BSES Yamuna and BSES Rajdhani Power are planning to offer financial incentives to large power consumers in Delhi who cut down electricity consumption when requested.
New Delhi: Power utilities BSES Yamuna Power Ltd (BYPL) and BSES Rajdhani Power Ltd (BRPL) are planning to offer financial incentives to large power consumers in Delhi who cut down electricity consumption when requested.
The move will reduce peak power demand and reduce the utilities’ power purchase requirement.
Reliance Infrastructure Ltd-owned BSES said in a statement on Thursday that financial incentives offered to large consumers in a pilot project that ran for six weeks had helped it save 17,000 kilowatts (kw) in East and Central Delhi.
“Based on the success of the initiative, the ‘demand response (DR) program’ will be gradually rolled out across BSES areas of East, Central, South and West Delhi,” the statement said.
Power generation companies often plan fresh investments on capacity addition to meet the peak demand which exists only for a few hours in a day. This extra capacity remains idle during non-peak hours. Any reduction in peak demand could therefore save investments in power generation as well as power purchase costs of distribution firms.
BSES’ financial incentive of Re1 for every unit saved was offered to 500 of the largest consumers of BYPL having a load of over 500 kw each, said the statement.
“Peak power demand, though a short-term phenomenon, not only leads to a spike in the power purchase costs, but also increases the distribution/transmission costs. Through this initiative, the peak power demand can be reduced by shifting a part of the power load to the non-peak hours, resulting in monetary savings—a win-win situation both for the distribution company and the consumers,” said the BSES statement.
“In several parts of the world, power savings through demand response is around 5-6% of the peak demand. In the case of BSES, we are initially targeting power savings of around 2-5% of the peak demand. Through this initiative, we can target power savings between 30-75 megawatts,” the company said quoting a spokesperson.
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