innovative approach to dsm through open access jayant deo md & ceo, indian energy exchange...

Innovative approach to DSM through Open Access

Jayant DeoMD & CEO, Indian Energy Exchange

jayant.deo@iexindia.com

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

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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

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Every great journey begins with a single step !!!

Power Sector Needs

Millions of minds & Trillions in Capital

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Thank you!www.iexindia.com

Promoters

Joint Equity Partners:

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