1. Innovative approach to DSM through Open Access Jayant Deo MD & CEO, Indian Energy Exchange jayant.deo@iexindia.com

2. Agenda Background Maharashtra Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

3. Agenda Background Maharashtra Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

4. 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

5. Most impactful levers of DSM Dynamic Pricing Technology

6. 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 1/4 th after 9 PM. Pricing - most potent economic tool to change habits.

7. Why not electricity?

8. Agenda Background Maharashtra Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

9. Demand Curve 10 days After Tariff Revision Demand Curve After one year Peaking Arrested Maharashtra Introduced ToD Tariff for Flattening Demand Curve

10. Demand Rate changed to Time of Consumption Demand Rate Enhanced Rs.300 for demand registered during 0600-2200 hours

11. 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 210 Night Rate Reduced to Rs.210 Varying rate as per Time of Day

12. Impact on the System: - Plant Load Factor Improved Annual PLF %

13. Impact on the System:- Productivity Improved Annual Kwh/KW Estimated 600 MW Capacity Addition

14. Agenda Background Maharashtra Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

15. Dynamic pricing has yielded positive results in 70 pilots around the world

16. International experience in Load Management/ Demand Response Programs

17. Dynamic pricing can take various forms TOU is time-of-use PTR is peak-time rebate CPP is critical peak RTP is real-time

18. Technology boosts price responsiveness

19. Enabling technologies facilitate much greater demand response participation

20. Customer demand response can reduce U.S peak demand by 20%

21. Agenda Background Maharashtra Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

22. 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

23. Carrier EMi Thermostat Web-based User Interface USA Case Study: LIPAedge Direct Load Control Program

24. Direct Load Control System USA Case Study: LIPAedge Direct Load Control Program

25. Agenda Background MERC Case Study International Experience in DSM USA Case Study Innovative Solution: Bulk Net

26. Demand Side Management design relies on 5 inter-related conditions Enabling-technology innovation Energy code development Financial incentivesCustomer engagement Electricity price tariff innovation

27. 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

28. AMI for DSM 24X7 Power Supply Each one on express feeder Billing, Payment & Loss mapping Features of proposed Bulk Net

29. Main Requirements for Bulk Net Centralized measurement & Control system with two way communication technology

30. 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

31. www.iexindia.com 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

32. Conclusion Bulk net would achieve DSM resulting in: 1.Reduced Capex 2.Optimizing Energy cost 3.Savings of diesel oil

33. www.iexindia.com Every great journey begins with a single step !!! Power Sector Needs Millions of minds & Trillions in Capital

34. www.iexindia.com Thank you! www.iexindia.com www.iexindia.com Promoters Joint Equity Partners: Technology :