Minutes of 2 nd DSM Consultation Committee Meeting held on 3 March 2010 1 Minutes of 2 nd Demand-side Management Consultation Committee (DSM-CC) meeting Organized at the office of Maharashtra Electricity Regulatory Commission (MERC) 3 March 2010 (4:30 PM to 6:30 PM) The 2 nd DSM CC meeting was convened to discuss the following specific items – i) establishing reasons for implementing pilot DSM programs in the HVAC sector, ii) discuss 4 pilot HVAC programs and 3 HVAC pilot DSM programs submitted by M/s Tata Power and Reliance Infrastructure respectively, iii) deliberate on conducting Evaluation, Measurement and Verification (EM&V) of DSM pilots/other programs and iv) deliberate on the Gas Water Heaters program to be implemented as a pilot and preparatory activities thereof. List of individuals who attended the meeting is included to this note as Annex 1. Deliberations at the meeting are captured in the following paragraphs. 1. Convenor of the DSM-CC meeting - Secretary MERC made an opening presentation on the MERC DSM activities subsequent to the opening remarks by Chairman, MERC and introductions by the participants. Key activities at MERC related to the DSM implementation include finalization of 2 DSM regulations (one on the Implementation Framework and the other on the Cost-Effectiveness Assessment); creation of discussion paper and draft regulations related to EM&V and review of DSM pilots by Mumbai utilities and Agriculture DSM proposal by Maharashtra State Electricity Distribution Company Limited (MSEDCL). The presentation made by Secretary, MERC is attached as Annex 2 to this note. 2. MERC DSM Consultant made a presentation summarizing the intent behind developing DSM pilot programs, summary of total/utility investments, expected benefits and expected learning process through this exercise. Key lessons to be learned through the DSM pilot programs implementation include understanding project and transactions costs, expected v/s guaranteed/warranted life of the equipment, market readiness/product availability/market creation process, customer involvement and perceived benefits, timespan required for initiating bidding and selection process of suppliers, time required for implementation of large and small programs and assumed v/s realized savings assuming the ambient variations. In the current form, the utility programs target close to 3 MW demand-shift and 1.6 MU annual savings through the HVAC pilot programs proposed by Tata Power and Reliance Infrastructure. The pilot programs assume a total investment of Rs. 10 Crores and utility investment of Rs. 3 crores in its current form. MSEDCL is implementing an Agriculture DSM program in the Solapur district to replace 3000 irrigation pump-sets with an investment of Rs. 6 Crores – targeting an annual savings of 8.12 MU. MSEDCL project is supported by the Bureau of Energy Efficiency and will be implemented by an ESCO making the initial investment, paid by MSEDCL
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Minutes of 2nd
DSM Consultation Committee Meeting held on 3 March 2010
� Finalization of Cost-effectiveness Assessment Tool
� Review of approved DSM pilots
� New DSM programs
� Moderation of DSM Interaction Forum
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� Two regulations uploaded on 16 February 2010◦ DSM Implementation Framework and
◦ Cost-effectiveness Assessment
� Responses expected by 19 March 2010
� Final revisions to be issued as Gazette notification by end of March/early April 2010
� DSM related format added in MYT Business Plan
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� Formal notification on DSM-CC members after the Gazette notification
� Proposed group includes – representatives of the utilities, Consumer Representatives, two/three academic institutions
� Secretary, MERC to be the Convener
� DSM – CC to meet once every month
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� Generic spreadsheet to be uploaded as a “Guideline”
� Consultation process to begin in first week of April 2010
� Format to be finalized after comments from DSM-CC
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� FTL program expected to be launched in March/April 2010◦ Tata Power/R Infra to update today..
� Review and approval of HVAC Pilots
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� Development of Evaluation, Measurement & Verification (EM&V) Discussion Paper and Draft Regulations◦ Completion by end of March/middle of May 2010◦ Development team comprises MERC, LBNL with inputs
from IIT-B and other consultants
� Gas Water Heaters (GWH)◦ Stakeholder roundtable (end of March 2010)
moderated by MERC, International Copper, Prayas and IIEC?
� Discussions on Municipal DSM◦ Proposed roundtable (end April 2010) with Urban
Development Department, GoM and MEDA
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� Industrial DSM (feeder-based)◦ Discussions on with Department of Industries –
demand and energy reduction targets with proposed monetization by MSEDCL