DSM Program Design
(R-Infra Case Studies & Practices)
--------------------------------------
Date : 11th April 2014
Confidential Slide 2
Presentation Flow
Overview of R-Infra Mumbai Distribution Business
RInfra Approach to DSM Program
Load Survey
Planning & Designing program
Cost Effectiveness Tests
MERC Approval Process
DSM program Financing
DSM program Execution Process
R Infra DSM Programs.
Confidential Slide 3
Overview of R-Infra,
Mumbai Distribution Business
Confidential Slide 4
NORTH
ZONE
CENTRAL
ZONE
SOUTH
CENTRAL
ZONE
BHAYANDAR
KANDIVLI
OFFICE
MALAD
GOREGAON
JOGESHWAR
I
VILEPARLE
SANTACRUZ
KHAR
BANDRA
DINDOSHI
OFFICE
KANDIVL
I
MIRA ROAD
DAHISAR
BORIVALI
SOUTH
ZONE
ANDHER
I
SANTACRUZ
OFFICE
TO
DADA
R
MANKHURD
EAST
ZONE
TILAK NAGAR
OFFICE
GHATKOPAR
CHEMBUR
GOVANDI
VIKHROLI
NORTH
ZONE
CENTRAL
ZONE
SOUTH
CENTRAL
ZONE
BHAYANDAR
KANDIVLI
OFFICE
MALAD
GOREGAON
JOGESHWAR
I
VILEPARLE
SANTACRUZ
KHAR
BANDRA
DINDOSHI
OFFICE
KANDIVL
I
MIRA ROAD
DAHISAR
BORIVALI
SOUTH
ZONE
ANDHER
I
SANTACRUZ
OFFICE
TO
DADA
R
MANKHURD
EAST
ZONE
TILAK NAGAR
OFFICE
GHATKOPAR
CHEMBUR
GOVANDI
VIKHROLI
Overview – R-Infra Mumbai Distribution Business
Distribution Area 400 Sq. km
No. of Customers ~2.9 Million
Max. System Demand 1,697 MVA
Sale 6,506 MU’s
T&D Loss ~9 %
Reliability Index 99.98 %
Power Transformers 3,112 MVA
Distribution Transformer 4,554 MVA
Serving Mumbaikars since last 85 Years
Confidential Slide 5
RInfra Management Commitment
Confidential Slide 6
DSM Program - Concept to Execution
Load Research
Cost Effectiveness Tests
(TRC, RIM, PCT, SCT)
Program Promotion & Execution
Planning & Designing
Preparation of PDD
Submission to MERC
MoU with Supplier
Approval from MERC
Monitoring & Verification,
Quarterly Updates to MERC
DSM Program
Tests Pass
Confidential Slide 7
Load Research
Confidential Slide 8
Load Research – Addressing DSM Concerns
How much ‘demand’ can DSM actually control?
Selection of Technology for program
Electrical rating of present and proposed technologies
Potential number of appliances in one unit (household &commercial)
Hours of usage per day and days per year
Time of use of appliance ( Peak Demand )
Vintage of appliance & Technology
Type of customer base
Penetration of appliance in the consumer category.
What should be the scale of the Program and what would it cost?
Confidential Slide 9
Planning & Designing Program
Confidential Slide 10
Planning & Designing Program
Year Survey by Sample size Residential Commercial
2007-08 M/S Nelson 10000 8000 2000
2008-09 M/S Drishti 2000 1800 200
2009-10 M/S Mitcon 2000 1800 200
2011-12 M/S Drishti 2000 1800 200
Load survey
AppliancesResidential
(%)
Commercial
(%)
T12/ T8 Tubelight 95 80
Fan 80 40
AC 20 70
Refrigerator 70 25
Appliances Usage
T12 / T8 Tube light T5
DSM Programmes
Ceiling Fans 5-star Fans
Window AC 5-star Split ACs
Refrigerator 5-star
Refrigerator
Incandescent lamp CFL
Source: LR 2011-12
Residential : Refrigerator Vintage > 10 Years : 17%
> 5 Years : 88%
Commercial :Air Conditioner Vintage > 5 Years : 16%
(Window) <5years but > 3 Years : 70%
Confidential Slide 11
Usage of All AC combined
508449
387349 320 314
472
621554
454 426 426457
413349
304 319
437
549
654727
827 843
693
176 166 158 151 141 134 124 97 79 56 61 84117 100 87 82 101
206269 289 290 281 257
215
332283
228 198 180 180
348
524476
398365 342 341 313
262221 217 230
280
364436
547586
478
0
200
400
600
800
1000
1-2
AM
2-3
AM
3-4
AM
4-5
AM
5-6
AM
6-7
AM
7-8
AM
8-9
AM
9-10
AM
10-1
1 AM
11-1
2 AM
12-1
3 PM
13-1
4PM
14-1
5 PM
15-1
6 PM
16-1
7 PM
17-1
8 PM
18-1
9 PM
19-2
0 PM
20-2
1 PM
21-2
2 PM
22-2
3 PM
23-2
4 PM
24-1
AM
Overall Lighting Apps
Usage of Lighting appliances
Load curve for Residential Load
Planning & Designing Program
Confidential Slide 12
Cost Effectiveness Tests
Confidential Slide 13
Cost Effectiveness Tests
Program Benefits > Program Costs?
