AGRICULTURE
DEMAND SIDE MANAGEMENT (AgDSM)
In
Energy Sector and Power sector, Agricultural Demand-side Management (AgDSM)
consists of those activities, methodologies, awareness, policy and technologies
that influence consumer (farmers) behavior and Changes their (farmers)
consumption patterns. The objective of the AgDSM programme is to reduce peak
demand, shift the time during which electricity is consumed to off-peak hours
and to reduce the total quantum of consumption. The AgDSM proposition is very
simple i.e. replacement of inefficient agricultural pump sets with BEE star
rated and high efficiency pump sets to reduce the amount of electricity needed
to pump water in agriculture sector. By doing so, electricity usage can be
reduced. If the savings from the reduction in electricity usage can be sustained
and the total cost of the electricity saved exceeds the total installed cost of
the pump sets over its useful life, there will be a net economic gain. The
electricity consumption in the agricultural sector has rapidly increased over
the years. It has increased from around 10% of the total electricity consumption
in 1970 to around 18% of the total electricity consumption in 2011-12. The rapid
increase in electricity consumption of the agricultural sector is attributed to
growth of rural electrification coupled with policy of below cost electricity
supply to farmers. However, from a revenue perspective, the electricity sales to
this sector amounts to no more than 5-10% of the state electricity board’s
revenues. The reason for this perverse state of financial affairs is the
adoption of flat rate pricing for agricultural power.
Framework
of AgDSM
Under
the system, when a farmer pays a fixed price per horse power per month for
electricity, or what is termed as a flat-rate system, the marginal cost of
pumping water is zero. This leads to energy wastages, over pumping and
inefficient selection of pump. The fact that electricity prices for agriculture
are low or non-existent, there is a complete absence of incentives for farmers
to invest in the efficiency. The burden of paying for sub-optimal agricultural
energy pricing rests with the state government. The subsidy bill is already a
significant proportion of the state GDP and therefore, there is a strong
incentive for the state to facilitate investment in efficient agricultural pump
sets and reduce consumption.
First
AgDSM Project
First AgDSM Project in India
Bureau of Energy Efficiency (BEE) has facilitated and initiated the
implementation of first Ag DSM pilot project in Solapur circle of Maharashtra
where 2209 old inefficient pump were replaced with star rated Energy Efficient
Pump sets (EEPS) and provided free operation and maintenance for installed pump
sets till project duration. The intervention would lead to lower energy supply
on the feeder, and hence, could result in lower subsidy to be paid by the State
Government. In order to accelerate and implementation of BEE AgDSM scheme,
Energy Efficiency Services Limited (EESL) had taken a step forward for
implementation of AgDSM project in all over India. EESL has conducted the survey
& study for implementation of AgDSM. Replacement of old in-efficient 590
nos. of agriculture pumps with new star rated energy efficient pumps in phase
one in Nippani and Byadgi circles of HSECOM, has been completed successfully.
Energy savings of 37% has been achieved in the 590 nos. of pump sets
replaced.
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