minutes of 2 nd demand-side management consultation ... and annexes - 2nd dsm-cc... · 11 shri.somu...

Minutes of 2nd

DSM Consultation Committee Meeting held on 3 March 2010

1

Minutes of 2nd

Demand-side Management Consultation Committee (DSM-CC) meeting

Organized at the office of Maharashtra Electricity Regulatory Commission (MERC)

3 March 2010 (4:30 PM to 6:30 PM)

The 2nd

DSM CC meeting was convened to discuss the following specific items – i)

establishing reasons for implementing pilot DSM programs in the HVAC sector, ii) discuss 4

pilot HVAC programs and 3 HVAC pilot DSM programs submitted by M/s Tata Power and

Reliance Infrastructure respectively, iii) deliberate on conducting Evaluation, Measurement

and Verification (EM&V) of DSM pilots/other programs and iv) deliberate on the Gas Water

Heaters program to be implemented as a pilot and preparatory activities thereof. List of

individuals who attended the meeting is included to this note as Annex 1. Deliberations at the

meeting are captured in the following paragraphs.

1. Convenor of the DSM-CC meeting - Secretary MERC made an opening presentation on

the MERC DSM activities subsequent to the opening remarks by Chairman, MERC and

introductions by the participants. Key activities at MERC related to the DSM

implementation include finalization of 2 DSM regulations (one on the Implementation

Framework and the other on the Cost-Effectiveness Assessment); creation of discussion

paper and draft regulations related to EM&V and review of DSM pilots by Mumbai

utilities and Agriculture DSM proposal by Maharashtra State Electricity Distribution

Company Limited (MSEDCL). The presentation made by Secretary, MERC is attached as

Annex 2 to this note.

2. MERC DSM Consultant made a presentation summarizing the intent behind developing

DSM pilot programs, summary of total/utility investments, expected benefits and

expected learning process through this exercise. Key lessons to be learned through the

DSM pilot programs implementation include understanding project and transactions

costs, expected v/s guaranteed/warranted life of the equipment, market readiness/product

availability/market creation process, customer involvement and perceived benefits,

timespan required for initiating bidding and selection process of suppliers, time required

for implementation of large and small programs and assumed v/s realized savings

assuming the ambient variations. In the current form, the utility programs target close to 3

MW demand-shift and 1.6 MU annual savings through the HVAC pilot programs

proposed by Tata Power and Reliance Infrastructure. The pilot programs assume a total

investment of Rs. 10 Crores and utility investment of Rs. 3 crores in its current form.

MSEDCL is implementing an Agriculture DSM program in the Solapur district to replace

3000 irrigation pump-sets with an investment of Rs. 6 Crores – targeting an annual

savings of 8.12 MU. MSEDCL project is supported by the Bureau of Energy Efficiency

and will be implemented by an ESCO making the initial investment, paid by MSEDCL

Minutes of 2nd


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over the next five years. Presentation made by MERC DSM Consultant is attached as

Annex 3.

3. Comments/suggestions on the pilot HVAC programs. Comments made by all the

participants have been captured below. Mr. Daljit Singh from Prayas Energy Group and

Prof. Rangan Banerjee from Indian Institute of Technology – Bombay made specific

comments on the program design and M&V strategies. Comments are summarized below.

• Pilots should have a clear path towards launching a large-scale program

• Pilot programs to be designed to be able to measure the savings of those participating

in the program vis-à-vis a control group sample

• Selection of the segments, technologies and categories should be done in such a way

so as to be able to launch a large-scale program in the same category; savings could

be projected to the entire population in the respective categories. HVAC programs

should have congruence with the distribution of appliances in each category and plan

to scale-up based on that.

• Utilities should develop a plan to launch large-scale programs based on the lessons

learned from the pilot program implementation.

• Fans retrofits program may be difficult to implement; a new stocks programs should

be launched in place of the retrofit or simultaneously.

• On large HVAC/TES programs, it may not be necessary to offer any incentives; only

energy audits, design/engineering and M&V costs should be covered under the

program. However, in order to push the programs any specific pilot/demonstration

projects may be planned. All the large-scale Thermal Storage or the central AC

programs should necessarily have pre and post-implementation audits. Large HVAC

and TES programs should be implemented picking divergent category of users and a

replication path clearly set out.

• Pre and post-program design activities in the residential sector should include

understanding the actual use of appliances (fans in this case). This analysis should be

included in the M&V plan by the utilities.

• A clustered approach towards implementing such programs may be thought about. As

an example – replacing all ceiling fans installed in one building and/or connected to

the same transformer/feeder and comparing the savings/results with a control sample

would be useful. The selection process to enrol consumers may consider the above

approach.

• In all programs, measurement & verification should include comparison of a control

v/s program sample savings. It is essential to develop a clear M&V protocols to create

baseline energy consumption and its comparison with the actual savings.

Measurement & verification should also consider ambient variations wherever

applicable.

