SARABJOT SINGH SAINI

Capacity Building Workshop for Energy Professionals12th September 2014

Energy Efficiency Programs & Schemes by Bureau of Energy Efficiency

EE Initiatives in Industry, Buildings and Appliances 2

1 Legislative and Institutional Framework on Energy Efficiency

3 Demand Side Mansgment Programs in other sectors

Contents

National Mission for Enhanced Energy Efficiency (NMEEE) 4

Conclusions 6

5 Voluntary Initiatives to promote Energy Efficiency

Legislative and Institutional Framework

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Energy Efficiency in India

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INTRODUCTION

India has made rapid strides towards economic self-reliance over the last few decades.

Impressive progress has been made in all sectors of economy necessitating growing consumption of energy

Conventional source of energy such as coal, oil and gas are scarce and exhaustible.

Consumption of fossil fuel resources also leads to Global warming and climate change

Hence, all initiatives needs to be undertaken to ensure the efficient use of the available energy resources to manage energy supply and minimize the impact of energy use on environment. 

This has led the Government of India through the Energy Conservation Act and the Bureau of Energy Efficiency to launch several energy efficiency improvement initiatives.

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EC Act enacted in October 2001 Became effective from 1st March 2002 Bureau of Energy Efficiency (BEE) operationalized

from 1st March 2002 and State Designated Agencies established in 32 States/Union Territories

Strategic framework for the formulation and development of energy conservation policies

Balance between regulatory enforcement& voluntary participation and between market driven methods & governmental mandates

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THE ENERGY CONSERVATION ACT

THE ENERGY CONSERVATION ACT

The five major provisions of EC Act relate to: Designated Consumers (mainly energy intensive industries and

buildings) to comply with the specific energy consumption norms for the manufactured products and services and establishment of energy management system,

Standards and Labeling of energy consuming appliances, gadgets and equipment to ensure promotion of energy efficiency of the new stocks entering the market

Energy Conservation Building Code ensuring that new commercial buildings constructed in the country have less electricity consumption 

Creation of Institutional Set up (Bureau of Energy Efficiency at the Federal level and State Designated Agencies at the State level) for effective coordination of the energy conservation efforts in the country and  

Establishment of Energy Conservation Fund at Centre and States to provide necessary financial support for energy efficiency initiatives in the country. 6

Programs & Schemes

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The important programs & initiatives •Standard & Labeling (S &L)•Energy Conservation Building Codes (ECBC)•Bachat Lamp Yojana (BLY) •Strengthening of State Designated Agencies (SDA)•Designated Consumers and Small & Medium Enterprises •Agriculture DSM & Municipal DSM•Energy Manager & Auditor’s Examinations •National Energy Conservation Awards (NECA)•National Mission on Enhanced Energy Efficiency (NMEEE)

Perform Achieve and Trade (PAT) Market Transformation for Energy Efficiency (MTEE) Energy Efficiency Financing Platform (EEFP) Framework for Energy Efficient Economic Development (FEEED)

Energy Efficiency Initiatives

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Industry, Buildings and Appliances

2

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Energy Manager Certification and Energy Audits

9 energy intensive industry including Railways have been notified as designated consumers

14 National Certification examinations have certified about 10,500 Certified Energy Managers, out of which 7300 are also qualified as Certified Energy Auditors

Baseline energy audits studies carried out in about 500 units of 8 energy intensive industry and thermal power units.

Guide Books on EE and Energy Audit Manuals prepared

Standards and labeling

18 Equipment and Appliances covered under S&L

Programme

All the refrigerators (frost free), air conditioners,

distribution transformers and fluorescent tube lights

that are sold in India must have a BEE Star label

India became the first country in the world to

comprehensively regulate the performance, safety,

and quality of light-emitting diodes (LEDs).

