ENERGY CONSERVATION
AND EFFICIENCY
DSM Initiatives in India
Secretary
BUREAU OF ENERGY EFFICIENCY
NEW DELHI
(Ministry of Power)
10th September 2007
Energy Conservation and Efficiency
Strategy / Line of Action Issues to be addressed
Barriers for EE & DSM to be
removed.
The State Regulatory
Energy Efficiency and Demand Commissions and Utilities to be
Side Management relevant for encouraged to implement the
- Avoiding fresh generating Conservation initiatives
Energy capacity Engagement of Stakeholders
Conservation
potential assessed - 20,00 - Flatten the load curve Industrial and Commercial users
as at present 0MW - Savings of energy and cost - Time of use tariff for industrial
and commercial users.
Potential harnessed :
Measures initiated : - Incentives to industry to adopt
- During Xth Plan - 877 * - CFL programmes in States conservation/ efficiency
period MW
- Standards and Labeling measures
- Target for XIth - 10,00 program. States
Plan period 0 MW - Energy Efficiency programmes - Encourage implementation of
in existing buildings DSM programmes in Agriculture/
* as indicated by participating - Energy Conservation Building Municipalities
units in the National Energy Codes (ECBC)
Conservation award scheme,
for the previous five years. - Capacity building of SDAs Domestic consumers
- Demand Side Management in - Ensuring availability at low cost
Agriculture and promoting use of low cost
- Designated Consumers and CFLs.
implementation of EC Act - Awareness
THE ENERGY CONSERVATION ACT 2001
Energy Conservation Act, enacted in October 2001. BEE created as the
nodal statutory body to improve energy efficiency through:
• Standards and labeling for appliances
• Energy Conservation Building Codes
• Energy consumption norms for Designated Consumers
• Certification and accreditation of energy auditors and energy
managers
• Dissemination of information and best practices
• Capacity Building
• Establish EE delivery systems through Public-Private Partnerships
The Act creates the Bureau of Energy Efficiency (BEE) in the centre,
and State Designated Agencies (SDAs) in the states
30 states have created SDAs
Energy use transitions hold key to
future trajectory
• Household energy mix is rapidly moving from
inefficiently-utilized biomass to gas and
electricity
• Commercial space is increasing; and energy use
is commercial space is increasing at a faster
pace
• Industrial energy intensity is declining, but there
is a wide bandwidth of specific energy
consumption within industrial sectors
Electricity Use in the Commercial
Sector is increasing
Energy Intensity in Cement
Sector
Demand Side Management (DSM)
CMs conference chaired by Hon’ble PM in
May 2007 agreed on the following action
points on DSM:
•Bulk procurement and distribution of CFLs,
•Adoption of Energy Conservation Building
Code (ECBC),
•Promoting and mandating the use of energy
efficient pumps and other energy efficient
and appliances.
Integrated Energy Policy estimates a saving of about 15% by
effective implementation of DSM measures
Barriers to Energy Efficiency
• Lack of proliferation of DSM projects and
concepts
• Lack of information about comparative
energy use – especially of appliances
bought by retail consumers
• Perceived risk due to lack of confidence in
performance of new technologies – in
appliances, building design, industrial
technologies
• Higher cost of energy-efficient technologies
• Asymmetry in sharing of costs and
benefits – especially in the buildings sector
Key regulatory interventions
• Provide energy use information
– Labeling of appliances
– Energy use information by units within
industrial sectors
• Reduce perceived risk
– Bulk procurement
– Utility-driven Demand Side Management
– Performance guarantee contracting, through
ESCOs
• Mandate standards
– Building Codes
– Sectoral energy consumption norms in industry
CDM Based CFL Scheme
Scheme announced by MOP- EFC memo circulated- seeks to
replace estimated 400 million incandescent bulbs by CFLs- could
save 6000 MW to 10,000 MW
BEE to prepare a Programme of Activities (PoA) as a voluntary
coordinated effort to facilitate the scheme in the entire country.
States informed about the scheme.
High quality CFLs to be made available at the cost of incandescent
bulbs
Monitoring under an approved CDM methodology (under PoA) to
be done by BEE
Energy Reduction as a result of use of CFL to be monitored- CERs
generated will be traded – revenues to be used to service
investments made upfront
Standards & Labeling Programme
• To create appropriate legal and regulatory environment for energy
efficient end use products
• To provide the consumer an informed choice about energy saving
by using efficient devices
• To gear up Indian industry to compete in markets that have
made/ are making such standards mandatory eg. US or EU
• To stimulate market transformation in favour of energy efficient
equipments and appliances- both from supply and demand side
• To reduce overall energy consumption by use of such
equipments/ appliances- 18 BU by 2012 (~3000 MW)
• To provide assistance/ support to Small & Medium
Manufacturers
The National Energy Labeling Programme launched by
Hon’ble Union Minister of Power on 18th May, 2006.
