utility ceo forum on dsmdsm-india.org/wp-content/uploads/2016/06/theme-presentation.pdf · design...

Utility CEO Forum on DSM

Electric utility load research andDSM program design

25 September 2013

1 Need for best practices in load research and DSM program design 1

2 Introduction to load research 3

PageSection

Table of Contents

3 Case study: Load research in Himachal Pradesh 9

4 Introduction to the DSM programme designs 20

Section 1Need for best practices in load researchand DSM program design

25 September 20131

Utility CEO Forum on DSM •

Need for best practices in load research and design of DSM programs

Section 1 – Need for best practices in load research and DSM program design

Critical milestones in DSM planning process by distribution licensees

Load research

Resource potentialassessment

Cost effectivenessassessment

Design of DSMprograms

Current status of DSM planning by Indianutilities

Need of the hour

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• In spite of the existence of DSM regulationsin many states, a majority of the distributionlicensees are yet to complete the DSMplanning process

• Many State-owned licensees are unaware ofthe commonly adopted methods for loadresearch and successful programme designs

• Case studies for illustration of load research• Examples of successful program designs in

India and other parts of the world

• Some states that have successfullycompleted load research studies – TamilNadu, Gujarat and Himachal Pradesh

Section 2Introduction to load research

25 September 20133


Load research objectives and outcomes

Section 2 – Introduction to load research

Objectives

• To identify strategic demand side management (DSM) measures

Direct Outcomes Derived Outcomes

Load profile/curve/shape

of individual consumer

facilities in different

consumer categories

Stock of the installed

Overall load profile of different consumer categories and their

contribution to the systemic load curve

Strategic load management interventions to flatten the load curve

Market size of electrical appliances/equipment in different consumer

categories

• To identify strategic demand side management (DSM) measures

• To quantify the resource potential for those measures

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Stock of the installed

electrical equipment, their

capacity, make, technology

and time of usage

categories

Penetration of energy efficient technologies among electrical

appliances/equipment in different consumer categories

Load reduction measures targeting specific end use applications for energy

efficiency enhancements

Technical potential of energy and demand savings resulting from the

acquisition of identified demand side resources

4Utility CEO Forum on DSM •

Load research activities

Section 2 – Introduction to load research

Load research

Hourly loadrecording of

individual facilities

AMR datarecording

Load profile/shapeof individual

consumer facilitiesPhysicalmonitoring ofhourly energyconsumption

Questionnairebased interviews Stock of the

installed electrical

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Load and marketsurveys

installed electricalequipment, theircapacity, make,technology andtime of usage

Questionnairebased e-surveys


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Section 3Case study: Load research in HimachalPradesh

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Evolution of DSM in Himachal Pradesh

2009September 2011

HPERC published the DSM

Section 3 – Case study: Load research in Himachal Pradesh

2009

HPERC appointed PwC forpreparation of EE & DSM plan

Summer (May 2010 toJune2010) and the winter

(December 2010 toFebruary2011)

PwC conducted load researchacross Himachal Pradesh

HPERC published the DSMplan and also notified DSM

regulations

25 September 2013

Scope of Load research activities in Himachal Pradesh

• Load surveys (or walk through audit),

• Hourly recording of electricity meters and

• AMR data analysis


First level of stratification

Sampling process for load research activitiesStratification framework and sample distribution


