DEMAND SIDE MANAGEMENT

S S CHOPADE
 ELECTRICITY SCENARIO

• Development can be measured by a nation’s

electricity consumption.
• Electricity usage is divided into:
• Industrial
• Commercial and residential
• Agriculture and irrigation
• Electricity is an important input for industry.
 Pattern of energy consumption
A gr i

I ndus t r i a l 21. 30%

D o me s t i c
Source Percentage 36. 34%
24. 55%
Industrial 36.34%
Agriculture 21.30%
Domestic 24.66%
Commercial 9.36%
Railways 3.5%
I nt e r s t a t e
Streetlights 1.33% C o mme r c i a l
0. 03%

Others 3.6% 9. 35%

Ot he r s
Interstate 0.03%
St r e e t l i g h t s
3. 60% Rai l ways
1. 33%
3. 50%

Source – MSEB Annual report 2002-03

WHY ELECTRICITY SHORTAGE?
10 1.Faulty and only short term
planning approach of utilities
8
2.Requirement of huge funds
6
3.Long gestation period
4
4.Social problems
2
5.Sharp growth in economy.
0 6.Fast improvement in leaving
2003-04 2004-05 2005-06 standard of population
Real growth in GDP Growth in power generation All these factors results in
mismatch in power generation
and power demand so DSM
emerge as important tool to
tackle the situation.
SOLUTION FOR ELECTRICITY SUPPLY SHORTAGE

• Renovation and modernization of plants, transmission and

distribution systems.
• Demand side management (DSM) with the utilization of energy
efficiency technologies.
• Awareness raising among energy users.
DEMAND SIDE
MANAGEMENT
HISTORY OF DSM
DSM was promoted by over 2000 DSM programmes of
about 1000 utilities in the USA between 1973 and 1998.
After deregulation of the power sector in the USA, most
DSM programmes collapsed and about 40 programmes
were left in 1999.
DEFINITION
Original definition given in 1972 was-
“The planning and implementation of those utility
activities designed to influence customer use of
electricity in ways that will produce desired changes in
the utility’s load shape”.
• DSM is the systematic effort to manage the timing and amount
of electricity demand of consumers so as to increase the overall
efficiency of use of electricity
• DSM includes all the activities to be performed from the Load
side i.e. from Demand side to make optimum use of the
available Generation capacity
METHODOLOGY USED

A. Data collection - which includes energy use, revenue

collection, time of use, etc.
B. Load details – study of load, type, rating, pattern of use .
C. DSM, IRP – scope and economic analysis.
DSM APPROACHES
1. Utility approach
2. Consumer approach

3. Joint approach

i.e. utility and consumers both work together to achieve

the target
AIMS OF DSM
• Making the load curve flat.
• Satisfying demands with the available Generation
capacity .
• Making electrical energy available to all by increasing
efficiency and diversity.
• To reduce the cost of electricity
DSM OBJECTIVES
• Peak clipping
• Load shifting
• Valley filling
• Energy Conservation
• Strategic Load growth
• Flexible Load Shape
POWER UTILITY INTENTION BEHIND DSM

• Cut the “kW-load peaks” and fill up the “kW-load

valleys” without reducing kWh electricity consumption
of well paying customers, since they are a source of
profit for a power utility.

• Electricity, i.e. kWh savings was a side effect of DSM

but never the objective.
SIGNIFICANCE OF DSM
Generation Transmission Distribution Consumption

we cant exclude “Distribution” losses in DSM in the

Indian Context.
SIGNIFICANCE OF DSM IN THE INDIAN CONTEXT

Generation Transmission Distribution Consumption

Rs. 25,000 Crores is

estimated to be lost
via T&D losses
40% T&D Loss 20% Efficiency
Reduction Improvement
 BENEFITS OF DSM

Customer Benefits Social benefits Utility Benefits

 Satisfy  Lower cost of
 Reduce
Needs/Wants service
Pollution
 Reduce Cost  Improve
 Conserve Operating
 Improve Value of
Service Resources Efficiency,
 Protect Global Flexibility
 Maintain/Improve
Lifestyle & Environment  Reduce Capital

productivity Needs
 Maximize
 Improve
Customer Customer
Welfare Service
DSM– SCOPE & ECONOMIC ANALYSIS
• Reactive power management
• Energy efficient motors
• Efficient irrigation methods
• Load control using load segregation
DEMAND SIDE MANAGEMENT
IN INDIA
IN INDIA, DEMAND SIDE MANAGEMENT (DSM) MAINLY AIMS
AT PEAK LOAD MANAGEMENT. FORCED LOAD SHEDDING OF
LONG DURATIONS IS IMPOSED ON THE SYSTEM TO MEET THE
PEAK HOUR REQUIREMENT.

In India, the term DSM has wider meaning.

