Investment of INR 441.66 cr to be made in Odisha for demand side management of electricity
This utility-based DSM programme will generate financial savings of INR 12-13 crore for Odisha’s DISCOMs when implemented, alongside associated incentives. Additionally, it will result in savings of INR 73.57 crore for DISCOM consumers.
ISC and EESL in partnership with four DISCOMs in Odisha will invest a total of INR 441.66 crore in the Demand Side Management (DSM) programme.
According to the statement released, EESL, a JV under the Ministry of Power, along with Institute for Sustainable Communities (ISC), partnered with P4G to run a utility-based demand side management program for DISCOMs in Odisha.
As noted in the statement, a total investment of INR 441.66 crore is planned for the state over a period of time. The upfront and initial investment for implementing the project will be taken up by EESL, which will be recovered over the period of 3-5 years from participating consumers.
With an investment of INR 86.55 crore, the program will replace 4.5 lakh old fans with super-efficient ones. A further investment of INR 223.83 crore will be made in replacing around 45,000 old air conditioners with super energy efficient units, along with a further investment of INR 131.28 crore in replacing 14,370 old motors with IE3 motors.
It is expected that this utility-based DSM programme will generate financial savings of INR 12-13 crore for Odisha’s DISCOMs when implemented, alongside associated incentives. Additionally, it will result in savings of INR 73.57 crore for DISCOM consumers.
It is the need of the hour that utilities improve on end-use energy efficiency and manage power demand for sustainable growth in order to deal with the acute power deficit in the country.
To address the country’s acute power deficit, utilities are confronted with the task of improving end-use energy efficiency and managing power demands. Consequently, the utility-based DSM Programme in Odisha has become a vital tool for improving financial viability of DISCOMs.
Through the DSM programme, consumers in the state will also get the benefit of lower energy costs and lowered energy consumption, according to Nikunja Bihari Dhal, Principal Secretary, Department of Energy, Odisha.
Most importantly, Odisha will be able to address the rising power supply costs, energy subsidies, climate change, environmental degradation, and energy security concerns by implementation of DSM.
UN Behera, Chairman of OERC stated that the utility-based DSM programme will prove to be an extremely effective tool in ensuring energy efficiency in Odisha. The state is experiencing growing energy consumption caused by urbanization as well as the development of industries and infrastructure. The Demand side management comes with a number of advantages, which we wish to extend to consumers, as well as DISCOMs.
As a result of the program, seasonal peak demand will be reduced, energy savings will be achieved, and greenhouse gas emissions will be reduced.
To reduce energy consumption and GHG emissions, the DSM program aims to accelerate the adoption of energy-efficient technologies. There are plans to expand this programme in Jharkhand and Telangana.
Connect with Power Insight: Facebook | LinkedIn | Twitter
