Agricultural Demand Side Management

(AgDSM)

Agriculture sector is one of the most important sector of Indian economy. Agriculture plays a
significant role in the overall socio-economic development of India.
There are about 20 million pump sets presently energized in India and annual addition of 0.25 to 0.5
million pump sets are realized in this sector. Agriculture sector consumes 20-22% of total electricity
consumption.
Managing agricultural load is increasingly becoming a challenge for electricity utility in India.
Subsidized tariff generate a perception of zero marginal cost of electricity use and consequently,
efficiency in consumption is disregarded. Upgrading of existing pumping systems presents an
immediate need and an unprecedented opportunity. Implementation of this program is crucial as
energy bills for agricultural pump sets are being paid by Govt. in the form of subsidy.
Low or free electricity coupled with high inefficiencies contributes to adoption of local made
inefficient & unreliable pump sets, results in massive water wastage & higher energy consumption.
The average efficiency of existing in-efficient pump sets is in the range of 20% - 30% whereas
efficiency range of new star rated Energy Efficient Pump sets (EEPS) is 40% - 50%. Therefore, there
is a need to tap the huge energy savings potential promised in agriculture pumping sector

In Energy Sector and Power sector, Agricultural Demand-side Management (AgDSM) consists of
those activities, methodologies, awareness, policy and technologies that influence consumer
(farmers) behavior and Changes their (farmers) consumption patterns.
The objective of the AgDSM programme is to reduce peak demand, shift the time during which
electricity is consumed to off-peak hours and to reduce the total quantum of consumption.
The AgDSM proposition is very simple i.e. replacement of inefficient agricultural pump sets with BEE
star rated and high efficiency pump sets to reduce the amount of electricity needed to pump water in
agriculture sector. By doing so, electricity usage can be reduced. If the savings from the reduction in
electricity usage can be sustained and the total cost of the electricity saved exceeds the total installed
cost of the pump sets over its useful life, there will be a net economic gain.

First AgDSM Project in India

Bureau of Energy Efficiency (BEE) has facilitated and initiated the implementation of first Ag DSM
pilot project in Solapur circle of Maharashtra where 2209 old inefficient pump were replaced
with star rated Energy Efficient Pump sets (EEPS) and provided free operation and maintenance
for installed pump sets till project duration. The intervention would lead to lower energy supply on
the feeder, and hence, could result in lower subsidy to be paid by the State Government.
 In order to accelerate and implementation of BEE AgDSM scheme, Energy Efficiency Services Limited
(EESL) had taken a step forward for implementation of AgDSM project in all over India. EESL has
conducted the survey & study for implementation of AgDSM. The details of survey & study and
implementation of project as given below:

AgDSM Projects on ESCO Mode

 Status of the Detailed Project Report’s
Number of Pump
Project Name Status
Sets
Hubli Electricity Supply Company Limited (HESCOM) 11,013 Completed
Bangalore Electricity Supply Company Limited (BESCOM) 13,864 Completed
Andhra Pradesh Central Power Distribution company Limited (APCPDCL) 455 Completed
Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) 2,496 Completed
Jaipur Vidyut Vitran Nigam Limited (JVVNL) 1,966 Completed
Telangana State Southern Power Distribution Company Limited (TSSPDCL) 3,299 Under progress
Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) 5,013 Under progress

 Status of the Implementation of AgDSM Project

Number of Energy Saved
Date of Energy Saved Investment
Project Name Pump Sets in Percentage
Completion per Annum in Cr.
Replaced (%)
HUBLI Electricity Supply Company 30 December,
590 30 lakh units 37% 2.60
Limited, Byadgi And Nippani Circle 2013
Chamundeshwari Electricity Supply 18 March,
1337 56.68 lakh units 37% 5.03
Corporation LIMITED, Mandya District 2015
Eastern Power Distribution
Under
Company Of Andhra Pradesh Limited, 2496 ~30% 19.66
progress
Rajanagaram Mandal

Benefits to DISCOMs
 Reduction in power purchase cost
 Monetary benefits because of sharing of energy saving
 Lower load shedding
 Reduction in peak demand
 Lower subsidy burden

Benefits to Farmers
 Free Cost of Energy Efficient Pump Sets (EEPS)
 Free Repair & Maintenance till project duration
 Less pump failure
 Farmer awareness workshop on AgDSM and best agricultural irrigation practice
HESCOM, Hubli
APEPDCL, Rajahmundry
CESC, Mysore