DSM Program Design (R-Infra Case Studies & Practices)

Transcription

1 DSM Program Design (R-Infra Case Studies & Practices) Date : 11 th April 2014

2 Presentation Flow Overview of R-Infra Mumbai Distribution Business RInfra Approach to DSM Program Load Survey Planning & Designing program Cost Effectiveness Tests MERC Approval Process DSM program Financing DSM program Execution Process R Infra DSM Programs. Confidential Slide 2

3 Overview of R-Infra, Mumbai Distribution Business Confidential Slide 3

4 Overview R-Infra Mumbai Distribution Business Distribution Area No. of Customers Max. System Demand 400 Sq. km ~2.9 Million 1,697 MVA NORTH ZONE BHAYANDAR MIRA ROAD DAHISAR BORIVALI KANDIVLI KANDIVL OFFICE I Sale 6,506 MU s MALAD CENTRAL ZONE DINDOSHI OFFICE GOREGAON T&D Loss ~9 % Reliability Index % Power Transformers 3,112 MVA SOUTH CENTRAL I ZONE VILEPARLE SANTACRUZ KHAR BANDRA JOGESHWAR ANDHER I SOUTH ZONE EAST ZONE GHATKOPAR VIKHROLI SANTACRU Z TILAK NAGAR OFFICE OFFICE CHEMBUR GOVANDI MANKHURD Distribution Transformer 4,554 MVA TO DADAR Serving Mumbaikars since last 85 Years Confidential Slide 4

5 RInfra Management Commitment Confidential Slide 5

6 DSM Program - Concept to Execution Planning & Designing Preparation of PDD Load Research DSM Program Submission to MERC Cost Effectiveness Tests (TRC, RIM, PCT, SCT) Tests Pass Approval from MERC MoU with Supplier Program Promotion & Execution Monitoring & Verification, Quarterly Updates to MERC Confidential Slide 6

7 Load Research Confidential Slide 7

8 Load Research Addressing DSM Concerns How much demand can DSM actually control? Selection of Technology for program Electrical rating of present and proposed technologies Potential number of appliances in one unit (household &commercial) Hours of usage per day and days per year Time of use of appliance ( Peak Demand ) Vintage of appliance & Technology Type of customer base Penetration of appliance in the consumer category. What should be the scale of the Program and what would it cost? Confidential Slide 8

9 Planning & Designing Program Confidential Slide 9

10 Planning & Designing Program Load survey Year Survey by Sample size Residential Commercial M/S Nelson M/S Drishti M/S Mitcon M/S Drishti Appliances Usage Residential Commercial Appliances (%) (%) T12/ T8 Tubelight Fan AC Refrigerator DSM Programmes Incandescent lamp CFL T12 / T8 Tube light T5 Ceiling Fans 5-star Fans Window AC 5-star Split ACs Refrigerator 5-star Refrigerator Source: LR Residential : Refrigerator Vintage > 10 Years : 17% > 5 Years : 88% Commercial :Air Conditioner Vintage > 5 Years : 16% (Window) <5years but > 3 Years : 70% Confidential Slide 10

11 Planning & Designing Program 1-2 AM 2-3 AM 3-4 AM 4-5 AM 5-6 AM 6-7 AM 7-8 AM 8-9 AM 9-10 AM AM AM PM 13-14PM PM PM PM PM PM PM PM PM PM PM 24-1 AM Usage of Lighting appliances Usage of All AC combined 1000 Overall Lighting Apps Load curve for Residential Load Confidential Slide 11

12 Cost Effectiveness Tests Confidential Slide 12

13 Cost Effectiveness Tests Financial Tests Program Benefits > Program Costs? Total Resource Cost Test (TRC) DSM option cheaper than Supply side option? Ratepayer Impact Test (RIM) Is Program beneficial to all consumers? Is Program beneficial to Participants? Participants Cost Test (PCT) Is Program beneficial to Society at large? Societal Cost Test (SCT) Confidential Slide 13