DSM option cheaper than Supply side option?
Is Program beneficial to all consumers?
Is Program beneficial to Participants?
Total Resource Cost
Test (TRC)
Ratepayer Impact
Test (RIM)
Participants Cost
Test (PCT)
Is Program beneficial to Society at large? Societal Cost Test
(SCT)
Financial Tests
Confidential Slide 14
Avoided cost of power purchase for TRC, RIM and PCT – Weighted Average of Highest Marginal Cost of Power Purchase related to top 10% of energy use stack for the past one year as computed by Maharashtra State Load Dispatch Centre.
Avoided cost of power purchase for SCT - Rs. 10.6/kWh (prevalent for diesel generator sets).
Escalation rates for power sales, avoided cost of purchase – 5% year-on-year.
Discount rate for calculation of TRC and RIM tests – 10.5%
Discount rate for calculation of PCT – 13%
Discount rate for calculation of SCT – 10%
Key Parameters : Definition & values
Confidential Slide 15
Participant Cost
Test (PCT) Utility Cost
Total Resource
Cost (TRC)
Ratepayer Impact
Measure (RIM)
Incentives
Bill Reductions Revenue Gain
Avoided Costs Avoided Costs Avoided Costs
Utility Program Costs Utility Program Costs Utility Program Costs
Incentives Incentives
Bill Increases Revenue Loss
Participant Costs Participant Costs
Benefits
Costs
Cost Effectiveness Tests
Confidential Slide 16
Type of technology
Project description
Average Capacity litre 200 to 300
Cost of Refrigerators Rs. 14500
Rebate by Utility Rs. 4500
Cost to Consumers Rs. 10000
Annual Consumption of old
Refrigerators
kWh 752
Annual Consumption of new
Refrigerators
kWh 490
Annual Saving per replacement kWh 262
Life of technology Years 10
Annual days Days 365
Number of replacements Nos 5000
Total utility sales MU 9600
Transmission losses % 4.85%
Distribution losses % 10.16%
cost of M&V meters 3000
M&V sample size 0.5%
5 star Refrigerators replacing old non star
Refrigerators
Cost Effectiveness Tests
Confidential Slide 17
Cost Effectiveness Tests
Program
Summary of results - B-C tests TRC 14829906.34
RIM 10032648.55
LRIRIM -0.00105
PCT 1692106.338
SCT 64950370.16
5 star Refrigerators replacing old non star
Refrigerators
Confidential Slide 18
MERC Approval Process
Confidential Slide 19
Regulator’s Decision Tree
Do not send to Commission
NPV of TRC
>=0
No
Yes
NPV of RIM
>=0
No
Yes Implement DSM Program
Impact on
Non-participants
< Rs. 0.01/kWh or
< 0.1% of tariff
level
Yes
Implement DSM Programme
No Consider Case to Case Basis
MERC Approval Process
Confidential Slide 20
DSM Program Financing
Confidential Slide 21
Load Management Charges (LMC) collected in 2005-2006 are being
utilized for MERC approved DSM Programs for Consumers.
- Alternatively it will be added in ARR once LMC fund gets exhausted.
Approximate Cost approved by MERC under LMC till date is INR 11.71 Cr.
Expenditure & Energy Savings achieved is being monitored by MERC.
DSM Program Financing
Financing Options:
4. ESCO Funding
1. Rebate through LMC Upfront : FTL/ AC/ Fan/ Refrigerator
Installments : CFL Program
2. Bulk Volume Discount LT Capacitor Program
3. Financing through CDM Bachat Lamp Yojna (BLY)
Confidential Slide 22
DSM Execution Process
Confidential Slide 23
Technology provider
Preparation of RFP / Tender document with details of
program execution process , details of product , Terms &
conditions etc.
