International Best Practices

Demand side management is one of the most sought out strategies around the globe for resolving issues related to energy efficiency. More than 30 countries have adopted DSM measures to overcome the obstacles standing in the way of rational energy utilization. Different countries have used DSM as a tool to facilitate various options for reduced energy consumption in both subsidized and non-subsidized sectors. Other applications include peak-load reduction, improved economy and reliability in power network operation, controlled tariff escalation, reduction in the need for new power plants, lower customer electric expenses, saving of energy resources, and improved environmental quality. Specific DSM applications differ in each country depending on the Programme drivers and existing local conditions.

This portal covers the experience of implementing DSM Programmes from Asia, North and South America, Europe, Africa and the pacific island countries. The DSM initiatives undertaken worldwide can be broadly classified under the following sectors: Residential, Municipal, Commercial, Agriculture and Industrial.

Key lessons from the international experience of DSM Programmes
The analyses by DSM experts and various organizations worldwide promoting energy efficiency indicate that the bilateral and multilateral agencies (WB, ADB, USAID, IFC, GEF) are the initiators and / or financiers of the DSM initiatives undertaken for the developing countries. Only in case of the DSM Programmes implemented in the United States, the initiation is by the utilities themselves without the assistance of other technical/financial agencies. In most of the DSM Programmes the drivers are contribution to the system load, potential to reduce peak demand ensuring cost-effectiveness.

The analysis by IEA of more than 250 DSM Programmes implemented in about 14 countries has indicated that the majority of the DSM Programmes are targeted towards residential, commercial and industrial consumers. A very less percentage of the DSM Programmes are targeted towards municipal and agriculture sectors. Also most of the DSM Programmes have been implemented by the electric utilities. Rebates and cash awards were the commonly adopted marketing strategies by the utilities or the multilateral financing agencies.

INDIAN PARTICIPATION IN IEA DSM

The Government of India (GoI) signed the ‘Implementing Agreement’ of IEA DSM Programme in January 2007. By signing the Agreement, India became the eighteenth participant of the IEA Demand-Side Management (DSM) Programme, which is one of the collaboration programmes of IEA.

The Bureau of Energy Efficiency (BEE) has been nominated to represent the GoI on the DSM programme of the IEA and is therefore responsible for the execution of all activities associated with the said programme. Out of XX Tasks initiated as a part of the DSM Programme, India has decided to participate in the following tasks presented in Table 1.1: