dsm program designdsm-india.org/wp-content/uploads/2016/06/reliance-mumbai-present… · overview...

DSM Program Design

(R-Infra Case Studies & Practices)

--------------------------------------

Date : 11th April 2014

Confidential Slide 2

Presentation Flow

Overview of R-Infra Mumbai Distribution Business

RInfra Approach to DSM Program

Load Survey

Planning & Designing program

Cost Effectiveness Tests

MERC Approval Process

DSM program Financing

DSM program Execution Process

R Infra DSM Programs.


Overview of R-Infra,

Mumbai Distribution Business


NORTH

ZONE

CENTRAL

ZONE

SOUTH

CENTRAL

ZONE

BHAYANDAR

KANDIVLI

OFFICE

MALAD

GOREGAON

JOGESHWAR

I

VILEPARLE

SANTACRUZ

KHAR

BANDRA

DINDOSHI

OFFICE

KANDIVL

I

MIRA ROAD

DAHISAR

BORIVALI

SOUTH

ZONE

ANDHER

I

SANTACRUZ

OFFICE

TO

DADA

R

MANKHURD

EAST

ZONE

TILAK NAGAR

OFFICE

GHATKOPAR

CHEMBUR

GOVANDI

VIKHROLI

NORTH

ZONE

CENTRAL

ZONE

SOUTH

CENTRAL

ZONE

BHAYANDAR

KANDIVLI

OFFICE

MALAD

GOREGAON

JOGESHWAR

I

VILEPARLE

SANTACRUZ

KHAR

BANDRA

DINDOSHI

OFFICE

KANDIVL

I

MIRA ROAD

DAHISAR

BORIVALI

SOUTH

ZONE

ANDHER

I

SANTACRUZ

OFFICE

TO

DADA

R

MANKHURD

EAST

ZONE

TILAK NAGAR

OFFICE

GHATKOPAR

CHEMBUR

GOVANDI

VIKHROLI

Overview – R-Infra Mumbai Distribution Business

Distribution Area 400 Sq. km

No. of Customers ~2.9 Million

Max. System Demand 1,697 MVA

Sale 6,506 MU’s

T&D Loss ~9 %

Reliability Index 99.98 %

Power Transformers 3,112 MVA

Distribution Transformer 4,554 MVA

Serving Mumbaikars since last 85 Years


RInfra Management Commitment


DSM Program - Concept to Execution

Load Research


(TRC, RIM, PCT, SCT)

Program Promotion & Execution

Planning & Designing

Preparation of PDD

Submission to MERC

MoU with Supplier

Approval from MERC

Monitoring & Verification,

Quarterly Updates to MERC

DSM Program

Tests Pass


Load Research


Load Research – Addressing DSM Concerns

How much ‘demand’ can DSM actually control?

Selection of Technology for program

Electrical rating of present and proposed technologies

Potential number of appliances in one unit (household &commercial)

Hours of usage per day and days per year

Time of use of appliance ( Peak Demand )

Vintage of appliance & Technology

Type of customer base

Penetration of appliance in the consumer category.

What should be the scale of the Program and what would it cost?


Planning & Designing Program



Year Survey by Sample size Residential Commercial

2007-08 M/S Nelson 10000 8000 2000

2008-09 M/S Drishti 2000 1800 200

2009-10 M/S Mitcon 2000 1800 200

2011-12 M/S Drishti 2000 1800 200

Load survey

AppliancesResidential

(%)

Commercial

(%)

T12/ T8 Tubelight 95 80

Fan 80 40

AC 20 70

Refrigerator 70 25

Appliances Usage

T12 / T8 Tube light T5

DSM Programmes

Ceiling Fans 5-star Fans

Window AC 5-star Split ACs

Refrigerator 5-star

Refrigerator

Incandescent lamp CFL

Source: LR 2011-12

Residential : Refrigerator Vintage > 10 Years : 17%

> 5 Years : 88%

Commercial :Air Conditioner Vintage > 5 Years : 16%

(Window) <5years but > 3 Years : 70%


Usage of All AC combined

508449

387349 320 314

472

621554

454 426 426457

413349

304 319

437

549

654727

827 843

693

176 166 158 151 141 134 124 97 79 56 61 84117 100 87 82 101

206269 289 290 281 257

215

332283

228 198 180 180

348

524476

398365 342 341 313

262221 217 230

280

364436

547586

478

0

200

400

600

800

1000

1-2

AM

2-3

AM

3-4

AM

4-5

AM

5-6

AM

6-7

AM

7-8

AM

8-9

AM

9-10

AM

10-1

1 AM

11-1

2 AM

12-1

3 PM

13-1

4PM

14-1

5 PM

15-1

6 PM

16-1

7 PM

17-1

8 PM

18-1

9 PM

19-2

0 PM

20-2

1 PM

21-2

2 PM

22-2

3 PM

23-2

4 PM

24-1

AM

Overall Lighting Apps

Usage of Lighting appliances

Load curve for Residential Load




Program Benefits > Program Costs?

