Demand Response (DR), in simple terms, refers to the ability of load to change according to the grid requirements and is not a new concept in the Indian regulatory ecosystem. DR, is a method that enables the adjustment of demand, thereby allowing customers to participate in responding to changing grid conditions. The application of DR, a proven demand management tool, can effectively help electricity distribution companies (DISCOMs) in India handle their increasing future electricity demand and operate reliably in a greener grid. This paper discusses DR’s value proposition for the distribution grid and the steps to unlocking this value.’
To sustain operations in the future and achieve the goal of affordable and reliable energy supply, DISCOMs need to think beyond EE programmes and take a proactive role in engaging with consumers. In this regard, DR presents a leapfrog opportunity for DISCOMs to adapt to the realities of a cleaner grid and high electrification of demand. In the next three years, DR needs to be integrated into the fabric of DISCOM processes, along with EE. In the future, with the proliferation of more energy-efficient and controllable loads, DR programmes need to be designed with real-time applications. The future of demand resources lies in embedding DR value within the EE programmes.
Read the report here.