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Constrained conditions of commercial energy supply and availability; widening of the gap in Demand & Supply has become a major issue. To bridge the gap, Energy efficiency and savings programmes would be better alternative as a resource over the addition of generation capacity. Energy demand in commercial Buildings, Complexes & Offices is rapidly increasing hence effective Energy Efficiency programmes need to be adopted in 'Building sector'. In India this sector has about 25% of total electricity demand.
Thermal Energy Storage (TES) technology addresses critical power demand caused by Air conditioning systems, a single largest contributor to electrical peak demand and Building's energy cost. TES technology stores "cooling" energy in thermal storage mass during off-peak hours when energy cost and demand is low and supplies it during Peak hours when energy cost and demand is high. TES is proven method of reducing peak power demand and energy conservation which leads to the conservation of conventional energy resources and reduces carbon emission for Sustainable Development. TES through Demand Side Management programmes avoids the "On Peak" energy generation, reduces additional strain on Transmission & Distribution infrastructure. TES improves system Load Factor and Diversity Factor for optimum and economic operation of power system. Potential study of peak power demand reduction, possible methods and policies of TES penetration in metro city like Mumbai are discussed in this paper. TES can be a win-win situation for owners, DISCOMs and Environment.

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