DSM option cheaper than Supply side option?

Is Program beneficial to all consumers?

Is Program beneficial to Participants?

Total Resource Cost

Test (TRC)

Ratepayer Impact

Test (RIM)

Participants Cost

Test (PCT)

Is Program beneficial to Society at large? Societal Cost Test

(SCT)

Financial Tests


Avoided cost of power purchase for TRC, RIM and PCT – Weighted Average of Highest Marginal Cost of Power Purchase related to top 10% of energy use stack for the past one year as computed by Maharashtra State Load Dispatch Centre.

Avoided cost of power purchase for SCT - Rs. 10.6/kWh (prevalent for diesel generator sets).

Escalation rates for power sales, avoided cost of purchase – 5% year-on-year.

Discount rate for calculation of TRC and RIM tests – 10.5%

Discount rate for calculation of PCT – 13%

Discount rate for calculation of SCT – 10%

Key Parameters : Definition & values


Participant Cost

Test (PCT) Utility Cost

Total Resource

Cost (TRC)

Ratepayer Impact

Measure (RIM)

Incentives

Bill Reductions Revenue Gain

Avoided Costs Avoided Costs Avoided Costs

Utility Program Costs Utility Program Costs Utility Program Costs

Incentives Incentives

Bill Increases Revenue Loss

Participant Costs Participant Costs

Benefits

Costs



Type of technology

Project description

Average Capacity litre 200 to 300

Cost of Refrigerators Rs. 14500

Rebate by Utility Rs. 4500

Cost to Consumers Rs. 10000

Annual Consumption of old

Refrigerators

kWh 752

Annual Consumption of new

Refrigerators

kWh 490

Annual Saving per replacement kWh 262

Life of technology Years 10

Annual days Days 365

Number of replacements Nos 5000

Total utility sales MU 9600

Transmission losses % 4.85%

Distribution losses % 10.16%

cost of M&V meters 3000

M&V sample size 0.5%

5 star Refrigerators replacing old non star

Refrigerators




Program

Summary of results - B-C tests TRC 14829906.34

RIM 10032648.55

LRIRIM -0.00105

PCT 1692106.338

SCT 64950370.16

5 star Refrigerators replacing old non star

Refrigerators


Regulator’s Decision Tree

Do not send to Commission

NPV of TRC

>=0

No

Yes

NPV of RIM

>=0

No

Yes Implement DSM Program

Impact on

Non-participants

< Rs. 0.01/kWh or

< 0.1% of tariff

level

Yes

Implement DSM Programme

No Consider Case to Case Basis



DSM Program Financing


Load Management Charges (LMC) collected in 2005-2006 are being

utilized for MERC approved DSM Programs for Consumers.

- Alternatively it will be added in ARR once LMC fund gets exhausted.

Approximate Cost approved by MERC under LMC till date is INR 11.71 Cr.

Expenditure & Energy Savings achieved is being monitored by MERC.

DSM Program Financing

Financing Options:

4. ESCO Funding

1. Rebate through LMC Upfront : FTL/ AC/ Fan/ Refrigerator

Installments : CFL Program

2. Bulk Volume Discount LT Capacitor Program

3. Financing through CDM Bachat Lamp Yojna (BLY)


DSM Execution Process


Technology provider

Preparation of RFP / Tender document with details of

program execution process , details of product , Terms &

conditions etc.

Receipt of bids from Technology provider / Manufacturer

Techno Commercial evaluation to be done

Memorandum of Understanding to be signed with successful

bidder

Program Promotion

Roll out the program along with successful bidder

Customer eligibility

Promotion through Public campaign

Execution process -


Execution process- Measurement & Verification

Evaluate Program Impact & Effectiveness

Helps verify cost-effectiveness assumptions

Process Evaluation

Effectiveness of communication/ program promotion

Effectiveness of process design

Evaluation of process execution

Consumer satisfaction on Product and Pricing

Impact Evaluation

Customer response

Savings achieved through this program

Apply corrective actions to upcoming programs


Program Impact Evaluation

Refrigerator replacement program

Pre-retrofit Energy recording with kWh meter

Post retrofit energy recorded with the same meter

Avoided Energy :

