Energy Efficiency Initiatives in India

Sanjay Seth
Energy Economist
Bureau of Energy Efficiency
Ministry of Power
Government of India

Energy Efficiency the Indian

experience
Energy efficiency makes economic sense and is
happening
Yet, there are unexploited opportunities due to
market failures
Public policy aims to address these market failures
through:
Information on energy performance
Standards
Promoting demand side management and performance
contracting
Market-based mechanisms

International cooperation can accelerate the

introduction and early adoption of energy-efficient
technologies
Public policy nudges have led to real and verified
savings
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Energy Intensity continues to decline

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Largely because energy is costly

Scope for further

increases in energy
prices are negligible

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Future Energy Use in India

Energy demand is increasing due to rising incomes,

accelerated industrialization, urbanization and
population growth

2003-04

572

Mtoe

2016-17

842-916

Mtoe

2026-27

1406-1561 Mtoe

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Regulatory Framework for energy

efficiency in India
Energy Conservation Act, 2001
Created Bureau of Energy Efficiency
Appliance standards and labeling
Energy consumption norms, and energy-use reporting
requirements for energy-intensive industrial units
Energy Conservation Building Code for commercial
buildings
Certified Energy Managers and auditors

National Action Plan for Climate Change, 2008

National Mission on Enhanced Energy Efficiency
provides mandate for market-based mechanisms to
promote energy efficiency
National Mission on Sustainable Habitat seeks to
incorporate energy-efficiency requirements in building
byelaws
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Technological change is the key

Installation of energy-efficient infrastructure,

equipment and appliances is essential for
Meeting energy demand
Managing energy security, and
Meeting climate goals

Technological transitions both deployment and

development - are important in

Power generation
Buildings, especially commercial buildings
Equipment and appliances
Industry
Mobility

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Information helps consumer decisions

STAR RATING FOR

BUILDINGS

Energy Performance Index:

kWh/ sq m/ year

Name of the Building

Category of Building
Type
Climatic Zone
Connected Load
Build up Area

:
:
:
:
:
:

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Labels built up as a brand

Voluntary labels for refrigerators and airconditioners

introduced in December 2006
Aggressive advertising and outreach promoted labels
as a brand of superior products manufacturers
piggybacked on label advertising
In 2008-09, 75% of refrigerators, and 50% of air
conditioners sold in the market were labeled
showing consumer preference and market
transformation

Labeling became mandatory for four products (where

market transformation is well under way) from 7th
January, 2010
Voluntary labels in place for eight other appliances
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In industry, new plant is amongst most

energy efficient in the world but there
is large bandwidth of energy efficiency
16
14

No. of Industries

Number of Units

2005-06

12
10
8
6
4

4
3
2
1

2
0

0
550-600

600-650

650-700

700-750

750-800

800-850

850-900

900-950

3.0 - 5.5

5.5 - 8.0

8.0 - 10.5

Therm al Specific Energy consum ption, Kcal/kg-clinker

GCal/ton of paper

A wide bandwidth of energy efficiencies

occurs in almost all industry sectors
This creates a differentiated potential for
energy savings
Trading of savings allows maximum costeffective savings as plants with low-cost
savings exceed their mandated
savings for trading them with other plants
which are unable to meet their targets
Perform, Achieve & Trade mechanism
introduced for 580 industrial units which
have to meet SEC reduction targets

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Perform, Achieve and Trade (PAT)

The units covered by the programme consume about 200

million toe annually, of the total of 400 million toe of
commercial fuels consumed annually in India
The goal is that the gate-to-gate specific energy
consumption of these units, collectively, is about 5% less
in 2013-14 than it was in 2008-09
Each sector is subdivided into a number of clusters based
on input and output differences, and on the basis of
statistically significant differences in their SECs
The allocation of SEC reduction targets within a cluster is
based on the relative SECs of units less efficient units
have larger SEC %-reduction targets so that the collective
SEC reduction in a cluster is 5%

ESCerts (and penalties) would be based on the achieved

SEC and the target SEC, and will be computed on the
basis of the baseline-year production
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Certification of Energy Managers and Energy

Auditors

National exam to certify energy managers and energy

auditors
Candidates who qualify in three base papers are certified as
energy managers
Energy Auditors have to qualify in an additional paper

Exam conducted by National Productivity Council

Ten national exams have been conducted
Over 15,000 candidates have appeared
About 7,000 have qualified as energy managers; about 5,000
are also energy auditors

