Airvoice Power Trading Private Limited
Inter State Trading of Electricity
Regulatory note
Demand Side Management (DSM)
Recommendation of Integrated Energy Policy for DSM








Regulatory Note

Central and State regulatory Commissions have been formed with a view to placing greater emphasis on meeting future electric needs at least cost. The Commissions would become involved in conservation also if International experience was any guide. They might reflect preference for renewable energy and emphasize ‘integrated’ or non-traditional supply options like conservation and other Demand side management (DSM), the development of technology like ‘waste to watt’ electricity generation.

Under the Electricity Act-03 Regulators have been mandated to develop energy markets. Energy efficiency initiative is the proactive approach to Market Transformation Program (MTP). The MTP focuses on longer-term strategies for delivering more resource-efficient goods and services, primarily through policy measures that drive innovation and competition. For example, policies such as energy labelling, product standards development and voluntary agreements with industry are especially powerful in influencing manufacture, design, market and produce in volume the more efficient products where needed. Indeed, with increasing globalisation, our ability to deliver more and more efficient products to the global market will depend on the ability to meet global expectations. It is necessary to initiate energy conservation measure subject to regulators oversight.

Regulatory policies determine the level of investment in energy efficiency. The policies are pushed through regulation, incentives and specific programs. Such policies are pursued for societal benefits, minimization of power shortage, reduce environment degradation and over all economic efficiency. Governments set the standards for building codes, appliances. Under Integrated Resource Planning (IRP) the utility will have many options for meeting future needs. The latest idea of conservation is an additional option. The idea is that instead of meeting future demands through building more generation –transmission-distribution, facilities can be dampened making new facilities unnecessary. One of the primary means of dampening the future demand is through energy conservation that would include better energy information dissemination on consuming equipment like energy labelling.

The strategies emerging are combination of financing energy efficient technologies and financing market development policy initiatives and detailed disclosures about energy. The regulatory strategies can be designed to increase the participation of various stakeholders, notably credit providers, equipment vendors, utilities and technological service providers etc.

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