– Energy Pre Retrofit – Energy Post Retrofit

Average Energy Savings after M&V is 287 units / year ( 262 units/year )

Refrigerator replaced till date 3725

Total yearly savings for replacements done is 1.06 MU (0.97 MU )




Process & Response Evaluation

Refrigerator replacement program

A survey to be carried by reputed third party marketing agency in the

project implementation area. Survey of non participating consumers

also to be done

The questionnaire to be carefully designed to understand the

acceptance of offer, execution channel and product by the consumers ,

reasons for non participation in the scheme


RInfra DSM Programs

for Consumers


T5 FTL

2011-12

5* Split AC

2011-12

5* Fan

2011-12

CFL

2006-07

5* Refrigerator

2012-13

STLT Lamp

Conversion

2008-09

LT Capacitor

2010-11

R-Infra DSM Programs

1 2

3 4 5

6 7


We aspire to transform ALL ‘Mumbai Citizens’ into

The ‘Responsible Power Citizens’ and we know, we will.

Last Word…aspiring for a New World…

Thank You.


CFL Program

Program Details: Launched in : FY 2006-07

Consumer type : All Category

Product offering : 15 W CFL

Discount : 62%

Investment : INR 118 Lac

Salient Features:

Tie-up with M/s Bajaj

Energy Saving CFL worth Rs. 165 at Rs.

63 under scheme; Payment in installments

If first 9 installments, of Rs. 7 each, are

paid in time, last 3 (Rs.19) waived off

Achievements :

Consumers – 2.05 Lacs; CFLs sold – 6.17 Lacs

Savings till date – 38 MU


Capacitor Installation Program

Program Details:

Launched in : FY 2010-11

Consumer type : Commercial / Industrial

Product offering : All Poly propylene capacitor

Discount : 30% with extended product

Investment : Act as a facilitator.

Negligible Investment

Salient Features:

Tie-up with Shreem & Energe Capacitors

Extended warrantee of 5 Years

Cost Inclusive of Installation & Wiring

Achievements :

Capacitor Installed : 2178 kVAR

Savings : 2 MU / Annum


Salient Features:

Tie-up with OSRAM for T5 FTLs

Two years extended warrantee

Free of cost Installation

T5 FTL Program

Program Details:


Product Offering : T5 Tube Light (31 w)

Discount : 60%

Investment : 33 Lacs

The first Energy saving tube-light program

in India with 60% price discount

Achievements :

Units Sold – 4000 Nos.

Estimated Savings – 0.15 MU


Salient Features:

Tie-up with LG for 5 star AC

Extended warrantee of 1 Year on

machine & 4 years on compressor

Free standard Installation

EE Air-conditioner Program

Program Details:


Consumer type : small commercial

New technology : 5 star Split type AC

Discount : 40%

Investment : 3.7 Lacs

Achievements :

Units Sold – 51 Nos.

Estimated Savings – 0.19 MU


EE Air-conditioner Program

5 Star Split AC program Phase 2

Target quantity : 1500 Nos.

Target Saving : 3.87 MU

Target Timeline : June 2015

Program Partner : M/s Godrej

Smart End Use Management System ( SEMS)

Automation in Air conditioning

Target quantity : 2500 TR

Target Savings : 1.3 MU

Target Timeline : June 2015

Technology Provider : M/s Amplebit

MOU signed with Consumers for 400 TR.


EE Ceiling Fans program

Salient Features:

Tie-up with Havells for 5-star Ceiling Fans

Old fan disposal in environmentally safe way.

Program Details:


Product offering : 5-star Fans (50 Watts)

Discount : 60%

Investment : 27 Lacs

The first Energy Saving Ceiling Fans Program in

India with 60 % price discount.

Achievements :

Phase I – 5000 Units , Savings- 0.21 MU pa

( Completed in Aug 12 )

Phase II: 12500+ Units till date 1.01 MU


Refrigerator Program

5 Star Refrigerator Program

Target Quantity : 5000 Nos.

Target saving : 1.54 MU

Target Timeline : April 2015

Program Partner : M/s Godrej

Achieved : 3700+ Installations

Saving achieved :0 .57 MU


Street Light Lamp Conversion Project


Consumer type : Street Light

Old Fixtures : HPMV ( 125 W )

Replaced with : HPSV lamps (70 W)

Replacement of : 36560 lamps

Saving potential : 16.98 MU

Used Lamps were disposed through MPCB

approved Vendor at cost

Street Light Conversion Program

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