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Demand Side Management (DSM) has been traditionally recognized as one of the major intervention to achieve reduction in energy demands while ensuring continuous development. In recent past, DSM has gained unprecedented importance and has become an integral part of almost all the central and state missions on promotion of Energy Efficiency. DSM interventions have helped utilities not only to reduce the peak electricity demands and but also to defer high investments in generation, transmission and distribution networks.


This programme promises energy efficiency through agriculture demand side management by  reduction in overall power consumption, improving efficiencies of ground water extraction, reducing subsidy burden on state utilities and also investment in power plants through avoided capacity. Over 70 per cent of the rural households depend on agriculture. Agriculture is an important sector of Indian economy as it contributes about 17% to the total GDP and provides employment to over 60% of the population. As per the available data, more than 2.1 crore pump sets are installed in agriculture sector, majority of the pump sets are inefficient. Statistics shows that 2.5 to 5 lakh new pump set connections added every year to the sector. The average capacity of agricultural pumps in India is around 5 HP with efficiency levels hovering around 25-30%.

BEE in association with various DISCOMs implemented four pilot AgDSM projects in Maharashtra, Karnataka and Andhra Pradesh.

An MoU was signed between Indian Council of Agricultural Research (ICAR) and Bureau of Energy Efficiency (BEE), Ministry of Power, to create awareness for energy efficient pumpsets and operational practices so as to adopt energy and resource efficient approaches with aim to create awareness on energy efficiency and conservation in agricultural practices, particularly in using agriculture pumpsets, tractors and other machines and to improve fuel and water resource use efficiency thereby reducing the cost of cultivation so as to increase farmer’s income in harmony with strategies of “Per drop more crop” and “Doubling Farmers’ income”.




The growing demand for public utilities due to rising population and improved standards of living of the population has increased the energy demand for the service provided by the urban local bodies. The Municipality sector/urban local bodies (ULBs) consume electricity for various utility services like street lighting, water pumping, sewage treatment, and in various public buildings. Currently around 30% of Indian population lives in urban areas and continuous migration from rural areas is putting additional burden on the urban local bodies.

The energy consumption of the municipality sector is characterized by frequent changes and rising peaks in power load curves in the morning hours due to water pumping and evening hours for street lighting. The inefficient use of electricity due to limited diffusion of energy efficiency technology and demand side management (DSM) initiatives, have considerably increased the energy spent of the municipalities. The Municipal Demand Side Management (MuDSM) programme can improve the overall energy efficiency of the Urban Local Bodies (ULBs) which could lead to substantial savings in the electricity consumption, thereby resulting in cost reduction/savings for the ULBs.

Identifying the immense energy saving potential in municipal sector, BEE initiated Municipal Demand Side Management (MuDSM) during XI plan. The basic objective of the project is to improve the overall energy efficiency of the ULBs, which could lead to substantial savings in the electricity consumption, thereby resulting in cost reduction/savings for the ULBs. During the XI plan, the situation analysis was carried out in the Municipal sector in 2007 covering 23 States/UTs. Bureau of Energy Efficiency has initiated a programme to cover 175 municipalities in the country by conducting energy audits and preparation of Detailed Project Reports (DPRs) and implementation through ESCO mode.