"Energy transition in India with distribution companies (DISCOMs)" is a project under the umbrella of the Indo - German Energy Programme being implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ) in Germany. The programme supports India in building up a broad-based, technically, and economically efficient, socially, and ecologically sustainable energy supply by supporting the DISCOMs. Within this project, GIZ, in collaboration with various state utilities and/or state electricity regulatory commissions (SERCs) as well as the central electricity regulatory commission (CERC), aims to explore and demonstrate the potential of Demand Response in India through the implementation of pilot measures.
India's demand for electricity is expected to double in the next 15 years. New loads in the form of cooling and electric vehicles will not only increase the demand for electricity but also increase the peak power requirements during certain hours of a day and certain days of a season. The cost of generation is also higher in the peak hours which puts an additional burden on the finances of the distribution companies. Various studies have shown that improving energy efficiency is often the most economical measure to meet demand. Hence, improving end use energy efficiency (EE) is important. Customers, if provided with appropriate incentives, can provide much needed demand side flexibility that can help in reducing the peak time demand and integrating variable renewable energy generation in electricity grids. Demand response is one of the most cost-effective system flexibilities. The reduction of peak loads has multiple benefits for distribution companies such as the reduction of need for procuring additional power generation capacity through long term power purchase agreements as well as better management of their networks.
Various state level actors like the state governments, regulatory commissions, consumers and DISCOMs have an important role to play in facilitating demand response. In India, potential of demand response is still largely untapped. Development of a favourable policy and regulatory eco-system for DR can lead to long term system benefits.
The objective of this tender is the design and implementation of at least 3 pilot measures with various categories of electricity consumers and the preparation and publication of a handbook on demand response implementation in India.