FACILITATING LED LIGHTING SOLUTIONS IN INDIA. Energy Efficiency Services Limited

Transcription

1 FACILITATING LED LIGHTING SOLUTIONS IN INDIA

2 Overview of EESL

3 Creating an Energy Efficient India ESCO- DSM Projects NTPC Agriculture Municipal Functions Buildings Distribution Efficiency Tri-generation Implementation of Central & State Gov. policies POWER GRID EESL REC S & L Programs SDA capacity buildings Perform Achieve & Trade Scheme for industries Consultancy Services PFC CDM Annual Energy Savings Plan Policy advice to the government Capacity Building Development of Private ESCOs SDA Capacity Building

4 Installed capacity & Fuel Mix India is world s fourth largest energy consumer after united States, China & Russia. Capacity Addition in 12 th Five year plan=88 GW As on ,Total Installed Capacity is 225, MW Hydro, 17.55% Nuclear, 2.12% Renewable, 12.20% Coal Gas Oil Hydro Nuclear Oil, 0.53% Renewable Gas, 9.02% Coal, 58.59% During the year , though the total energy availability increased by 6.2% over the previous year and peak load increased by 6.1%, the shortage condition prevail in the country in terms of energy and peak availability as given below:- Energy (MU) Peak (MU) Requirement 998, ,453 Availability 911, ,294 Shortage 86,905 12,159 (%)

5 Solution Sector Consumption (Billion kwh) Agriculture Commercial Municipalities Domestic Industries Cumulative % Saving Potential Saving Potential Billion kwh) 15 % Installation cost of DSM measures lesser than capital cost of power generation Each unit saved through DSM results in two units of avoided generation

6 DELP as Solution

7 Rationale and Objectives DSM Based Efficient Lighting Programme (DELP) Problem Potential Challenge Solution 20% of electricity demand goes into lighting 90% of the electricity is converted into heat in incandescent bulbs 400 million light points in India today are lighted by incandescent bulbs Their replacement by LEDs/CFLs would lead to a reduction of over 10,000-15,000 MW in electricity demand High prices of LEDs/ CFLs leads to low household penetration Overcoming cost barrier through DELP Utilization of models developed for BLY DSM for recovering investments ESCO utilization for large scale implementation

8 DELP SOP-Methodology 4 LEDs/CFLs per residential house will be distributed to 2.5 lakhs residential households in exchange of an incandescent lamp (ICL) Distribution of LEDs/ CFLs by EESL to grid-connected households in each project area directly or through distribution & collection points. Collection & Destruction of ICLs by EESL with proper Monitoring &Verification guidelines prescribed under the DSM programme Distribution Utilities will implement DSM projects through EESL and link payment with resultant energy and load reductions.

9 DELP-Proposal Issuing guidelines and regulations, Approval of DSM program Regulatory Commission DISCOMS Design, Development of DSM Programme Support for M&V Communication and outreach Implementation of DELP Distribution of LEDs/CFLs, Collection and destruction of ILBs. EESL

10 Role of EESL Upfront investment Financial risk Awareness and information Development of DSM documentation Submission and approval by ERC Distribution of LED/ CFL at cost of ILB Monitoring of LED/CFL use in sample households

11 Role of DISCOMs Database of households to include name of users/address/average electricity consumption Assist in selection of monitoring groups required Distribution of LED/CFL Lamps and exchange of incandescent lamps Safe keeping of replaced GLS lamps for independent inspection

12 Scheme introduced - Pondicherry

13 Pondicherry Energy Scenario Energy Sale in UT Energy Requirement (Demand) Gross Energy Purchase approved Average Power Purchase Cost Average cost of supply approved MUs MUs MUs Rs. Rs. 925 Cr Rs. 3.85/kWh Total Consumers 4,07,115 Total Domestic Consumers 2,99,772 * Source :ARR for fy 13-14

14 SOP: A tool to accelerate EE measures SOP provides long term contracts to EE makes it at par with PPA Provides investors with a viable model to invest Allows financial closure of investments Targeted interventions can help secure large energy savings in utilities No upfront cost for utilities in implementing the measures