Corporate average fuel consumption norms for

passenger cars in place

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Commercial Buildings Floor Area - Growth Forecast Currently, ~ 659 million m2 In 2030,~ 1,900 million m2 (estimated)*

66% building stock is yet to be constructed

659 million

m2

Current34%

Yet to be Built66%

1,900 mil-lion m2

Year: 2010

* Assuming 5-6% Annual Growth Year :2030

Growth in the Indian Building Sector

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12

Energy Conservation Building Code

ECBC covering five climatic zones of India (Hot & Dry, Warm & Humid, Composite, Temperate and Cold) prepared

ECBC set minimum energy efficiency standards for design and construction

Mandatory Scope Covers commercial buildings

• Survey indicates about over 700 ECBC-compliant buildings are at various stages of construction (2012-13)

Star labeling programme (Voluntary) for day use office buildings, BPOs and Shopping Malls developed. So far, 150 buildings have been rated under various categories.

Demand Side Management Programs

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Agriculture, Municipal, Domestic & SME sectors

3

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Objective :- To create framework for market based transformation in agriculture pumping sector by launching few pilot projects and introducing policy based interventions.

Major Activities

Activity 1: Establishing baseline and estimation of energy savingActivity 2: Preparing bankable DPRs in selected agriculturally intensive statesActivity 3: Capacity building of stakeholdersActivity 4: Facilitate implementation of AgDSM pilot projects. Achievements:

11 DPRs prepared covering 20,750 pumpsets. Average 40% (96 MU/year) energy saving potential assessed in 8 states.

Three business models developed viz. ESCO, Hybrid & DISCOM.

One pilot project in Solapur, Maharashtra implemented. Annual Savings of 6.1 MU achieved by replacing 2209 inefficient pumps with BEE Star rated pumps.

Capacity building and awareness workshops held in 7 States for DISCOM officials and 26 open house sessions for farmers organized.

Punjab & Haryana mandated the use of BEE star rated pumpsets for every new agricultural connection.

Verified saving of 0.7 MW achieved in XI Plan (verified by NPC).

Agriculture DSM

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Agriculture DSM – Pilot project

Pilot Project on PPP mode is implemented in Maharashtra (Sholapur Circle).

Initial capital investment by ESCO ESCO would get 20% of the

capital in 5 yearly installments plus 30% of the energy savings.

70% energy savings to DISCOMs Total 2209 pumpsets replaced

with EEPS. Monitoring & Verification

protocol established for accounting energy savings.

Savings of 25% achieved - Annual Energy Saving of 6.1 MU.

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Municipal DSM

• Situational survey conducted in 175 ULBs.• Bankable DPRs was developed for all 134 ULBs.• Estimated saving Potential is more than 120 MW.• Created MuDSM web portal for project management. • Developed three business models – ESCO, ULB & Hybrid mode• ULB level Energy Efficiency Cell has been created in 143 ULB

dedicatedly for MuDSM.• Customize tender documents provided to 134 ULB for

implementation.• Meerut Municipal Corporation has implemented a demo project for

the vertical turbine pump in which 25% of saving was monitored.• Situational survey for water bodies of 105 cities covering 2430

pumping stations.

State No. of DPRsAndhra Pradesh 10Assam 8Bihar 9Chhattisgarh 4Haryana 11Himachal Pradesh 8Kerala 9UT 7Madhya Pradesh 13Maharashtra 9Orissa 7Punjab 7Rajasthan 8Uttar Pradesh 11West Bengal 13

DPRs Details – XI Plan

Bachat Lamp Yojana (BLY) (Energy Saving Lamp Scheme)

– The CDM based BLY program was initiated in 2008. Around 30 Million CFLs distributed in 44 CPAs.

– Total sales of CFLs have increased to 340 million (in 2011) from 180 million (in 2008) when the Bachat Lamp Yojana (BLY) was conceptualized.

– The doubling of CFL market, even though BLY has contributed to only about 15% of the increase, suggests that the market transformation under BLY has occurred.

– An avoided generation capacity of 415 MW has been achieved by the BLY scheme during XI Plan.

– The BLY scheme was designed to be viable when the price of CERs was Euro 8 or more, whereas current price is Euro 0.6; scheme is no longer viable and no new projects are being submitted. However, the approved projects under BLY scheme will continue.

