Load shedding is usually maximum in the evening, when the needs for lighting result in a sharp increase in power demand. In several states as much as a third to quarter of rural consumers are denied supply during this time. Addition of generation plants and strengthening supply lines to supply one lamp of 60W involves an up-front investment of Rs. 4000.

On the contrary, if one house uses an efficient lamp of 15W (that gives the same light as the standard 60W incandescent bulb) it can make sufficient power available to light three other houses, provided they are also using efficient lamps. The total up-front investment for the four efficient lamps is less than Rs. 1000. This is less than one tenth of the investment needed to increase supply for three 60W lamps! Hence, large-scale efficiency improvement at the house level is a fascinating way to reduce load shedding, especially where capital is scarce.

Efficiency improvement also creates more employment than increasing supply and hence is socially more beneficial. One efficient lamp in place of a standard bulb avoids burning of half a ton of coal, and creation of 150 kg of Ash! Hence such measures are a win-win situation for society, consumers and the utility in terms of energy consumption, money and expenses for energy infrastructure. From an environmental point of view energy efficiency reduces harmful impacts, such as water and air pollution from power plants, and mitigates greenhouse gas emissions.

Q. Who are the critical actors for removing the barriers to promoting and implementing effective DSM?

There is a large and cost-effective potential for energy efficiency. The government has also set and impressive target for saving energy through efficiency improvements and provided strong legal support for this purpose. But, unfortunately, little progress is seen in terms of actualization of this potential.

After much debate researchers have narrowed down to the following six sets of Actors as being absolutely critical to enhancing energy efficiency. a) Energy Consumers, b) Manufacturers and Providers of end-use equipment, c) Producers and distributors of energy carriers, d) Actual and potential co-generators, e) Local and National financial institutions f)Government, g) International Organizations and Funding Agencies.

These actors must work in tandem with one another to achieve a 100% result because any one of them or a couple may not be effective in achieving the end result of improving Energy Efficiency.

Q. How the approach of DSM does vary in context of an industrial sector?

DSM can be implemented in domestic as well as industrial sector. However, there are many differences in their approaches. At an individual level, DSM gives an incentive of lowering down the expenditure on purchasing power. But for an industry, the scale goes much higher. For companies, increased efficiency generally means improved profitability. As firms expand beyond their border to compete in world markets, factors such as production costs, product quality and price become increasingly important. Under these conditions of increased competition, efficiency improvements are an important key to long term competitiveness. They lower down the amount of resources required, hence reducing the cost of production. Apart from these, the company gets an opportunity to earn carbon credits through Clean Development Mechanism under the Kyoto Protocol, which raises their profits along with getting the status of being environmentally concerned. Thus, implementing DSM through energy efficiency measures in industries can prove to be highly beneficial.