Agriculture DSM

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Agricultural Demand Side Management


The Agriculture Demand Side Management (Ag-DSM) scheme of BEE was initiated during XI plan and is being implemented to the present. The objective of the program is to reduce the energy intensity of agriculture pumping sector by carrying out efficiency up gradation of agricultural pump sets. It is estimated that there are about 19 million pumpsets, and 2.5 to 5 lakh new pumpsets are being added every year. Unfortunately, these pumpsets are inefficient, largely because farmers have no incentive to invest in higher cost, higher efficiency pumpsets due to low electricity tariffs for agriculture consumers. This has resulted in increased annual subsidy burden on State governments which has grown to more than Rs. 65,000 crore per annum. Studies reveal that about 30%-40% energy savings is possible in agriculture sector by adoption of Energy Efficient Star Labelled Pump Sets.

Ag DSM scheme of BEE was initiated during XI plan in eleven DISCOMs of selected eight states (Maharashtra, Haryana, Punjab, Rajasthan, Gujarat, Andhra Pradesh, Madhya Pradesh and Karnataka) which were agriculturally intensive and accounted for more than 70% of electricity consumption in this sector.Under this scheme, 11 Detailed Project Reports (DPRs) were prepared in 8 states covering about 20,000 pump sets connected on 87 feeders and indicating saving potential of 97 million units. 

In the XII plan, the approach for achieving sustainable energy efficiency was widespread replication through regulatory mechanism which will be coupled with the subsidy provided by the GoI for bridging the EEPS pump sets higher cost, capacity building of all stakeholders, few demonstration projects in rural drinking water pumping systems and strategic approach for dissemination of results.

1. AgDSM Pilot Projects:

First AgDSM pilot project in Solapur, Maharstra:

The first pilot Ag-DSM project is being implemented in Mangalwedha Sub-division of Solapur District in Maharashtra. The detailed project report (DPR) has been prepared and an implementer agency/ESCO has been engaged for implementation. Under this project, total 2209 pumpsets is replaced (free of cost to farmers) with energy efficient star rated pumpsets reflecting annual energy savings of 6.1 million units.


1. Launch Booklet 2. Farmers awareness session in baramati Pune
3. Site pictures 4. Best Operating Practice for Agriculture Pumps


2. Pilot AgDSM project in HESCOM, Karnataka

Replacement of old in-efficient 590 nos. of agriculture pumps with new star rated energy efficient pumps in phase one in Nippani and Byadgi circles of HSECOM, has been completed successfully. Energy savings of 37% has been achieved in the 590 nos. of pump sets replaced.