The growing demand for public utilities due to rising population and improved standards of living of the population has increased the energy demand for the service provided by the urban local bodies. The Municipality sector/urban local bodies (ULBs) consume electricity for various utility services like street lighting, water pumping, sewage treatment, and in various public buildings. Currently around 30% of Indian population lives in urban areas and continuous migration from rural areas is putting additional burden on the urban local bodies. 

The energy consumption of the municipality sector is characterized by frequent changes and rising peaks in power load curves in the morning hours due to water pumping and evening hours for street lighting. The inefficient use of electricity due to limited diffusion of energy efficiency technology and demand side management (DSM) initiatives, have considerably increased the energy spent of the municipalities. The Municipal Demand Side Management (MuDSM) programme can improve the overall energy efficiency of the Urban Local Bodies (ULBs) which could lead to substantial savings in the electricity consumption, thereby resulting in cost reduction/savings for the ULBs.