The objective of the programme is capacity building of DISCOMs for carrying out load management programme, energy conservation programme, load growth programme, Development of DSM action plan and implementation of DSM activities in their respective areas. Outcomes under this programme are as follows:
- Establishment of DSM Cell by each DISCOM selected under this programme.
- Creation of about 500 master trainers on DSM and Energy Efficiency from the officials of DISCOMs.
- Capacity building of about 5000 officials of DISCOMs by these master trainers.
- Load research and preparation of DSM Action Plan for each DISCOM.
- Adoption and Notification of DSM regulation by respective State Electricity Regulatory Commission.
- Incorporation of DSM plan along-with Multi-Year Tariff (MYT).
- Implementation of DSM programs by the DISCOM.
- Monitoring and Verification of the DSM measures and reporting to SERC.
The goal is to implement Demand Side Management (DSM) programmes in respective states for reducing peak electricity demand so that utilities can delay building further capacity. In fact, by reducing the overall load on an electricity network, DSM has various beneficial effects including mitigating electrical system emergencies, reducing the number of blackouts and increasing system reliability. Possible benefits can also include reducing dependency on expensive imports of fuel, reducing energy prices and reducing harmful emissions to the environment.
Demand Side Management (DSM) measures in the Energy Sector is a cost effective tool. As a customer strategy, DSM programs encourage the installation of end-use technologies that consume less energy, thereby reducing and/or shifting the customers’ overall electric bill. DSM programs can help utilities to reduce their peak power purchases in the wholesale market, thereby lowering their overall cost of operations. In the short term, DSM program can reduce energy costs for utilities, and in the long term, can help limit the need for utilities to build new power plants, distribution and transmission lines. Reduced or shifted energy usage can directly translate into less air pollution, less carbon emissions and a way to lower the potential environmental threats associated with global warming.
In this context, Bureau of Energy Efficiency has launched a programme for capacity building of Distribution Companies (DISCOMs). This programme will help in integration of other programmes of BEE such as Agricultural Demand Side Management, Municipal Demand Side Management, SMEs (Small and Medium Enterprises), Industries and Standards &Labelling programme with activities managed by DISCOMs for Demand Side Management.
There are primarily three categories under DSM programme which are as follows.
- Load management programmes- Redistribute energy demand to spread it more evenly throughout the day e.g. Load shifting programme (encouraging less demand at peak times and peak rates).
- Energy reduction programmes - reducing demand through more efficient processes, buildings or equipment.
- Strategic load growth programmes - Increase energy use during some periods, e.g., programs that encourage cost-effective electrical technologies that operate primarily during periods of low electricity demand.
Minutes of Meeting of Pre-Bid Meeting held on17 Dec 2015(Hiring of Agencies for conducting Workshops on DSM)