14 Key Parameters : Definition & values Avoided cost of power purchase for TRC, RIM and PCT Weighted Average of Highest Marginal Cost of Power Purchase related to top 10% of energy use stack for the past one year as computed by Maharashtra State Load Dispatch Centre. Avoided cost of power purchase for SCT - Rs. 10.6/kWh (prevalent for diesel generator sets). Escalation rates for power sales, avoided cost of purchase 5% year-onyear. Discount rate for calculation of TRC and RIM tests 10.5% Discount rate for calculation of PCT 13% Discount rate for calculation of SCT 10% Confidential Slide 14

15 Cost Effectiveness Tests Participant Cost Test (PCT) Utility Cost Total Resource Cost (TRC) Ratepayer Impact Measure (RIM) Incentives Bill Reductions Revenue Gain Benefits Avoided Costs Avoided Costs Avoided Costs Costs Utility Program Costs Utility Program Costs Utility Program Costs Incentives Incentives Bill Increases Revenue Loss Participant Costs Participant Costs Confidential Slide 15

16 Cost Effectiveness Tests Type of technology 5 star Refrigerators replacing old non star Refrigerators Project description Average Capacity litre 200 to 300 Cost of Refrigerators Rs Rebate by Utility Rs Cost to Consumers Rs Annual Consumption of old kwh 752 Refrigerators Annual Consumption of new kwh 490 Refrigerators Annual Saving per replacement kwh 262 Life of technology Years 10 Annual days Days 365 Number of replacements Nos 5000 Total utility sales MU 9600 Transmission losses % 4.85% Distribution losses % 10.16% cost of M&V meters 3000 M&V sample size 0.5% Confidential Slide 16

17 Cost Effectiveness Tests Program 5 star Refrigerators replacing old non star Refrigerators Summary of results - B-C tests TRC RIM LRIRIM PCT SCT Confidential Slide 17

18 MERC Approval Process Confidential Slide 18

19 MERC Approval Process Regulator s Decision Tree No NPV of TRC >=0 Do not send to Commission Yes NPV of RIM >=0 Yes Implement DSM Program No Impact on Non-participants < Rs. 0.01/kWh or < 0.1% of tariff level Yes No Consider Case to Case Basis Implement DSM Programme Confidential Slide 19

20 DSM Program Financing Confidential Slide 20

21 DSM Program Financing Load Management Charges (LMC) collected in are being utilized for MERC approved DSM Programs for Consumers. - Alternatively it will be added in ARR once LMC fund gets exhausted. Approximate Cost approved by MERC under LMC till date is INR Cr. Expenditure & Energy Savings achieved is being monitored by MERC. Financing Options: 1. Rebate through LMC Upfront : FTL/ AC/ Fan/ Refrigerator Installments : CFL Program 2. Bulk Volume Discount LT Capacitor Program 3. Financing through CDM Bachat Lamp Yojna (BLY) 4. ESCO Funding Confidential Slide 21

22 DSM Execution Process Confidential Slide 22

23 Execution process - Technology provider Preparation of RFP / Tender document with details of program execution process, details of product, Terms & conditions etc. Receipt of bids from Technology provider / Manufacturer Techno Commercial evaluation to be done Memorandum of Understanding to be signed with successful bidder Program Promotion Roll out the program along with successful bidder Customer eligibility Promotion through Public campaign Confidential Slide 23

24 Execution process- Measurement & Verification Evaluate Program Impact & Effectiveness Helps verify cost-effectiveness assumptions Process Evaluation Effectiveness of communication/ program promotion Effectiveness of process design Evaluation of process execution Consumer satisfaction on Product and Pricing Impact Evaluation Customer response Savings achieved through this program Apply corrective actions to upcoming programs Confidential Slide 24

25 Execution process- Measurement & Verification Program Impact Evaluation Refrigerator replacement program Pre-retrofit Energy recording with kwh meter Post retrofit energy recorded with the same meter Avoided Energy : Energy Pre Retrofit Energy Post Retrofit Average Energy Savings after M&V is 287 units / year ( 262 units/year ) Refrigerator replaced till date 3725 Total yearly savings for replacements done is 1.06 MU (0.97 MU ) Confidential Slide 25

