White Papers

Agricultural Demand Side Management (Ag-DSM) Program in India: Adopting Technologies to Boost Efficiencies


One of the most critical sectors in India, agriculture accounts for nearly 18% of the nation’s electricity consumption. This percentage is expected to grow due to the increase in rural electrification as well as electricity subsidies to promote the sector. Unfortunately, the major electrical equipment being used in this sector (i.e. pump sets) is typically inefficient, driving the need to bring the sector under the country's Demand Side Management program. Through Agriculture Demand Side Management (AgDSM), there is a potential savings of 25% to 30% by simply switching the existing pumps with energy efficient pumps.

While a few interventions have already been kick-started by the Bureau of Energy Efficiency (BEE), a Ministry of Power institution with the support from Energy Efficiency Services Ltd., there is still a lot more to be done to reduce the sector’s specific energy consumption. Frequent interaction between the multiple stakeholders will be required to overcome possible challenges and barriers. Adopting international best practices and financing models--crucial for uplifting the program--could be done with assistance from EU and other stakeholders. The Climate Technology Centre and Network (CTCN) initiative shall facilitate such assistance in the form of technology transfer between developed and the developing nations.