Assessment of Barriers and ImplementationStrategies for DSM Programs inRestructured Indian Electricity Scenario:A Case of Rajasthan Power Sector

Abstract

India is experiencing power shortages both in terms of peaking and energy. There is acritical need for a vigorous demand side management (DSM) program to supplement capital-intensivesupply side options in bridging the demand and supply gap in the short run. Widespreadimplementation of DSM in Indian utilities is a major challenge facing both institutional andadministrative roadblocks. Government of India is making efforts through different policy measuresto encourage DSM. Despite the large energy saving potential and clear economic benefits, utilitiesare hesitating in widespread implementation of these programs. The most common barriers forimplementing DSM include non scientific tariff, lack of incentives, lack of information, and absenceof integrated planning approach, etc. Using the Rajasthan power sector as a case study, this paperidentifies and examines the major barriers through a series of in-depth interviews with the top utilityofficials of Rajasthan. Finally, the paper suggests suitable policy measures for removing thesebarriers.