Energy Conservation and Commercialization in Gujarat REPORT ON DEMAND SIDE MANAGEMENT (DSM) IN GUJARAT September 2009 This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of International Resources Group (IRG) and do not necessarily reflect the views of USAID or the United States Government. 1 Energy Conservation and Commercialization in Gujarat Energy Conservation and Commercialization in Gujarat Report on Demand Side Management (DSM) in Gujarat Energy Conservation and Commercialization (ECO)-III Project CONTRACT NO. 386C-00-06-00153-00 September, 2009 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government Table of Contents Table of Contents..................................................................................................................................................i! Abbreviations .......................................................................................................................................................iii! Acknowledgements .............................................................................................................................................iv! Executive summary ..............................................................................................................................................v! 1.! Introduction ..................................................................................................................................................1! 2.! Gujarat state’s circumstances......................................................................................................................2! 2.1.! Electricity supply and generation.......................................................................................................2! 2.2.! Electricity companies and their service area ....................................................................................3! 2.3.! Electricity consumption and revenue................................................................................................4! 2.4.! Electricity Shortage ..............................................................................................................................5! 3.! Approach .......................................................................................................................................................6! 4.! Analysis of GUVNL load shedding...........................................................................................................7! 4.1.! GUVNL month wise load profile......................................................................................................7! 4.2.! Implementation of GUVNL’s load shedding plan .........................................................................7! 4.3.! Estimation of load shedding by customer category........................................................................8! 5.! Estimating the cost of energy efficiency measures ...............................................................................11! 5.1.! Methodology .......................................................................................................................................11! 5.2.! Data and parameter assumptions.....................................................................................................12! 5.2.1.! Residential sector........................................................................................................................12! 5.2.2.! Commercial sector .....................................................................................................................13! 5.2.3.! Agriculture sector.......................................................................................................................14! 6.! Estimation of net benefits.........................................................................................................................18! 6.1.! Benefits to the consumer ..................................................................................................................18! 7.! Projecting future energy savings ..............................................................................................................20! 7.1.! Approach .............................................................................................................................................20! 7.2.! Projecting growth rates of end-use consumption .........................................................................21! 7.3.! Estimating the electricity consumption of new end-use devices ................................................21! 7.4.! Estimating the energy saved by energy-efficiency measures each year......................................21! 7.5.! Peak power saved by energy efficiency measures..........................................................................23! 8.! Programs for the promotion of energy efficiency measures ...............................................................24! 9.! Conclusions .................................................................................................................................................26! References............................................................................................................................................................27! Appendices ..........................................................................................................................................................29! i Energy Conservation and Commercialization in Gujarat List of Tables Table 1: Electricity generation and installed capacity, Gujarat (2006-07) ................................................... 2! Table 2: Total revenue, profit and subsidies for different electricity companies of Gujarat (2006- 07) 3! Table 3: Western region statewise system T & D losses................................................................................ 4! Table 4: Consumption of electricity, Gujarat (2006-2007)............................................................................ 4! Table 5: GUVNL’s load shedding plan (2006-07).......................................................................................... 9! Table 6: Consumer category-wise load-shedding allocation (2006-07) ....................................................... 9! Table 7: Method for calculating the cost of conserved energy (CCE) and capital cost of conserved peak (CCP) capacity........................................................................................................................................... 11! Table 8 A: Data on selected energy efficiency measures (baseline of 2 star rated to 4 star rated AC) in the residential and commercial sectors ........................................................................................................... 13! Table 8 B: Data on selected energy efficiency measures (baseline of non star rated to 4 star rated AC) in the residential and commercial sectors....................................................................................................... 14! Table 9: Data on selected energy efficiency measures for agricultural water pumping .......................... 15! Table 10: Typical agriculture pump set (5 hp) maintenance cost ............................................................... 16! Table 11: Leading statewise area coverage under Drip Irrigation in India (2005-06) ............................. 17! Table 12 A: Cost of energy efficiency technologies from societal perspective at 10% discount rate... 18! Table 12 B: Cost of energy efficiency technologies from individual perspective at 25% discount rate19! Table 13: Penetration rates for selected energy efficiency measures ......................................................... 22! Table 14: Annual energy saved (GWh) by energy efficiency technologies ............................................... 22! Table 15: Peak power saved by selected energy efficiency measures......................................................... 23! List of Figures Figure 1: GUVNL system demand and supply, 2008-09 (Anticipated) ...................................................... 7! Figure 2: Annual electricity consumption (kWh/year) by selected energy efficiency measures for agriculture water pumping ................................................................................................................................ 16! ii Energy Conservation and Commercialization in Gujarat Abbreviations APS Agriculture Pumping System AUFLS Automatic Under Frequency Load Shedding BEE Bureau of Energy Efficiency CCE Cost of Conserved Energy CCP Cost of Conserved Peak Capacity CET Conventional Energy Technology CFL Compact Fluorescent Lamp DGVCL Dakshin Gujarat Vij Company Limited EET Energy Efficiency Technology GETCO Gujarat Energy Transmission Corporation Limited GHG Green House Gases GIDC Gujarat Industrial Development Corporation GIPCL Gujarat Industries Power Corporation Limited GIS Geographical Information System GMDCL Gujarat Mineral Development Corporation Limited GPEC Gujarat Paguthan Energy Corporation Private Limited GSDP Gujarat State Domestic Product GSECL Gujarat State Electricity Corporation Limited GUVNL Gujarat Urga Vikas Nigan Limited GWh Giga Watt Hour