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Bachat Lamp Yojana (BLY)

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Energy Efficiency in SMEs

MSME Sector Contribution to Indian Economy

• 45% of Industrial Production

• 35% share in exports

• >8000 Products

Second largest sector after agriculture

• >26 million units

• Provides employment to >59 millions

Accelerates the growth of Economy

• MSME growth higher than GDP & Industrial growth

Energy Consumption was 50.5 Mtoe in 2012

• Energy saving potential of 15%

• Expected growth rate is > 6%

Very small in size (majority are MSME units)

Majority of units are proprietorship / family owned concern

Very limited professional management

Obsolete technology/ production process

Low capital investment & labour intensive

High energy consumption in many sectors

Lack of Knowledge about energy efficient production options / technology

• Situation analysis completed in selected 35 SME clusters. • Comprehensive energy audit and technology gap assessment completed in 1250 SME Units

belonging to 25 SMEs clusters. • 375 DPRs on energy efficient technologies prepared and peer-reviewed. • Cluster specific manuals on energy conservation prepared for 25 clusters• Energy saving potential of 0.66 MTOE in 25 SMEs clusters which is 15% of the total energy

consumption in these clusters.

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Capacity Building of DISCOMs

Objective:

• Capacity Building of DISCOMs on DSM and EE• Development of various mechanisms to promote DSM

Outcomes:

• Establishment of DSM Cell by each DISCOM• Engagement of dedicated staffs (2)• Approved DSM regulation(Recovery of cost through ARR)• DSM Action Plan with MYT (Multi year tariff system)• Implementation of DSM programs• Monitoring and Verification• Reporting to SERC

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Capacity Building of DISCOMs

Selection of 30 DISCOMs based on the criteria developed by BEE.

Signing of Memorandum of Understanding (MoU) with selected 30 DISCOMs.

Training of Trainers (ToT) – Creation of Master Trainers on DSM.

Providing financial/technical support to DISCOMs for organizing Capacity Building Workshops.

Providing Manpower (2 consultants) support to the DISCOMs for 3 years.

Consultancy Support to DISCOMs for load surveys and preparation of DSM Action Plans.

Major Activities Covered under the Programme…

Other EE Initiatives

Strengthening of State Designated Agencies– 32 States have designated SDAs (State

Designated Agencies) to implement energy efficiency in their respective States

– 33 demonstration projects in the area of street lights and water pumping system have been implemented

– LED village campaign implemented in 24 States

– Investment Grade Energy Audit (IGEA) conducted in 491 public buildings across India.

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National Mission for Enhanced Energy Efficiency

(NMEEE)

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4

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

• The National Action Plan on Climate Change was released by Prime Minister of India in June 2008

• The Action Plan Outlines 8 Missions including National Mission for Enhanced Energy Efficiency (NMEEE)

• The basic objective of the NMEEE mission is to ensure a sustainable growth by an approximate mix of 4 E’s, namely-Energy, Efficiency, Equity and Environment and unlock energy efficiency opportunities through market based mechanisms.

• Market-based approaches to unlock energy efficiency opportunities, estimated to be about Rs. 74,000 Crores

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National Action Plan on Climate Change

Fiscal Instrument for EE

Partial Risk Guarantee Fund (PRGF)Venture Capital Fund (VCF)

Public Procurement

Stimulate Funding for ESCOs

Energy Efficient AppliancesBLYSEEPDSM

Energy Intensive Industries

Targets for Mandatory Energy Saving

PAT EEFP

FEEEDMTEE

NMEEE – Four New Initiatives

NMEEE

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Framework for Energy Efficient Economic Development (FEEED)

Fiscal instruments to facilitate energy efficiency projects implementation have been developed:

PRGFEE: Debt guarantee to Financial Institutions for ESCO (Energy Service Companies) investments (upto Rs. 3.0 Crores or 50% of loan, whichever is less)

VCFEE: Equity investments in ESCO projects (upto Rs 2.0 crores or 15% of equity, whichever is less)

Public Procurement: Public procurement of energy efficient appliances in the Public sector has been initiated. This is expected to save 250 MW of Power . Initially the appliances which have been considered for public procurement include Split air conditioners (usage more than 1000 hrs/year), ceiling fans & water heaters (all 5 Stars) and frost free refrigerators ( 4 Stars) 27

