role of demand side management from utility’s perspective k. ramanathan distinguished fellow, teri...
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Role of Demand Side Management from Utility’s Perspective
K. RamanathanDistinguished Fellow, TERI
The Energy and Resources Institute
Regional Workshop on ‘Innovative and Sustainable Energy Technologies for Developing Countries:
Opportunities & Challenges Taj Mahal Hotel, New Delhi 29 May 2014
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Challenges on the Energy Front
Availability & fluctuations in fuel prices
Growing carbon footprint
Environmental & social issues
Energy pricing
Access to technology
Mobilization of finances
IEA Electricity Demand Projections
Demand rising at fast pace Supply lagging behind
Main issues:
Need to manage demand ensuring at the same time adequate and reliable supply of power to all at affordable rates and growth of economy
India: 300% increase in demand in next 20 years
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Actions beyond the point of supply designed to change the amount and/ or timing of the customers’ use of electricity
What is Demand Side management (DSM)?
Now seen as an important element of Integrated Resource Planning
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Objectives of DSM
Reduction of load during peak hours
Improve LF by adding load in off-peak hours
Alter load on as –needed basis (interruptible/ curtailable )
Increase of loads, during all or most hours of the day
Reduction of load during all or most hours
Peak load reduction & add off-peak
Scope of DSM has evolved over the years. Relevance to the utility has also increased manifold
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Relevance to Utility
* Mitigate power shortages
* Improve access
* Improve quality of supply
* Manage power purchase costs
* Minimize GHG emissions
* Ensure better asset utilization
* Defer capital investments
* Regulatory compliance
Power shortages in IndiaConcern: Impact on revenues
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DSM Process Chain
Load research: The basic starting point - A critical activity
Regulations
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Domestic - City Commercial
* Significant daily & seasonal variations* Large variations between different consumer categories* Patterns vary widely between different cities and rural areas* Patterns getting influenced by changes in economy, life style & climate
Load ResearchStudy of load pattern over the day and across seasons at system level and of different consumer categories
Illustrative example of a study in one of the Indian States
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Most common: Promotion of EE appliances & processes; ToD/ ToU tariff, awareness campaigns, etc. Solar applications gaining interest. DR more recent
Some Typical DSM InterventionsSector Interventions
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DR in Kitakyushu Smart Community Project (Japan)
Experiment to test dynamic pricing of electricity in 2012
Day is divided in 4 time periods; 5 levels of pricing ranging from 15 Yen
to 150 Yen per kWh during peak
196 households 2 groups. 127 subject to dynamic pricing; 69 excluded
Prices level 2-5 when max. estimated temp >30 C (weekdays in
summer) & min. temperature <5 C (weekdays in winter). Level 1 on
weekends & holidays
Customers notified around 3 pm on previous day & morning through
smart meters
Dynamic pricing led to peak time demand cuts varying from 9% (with
Level 2) to 13% (with level 5)
9000 Yen distributed to participating customers (deducted when bill goes
higher than existing so as to ensure comfort)
Consumers soon found it attractive; some easy life style changes
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Tata Power load dispatch decides
the event call based on Ex Ante
price/ transmission constraints and
an aggregator connects with the
consumers
Event is of max : 2 Hrs each ; 50
events per year
Meter data is down
Tata Power pays incentive to
aggregator and the aggregator pays
to each consumer as per his
curtailment. loaded from AMR/ Hand
held meters
A participating consumer receives
Rs 2.25/KWh saved, which is less
than the peak power purchase cost
Source: Shekhar Khadilkar & Deepak Bhise; Presentation forInnovative Energy Saving Product/ Service category Demand Response Programme
Demand Response Experiment in Mumbai (India)
A voluntary program by Tata Power for commercial & industrial consumers with total load above 500 kW
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Awareness & capacity Building Campaigns
Connecting with consumers and getting their participation/ acceptance a key to success of any DSM program
TERI’s engagement with school children
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Key Stakeholders & Their Roles
Utility
Government RegulatorFinancing
agency
ESCO/ Energy
auditors
Research & consultancy
Organizations
Policies, facilitate funding
Regulations, approval of programs & enforcement
Part funding support
Support implementation
Support in load research, preparation of DSM plans, capacity building, etc.
Media (visual & print) can also play a key role in supporting the initiatives
Manufacturers/ suppliers of EE can also contribute to the efforts
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Common Challenges
* Lack of data on consumer category-wise load
patterns
* Capturing emerging trends in consumer behavior
* Costs benefit analysis (ex-ante & ex-post)
* Financing support
* Dearth of ESCOs
* Relative priority of utilities
* Lack of consumer engagement & awareness
* Design of time-differential tariffs
* Regulatory weakness
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Thank you [email protected]
End Note
DSM seeks to promote efficient energy usage benefitting the utility and consumers at large and not this!