MoP - Ministry of Power

28
in India has been estimated by the ADB Study project team
at Rs 140 bn (Rs. 14000 crores) and has the potential to
save about 54 billion units of electricity annually. Scheme
with an expenditure of Rs. 13.99 crores during the XI plan
has been approved. The scheme targets an avoided
capacity of 500 MW during the XI plan.
Deliverables: The deliverables from the project are
expected to be:
ECBC
Creating a pool of ECBC expert Architects – panel
prepared
Training material for various stakeholders is ready
Simplified guidebook being prepared
Initiation of outreach activities
Initiation of 5 pilots in states- provision of technical
assistance
Outreach/ conferences in major state capitals
Simplified compliance procedures for state and local
bodies
Capacity building of state and local government
personnel
Evaluation of code for revision
Curriculum for colleges
Strengthening of testing laboratories
Energy Efficiency in Existing Buildings
Promotion of Energy Service Companies (ESCOs);
particularly for existing buildings
Rating of ESCOs by CRISIL/ ICRA being initiated to
improve investor confidence
Standardized performance contract documents for
ESCOs
Innovative financial products, like securitization of
receivables, energy efficiency bonds to fund the
projects
Setting up of partial risk guarantee fund for risk
mitigation
4. Agricultural (Ag DSM) and Municipal (Mu DSM)
Demand Side Management (DSM) Scheme
Ag DSM promises immense opportunity in reducing the
overall power consumption, improving efficiencies
of ground water extraction and reducing the subsidy
burden of the states without sacrificing the service
obligation to this sector. It also presents a promising
prospect of targeting subsidy to the beneficiary
farmer. In terms of electricity saved, given that
most of the pilot projects as well as other studies
project potential savings of 45-50% by mere
replacement of inefficient pumps, the overall
electricity savings (from 20 million pumps) is estimated at
62.1 billion units annually. A successful implementation
model must address all the above variables and include all
stakeholders. Provision of adequate incentive to farmers,
given that they do not largely pay for electricity, is one of
the major constraints in implementation of the scheme.
Mu DSM also assumes significance given that the
Municipalities consume 10% of energy overall and the cost
input of energy is as high as 60% of the costs incurred by
the municipalities. Energy costs constitute up to
60-70 percent of an Indian municipality's total cost of
pumping water to its residents. This financial constraint,
coupled with inadequate or antiquated infrastructure and
the lack of adequate managerial and technical capacities,
greatly limits the ability of municipalities to improve water
services while allowing inefficient usage of electricity. The
electricity bills of the municipalities accounts for a significant
part of its expenditure, given that an estimated 10% of
electricity is consumed for urban water pumping. The cash
starved municipalities are, therefore unable to meet the
service delivery standards that are fast growing urban area
demands. The fact that efficient water delivery systems can
translate into measurable energy savings due to reduced
pumping requirements and improved performance is vastly
unknown to most of the municipal authorities. Absence of
enabling state level policies or regulatory interventions to
implement water and energy efficiency measures to
improve service and reduce costs, while on the
other hand, reduce power consumption of the utility does
not help matters.
The estimated cost of the scheme is Rs. 55.69 crores and
is under consideration. Retainer Consultant for Ag DSM
scheme has been appointed (PWC) and work is to start in
January, 2008. For Mu DSM, bids for appointing retainer
consultant have been issued and the consultant will be
selected in January, 2008. The scheme targets an avoided
capacity of 2000 MW during the XI plan.
Deliverables: The deliverables from the project are
expected to be:
Business model linked to subsidy reduction being
evolved
Shelf of bankable DPRs to be prepared- 10 in each
states (total 350) to stimulate the market
Baseline development, conducive regulatory regime
and payment security mechanism being worked out.
Awareness and outreach to local and municipal bodies
Manual for Mu DSM being developed with standard
contract documents to enable easier implementation