Economic and environmental implications of demand-side management options

End-use electricity efficiency improvements offer an inexpensive way to reduce power shortages. The present study estimates the potential of demand-side management efficiency improvement targeted at (1) short-term efficiency improvement (agricultural pump rectification) that can provide immediate relief, and (2) long-term efficiency improvement (appliance standards such as AC and refrigerator, new agricultural pump purchase and pump replacement) for Gujarat state in India. The methodology includes the calculation of cost of conserved energy for each technology, which works out to be (−1.18) US$ cents/kW h for new agriculture pump sets, 1.03 US$ cents/kW h for refrigerators and 5.21 US$ cents/kW h for air conditioners. The price of power varies around 1.13 US$ cents to 12.1 cents/kW h in Gujarat. The annual energy savings from the selected energy-efficient technologies are approximately 8767 GW h over a period of 10 yr, while the estimated peak power savings are about 1814 MW, large enough to eliminate one-fourth of the stateʹs electricity shortages. Also, the estimated CO2 emissions savings are about 7715 Giga grams (Gg) from implementation of the selected energy efficiency measures over a period of 10 yr.