Unlocking the Potential of Demand-Side Management to Double Energy Efficiency Improvements

Background

India's electricity landscape is rapidly evolving, driven by the need for sustainable and resilient power systems amidst growing demand. With the increasing penetration of renewable energy sources and the rise of electric mobility, the concept of demand flexibility has emerged as a crucial strategy for balancing supply and demand in the grid. Demand flexibility (DF) – also referred to as demand-side management (DSM) - encompasses the ability of consumers to adjust their electricity usage in response to price signals, grid conditions, or environmental factors, thus optimizing resource utilization and enhancing grid stability. Leveraging demand-side resources such as smart appliances, energy storage systems, and demand response programs can not only enhance grid reliability but also empower consumers to manage their energy consumption more intelligently.

In India, electricity generation from renewable sources is on the rise, with a target to install 500 GW of non-fossil energy capacity by 2030. It is expected that the share of variable renewable energy (solar and wind) will be 430 GW by 2030. Achieving this ambitious target requires electricity grids with sufficient flexibility to sustain the variability of renewable electricity production. DISCOMs in Indian States are increasingly recognizing demand flexibility potential, developing programs, and working with authorities to implement necessary regulatory changes. National stakeholders have previously worked on a methodology for the estimation of demand flexibility potential, demonstrating a business case and model for DISCOMs.  

The one-day closed-door partners focused discussions on the role of demand flexibility to unlock the demand side manage potential in India. The brainstorming workshop will convene stakeholders from government, industry, think tanks, and finance to explore strategies, technologies, and policies for unlocking the full potential of demand flexibility in the country's energy transition journey and contributing towards doubling energy efficiency ambition.

Objectives

• Fostering a common understanding of opportunities for demand flexibility and building consensus among partners and DSM cells toward newer frameworks.
• Forging working relationships through a community of practice between the DSM cell consultants and the partners’ community to support future collaboration and exchanges on data, tools and demand flexibility.
• Sharing opportunities and challenges on demand flexibility with BEE and EESL.
• Planning for a market-based national program on demand flexibility.