Receipt of bids from Technology provider / Manufacturer
Techno Commercial evaluation to be done
Memorandum of Understanding to be signed with successful
bidder
Program Promotion
Roll out the program along with successful bidder
Customer eligibility
Promotion through Public campaign
Execution process -
Confidential Slide 24
Execution process- Measurement & Verification
Evaluate Program Impact & Effectiveness
Helps verify cost-effectiveness assumptions
Process Evaluation
Effectiveness of communication/ program promotion
Effectiveness of process design
Evaluation of process execution
Consumer satisfaction on Product and Pricing
Impact Evaluation
Customer response
Savings achieved through this program
Apply corrective actions to upcoming programs
Confidential Slide 25
Program Impact Evaluation
Refrigerator replacement program
Pre-retrofit Energy recording with kWh meter
Post retrofit energy recorded with the same meter
Avoided Energy :
– Energy Pre Retrofit – Energy Post Retrofit
Average Energy Savings after M&V is 287 units / year ( 262 units/year )
Refrigerator replaced till date 3725
Total yearly savings for replacements done is 1.06 MU (0.97 MU )
Execution process- Measurement & Verification
Confidential Slide 26
Execution process- Measurement & Verification
Process & Response Evaluation
Refrigerator replacement program
A survey to be carried by reputed third party marketing agency in the
project implementation area. Survey of non participating consumers
also to be done
The questionnaire to be carefully designed to understand the
acceptance of offer, execution channel and product by the consumers ,
reasons for non participation in the scheme
Confidential Slide 27
RInfra DSM Programs
for Consumers
Confidential Slide 28
T5 FTL
2011-12
5* Split AC
2011-12
5* Fan
2011-12
CFL
2006-07
5* Refrigerator
2012-13
STLT Lamp
Conversion
2008-09
LT Capacitor
2010-11
R-Infra DSM Programs
1 2
3 4 5
6 7
Confidential Slide 29
We aspire to transform ALL ‘Mumbai Citizens’ into
The ‘Responsible Power Citizens’ and we know, we will.
Last Word…aspiring for a New World…
Thank You.
Confidential Slide 31
CFL Program
Program Details: Launched in : FY 2006-07
Consumer type : All Category
Product offering : 15 W CFL
Discount : 62%
Investment : INR 118 Lac
Salient Features:
Tie-up with M/s Bajaj
Energy Saving CFL worth Rs. 165 at Rs.
63 under scheme; Payment in installments
If first 9 installments, of Rs. 7 each, are
paid in time, last 3 (Rs.19) waived off
Achievements :
Consumers – 2.05 Lacs; CFLs sold – 6.17 Lacs
Savings till date – 38 MU
Confidential Slide 32
Capacitor Installation Program
Program Details:
Launched in : FY 2010-11
Consumer type : Commercial / Industrial
Product offering : All Poly propylene capacitor
Discount : 30% with extended product
Investment : Act as a facilitator.
Negligible Investment
Salient Features:
Tie-up with Shreem & Energe Capacitors
Extended warrantee of 5 Years
Cost Inclusive of Installation & Wiring
Achievements :
Capacitor Installed : 2178 kVAR
Savings : 2 MU / Annum
Confidential Slide 33
Salient Features:
Tie-up with OSRAM for T5 FTLs
Two years extended warrantee
Free of cost Installation
T5 FTL Program
Program Details:
Launched in : FY 2011-12
Product Offering : T5 Tube Light (31 w)
Discount : 60%
Investment : 33 Lacs
The first Energy saving tube-light program
in India with 60% price discount
Achievements :
Units Sold – 4000 Nos.
Estimated Savings – 0.15 MU
Confidential Slide 34
Salient Features:
Tie-up with LG for 5 star AC
Extended warrantee of 1 Year on
machine & 4 years on compressor
Free standard Installation
EE Air-conditioner Program
Program Details:
Launched in : FY 2011-12
Consumer type : small commercial
New technology : 5 star Split type AC
Discount : 40%
Investment : 3.7 Lacs
Achievements :
Units Sold – 51 Nos.
Estimated Savings – 0.19 MU
Confidential Slide 35
EE Air-conditioner Program
5 Star Split AC program Phase 2
Target quantity : 1500 Nos.
Target Saving : 3.87 MU
Target Timeline : June 2015
Program Partner : M/s Godrej
Smart End Use Management System ( SEMS)
Automation in Air conditioning
Target quantity : 2500 TR
Target Savings : 1.3 MU
Target Timeline : June 2015
Technology Provider : M/s Amplebit
MOU signed with Consumers for 400 TR.
Confidential Slide 36
EE Ceiling Fans program
Salient Features:
Tie-up with Havells for 5-star Ceiling Fans
Old fan disposal in environmentally safe way.
Program Details:
Launched in : FY 2011-12
Product offering : 5-star Fans (50 Watts)
Discount : 60%
Investment : 27 Lacs
The first Energy Saving Ceiling Fans Program in
India with 60 % price discount.
Achievements :
Phase I – 5000 Units , Savings- 0.21 MU pa
( Completed in Aug 12 )
Phase II: 12500+ Units till date 1.01 MU
Confidential Slide 37
Refrigerator Program
5 Star Refrigerator Program
Target Quantity : 5000 Nos.
Target saving : 1.54 MU
Target Timeline : April 2015
Program Partner : M/s Godrej
Achieved : 3700+ Installations
Saving achieved :0 .57 MU
Confidential Slide 38
Street Light Lamp Conversion Project
Launched in : FY 2008-09
Consumer type : Street Light
Old Fixtures : HPMV ( 125 W )
Replaced with : HPSV lamps (70 W)
Replacement of : 36560 lamps
Saving potential : 16.98 MU
Used Lamps were disposed through MPCB
approved Vendor at cost
Street Light Conversion Program