Role of Demand Side Management from Utility’s Perspective K. Ramanathan Distinguished 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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Role of Demand Side Management from Utility’s Perspective K. Ramanathan Distinguished Fellow, TERI The Energy and Resources Institute Regional Workshop.
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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
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
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
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
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
DSM Process Chain
Load research: The basic starting point - A critical activity
Regulations
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
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
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