Domestic stratification and sampledistribution framework

• Domestic,

• Commercial,

• Non-domestic non-commercial (NDNC),

• Water and irrigation powersupply (WIPS),

• Low tension (LT) industrial,High tension (HT) industry,Agriculture,

Domesticconsumerpopulation

<50 kWh permonth

Zonal distribution

50-150 kWh permonth

Zonal distribution

>150 kWh permonth

Zonal distribution

distribution framework

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Agriculture,

• Street lighting, and

• Bulk supply


Circle-wisedistribution

Sub-division leveldistribution





Stratification framework and sample distributionCommercial Consumers


Commercialconsumer populationconsumer population

Hotels andrestaurants

0-20kW

20-100kW

Shops

0-20kW

20-100kW

Privatehospitals

0-20kW

20-100kW

Banks

0-20kW

20-100kW

Coachinginstitutes

0-20kW

20-100kW

Private offices

0-20kW

20-100kW

Railways

0-20kW

20-100kW

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100-500kW

>500kW

100-500kW

>500kW

100-500kW

>500kW

100-500kW

>500kW

100-500kW

>500kW

100-500kW

>500kW

100-500kW

>500kW

Findings of the load research study in Himachal Pradesh

Domestic load curve/shape/profile and Contribution of specific end-use applications


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0000-0500 0500-0900 0900-1800 1800-0000

Summer Winter Summer Winter Summer Winter Summer Winter

Conditioning 45.82 58.45 13.81 17.04 49.99 54.06 41.17 40.51

Cooking 0.00 0.00 5.92 4.34 11.99 10.97 7.98 5.55

Illumination 8.58 2.45 6.58 5.82 4.71 5.05 30.65 25.34

Water heating 4.68 2.32 26.30 38.23 0.00 2.32 2.16 18.25

Laundry 2.22 1.55 20.55 12.45 16.08 16.85 0.54 0.25

Refrigerator 38.70 35.23 26.84 22.12 17.22 10.75 17.50 10.12


Water and Irrigation Power SupplyLoad curve/shape/profile


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HT Industry

Load curve/shape/profile


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Consolidated load curve


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System Overall Domestic Commercial

Irrigation NDNC Street Lighting SME

HT Bulk Temporary

Since the overall load curve is relatively flat, strategic conservation and partial load shifting (from day to night) arethe main load management strategies proposed to achieve the DSM objectives

Load curves of individual consumer categories


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7:00 AM 12:00 PM 9:00 PM

Peak contribution of different consumer categories


Summer Winter Summer Winter Summer Winter

Domestic 24.45% 28.08% 21.72% 19.37% 40.78% 43.33%

Commercial 2.75% 0.74% 9.61% 7.07% 9.40% 5.87%

WIPS 10.83% 6.73% 14.18% 8.85% 7.49% 2.23%

NDNC 0.38% 0.70% 4.27% 2.56% 0.69% 0.80%

Street lighting 0.01% 0.46% 0.00% 0.00% 1.04% 0.73%

SME 0.84% 1.34% 7.66% 6.39% 0.56% 0.75%

HT 57.27% 58.05% 55.38% 53.31% 40.37% 43.67%

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HT 57.27% 58.05% 55.38% 53.31% 40.37% 43.67%

Bulk 6.21% 3.34% 5.18% 1.99% 6.08% 2.62%

Temporary 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Agriculture 1.54% 0.56% 1.13% 0.47% 0.00% 0.00%


Load management interventions proposed

• Power factor improvement from 0.9 to 0.95Technical potential of load reduction measures

DSM strategies and interventions identified from a load research study


• Power factor improvement from 0.9 to 0.95

• Partial shifting of WIPS load from day time to nighttime

The annual energy savings potential estimated frompower factor improvement was 12 Million units whichcould translate to INR 3.8 crores of annual benefit tothe HPSEBL

Oldtechnology

Proposedtechnology

Sector Technicalpotential (MU)

