As a demand side management (DSM) initiative, BSES recently undertook an ambitious manual demand response project. During the initial six-week pilot, consumers helped the discom save as much as 17,000 KW (17 mw) in its command area of East and Central Delhi. Based on the success of the initiative, the Demand Response (DR) program will be gradually rolled-out across BSES area of East, Central, South and West Delhi.
As part of the initiative, 500 of the largest consumers of BSES Yamuna Power Ltd (BYPL) having a load of over 500 KW each were enrolled in this manual demand response project and requested to voluntarily reduce their electricity load as and when required, (especially during the peak hours). For the same, they were given a financial incentive of Re.1 per kwh.
BYPL implemented this project in association with ICF, a reputed international consulting firm, and Shakti Sustainable Energy Foundation.
What is Demand Response?
According to information available from the Office of Electricity Delivery & Energy Reliability (part of US Department of Energy, USA), demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
Demand response programs are being used by some electric system planners and operators as resource options for balancing supply and demand. Such programs can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates. Methods of engaging customers in demand response efforts include offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates. It also includes direct load control programs which provide the ability for power companies to cycle air conditioners and water heaters on and off during periods of peak demand in exchange for a financial incentive and lower electric bills.