26 Execution process- Measurement & Verification Process & Response Evaluation Refrigerator replacement program A survey to be carried by reputed third party marketing agency in the project implementation area. Survey of non participating consumers also to be done The questionnaire to be carefully designed to understand the acceptance of offer, execution channel and product by the consumers, reasons for non participation in the scheme Confidential Slide 26

27 RInfra DSM Programs for Consumers Confidential Slide 27

28 R-Infra DSM Programs T5 FTL * Split AC * Fan LT Capacitor CFL * Refrigerator STLT Lamp Conversion Confidential Slide 28

29 Last Word aspiring for a New World We aspire to transform ALL Mumbai Citizens into The Responsible Power Citizens and we know, we will. Confidential Slide 29

30 Thank You.

31 CFL Program Program Details: Launched in : FY Consumer type : All Category Product offering : 15 W CFL Discount : 62% Investment : INR 118 Lac Salient Features: Tie-up with M/s Bajaj Energy Saving CFL worth Rs. 165 at Rs. 63 under scheme; Payment in installments If first 9 installments, of Rs. 7 each, are paid in time, last 3 (Rs.19) waived off Achievements : Consumers 2.05 Lacs; CFLs sold 6.17 Lacs Savings till date 38 MU Confidential Slide 31

32 Capacitor Installation Program Program Details: Launched in : FY Consumer type : Commercial / Industrial Product offering : All Poly propylene capacitor Discount Investment : 30% with extended product : Act as a facilitator. Negligible Investment Salient Features: Tie-up with Shreem & Energe Capacitors Extended warrantee of 5 Years Cost Inclusive of Installation & Wiring Achievements : Capacitor Installed : 2178 kvar Savings : 2 MU / Annum Confidential Slide 32

33 T5 FTL Program Program Details: Launched in : FY Product Offering : T5 Tube Light (31 w) Discount : 60% Investment : 33 Lacs The first Energy saving tube-light program in India with 60% price discount Salient Features: Tie-up with OSRAM for T5 FTLs Two years extended warrantee Free of cost Installation Achievements : Units Sold 4000 Nos. Estimated Savings 0.15 MU Confidential Slide 33

34 EE Air-conditioner Program Program Details: Launched in : FY Consumer type : small commercial New technology : 5 star Split type AC Discount : 40% Investment : 3.7 Lacs Salient Features: Tie-up with LG for 5 star AC Extended warrantee of 1 Year on machine & 4 years on compressor Free standard Installation Achievements : Units Sold 51 Nos. Estimated Savings 0.19 MU Confidential Slide 34

35 EE Air-conditioner Program 5 Star Split AC program Phase 2 Target quantity : Target Saving : 1500 Nos MU Target Timeline : June 2015 Program Partner : M/s Godrej Smart End Use Management System ( SEMS) Automation in Air conditioning Target quantity : 2500 TR Target Savings : 1.3 MU Target Timeline : June 2015 Technology Provider : M/s Amplebit MOU signed with Consumers for 400 TR. Confidential Slide 35

36 EE Ceiling Fans program Program Details: Launched in : FY Product offering : 5-star Fans (50 Watts) Discount : 60% Investment : 27 Lacs The first Energy Saving Ceiling Fans Program in India with 60 % price discount. Salient Features: Tie-up with Havells for 5-star Ceiling Fans Old fan disposal in environmentally safe way. Achievements : Phase I 5000 Units, Savings MU pa ( Completed in Aug 12 ) Phase II: Units till date 1.01 MU Confidential Slide 36

37 Refrigerator Program 5 Star Refrigerator Program Target Quantity : 5000 Nos. Target saving : 1.54 MU Target Timeline : April 2015 Program Partner : M/s Godrej Achieved : Installations Saving achieved :0.57 MU Confidential Slide 37

38 Street Light Conversion Program Street Light Lamp Conversion Project Launched in : FY Consumer type : Street Light Old Fixtures : HPMV ( 125 W ) Replaced with : HPSV lamps (70 W) Replacement of : lamps Saving potential : MU Used Lamps were disposed through MPCB approved Vendor at cost Confidential Slide 38