EC Act mandates roles

Each designated consumer has to employ an energy manager
Periodic energy audits of DCs have to be carried out by
energy auditors
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Energy Conservation Building Code

ECBC covering the following components prepared:

Building Envelope (Walls, Roofs, Windows)
Lighting (Indoor and Outdoor)
Heating Ventilation and Air Conditioning (HVAC) System
Solar Hot Water Heating

Electrical Systems

Voluntary introduction of ECBC in May 2007; mandatory

after capacity building and implementation experience
Easy to use guides, tip sheets launched

Panel of architects prepared to help dissemination of ECBC

Curriculum enhancement in architectural institutions
Government agencies
implementation

taking

the

lead

in

ECBC
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Enhancing Energy Efficiency of

Existing Buildings
Program for energy audit and retrofit in central
government and state government buildings

8 building retrofits completed; 6 buildings used ESCOs

to carry out retrofits through performance contracting
Experience used to develop model agreements for
ESCOs
Over 500 buildings now being targeted for upgrades
through ESCOs

ESCOs promoted through model contracts,

accreditation, ratings, and financing
Identification, accreditation and rating of ESCOs
Project-based financing of accredited and rated ESCOs
Also being promoted for:
Municipal lighting and water pumping
Agricultural pumpsets
Supporting initiatives by electricity distribution
companies
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22

Bachat Lamp Yojna

(Lamp Savings Project)

Of the approximately 1 billion light points in India, about

600 million use CFLs
CFL penetration in commercial sector is almost complete
but low in household sector
Bachat Lamp Yojana facilitates firms in providing CFLs to
households at the price of incandescent bulbs
The difference in cost would be recovered through the
carbon credits that accrue because of their lower energy use
- CDM Programme of Activities has been registered to enable
quick registration of many small projects

About 300 to 400 million lamp replacements are targeted

- Approximately 20 million have already been replaced since
October 2010
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Verified energy efficiency gains 11th Plan

Fuel
Savings
million toe

Avoided
Generation
Capacity
MW

2007-08

2.86

623

2008-09

4.98

1504

2009-10

3.96

2868

2010-11

4.44

2882

2011-12

4.207

2959

59.21*

10,836

(upto Dec 2012 )

Total

* Compounded cumulative fuel savings

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Both supply push and demand pull are

necessary

Coal-based generation
Minimum efficiency requirements for new plant
Tariff-based bidding to sell electricity

Commercial buildings
Energy conservation building code
Retrofits by ESCO-driven performance contracting
Energy performance labeling

Industry
Energy consumption norms in industry
Market mechanisms to promote energy efficiency in industry

Equipment and appliances

Minimum energy performance standards
Energy performance labeling
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International Cooperation can accelerate

introduction of energy-efficient technologies
Rapid development and adoption of much-more energy
efficient technologies is often constrained by:
Costs that are higher than those which a large number of
consumers are able and willing to pay
High risk perception regarding performance of new
technologies
Lack of large markets that incentivize manufacturers to
bring super-efficient products early into the market

Global cooperation especially on appliances/devices

amenable to global standards can help in aggregating
demand and finalizing specs
SEAD (Super-efficient Appliance Deployment) initiative is a
good first step in this direction
LED standards have been finalized
TV standards are in the process of being finalized
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International Cooperation has been central

to our efforts
Programme design has been influenced by, and has
drawn on:
Energy Conservation Law of Japan, and the Japanese
energy manager and top-runner approaches
Building energy efficiency programme of the US
Appliance standards and labeling programmes of the EU
and US
DSM programmes in EU and France
Institutional outreach for energy efficiency technology
dissemination in Germany

Several national experts (from Germany, France and

Japan) have been located in BEE to support programme
design
International study tours build capacity of public sector
officials and private-sector experts
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Public policy nudges are important to

enhance the rapid adoption of cost-effective
technologies
Energy efficiency makes sense in most instances,
people and firms make energy-efficient choices; yet
instances of non energy-efficient investments which
are of economic disbenefit - continue to abound
Lack of information, risk aversion, and high discount
rates seem to be drivers of these (irrational) decisions
Public policy nudges help create and strengthen
markets for energy savings which are sustainable

Voluntary programmes a good way to find out if people

will respond; this also helps fine-tune them
Branding has turned out to be a very effective tool
Market creation incentivizes early introduction of
energy-efficient technologies
In retrospect, perseverance, consultation, impact
assessment and course-correction have been of most
importance
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www.bee-india.nic.in

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