EC Technologies & Quality Standards-DSM

By

G C Datta Roy

DSCL Energy Services

Presented at

‘India Electricity-2006’

Organized by

Federation of Indian Chambers of Commerce & Industries

New Delhi, May,2006

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Presentation structure

• Brief introduction-DSCL Energy Services• EE Market• DSM Market development-Objective• Interesting experiences-world wide• DSM Technologies• Quality-many dimensions• Critical success & failure factors-learning from

experience• Conclusions

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DCM Shriram Consolidated Ltd - Introduction

DCM Ltd established in 1889 by Sir Shriram Restructured in 1990 into 4 separate companies

DCM Ltd DCM Shriram Industries Ltd Shriram Industrial Enterprises Ltd DCM Shriram Consolidated Ltd (DSCL).

Manufacturing Platform Service Platform

Agri Business Plastics Chemicals

Fertiliser

Agri-Marketing

Agri-retailing

Sugar

Bioseed

Commodity

Speciality

Building prod.

Commodity

Speciality/ Value added

Environmental

Energy Services

DSCL ESCO

DSCL – Rs 2000 Crore Conglomerate

EE ConsultingESCO PCRE DevelopmentCaptive powerCDMInternational

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EE Market-How to Characterize

• Utilities• Generation• Distribution

• Industry• Large energy intensive• Large-others• SME-energy intensive• Cottage-energy intensive

• Buildings• Commercial including offices• Recreational including shopping malls• Hotels & hospitals• Residential

• Municipal• Agricultural• Transportation

• Mass & urban• Others

Different market drivers

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Immediate Market Potential

Market Type Investment Potential

(Billion Rs)

Energy Savings

(MWH)

Energy Savings

(MW)

Industrial 121.00 49.00 mn 7000

Generic Energy Efficiency

Process Energy Efficiency

42.00

79.00

23.70 mn

25.30 mn

3400

3600

Commercial 5.69 1.71 mn 553

Government Owned

Offices

Hospitals

3.40

0.85

0.76 mn

0.87 mn

360

140

Private Owned

Hotels 1.44 0.18 mn 53

Municipal 13.00 3.70 mn 1688

Total 140.00 bn Rs

54.40 mn 9240 MW

Energy Efficiency Investment : 1.52 Rs Crs/MW

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DSM Market

MeterDistribution

Transmission

Generation

Domestic

Urban

Commercial

Industry

Supply side Demand side

Agricultural

Subsidized segments are the best DSM marketsTwo pronged strategy-Project & Policy

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DSM Market Development-Objective

• Macro objective• Reducing demand supply gap• Improved quality & availability of power• Environmental benefits

• Economic objective• Improving bottom line of utilities• Expansion of market for high efficiency products• Development of technology and service providing industries

• Incidental benefits• Employment generation

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DSM Impact-some interesting experiences

• USA-highly successful utility DSM & FEMP program-for every dollar of government spend, four dollar of private investment

• Canada-For every dollar of investment in DSM four times employment generation compared to supply side investment.

• Brazil, Korea-DSM cess (electricity & petrol respectively) has helped in rapid development of EE market and service providing industry

• Thailand, Srilanka-Mitigation of energy shortage• Australia, Most of EU countries-Development of high

efficiency white goods and buildings• Japan-Development of Large Utility affiliated ESCO industry• India-No significant stride yet-MERC’s pioneering effort

expected to make the first major break throu

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Key drivers-Moving the EE Market

Transformed MarketService

Opportunity

Confidence

Tec

hAwareness

Finance

Cos

t pre

ss

Me too

Different quality dimensions for each element

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Quality dimensions

• Awareness-From general to specifics• Technology• Engineering• Service• Relationship

Though all dimensions are inter-related, each one has its specific impact

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Quality dimension-awareness

• Why-Motivation (e.g. EE in DJB for shaving peak load)

• What-Target reduction of peak load by 200 MW• How-Improving the pumping system efficiency• Who-DJB/ESCO• When-Next 6 months• Where-Prioritisation for maximum impact

5W-1H model-powerful tool for improving awareness quality

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Quality dimensions-Technology

• State of development• Local technology support• Adaptation• Side effects

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Quality dimension-Engineering

• Design• Adaptation• Manufacturing• Serviceability

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Quality dimension-Service

• Delivery• Installation• Performance verifiability• O&M• Training

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Quality dimension-Relationship

• Who are the stake holders?• Defining stake holders interests• Managing stake holder interests

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Critical success & failure factors

• Very successful case story-Building energy projects• Defined product quality specifications• Instituted in-situ testing protocol• Involved client operators in testing• Instituted robust PMV system• Maintained feedback and communication channel at multiple

levels

• Failure story• Repeated failure of particular component• Inadequate service frequency-prolonged outage• Negative impact on production process• Client put the system out of line

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Conclusions

• EE Market is big but penetration is low• DSM would be a niche market to be developed

using multiple strategy• Instituting quality dimensions at the beginning

can make better impact• Quality needs to be in place in all its dimensions• Quality in all its dimension would be the key

success factor for development of the DSM market.