15 Implementation of DELP SOP EESL will, in consultation with PED, select an area for implementation of DELP. EESL and PED will file DSM-SOP petition before JERC which will include: Consistency of DELP-SOP with the key objectives of DSM guidelines Cost benefit analysis as per DSM guidelines Agreed methodology for determining energy savings Implementation methodology and framework SOP cost for procurement of energy savings through DELP price and period of contract DELP-SOP PPA After consideration and approval by JERC, EESL and PED will undertake project implementation BEE could undertake independent monitoring of energy savings

16 Financing of DELP SOP Measure No. of consumers Project Period Units saved (MUs/Yr) Utility Saving SOP Purchase price Total Annual Payout to EESL Benefit to PED 8 W LED 2.5 Lakh (4 bulbs each) 7 Years Rs Crores Rs.2.5/Unit Rs Crores Rs.2.73 Crores 14 W CFL 2.5 Lakh (4 bulbs each) 2 Years Rs Crores Rs.2.5/Unit Rs crores Rs.2.42 Crores JERC can allow PED to provide Rs.2.5/KWh for every unit of energy saved to EESL to service investments in LEDs/CFLs. There is a net saving to PED even after EESL payment. JERC could reduce power procurement cost in ARR by the total EE payout therefore making the proposal tariff natural.

17 Energy Efficiency : A resources for Utilities A Standard Offer programme uses EE as resources for the benefit of Utilities. Reduced in purchased AT & C losses of T&D (16.5%) due to reduced demand The Energy Efficiency saving translate into reduced purchase of costly units, sale of excess power or increased revenue through unscheduled Interchange (UI) Purchase from customers at Rs. 3.18/kWh Save losses of about Rs. 0.52/kWh and sell at interface points as base line of UI.reduce costly power purchase cost. Allow more connections to industrial customers at higher tariff Consumer save significant energy and benefitted from reduced energy bill.

18 A huge potential of implementing SOP at very low cost. EESL will invest in EE, Utilities have to pay to EESL at Rs./kWh saved for some years, depending on the measures. The following table elaborates the technical potential for EESL s DELP as sample measure : Measure Initial Kw Efficient kw Cost saving due to T &D losses (16.5%), kwh/y DELP-LED lighting 8 W DELP-CFL lighting 14 w Technical Potential Total cost saving for utility per unit, Rs/y Measure No of Consumers Energy Saving Utility saving DELP-LED lighting 8 W 2,50, M kwh/y Rs. 21 Crores DELP-CFL lighting 14 w 2,50, M kwh/y Rs Crores

19 Immediate Step for Implementation of DELP SOP EESL will, in consultation with PED, select an area for implementation of DELP. EESL, PED and SERC, under the overall guidance of BEE, will agree on necessary DSM regulations that will inter-alia include A DSM based mechanism to service investments. This would be based on agreed energy savings based on BLY methodology. A mechanism for monitoring and verification, A dispute resolution mechanism, Logistic arrangements for distribution of LEDs as replacement of ILBs EESL will undertake awareness and outreach of the scheme to household. It will provide upto 4 LEDs/CFLs per household at Rs.25/ lamp as replacement for working ILBs EESL and PED will undertake distribution of LEDs/ CFLs to every household and maintain a list of such distribution. For monitoring purposes, BEE will select a random sample of household for bi-annual verification. PED will provide EESL payment on a periodic basis based on the SOP methodology agreed. Appropriate ESCROW/payment security mechanism to be in-built to reduce the revenue risk to EESL. EESL will implement mechanism to prevent resale of LEDs/CFLs and reuse of ILBs

20 Additional Attractiveness of DELP as SOP For PED: Loss per unit incurred by PED of Rs. 0.52/kWh will be eliminated. Annual potential benefit to PED of the DELP SOP = ( 0.52* no of units saved per year) Rupees, leading to reduction in accumulated liabilities. The per unit cost of energy paid by PED under the DELP SOP will be fixed over the period of Power purchase Agreement as compared to rising cost of energy. The annual saving would lead to reduction in Renewable Purchase Obligation of the PED For Consumers Reduced Electricity Bill and use of energy efficient lightings with minimum capital cost For EESL The long term contracts for implementing the programme from PED and potential to tap finance from Banks/FIs. Ability to take advantage of technology improvement accompanied with price reduction. For Public Direct green house gas reduction

21 Join us in our endeavor to create an Energy Efficient India Thank You