It also include strategies like
1.Energy efficiency
2.Energy conservation
3.Energy modesty.
Electricity conservation is a major component of
DSM approaches.
It plays an important role during peak hours,
especially when there is deficit in generation.
Other DSM measures are not yet executed on the required large
scale.
In Maharashtra ,some DSM programs are undertaken by the
Maharashtra State Electricity Distribution Company
(MSEDCL),
but on pilot basis, because of non-availability of parameters to
assess effects and benefits.
SOME ISSUES INHERITED BY MSEDCL
• Demand-Supply Gap of 4000 to 4500 MW
• High T&D Loss – 35.28% (2004-05);
• Distribution Loss – 31.14%
• Low Collection Efficiency –
88.34% (with Agriculture) &
98.93% (without Agriculture)
• Deteriorated T&D Infrastructure (Aged and
overloaded transformer)
• Poor consumer service
 DEMAND (MW) OF PUNE CITY FOR JAN-06

DEMAND PEAK OF PUNE CITY IN JANUARY 2006

Morning Peak (MW)
Evening Peak (MW)

800

700

600
Load MW

500

400

300

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Date
 MONTHLY DEMAND (MW) OF MSEDCL
2002-03 2003-04 2004-05 2005-06
15,000
14,000
 Peak Demand Trend Analysis
13,000 (MW) upto Dec ‘05
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
April May June July Aug Sept Oct Nov Dec Jan Feb Mar

April May June July Aug Sept Oct Nov Dec Jan Feb Mar

2002-03 10103 10019 9486 9639 9106 9904 10815 11420 11425 11048 10950 10813

2003-04 10838 10744 10532 9314 9637 10477 10994 11076 11292 10925 10837 11357

2004-05 11707 10796 9919 10685 10676 11274 12103 12435 12454 12250 12440 12749

2005-06 12838 12987 12731 10909 11049 10563 12326 13602 14061

Source: State Load Despatch Centre

 MONTHLY AVAILABILITY (MW) OF MSEDCL
2002-03 2003-04 2004-05 2005-06
11,000
 Peak Availability Trend
Analysis (MW) upto Dec ‘05
10,000

9,000

8,000

7,000

6,000
April May June July Aug Sept Oct Nov Dec Jan Feb Mar
April May June July Aug Sept Oct Nov Dec Jan Feb Mar
2002-03 8538 7626 7500 8395 7899 8429 8787 8924 9004 9241 8974 9071
2003-04 8728 8693 8495 8273 8023 9160 9610 8850 9926 9151 9651 9315
2004-05 9231 9157 8560 8847 9245 8770 9904 9499 9415 9507 10120 9704
2005-06 9153 9372 8865 8694 8578 8419 9572 9845 9856

Source: State Load Despatch Centre

 GROWTH IN DEMAND-SUPPLY & RESULTING GAP
FOR MSEDCL
* PEAK DEFICIT IN MW
16000 14061
14000 12749
10119 11425 11357
12000 10473 9704 9856
10000 9103 9004 9315
8651
8000
6000
4000
2000
0
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
(on
28.12.05)

Demand Supply
Data refers to the day with maximum peak demand in that year
YEAR WISE EXPECTED LOAD GROWTH
ESTIMATED LOAD
1600
1433
1400
1200
1000
800 LOAD IN MW
600
400 314 353
232 254 281
200
0
2005- 2006- 2007- 2008- 2009- Total
06 07 08 09 10
YEAR
 DEMAND & AVAILABILITY (MW) OF PUNE
CITY ON 18.02.2006
Share Actual
800

717
700
659
600
550
500
506
400

300

200

100

0
0:02:15 2:02:15 4:02:15 6:02:14 8:02:15 10:07:16 12:07:15 14:07:16 16:07:16 18:07:15
CONSUMER AWARENESS PROGRAM

PUBLIC AWARENESS CAMPAIGN FOR USE OF

ENERGY EFFICIENT EQIUPMENTS, AVOIDING
UNDUE WASTAGE OF ENERGY, & MINIMISING
USE OF HIGH POWER CONSUMING DOMESTIC
APPLIANCES DURING 0900 – 1800 HRS.

CONSUMER EDUCATION AT LARGE SCALE BY

ARRANGING WORKSHOP, TRAINING, RALLIES,
ETC.

USE OF MASS COMMUNICATION MEDIA WITH

THE HELP OF NGOs & VARIOUS ORGANISATIONS
THROUGH LOCAL NEWS PAPERS, CABLE
NETWORKS & RADIO, ETC.
CONCLUSIONS

• In India, as well as in MSEB shortages of generation capacity are

always experienced.
• Pilot DSM schemes are introduced by MSEDCL.
• DSM is effective in controlling the Peak load.
• For deciding the priority of DSM schemes, while implementing
them on large scale, their assessment on techno-economic
benefits is necessary.
• Conservation of ONE unit of electricity means
conservation of FIVE units of resources at supply end.
• Electricity sector planning has to be integrated with other
sectors for affordable costs of electricity and for
sustainable development.
• DSM activities strictly reduce peak load without cutting
into revenues from well paying customers.
 We all have our personal doomsday scenarios
with respect to an extremely “energy hungry” world
Year 1900

Year 1800
Year 2050 Year 2000
CFL

Year 2020, LED