Standardefficiency

motor

EnergyEfficient Motor

Industry HT 111.45

Standardefficiency

pumps

EnergyEfficientPumpingsystem

Industry HT 7.35

Reciprocatingcompressor

ScrewCompressor

Industry HT 6.69

SS blades incooling tower

FRP forcooling tower

Industry HT 2.09

Standard Energy Industry HT 108.29Impact of shifting 10 MW of peak WIPSload

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Standardefficiency

fans/blowers

EnergyEfficient

fans/blower

Industry HT 108.29

Incandescentbulb

CFL Industry HT 0.16

Incandescentbulb

CFL Domestic 1.11

Standardefficiency

pumps

EnergyEfficientPumpingsystem

Irrigation 72.27


load

• Annual Energy savings - 2161031.57 kWh

• Monetary benefits accrued by the HPSEBL - INR 75lakhs

Section 4Introduction to the DSM programmedesigns

25 September 201320


Objectives

DSM Program Design – Objectives and key design components

Section 4 – Introduction to the DSM programme designs

Marketing Monitoring

• Replicate the impact of individualDSM measures on a larger(megawatt) scale

• Facilitate customer participationthrough incentives andinformation campaigns DSM Program

Designcomponents

MarketingandInformationcampaigns

Monitoringandverificationprotocols

Targetmarket andproductspecification

Incentives(both fiscal andnon-fiscal)

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specification

Program goalsEnergy and demandsavings

Rebate programs


Retailer / Wholesaler Utility

Proof-of-sale

Sale of energyefficientappliance atdiscounted price

Proof-of-sale

Reimbursementof rebate

RebateModel 1

Wholesalers and distribution

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Rebate programmes offercapital rebates to offset thedifferential cost involved inpurchase of high efficiencyelectric appliances.


Customer

centres, can be reimbursed,typically requiring a proof-of-sale to a retail customer. In thiscase the customer can claimthe rebate at the time ofpurchase.

Model 2

Rebate programs (cont...)


Retailer / WholesalerMarketing platforms Model 2

Rebate programs can alsochannel rebate directly to thepurchaser, who submits aproof-of-purchase receipt. Inthis case, the customer mayself install the unit, providedthat they supply the paid salesinvoice along with the rebateapplication form.

Sale of energyefficientappliance

Marketing platforms

Utility can make customersaware of the product through

• Bill inserts,

• Direct mail pieces,

• Utility website,

• Appliance contractors,builders, and retailers

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CustomerUtility

Proof-of-purchase

Reimbursementof rebate

Standard product program features

International case study: Eskom’s Standard Product Program in SouthAfrica


Total value of• Qualification criteria - demand reduction greater than 1kW and the

energy savings greater than 2MWh/annum

• Rebate cap - maximum of R500 000 per project site

• Approved Products /technologies - heat pumps, solar geyser, energysaving shower heads, CFL, and LED lighting systems

• Who is eligible to participate? - Customer (himself), Energy servicescompanies, or other project developers

Total value ofDSM projects

funded throughEskom initiatives

-R 5.6 billion

25 September 2013

companies, or other project developers

• Degree of incentive - Customers can receive up to 85% of capital costs asrebate under this program


ContractedDemand

2375 MWDemand reduction

verified1814 MW

Step 1: The customersubmits a project proposal

Eskom’s Standard product programme cycle


Customer / ESCO Utilitysubmits a project proposalwith all the requireddocumentation to the Eskomfor approval. On receipt of thesubmission, the Eskomcommunicates (in writing),the details of themeasurement and verification(M&V) process that will applyas well as the projectobligations (e.g. de-commissioning, disposalrequirements for existing

Customer / ESCO Utility

Proposal

Writtencommunication ofM&V, and other

obligations

Sign off on Scope,sustainability

commitment and

25 September 2013

requirements for existingtechnologies, sustainabilitycommitment, pledge, etc).


Step 2: The customer signs a predefined scope and sustainability commitment. This includes an indemnityclause, to prevent the customer from double claiming energy savings through other initiatives and encouragessustainability of the solution (e.g. necessary maintenance and continued, optimal operation) for a period of threeyears.

commitment andindemnity clause

Step 3: The customer selffinances the proposed

Eskom’s Standard product programme cycle (cont...)


Customer / ESCO UtilityNotification ofcompletion of

finances the proposedintervention. Less energyefficient technologies isreplaced with energy efficientstandard product solutions.

