Overview of demand response options and regulatory initiatives from Maharashtra perspective

The Electricity Act, 2003 aims at development of efficient and competitive market. Prior to enactment of Electricity Act, 2003 supply side options were the primary considerations; while planning electricity sector, but now statutory and regulatory framework set up under provisions of Electricity Act 2003 emphasis on demand estimation and efficiency consideration while performing long term planning and mitigating short term power shortages. Merely competition at supply side may give undue advantage of exercising market power to suppliers, when most Indian states are facing supply shortages. This paper is an attempt to look at Demand response (DR) options from Maharashtra perspective, where demand has always outstripped supply availability. Past experience of Akshaya Prakash Yojana (APY) is recaptured in order to set platform for DR. Marketing DR products is crucial in states like Maharashtra which has already witnessed rolling blackouts. Also overview of Regulatory design to promote DSM in Maharashtra is presented.