Voluntary Initiatives to promote Energy Efficiency

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5

Motivated industry and other establishment to adopt energy efficiency measures

Scheme has become very popular among industries and buildings, as is evident from increasing participation level (829 nominations in 2013 in comparison to 123 nominations in 1999)

National Energy Conservation Awards

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ENCOURAGING RESPONSE FROM INDIAN INDUSTRY AND OTHER ESTABLISMENTS IN THE NATIONAL ENERGY CONSERVATION AWARD SCHEME (1999-2013)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

800

900

123 120157

174191

297

343

388 384 368

558592

644

773

829

Year

No

. of

Pa

rtic

ipa

tin

g U

nit

s

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INCREASE IN THE EQUIVALENT AVOIDED CAPACITY PER YEAR BY THE PARTICIPATING UNITS (1999-2013)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

800

45

100 90

122103

155

252 245

308325

358.710923779417357

504

616

711

Year

Eq

uiv

alen

t av

oid

ed c

apac

ity

in M

W

31

MONETARY SAVING ACHIEVED PER YEAR BY PARTICIPATING UNITS IN THE NATIONAL ENERGY CONSERVATION AWARD SCHEME (1999-2013)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

3000

3500

4000

4500

205

366

587 594539

763993

1135

1843 1859

23772138

2390

2886

4141

Year

An

nu

al S

avin

gs

in R

s. C

rore

s

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Painting Competition on Energy Conservation for School Students

The scheme aims at sensitizing the children towards issues of energy conservation

Ministry of Power and Bureau of Energy Efficiency have been organizing painting competitions on energy conservation for the last 9 years for school students at School, State and National levels.

The scheme is being executed in all the 28 States and 7 UTs of India

In the year 2013, more than 4,500,000 students participated in comparison to about 343,000 students in 2005.

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National Painting Competition Prize Distribution Function 2013

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Hon’ble President, Shri Pranab Mukherjee presented the National Painting Competition Prizes, at the National Energy Conservation Awards function, in New Delhi on December 16, 2013. The Minister of State (Independent Charge) for Power, Shri Jyotiraditya Madhavrao Scindia is also seen.

Painting Competition on Energy Conservation

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K R Roshni, Standard V, Tamil Nadu (India)

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Painting Competition on Energy Conservation

ISO 50001 Energy Management System More than 200 industrial units have declared their

energy policy . PAT mechanism has all factors which are part of EnMS Relatively easier for Indian industry and buildings to

adopt EnMs standard and achieve and sustain higher levels of energy efficiency

Around 60 establishments including buildings and industry in India have been certified for ISO 50001 EnMS

The Delhi International Airport Limited (DIAL) became the first airport operator and Dahanu Thermal Power Station, Maharashtra (India) became the first Thermal Power Station in the world to receive this certification after its publication in mid 2011.

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Conclusions

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6

Impact of Energy Efficiency Initiatives

Standards and Labelling of equipment and appliances programme has created a market transformation

Energy saving targets have been fixed for 8 sectors of energy intensive industry- 6.686 million ton of oil equivalent by 2014-15

The PAT scheme is a unique and innovative initiative, perhaps with no precedence anywhere else in the world.

PAT would become a valuable model for other countries to adopt for their own energy efficiency programmes with a business perspective.

Various activities under different initiatives have resulted in savings in avoided power generation capacity of about 10,836 MW during 11th Five Year Plan (2007-2012).

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12th Plan(2012-17): Projected Energy Savings

The strategies adopted during the 11th Five Year Plan (2007-12) have showed encouraging outcomes.

12th Plan (2012-17) will carry forward the existing schemes as well as further strengthen the EE initiatives to accelerate the process of implementation of energy efficiency measures to achieve the desired energy savings.

Projected Savings in Billion kWh (BU): 44.85 BU (consumer end) 60.17 BU (at generating side) Additional thermal energy saving equivalent to 21.30

million ton of oil equivalent energy is expected to be achieved by 2016-17

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