• Pilots should be used to understand the hardware costs and transactions costs. Above

analysis should help us understand cost per kWh saved.

Minutes of 2nd


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• Above program can be integrated with interruptible load control for peak-time use.

The interruptible load control may be included as one of the components of the

program design.

• We need to develop a big vision statement around efficiency and demand-side

management

• Time of Use / Time of the Day tariffs that prominently reflect the load shape

objectives should be considered in the program designs.

Comments made by Lawrence Berkeley National Laboratory (LBNL) have been shared with

Tata Power and Reliance Infrastructure, which will be considered by them during the

proposed revisions.

4. Developing Gas Water Heaters strategy – this discussion followed the discussions at the

DSM-CC between MERC DSM Cell, Prayas Energy Group and International Copper

Promotion Council. A program to replace existing electric water heaters with the gas

water heaters is important. Specific points to be considered in the program design include

i) supply position (of gas from MGL and technology), ii) technology leapfrogging to

include heat exchangers integrated with the combustion chambers, iii) safety concerns

5. Other generic comments – participants at the meeting discussed three specific points

related to the DSM research and dissemination raised by Mr. Suresh Kumar, special

invitee to the DSM-CC meeting. Directed curricula development related to the research

on the energy efficiency and DSM area is required. A dedicated website on the DSM

activities by the utilities in Maharashtra is essential. DSM should be in the form of a mass

movement as opposed to individualistic efforts by Regulators or Utilities. The utilities can

also make use of their existing advertisements and spread a public message about the

same. Education of the constituents of the distribution chain is extremely necessary (e. g.

Stockists and Retailers) Architect associations should also be educated.

Action items

1. Based on the discussions during the meeting; the utilities to jointly revise the programs in

consultation with the DSM CC members wherever feasible. Revised programs with

feasible modifications should be submitted to the Commission during the week of 8

March 2010. Commission final review process shall commence immediately.

2. Pilot program specific measurement & verification formats will be developed by the

utilities and a specific consultation meeting could be held with a focused group including

IIT-Bombay and inputs from other partners.

3. ICPCI, Prayas with support from the MERC DSM Cell shall develop Agenda for the

proposed roundtable on Gas Water Heaters to be convened by the end of March 2010.

4. MERC DSM Cell, in partnership with Lawrence Berkeley National Laboratory and the

IIT-Bombay shall develop the discussion paper and draft regulations related to the

Evaluation, Measurement & Verification (EM&V) within next two months. The review

process should begin in May 2010.

Minutes of 2nd


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Annex 1: List of participants – 2nd

DSM Consultation Committee Meeting

List of attendes for the 2nd

DSM Consultation Committee meeting held on

3 March 2010

Sr.No. Name Organisation

MERC representatives

1 Shri V P Raja Chairman

2 Shri V L Sonavane Member

3 Shri K N Khawarey Secretary

4 Shri Rajendra Ambekar Director (Tariff)

5 Dr. Mahesh Patankar DSM Consultant

6 Shri Dipak Kokate Regulatory officer

7 Smt.Shital Khiraiya Regulatory officer

IIT Bombay representatives

8 Prof. Rangan Banerjee

9 Prof.Suryanarayana

Consumer representatives

10 Shri Daljit Singh Prayas Energy Group

11 Shri.Somu Prayas Energy Group

12 Shri. Shantanu Dixit Prayas Energy Group

Utility representatives

13 Shri Ashok Sethi Tata Power

14 Shri C A Narayan Tata Power

15 Shri Milind Kulkarni Tata Power

16 Shri Shirish Khadilkar Tata Power

17 Shri S P Bedekar BEST Undertaking

18 Shri D B Biwalkar BEST Undertaking

19 Shri G G Gokhale BEST Undertaking

20 Shri Pramod Deo R-Infra

21 Shri T P Mhapsekar R-Infra

Invitees

22 Shri M K Kundu ICPCI

23 Shri Suresh Kumar Retd. IAS

24 Shri C N Raghupathi Infosys

Minutes of 2nd


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Annex 2: Summary of DSM-related activities at MERC – presentation by

Secretary, MERC

Minutes of 2nd


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Annex 3: Presentation on intent behind pilot DSM programs and summary of

programs under review at MERC by MERC DSM Consultant

3/3/2010

1

Presentation by: Secretary, MERC2nd DSM Consultation Committee Meeting

3 March 2010

� Suite of activities

� DSM Regulations

� Constitution of DSM – Consultation Committee

� Cost-effectiveness spreadsheet tool

� Status of approved programs

� New programs

3/3/2010 22nd DSM Consultation Committee Meeting

3/3/2010

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� Finalization of the two DSM Regulations

� Constitution of DSM Consultation Committee

� Finalization of Cost-effectiveness Assessment Tool

� Review of approved DSM pilots

� New DSM programs

� Moderation of DSM Interaction Forum


� Two regulations uploaded on 16 February 2010◦ DSM Implementation Framework and

◦ Cost-effectiveness Assessment

� Responses expected by 19 March 2010

� Final revisions to be issued as Gazette notification by end of March/early April 2010

� DSM related format added in MYT Business Plan

3/3/20102nd DSM Consultation Committee Meeting 4

3/3/2010

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� Formal notification on DSM-CC members after the Gazette notification

� Proposed group includes – representatives of the utilities, Consumer Representatives, two/three academic institutions

� Secretary, MERC to be the Convener

� DSM – CC to meet once every month


� Generic spreadsheet to be uploaded as a “Guideline”

� Consultation process to begin in first week of April 2010

� Format to be finalized after comments from DSM-CC


3/3/2010

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� FTL program expected to be launched in March/April 2010◦ Tata Power/R Infra to update today..