Ceiling Total
Refrigerat Refrigerator Motors
S. Refrigerato Fans (With
Particulars ors (Frost s (Direct TFL ACs (<15k CFL
No. Free) Cool) rs (All) (1200
W) out
mm) CFL)
1. No. of products currently in use 5.5 22.5 28 338 7.09 67 1.68 108
(Million) (31 December 2005)
2. Total energy use by the products 3500 7300 10800 31202 8447 15075 24988 90512 2464
(Million kWh/Year) (2005-06)
3. Contribution to demand (MW) 716 1493 2209 6383 1728 3084 5112 18516 504
(2005-06)
4. Current Annual Sales 1.04 2.82 3.86 195 1.3 16 0.36 57
(Million/Year)
Energy Savings Potential
5. 2007 (Million kWh/Year) 50 119 169 325 34 3365 314 4207 3016
6. 2011 (Million kWh/Year) 674 1136 1810 674 479 9747 974 13684 4644
7. 2015 (Million kWh/Year) 3153 3235 6388 1397 2071 23698 3051 36605 8122
8. 2020 (Million kWh/Year) 9436 8166 17602 3476 8682 48408 6455 84623 13081
Demand Saving Potential (MW)
9. 2007 10 24 35 66 7 688 64 860 617
10. 2011 138 232 370 138 98 1994 199 2799 950
11. 2015 645 662 1307 286 424 4848 624 7489 1662
12. 2020 1930 1671 3601 711 1776 9903 1320 17311 2676
Energy Conservation Building Code
(ECBC)
• Covers new commercial buildings
• Building components included
– Building Envelope (Walls, Roofs, Windows)
– Lighting (Indoor and Outdoor)
– Heating Ventilation and Air Conditioning (HVAC) System
– Solar Water Heating and Pumping
– Electrical Systems (Power Factor, Transformers)
– Potential to save 1.7 billion units annually on
mandatory application
– Expected reduction in XI plan 500 MW
ECBC launched by MOP on 27.5.2007 for five
climatic zones
Energy Efficiency Programme in Buildings
8 Government buildings (including President House, PMO, Shram
Shakti Bhawan) have been audited. Implementation of energy
conservation measures in 4 buildings completed and remaining are on
their way.
Impressive Energy savings achieved in Rashtrapati Bhawan
Month Estimated savings, kWh Acutal Savings achieved, kWh
August, 2006 93080 124466
September,2006 97549 142597
October, 2006 97549 169179
November, 2006 105642 222567
17 additional Central Government buildings undertaken for second
phase through ESCO mode.
A national programme for existing buildings under preparation
Innovative financial instruments for promoting performance contracting
Existing Buildings Programme
Energy Audit Results
Annual Annual
Annual
Energy Percentage Energy Investment
Energy
Building Particulars Savings Savings Savings (Million
Consumption
(Million (kWh) (Million Rupees)
(Million kWh)
kWh) Rupees)
Rashtrapati Bhawan 3.4 0.8 23 5.0 5.1
Prime Minister Office 0.8 0.3 32 1.7 5.0
Sanchar Bhawan 2.6 1.2 46 7.6 14.7
Shram Shakti Bhavan
& 2.0 0.8 39 4.3 15.8
Transport Bhawan
R R Hospital 10.0 2.9 28 8.8 4.5
Air Port 71.3 1.6 20 5.9 18.0
Rail Bhawan 2.4 0.6 25 4.0 16.3
AIIMS 36.9 9.3 29 7.1 107.0
Designated Consumers (DCs)
• EC Act mandates Government to designate consumers
who consume electricity beyond a benchmarked limit.
• The DCs are required to appoint Energy Manager
• DCs are required to adhere to energy efficient
consumption norms stipulated
• DCs are required to submit consumption information,
duly authenticated by the Energy Manager to BEE/
SDAs as prescribed
• Auditors/ Managers certification examination held 3
times successfully- over 2700 Auditors/ Managers
accredited/ certified- 4th examination being conducted
• Web based e-filing of energy consumption returns to be
mandated soon- first of its kind initiative
Designated Consumers and SMEs Programme
Strategies
Short Term Initiate comprehensive energy consumption norm studies in 15
sub-sectors
Development of specific energy consumption norms for 3 sectors
Initiate comprehensive studies in 25 clusters of SMEs
Initiate studies to establish specific fuel consumption norms in
Transport sector
Initiate online reporting system for energy data
Medium Preparation of industry specific manuals of energy efficient
Term technologies and consumption norms
Dissemination of best practices, demonstrative case studies
Reporting and verification protocols, training and capacity
building at cluster/ sub-sector level
Energy consumption norms for 6 sectors
Long Term Target of at least 5% reduction at each sub-sector and cluster
level
Integration of efficient fuel consumption norms in transport sector
Agricultural DSM-Challenges and Road Map
Challenges SUGGESTED MEASURES
• Availability of efficient •Linkage with RGGVY/ APDRP
and manufacturers
pumps
•ESCO (market based)
• High first cost bias investment model
• Location specific •Participation of farmers in
baseline association with Utilities/
• Monitoring and ESCO
verification •Feeder level metering and
• Tragedy of commons- verification- isolated feeders
lack of incentive of •Providing incentives to
farmer farmers to maintain the
baseline
• Risks- monitoring, •Involvement of Central/ State
economic, regulatory govts, favorable policy and
and political regulatory regime, access to
finance and payment security
Ag DSM- Subsidy Linked Holistic Approach
Engagement of all stakeholders
Assess potential savings of electricity and water
Create incentives for farmers as well as the state utility
Analyze and plan the implementation of efficient pumps
Conduct load research and establish a base line
Provide a suitable subsidy linked funding mechanism
with due incentives for an appropriate Public Private
Partnership (PPP) model to work.
Provide sufficient measures to ringfence all the risks
associated with such projects.
Encourage measures that create awareness and
education amongst farmers.
Harness the collective action amongst local farmer
community to diminish the effects of the free riders.
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