Energy management consultation and training project-demand side management activities (EMCAT-DSM phase II) : final report

The DSM component is aimed at promoting investments by electricity end-users in energy efficiency technologies. The report details project efforts in four areas: standards and labeling; expansion of pilot utility DSM programs; building DSM infrastructure, including domestic energy audit training and efficient motor systems; and promoting industrial energy efficiency investments. Major conclusions and recommendations are noted below. The Faridabad energy efficiency pilot project met with tremendous success and should, if possible, be expanded within Faridabad. Due to the close proximity to Delhi, this project can continue to be used as a success story. The Tamil Nadu State Electricity Board (TNEB) has been very cooperative in establishing a DSM/energy efficiency cell. A tremendous amount of load research has been performed, the cell has USAID-donated computers to analyze the data, and the absence of other agencies and multilateral donors improves access to senior management. The full DSM program should be implemented at TNEB. Load research will help solve the price and load problems experienced by TNEB and the other State Electricity Boards (SEBs), as well as related system inefficiencies. EMCAT-DSM Phase II gave rise to the Indian labeling program. The design of the label was an unequivocal success and was accepted by the Bureau of Indian Standards (BIS). USAID should use the Energy Commercialization (ECO) project to continue this effort and also further modernize BIS energy efficiency standards. Implementing the label will be a long process that will need ample TA and continued consensus between stakeholders. At the close of EMCAT II, a certain level of inertia had been reached with the labeling program. If the differences between the ministries and business and consumer groups are not continually resolved, the project could lose its momentum. Continued support to the Ministry of Power"s fledgling Bureau for Energy Efficiency (BEE) is also necessary if successes with labeling and standards are to be continued. Assistance to multiple government agencies in promoting energy efficiency has opened up endless possibilities for support, all of which should be explored. One of the unseen roles played by USAID contractors is assisting government and non-government agencies in various secondary areas, from procuring documents when foreign exchange is a problem to downloading a document from the Internet. This role should not be ignored. Municipal pumping work began in Ahmedabad with EMCAT-DSM Phase I and the Sustainable Cities project. Unfortunately, the very successful DSM project at the private Ahmedabad Electric Company (AECo) changed dramatically during the first year of EMCAT- DSM Phase II due to a change of AECo ownership. The DSM cell is still functioning, but a full- blown energy efficiency training center as originally conceived was not in the strategic plans of the new owners. Nonetheless, this kind of work probably has the greatest potential of any energy efficiency activity. There are literally hundreds of municipalities, from the big metropolises to "small" towns of a few hundred thousand people, with extremely inefficient pumping and distribution systems. USAID should make every effort to continue this work. EMCAT-DSM Phase II worked in the area of procurement and initiated dialogue at the state level with TNEB. Future work should concentrate on one state. Changing the standard of procurement from 40W to 36W may seem a small change, but will reap a whirlwind of benefits in savings. A success would support efforts of the Indian bureaucracy to change. It is also recommended that USAID: (1) finance energy efficiency projects until a financial model is found that will break down lending institutions" misperceptions of energy efficiency projects; and (2) continue promoting energy efficiency throughout India, with emphasis on incorporating energy efficiency into the business model and the purchasing decisions of individuals.