� Review and approval of HVAC Pilots


� Development of Evaluation, Measurement & Verification (EM&V) Discussion Paper and Draft Regulations◦ Completion by end of March/middle of May 2010◦ Development team comprises MERC, LBNL with inputs

from IIT-B and other consultants

� Gas Water Heaters (GWH)◦ Stakeholder roundtable (end of March 2010)

moderated by MERC, International Copper, Prayas and IIEC?

� Discussions on Municipal DSM◦ Proposed roundtable (end April 2010) with Urban

Development Department, GoM and MEDA


3/3/2010

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� Industrial DSM (feeder-based)◦ Discussions on with Department of Industries –

demand and energy reduction targets with proposed monetization by MSEDCL


� Thank you!


3/3/2010

1

Presentation by: MERC DSM Consultant, MERC2nd DSM Consultation Committee Meeting

3 March 2010

� List of programs under review/approved

� Purpose of pilots

� Summary of Tata Power HVAC programs

� Summary of R Infra HVAC programs

� Snapshot of MSEDCL Agri DSM Project


3/3/2010

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� Tata Power HVAC pilots◦ EE split ACs of 1 and 1.5 Tons to replace old windows

◦ EE ceiling fans to replace old ceiling fans

◦ Thermal storage systems

◦ EE central air-conditioning systems

� R Infra HVAC pilots◦ EE split ACs of 1 and 1.5 Tons to replace old windows

◦ EE ceiling fans to replace old ceiling fans

◦ Thermal storage systems

� MSEDCL◦ Solapur Agriculture DSM program


� Understand important design and implementation parameters; some attributes..

� Costs –◦ Impact of recycling/safe-disposal costs◦ Installation and maintenance costs

� Equipment/appliance life◦ Guarantees/warranties

� Market readiness/product availability� Customer involvement◦ Involvement in the large projects

� Time-span in bidding & selection process� Time required for implementation� Assumed v/s real savings – weather relationships� Life of the project


3/3/2010

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Pilot

#

Program title DSM

objective

Estimated

energy

savings, MU

Estimated

demand

savings/shift,

kW

Life-

span of

savings,

years

Proposed budget, Rs.

Lakhs

Utility

investment

Total

investment

1a EE 5-star split

ACs (1 Ton)

SC 0.090 70 5 7.90 20.90

1b EE 5-star split

ACs (1.5 Ton)

SC 0.094 70 5 10.37 24.47

2 EE 5-star

ceiling fans

SC 0.11 40 5 10.62 27.52

3 Thermal

storage

LS 1000 (demand

shift)

8 54 204

4 Central ACs SC 1.54 640 8 112 418

TOTAL 1.189 750 without

demand shift

and 1750 with

demand shift

194.89 694.89


Pilot

#

Program title DSM

objective

Estimated

energy

savings, MU

Estimated

demand

savings/shift,

kW

Life-span

of

savings,

years

Proposed budget, Rs.

Lakhs

Utility

investment

Total

investment

1a EE 5-star split

ACs (1 Ton)

SC 0.192 64 5 14.35 47.85

1b EE 5-star split

ACs (1.5 Ton)

SC

2 EE 5-star

ceiling fans

SC 0.25 104 5 53.60 91

3 Thermal

storage

LS 1000 (demand

shift)

8 60 205

TOTAL 0.442 168 without

demand shift

and 1168 with

demand shift

128 344

3/3/2010

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� Current rebates proposed clear the hurdle test (Total Resources Cost test) and other parameters such as rate-impact and participants cost tests

� The analysis has used several assumptions, to be tested during the implementation phase


� Developed by MSEDCL in partnership with Bureau of Energy Efficiency

� Project site – Mangalwedha sub-division of Solapur district

� Targets replacing 3000 IP sets by an ESCO making upfront investment

� Project cost – Rs. 6 Crores – financed by an ESCO

� MSEDCL to pay Rs. 1.2 Crores/year for five years to the ESCO

� Savings estimate – 8.12 MU

� MSEDCL to retain 70% savings and to share 30% savings with the ESCO


3/3/2010

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� Thank you!


minutes of 2 nd demand-side management consultation ... and annexes - 2nd dsm-cc... · 11 shri.somu...

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