Step 4: The customerdecommissions andresponsibly disposes the lessenergy efficient equipmentWhere appropriate, thecustomer submits proof of thedisposal to the Eskom.

Customer / ESCO Utilitycompletion of

installation

Verifies and IssuesCompletioncertificate

Claims rebate withthe support of

completioncertificate

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Step 5: The customer notifies the Eskom about the completion of installation. Eskom, at its own expense,performs a technical and disposal audit which may take the form of a phone call, a site visit or full measurementand verification (depending on the agreed project specifics in step 1). Eskom confirms and signs off on theimplementation based on which a project completion certificate is issued.

Step 6: The customer submits all the actual cost invoices reflecting final rebate (as agreed between Eskom andCustomer) to process the rebate payments by the Eskom.

• Direct install programmesuse utility or contractors to

International case study on the direct-install programme - SanDiego Gas and Electric Company’s (SDG&E) Direct Install program

Direct Install Program


use utility or contractors todirectly install low-cost, quickpay-back energy efficiencymeasures (reliable and highlycost-effective energy savings) incustomer facilities

• These programmes will deployteams of technicians in factoriesand facilities to identify andinstall low-cost, low riskmeasures

Diego Gas and Electric Company’s (SDG&E) Direct Install program

Key features

• Provides a number of free energy- and money-saving services forqualifying small- and medium-sized businesses.

• Qualifying businesses - commercial rate customers who do not havemonthly electrical demand over 100kW for three consecutive months

After the initial screening process, one of the approved contractors

25 September 2013

• This type programme is not yettested in India and is mostlyprevalent in developed countries

• After the initial screening process, one of the approved contractorsevaluates the customer's facility, identifies energy-saving opportunitiesand subsequently installs energy-efficient upgrades and retrofits at nocost to the customer.

• Free upgrades include fluorescent lighting, occupancy sensors andvending misers.


Bid programmes solicit energy services companies tosubmit proposals and improve energy efficiency levels

International case study on the direct-installprogramme

Bid Program


submit proposals and improve energy efficiency levelswithin a targeted group of customers. These set broadgoals such as location and measure and facility types,relying on bidders to propose projects. Such proposalsinclude a thorough cost benefit analysis.

programme

• Eskom has registered Energy Services Companies(ESCO) who identify energy efficiency opportunities,scope and execute projects in specific target markets

• ESCOs utilise their in house knowledge of efficienttechnologies and specialise in determining the bestand most suitable way of obtaining electricity savingsat a business.

Examples of projects similar to Bid programs inIndia

25 September 2013

• Qualifying criteria - electricity savings more than200kW which Eskom reviews on its technical andfinancial merits

• Four-way partnership via legal contracts betweenEskom, the customer, the ESCO, and anindependent, measurement and verification expert


• Agriculture Demand Side Management pilot projectin Solapur, Maharashtra

• Agriculture Demand Side Management project inHubli Electricity Supply Company in Karnataka

Standard Offer Program

Feed-in-tariffs for energy efficient technologies


• Standard offer programme is a mechanism to acquire demand-side resources (energy and demandsavings) based on a predetermined rate (e.g. Rs/kWh). Standard offer rates can be determined by the long runmarginal cost of supply necessary to attract commercial bids.

• ESCOs, equipment suppliers or other organisations that can deliver energy and demand savings at the agreedrate are eligible to submit projects.

• They are paid once the projects have been implemented and savings certified by an authorised monitoring andverification organisation.

