About AgDSM

Agriculture Demand Side Management (AgDSM) Programme

Agriculture constitutes around 18.5 percent of India’s total energy consumption, and its power consumption is expected to rise by an estimated 54 percent between 2015 and 2022.

Understanding India’s agriculture energy scenario

An estimated 2.1 crore agricultural pump sets are connected to power grid in India, to meet the irrigation needs of Indian farmers. Due to affordability, locally made inefficient pump sets that contribute to both energy and water wastage are being used by the Indian farmers. With access to heavily subsidized water and electricity, farmers need a viable incentive to adopt more energy efficient practices.

In response, we are implementing the world’s largest Agricultural Demand Side Management (AgDSM) programme. Under the programme, inefficient agricultural pump sets are replaced with BEE 5 star-rated energy efficient pump sets. AgDSM implantation can reduce peak demand, and, ultimately, the total energy consumption in the agriculture sector.

Our strategy

Farmers are being offered a zero-cost energy efficient pump set (EEPS), and a long-term partnership with us under the ESCO model. We facilitate the entire upfront investments, and recover the EEPS cost over a mutually agreed period of time by monetizing energy savings. We also offer free repair maintenance during the 5-year project duration, further incentivizing farmers to adopt newer, more efficient models. The EEPS are accompanied with Smart Control Panels, enabling farmers to remotely monitor and control them, and thereby achieve reduction in water and energy wastage

Roadmap and impact

We have successfully completed the first AgDSM project for 590 pump sets in Byadgi and Nippani circles under the Hubli Electricity Supply Company Limited (HESCOM), Karnataka. Further, we have replaced 1,337 pump sets in Mandya district under the Chamundeshwari Electricity Supply Corporation Limited (CESC), Karnataka.

Currently, we are undertaking replacement of 2,496 pump sets at Rajanagaram Mandal in the East Godavari district under the Eastern Power Distribution Company of AP Limited, Andhra Pradesh. We have been able to achieve over 30% energy savings. This not only resulted in reduction in State subsidy but also increased the overall efficiency of the power sector.

Replacing India’s 2.1 crore pump sets with energy efficient variants will result in:

  •  Total Energy saving potential (in crore kWh) : 430
  •  Potential saving of Subsidy (INR crore): 22750
  •  Potential GHG reduction (crore tonnes CO2): 3.48

Additionally, the Made in India pumps promote indigenous manufacturing, and job creation. Discoms benefit through the reduced peak demand, enabling them to avoid procuring marginal power for meeting agriculture demand.