOMs.

Mr Rokade mentioned that DSM is not a solution for power surplus or power deficit. He explained

that DSM has three drivers namely-

Market Drivers: Peak power purchase

Environmental Drivers: Green House gas emission

Network Drivers: Transmission constrain, transformer overloading

Mr Rokade discussed in detail the legal

framework involved in DSM. After the

energy conservation act of 2001, various

state regulatory bodies were formed.

Electricity Act of 2003, do not have any

particular provision for DSM as such.

However various guidelines direct

towards energy efficiency and DSM.

Tariff policy also talks about efficiency in

operation and quality of service.

First time planning commission report talked about DSM specifically, where they recommended

to utilities having specific cell for DSM. MERC was formed in 2010 was among the initial

regulatory bodies in the country. In 2010, MERC was the first in country to provide regulation for

DSM, in which Mr Patankar provided his consultancy. Distribution licencing was mandated with

proper inclusion of DSM programs. Demand Side Management consultation committee was also

formed under MERC having academic and industrial experts in their loop, in order to provide a

holistic approach towards the programs.

In Maharashtra under regulation act of 2010, it was mandated that every distributer should project

their power purchase requirement with consideration of DSM saving. Tariff orders to utilities were

also made in terms of energy efficiency. Maharashtra has one of the largest numbers of DSM


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programs in the state which were approved by MERC. As for year 2014, 1.63 Million units were

saved in agricultural DSM and ceiling fan program alone. For year 2014, MSEDCL achieved a

saving of 1.63 million units, Tata power 5.99 million units and R-infra achieved saving of about

1.52 million units.

MERC continuously monitors utilities for their DSM program. They arrange quarterly meetings

with utilities regarding the progress of work. The thermal storage program provided a shifting of

around 5.7 million unit of load from peak hours to off peak hours. Recently a DELP program is

approved by MERC for all DISCOMs, which is undertaken by EESL. Mr Rokade reinstated the

need of commercial awareness and suitable pricing mechanism which can accelerate the progress

of DSM programs.

Mr. Nirjhar Chakravarty (Godrej & Boyce Mfg. Co. Ltd.)

Mr Nirjhar Chakravarty from Godrej Appliances in his

short discussion presented the perspective of vendors in

the whole DSM scenario, specifically in appliance

exchange programs. He also presented the perspective of

consumers with his ground experience in sales of Godrej

appliances. Programs implemented in general lack very

much in their appeal to customers. Thus, he presented

the approach taken by Godrej to get the programs to

customers.

Vote of Thanks

Prof. Suryanarayana Doolla, IIT Bombay

Professor Doolla expressed his gratitude to Honourable Chairman, Mr Jagjeet Singh (Haryana

Electricity Regulatory Commission (HERC), for his esteemed presence throughout the workshop.

Mr Doolla also thanked the delegates from utilities of Haryana and Punjab for their attentive

participation.

Mr Singh in his concluding remark mentioned the role of such workshops for utilities as it provides

them with a broader perspective of DSM programs. He further insisted that collaboration of


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academic research and industries can improvise DSM programs. He thanked Prof. Suryanarayana

Doolla and Dr. Patankar for the successful completion of workshop. He showed his willingness

to work on the suggestions and recommendation that emerged from the workshop.

Group Photograph


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Annexure 1: Workshop Program

Program_ Chandigarh Workshop_26th November 2015

9:30 to 10:00 am Registration

10:00 to 10:30 am

Inauguration

Introduction to workshop by Prof. Suryanarayana Doolla, IIT

Bombay

Introduction to MP Ensystems by Dr. Mahesh Patankar.

Chief Guest address by Shri Jagjeet Singh, Chairman, HERC.

10:30 to 11:00 am High Tea

11:00 to 12:00 am

Session 1: Demand Side Management (DSM)

Basics, Literature Review

Technology Options

Demand Response (Case Study – TPDDL)

Case Study Presentation:

DELP Puducherry and TPDDL Auto-DR Project

Speakers:

Prof. Suryanarayana Doolla, IIT Bombay

Mr Amit Singh, IIT Bombay

12:00 to 1:00 pm

Session 2: DSM Tools

Introduction to Standard Offers Program (SOP)

E-Learning modules for DSM.

Speaker: Dr. Mahesh Patankar, MP Ensystems, Mumbai.

1:00 to 2:00 pm Networking lunch

2:00 to 2:45 pm

Session 3: Utility experiences& Regulatory perspective in DSM

Speakers: Mr Mukesh Bhanushali, R-Infra, Mumbai

Mr Amol Bhutad, Tata Power, Mumbai

Mr Siddharth Rokade, MERC, Mumbai

2:45 to 3:30 pm Discussion and way forward

3:30 to 4:00 pm Tea/Coffee

4:00: to 4:15 pm Vote of Thanks by Prof. Suryanarayana Doolla


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Annexure 2: List of Participants

Sr. No. Name Designation Organization

1 Mr Jagjeet Singh Chairman HERC

2 Ms. Harleen Kaur Junior Consultant HERC

3 Mr Harsh Pant Deputy Director HERC

4 Mr Prateek Puri Junior Consultant HERC

5 Mr S. L. Kansal Director (Tech) HERC

6 Mr S. S. Walia Engr. In Chief (Rtd.) HERC

7 Mr Vikas Bangard Deputy Director HERC

8 Mr Vikas Kadian Joint Director (Distribution) HERC

9 Mr Atul Pasrija Executive Engineer DHBVN

10 Mr Ajay Kumar Bansal AE, Panchkula UHBVN

11 Mr Madan Gopal Jindal Dy. Secy./Projects UHBVN

12 Mr Pardeep Saini Executive Engineer UHBVN

13 Mr Amritpal Singh Sidha Executive Engineer (Tech.) PEDA

14 Mr Paranjeet Singh Manager PEDA

15 Mr Kamal Joshi Deputy Director PSERC

16 Mr S. K. Jain Deputy Director Regulations PSERC

17 Mr Japinder Pal AE/DSM PSPCL

18 Er. Sandeep Alipuria Sr. Executive Engineer PSPCL

19 Mr Nirjhar Chakravarty Sr. GM & Nation Head Godrej

20 Mr Sumit Malik Dy. GM- Direct Sales Godrej

21 Mr Mukesh Bhanushali Deputy General Manager R Infra

22 Mr Amol Bhutad Lead Engineer Tata Power

23 Mr Siddharth B. Rokade Deputy Director MERC, Mumbai

24 Mr Ishan Mouli Paliwal Project Associate MP ENSystems

25 Miss Sonia Shukla Senior Analyst MP ENSystems

26 Dr. Mahesh Patankar Managing Director MP ENSystems

27 Prof. Suryanarayana Doolla Professor IIT Bombay

28 Mr Amit Singh Research Associate IIT Bombay

29 Mr Pranav Sharma Research Assistant IIT Bombay


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