25 September 2013

• Standard offer rates can vary by measure type, region, size of the project, or any other parameter that helpsimprove the programme’s potential to succeed

• The standard offer design is adopted by utilities worldwide but is yet to be tested in India


Eskom approved technologies and solutions

International case study: Eskom’s Standard Offer Program in South Africa


• Small-scale renewable energy, off-grid solutions suchas photo voltaic, biomass waste, wind energy,geothermal, solar, thermal gradient and groundsource heat; municipal solid waste

• Energy efficient lighting systems (CFL, T8, and T5)

• Building management systems (HVAC controlsystems, heat pumps, variable speed drives, sensors,and thermostats)

• Hot water systems (heat pumps and solar waterheaters)

Target technologies c/kWh

Energy efficient lighting

systems42

LED lighting technologies 55

Building management systems 42

Hot water systems 42

Process optimisation 42

Industrial and commercial solar

25 September 2013

• Process optimisation (efficient motors, fans, variablefrequency drives and others)

• LED down lighters

Industrial and commercial solar

water systems70

Renewable energy 120


Step 1: The customer submits thestandard offer application bycompletely filling the project and

Eskom’s Standard offer programme cycle


Customer UtilityApplicationsubmissioncompletely filling the project and

technical information templates,published by Eskom. The customeralso proposes a preliminary M&Vplan along with the standard offerapplication.

Where a customer opts to partnerwith an ESCO and requires theESCO to act on his behalf, thecustomer signs a letter of intent toconfirm this agreement for theentire contract period, includingthe three year sustainabilityportion. The standard offer project

Customer Utilitysubmission

Letter of Intent Applicationsubmission

25 September 2013

portion. The standard offer projectcontract is thus placed betweenEskom and the ESCO in suchcases.


ESCO

submission

Step 2: Evaluation of the standard offerapplication by the Eskom. If the evaluationcommittee approves the application, Eskom

Eskom’s Standard offer programme cycle (cont...)


Customer UtilityLetter of approvalfrom evaluation

committee approves the application, Eskomprovides the ESCO/ customer with aapproval letter.

Step 3: The M&V process begins. TheEskom appointed independent M&V teamprovides the ESCO/customer with thedetailed metering specifications to purchaseand install the metering equipment for thedevelopment of the project’s baseline.

Step 4: Upon receipt of meteringspecifications, the ESCO/customer purchasesand installs the necessary M&V equipment.Purchasing, installation and maintenance ofthe M&V equipment is managed by the

committee

Request to set upbaseline

Joint sign off onbaseline

25 September 2013

the M&V equipment is managed by theproject ESCO/ customer.

Step 5: The ESCO/customer and the M&Vteam jointly sign off the baseline establishedusing the M&V meters installed as per thespecifications.


M&V equipmentspecifications

M&V team

Step 6: The ESCO/customer andthe Eskom sign the final standard



Signing standardthe Eskom sign the final standardoffer contract after negotiating onsome key terms and conditions.

Step 7: Eskom gives theESCO/customer permission to startthe installation process. This marksthe beginning of projectimplementation.

Step 8: The previously installed,inefficient technologies are disposedof safely. Where appropriate acrushing or disposal certificate issubmitted to Eskom in order to

Customer / ESCO Utility

Signing standardoffer contract

Permission to startinstallation

Completesinstallation and

Submits proof ofdisposal

25 September 2013

submitted to Eskom in order tocomplete the implementationprocess.

Step 9: Eskom confirms and signsoff on the implementation based onwhich a project completioncertificate is issued.


disposal

Issues projectcompletioncertificate

Step 10: the project impactassessment is done by the appointed



Customer First progresspaymentassessment is done by the appointed

M&V team to confirm the electricitysavings that resulted from theefficiency upgrade. On conclusionthe M&V team's assessment ofsavings are communicated andagreed by the parties.

Step 11: The ESCO/customersubmits the application for the firstprogress installment (verifiedsavings at the published rate).

