Andhra Pradesh Introduces Demand Side Management Regulations To Enhance Energy Efficiency

Posted On - 7 January, 2025 • By - King Stubb & Kasiva

Introduction

The Andhra Pradesh Electricity Regulatory Commission (APERC) introduced the “Andhra Pradesh Electricity Regulatory Commission (Demand Side Management) Regulation, 2024.”[1] This regulation aims to improve energy efficiency and reduce electricity consumption within the state.  

Explanation

  • Objectives: The regulation outlines several objectives for implementing Demand Side Management (DSM) programs. These include integrating DSM into core operations of distribution licensees, controlling and reducing electricity demand, encouraging consumers to modify consumption patterns, and complementing supply-side strategies to avoid expensive capacity additions.  
  • DSM Cell: Every distribution licensee must establish a dedicated DSM Cell responsible for various tasks. These include load research, developing baseline data, formulating DSM plans, designing and developing DSM projects, seeking approvals for plans and programs, implementing programs, and any additional functions assigned by the Commission.  
  • DSM Process: The regulation outlines a specific process for DSM implementation. This includes load and market research, development of a baseline plan, formulating a DSM plan for Commission approval, preparing individual program documents for approval, and program implementation.  
  • Cost Recovery and Monitoring: The regulation establishes a mechanism for cost recovery of DSM programs. Distribution licensees can include the costs in their annual revenue requirement application. The Commission can also direct implementation of non-cost-effective programs with high societal benefits, utilizing available resources. Additionally, the regulation mandates monitoring and reporting of DSM programs by distribution licensees.  
  • Evaluation, Measurement, and Verification: A plan for evaluation, measurement, and verification (EM&V) of each DSM program is required. The Commission or a third-party agency can conduct this evaluation. Distribution licensees must provide all necessary information/data for this purpose.
  • DSM Consultation Committee: The Commission may constitute a DSM Consultation Committee (DSM-CC) to assist licensees and the Commission in driving DSM programs. This committee will comprise representatives from distribution and transmission licensees, relevant agencies, and experts.  

Conclusion

The Andhra Pradesh Electricity Regulatory Commission’s new DSM Regulation represents an important step towards promoting energy efficiency in the state. By implementing these regulations, the state aims to reduce electricity demand, control costs, and encourage sustainable practices.

[1] https://aperc.gov.in/admin/upload/gazetteregulation7of2024.pdf