Utility CEO Forum on DSM Renewable Energy enabled Demand Side Management in Tamil Nadu

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1 Utility CEO Forum on DSM Renewable Energy enabled Demand Side Management in Tamil Nadu

2 Table of Contents Section Page 1 Need of RE enabled DSM 1 2 Findings from feasibility analysis 5 3 Role of TANGEDCO and associated policy-makers 9 4 Benefits to TANGEDCO 11 5 Synergy between state DSM Policy and off-grid implementation roadmap 13

3 Section 1 Need of RE enabled DSM 1

4 % Section 1 Need of RE enabled DSM Power scenario of Tamil Nadu Total installed capacity 18 GW Capacity of renewable energy installations Energy and peak deficit in Tamil Nadu Energy GW 6 Peak Few of Restriction and Control (R&C) measures implemented in Tamil Nadu are: 40% base demand and energy cut for HT industries and commercial consumers Introduction of power holiday to all HT, LT- CT, and LT industries for one day between Monday and Saturday on staggered basis All HT industries have to declare Sunday as weekly holiday HT industrial and commercial consumers are restricted to draw more than 10% power from grid for lighting and security purposes during evening peak hours, etc. 2

5 Section 1 Need of RE enabled DSM Strategy to bridge electricity deficit Bridging electricity deficit Supply side management Demand side management Supply Side Management: Capacity addition has long gestation period Improving efficiency of existing generating stations Procurement from other states Demand Side Management: Relatively smaller gestation period Managing end-use demand Benefits for the distribution utility by reducing the short-term power purchases at high rates 3

6 Section 1 Need of RE enabled DSM Strategy for managing end-use demand Managing end-use demand Reduction of demand: Reduction in demand Investing in energy efficiency equipments On-site generation from RE resources On-site generation from RE resources: Investing in on-site generation installations based on RE resources 4

7 Section 2 Findings from feasibility analysis 5

8 Section 2 Findings from feasibility analysis Approach for Tamil Nadu Renewable Energy enabled Demand Side Management assignment Developing bankable Detailed Project Report (DPR) for RE enabled DSM options Development of off-grid implementation roadmap for replication of RE DSM in TN Feasibility analysis of implementation of RE based DSM programme Development of institutional arrangements for implementation of DSM programme Techno economic analysis of selected options Identification & selection of potential RE based DSM options Identification of cluster (Industrial & Commercial) 6

9 Section 2 Findings from feasibility analysis 56 MW replacement potential estimated in Tirupur cluster Identification of cluster (Industrial & Commercial) Tirupur cluster selected 10 industrial and 10 commercial units were visited Identification & selection of potential RE enabled DSM options Resource availability is good - solar irradiation and biomass RE technologies Solar PV, Solar Thermal, Biomass gasifier Techno-economic analysis of selected options Replacement potential: Tirupur 56 MW, 14 clusters 352 MW Equity IRR (without subsidy): Solar (13-15%), Biomass (45%) Equity IRR (with MNRE subsidy): Solar (18-20%) 7

10 Section 2 Findings from feasibility analysis Harnessing replacement potential Awareness workshop at Tirupur cluster Aimed at HT industrial, HT commercial consumers, manufacturers of Solar PV, thermal systems, biomass gasifier and TANGEDCO officials Dissemination of findings of techno-economic analysis of RE enabled DSM options Enrolling industries and commercial consumers that are interested in developing bankable DPRs Developing bankable DPRs for industrial and commercial units Collection of basic data for DPR completed in 8 industrial units Preparation of bankable DPR in progress for evince financing Assist in Procurement process and enabling commercial roll-out Development of off-grid implementation roadmap Review of similar off-grid initiatives in Southern states of India Encashing learnings and experiences of developing bankable DPRs Devising off-grid implementation roadmap for taking RE enabled DSM forward in TN Suggesting institutional arrangements for implementation 8

11 Section 3 Role of TANGEDCO and associated policymakers 9

12 Section 3 Role of TANGEDCO and associated policy-makers Role of TANGEDCO and associated policy-makers As Enabler Develop conducive policy environment for percolation of RE enabled DSM in Tamil Nadu As Aggregator Bringing suppliers/vendors and industries together As information disseminator Work towards adaption and implementation of off-grid implementation roadmap Conduct awareness workshops for disseminating success stories 10

13 Section 4 Benefits to TANGEDCO 11

14 Section 4 Benefits to TANGEDCO Benefits to TANGEDCO TANGEDCO will get following benefits due to implementation of this innovative RE enabled DSM implementation: Relief to grid due to shifting of demand to load centre Reduced power purchase during peak time resulting in lowering of expense on power procurement Associated reduction in emissions 12

15 Section 5 Synergy between state DSM Policy and off-grid implementation roadmap 13

16 Section 5 Synergy between state DSM Policy and off-grid implementation roadmap Synergy between state DSM Policy and off-grid implementation roadmap State DSM Policy Suitable institution will be constituted and mandated to perform activities related to DSM including RE enabled DSM Ensure provisioning for performance incentives for achievement of DSM targets Off-grid implementation roadmap Assist the utility in achieving its DSM targets Establish coordination between the industries and commercial consumers with the constituted institution 14

17 Section 5 Synergy between state DSM Policy and off-grid implementation roadmap Thank You 2013 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Private Limited (a limited liability company in India), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 15