Innovative approach to DSM through Open Access Jayant Deo MD & CEO, Indian Energy Exchange

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 Dynamic Pricing Technology

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.

Why not electricity?

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

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

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

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

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

Impact on the System:- Productivity Improved 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-use PTR is peak-time rebate CPP is critical peak RTP 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 incentivesCustomer engagement Electricity price tariff innovation

Bulk Consumers 1 MW & above * 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 feeder Billing, 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

Analysis of Rate of Sale of Power (INR/KWh) for all Generating Stations for % reduction in peak demand = Rs.11,400 Cr

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

Every great journey begins with a single step !!! Power Sector Needs Millions of minds & Trillions in Capital

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