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Energy Distribution: Analysis of Power Distribution and DSM: High Voltage Distribution System (HVDS) and Energy Efficient Agriculture Pumpsets (EEPS) in Andhra Pradesh

The research paper aims to conduct cost-benefit analysis of interventions targeting power distribution system through two interventions: (1) High Voltage Distribution System (HVDS): Conversion of low tension lines feeding agriculture consumers to HVDS; and (2) HVDS and Energy Efficient Pumpsets (EEP...

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Bibliographic Details
Published in:Policy File 2018
Main Authors: Tyagi, Bhawna, Bhatiani, Gaurav, Chowdhry, Sonali
Format: Report
Language:English
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Summary:The research paper aims to conduct cost-benefit analysis of interventions targeting power distribution system through two interventions: (1) High Voltage Distribution System (HVDS): Conversion of low tension lines feeding agriculture consumers to HVDS; and (2) HVDS and Energy Efficient Pumpsets (EEPS): Intervention 1 plus replacement of inefficient pumpsets with efficient ones. The first intervention focuses on improving power distribution and reducing losses.Second intervention on the other hand focuses on demand side management in the agriculture sector along with improvement in distribution. Our analysis suggests that upgrading the distribution system to HVDS will have net benefit of INR 12,881 crore (at 5 per cent discount rate) with a BCR of 2.80. Second intervention i.e. HVDS combined with EEPS have net benefits of INR 29,130 crore (at 5 per cent discount rate) with a BCR of 3.06. Thus, both interventions were economically viable but higher benefits are observed in the latter case.