Fact Sheet on Agriculture Demand Side Management (AgDSM)
 
Agriculture sector is one of the most important sector of Indian economy. Agriculture plays a significant role in the overall socio-economic development of India. There are about 20 million pump sets presently energized in India and annual addition of 0.25 to 0.5 million pump sets are realized in this sector. Agriculture sector consumes 20-22% of total electricity consumption. Managing agricultural load is increasingly becoming a challenge for electricity utility in India. Subsidized tariff generate a perception of zero marginal cost of electricity use and consequently, efficiency in consumption is disregarded.
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Upgrading of existing pumping systems presents an immediate need and an unprecedented opportunity. Implementation of this program is crucial as energy bills for agricultural pump sets are being paid by Govt. in the form of subsidy. Low or free electricity coupled with high inefficiencies contributes to adoption of local made inefficient & unreliable pump sets, results in massive water wastage & higher energy consumption. The average efficiency of existing in-efficient pump sets is in the range of 20% - 30% whereas efficiency range of new star rated Energy Efficient Pump sets (EEPS) is 40% - 50%. Therefore, there is a need to tap the huge energy savings potential promised in agriculture pumping sector

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