Over the next three years, annualpayment requests are submitted

Project impactassessment

Submits verifiedsavings report

25 September 2013

payment requests are submittedtogether with M&V reports.


assessment

M&V team

Section 5Annexure

25 September 201335


Sample Load managementinterventions:

Load reduction measures

Load management strategies and Load reduction measures (Illustrative)

Section 5 – Annexure

Load ManagementStrategies

Peak clipping

Valley Filling

Load Shifting

interventions:

• Time of day (TOD) tariffs,

• Load factor/power factorimprovement incentives and

• Demand response initiatives

• Utility sponsored incentives toadopt energy-efficienttechnologies, equipment,appliances across various classesof end-users in the economy

• Utility sponsored incentives toinstall rooftop solar PV and solarthermal solutions that can offsetthe electricity demand on thepower grid

Strategies

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Load Shifting

Strategic

Conservation

power grid


• Demand side resources constitute energy and demand savings resulting from the load reductionmeasures available with the utilities

Resource potential from load reduction opportunities


measures available with the utilities

• Technical potential is a theoretical construct of the technical upper bound of the energy anddemand savings resulting with complete market penetration of energy-efficient appliances,deemed technically feasible from an engineering perspective.

• Technical potential does not consider cost or acceptability factors of the customer.

25 September 201335


Sampling methodology for load research activities

Stratified random sampling theory

The primary underlying assumption is that the targetpopulation is homogenous, without significant

The final sample size for conducting load surveysdepends on the number of stratified homogenous


population is homogenous, without significantvariations. Therefore, the target population needs tobe stratified and filtered in order to identify reasonablyhomogeneous groups of population.

depends on the number of stratified homogenousgroups within the target population.

First level of stratification

Domestic (residential) Commercial (services) Low tension Industry

(manufacturing)

High tension Industry

(manufacturing)

Agriculture pumping

Further levels of stratification

Based on urban, rural

and connected load

Based on connected

load and function of

buildings

Based on connected


facilities

Based on connected


facilities

Based on connected

load and technology of

pump sets

< 2 kW < 10 kW < 10 kW 500-1000 kW <5 HP

2-5 kW 10-100 kW 10-100 kW >1000 kW 5-10 HP

25 September 2013

2-5 kW 10-100 kW 10-100 kW >1000 kW 5-10 HP

>5 kW >100 kW 100-500 kW Steel, cement, chemical,

textile, pharmaceutical,

plastic, paper, glass,

>10 HP

Hotels and restaurants,

shops, private hospitals,

banks, coaching

institutes, private

offices etc.

Food processing,

spinning mills, electrical

goods, brewery, rubber

engineering, polymer,

stone crushers, liquor,

poultry farms, and IT

parks

Monobloc pump sets,

submersible pump sets


NDNC category LT Industry (<100 kW) and

HT (>100kW) Industry

WIPS category

Stratification framework and sample distribution (cont…)


• Government offices,

• Government hospitals,

• Educational institutes, and

• Religious places (havingconnected load > 5 kW),

• Village community centres,

• Charity hospitals,

• Municipal committees,

• Panchayats, and

HT (>100kW) Industry

• Iron and steel,

• Textile,

• Pharmaceuticals,

• Chemicals,

• Food processing,

• Paper,

• Glass ,

• Rubber,

• Connected load less than 100 kW,

• Between 100 - 500 kW and

• More than 500 kW

Street lighting and agriculture

• No sampling was done since thenature of the load was constant,and there were dedicated feedersserving these consumers.

25 September 2013

• Panchayats, and

• Other major consumers.• Rubber,

• Engineering,

• Plastic and Polymer,

• Stone crushers,

• Liquor, and

• IT parks

serving these consumers.


Consumer category Load research technique Output

Summary of load research activities in Himachal Pradesh


Domestic, commercial, non-

domestic non-commercial,

water and irrigation power

supply and LT industrial

Questionnaire- based load and

market survey and

hourly recording of electricity meter

readings

Hourly load curve,

time of use of specific end -use

applications

HT Industry AMR data analysis,

Load and market surveys

Hourly load curve

time of use of specific end- use

applications

25 September 2013

Agriculture and street lighting Feeder-level energy data analysis Hourly load curve


Thank You


25 September 201336


© 2013 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers toPricewaterhouseCoopers Private Limited (a limited liability company in India), which is a member firm ofPricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

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