Energy Efficiency in India;
Overview and Future Outlook
Namrata Kala
The Energy and Resources Institute,
New Delhi
Energy Efficiency Policy in India – Significant Developments
1965 - Energy Survey Committee of India (ESCI)
1974 - Fuel Policy Committee (FPC)
1979 - Working Group on Energy Policy (WGEP)
1983 - Advisory Board on Energy (ABE)
y gy y
1987 – Advisory Board on Energy Efficiency in Prime
Minister’ s Office (PMO)
R Policy Initiatives
Recent P li I i i i
2001-
2001 Energy Conservation Act (ECA) – Bureau of Energy
Efficiency operationalised in 2002
2008 - National Mission for Enhanced Energy Efficiency
Energy Efficiency in the National Action Plan on Climate Change
National Mission for Enhanced Energy Efficiency recently
d
proposed an E Effi i A ti Pl
Energy Efficiency Action Plan
Perform Achieve and Trade scheme - market-based
energy efficiency
mechanism to enhance energ efficienc
Market Transformation for Energy Efficiency (MTEE) – CDM
roadmap Standards and Labeling, ESCO promotion
roadmap, Labeling promotion,
capacity-building
Efficiency- exemptions fund,
Financing Energy Efficiency Tax exemptions, Revolving fund
Partial Risk Guarantee Fund
fuel shifting,
Power Sector Technology Strategy – fuel-shifting, focus on
new as well as old plants, IGCC demonstration plants,
p p
Development of know-how for advanced super-critical boilers
Projected Energy Requirements – 2031
I-1 - Enhancing end-use efficiencies
p g g p
I-2 - Adopting advanced coal- and gas-based power
generating technologies
I-3 - Enhancing the exploitation of renewable
and nuclear energy resources
I-4 Enhancing efficiency in the transport sector
I4-E h i ffi i i th t t t
by modal shifts
Source: National Energy
Map of India
Energy Intensity Trends - 2001 to 2031
Key Policy Considerations
Increasing energy requirements
Climate Change and other Environmental
id ti
considerations
gy
Energy Securityy
Lack of Adequate Supply Options
Large scope for energy efficiency measures
India’s energy efficiency is the fifth lowest in the world,
but there is room for substantial energy savings
Energy Efficiency Potential in India
The Industrial Sector consumes about half of the total commercial energy
available in India, 70 % of which is in energy-intensive sectors - fertilizers,
l i i textiles, cement, i
aluminium, t til d t l d 15-25% f thi is
t iron and steel, and paper - 15 25% of this i
avoidable
5 - 10% energy saving is possible simply by better housekeeping measures
Another 10-15% is possible with small investment like low cost retrofits, use
of energy efficient devices and controls etc. (TERI. 1996, Bhattacharjee, S.
2000)
The quantum of saving is much higher if high cost measures are included
(major retrofit, process modifications etc.)
Industry and transport sectors have the highest potential for energy savings
Sector 2011 2021 2031
Industry 44% 42% 41%
Transport 41% 44% 47%
Sectoral Gaps and Challenges
SSIs Lack f i t technologies,
SSI – L k of appropriate t h l i
financing gaps and awareness – Immense
t ti l f ffi i
potential for energy efficiency
Financing Gaps – Lack of technical
knowledge in the financial sectors makes
financing for energy efficient technologies a
h ll
challenge
Range of domestic energy-efficient
technologies across sectors
Potential for increased role for ESCOs
Some Energy Efficiency Policy Recommendations
Ban import of second-hand machinery e.g. sponge
iron plants and p p mills.
p paper
Use of cleaner fuels
Facilitate shifts towards cogeneration, tapping waste
heat for process heat
pp g
Provide support to large-, medium-, and small-scale
industry.
Adopt sub-sectoral technology options for large-
scale energy savings
Indian-Japanese Partnerships; the way forward
Japanese energy efficiency – practically an art form -
improved by more than 30 percent since 1973.
From 1973 to today, Japan's industrial sector nearly
tripled its output, but kept its energy consumption
p p , p gy p
roughly flat. ( juxaposed against potential for
efficiency in Indian sector)
The environment ministry forecasts that exports will
$7.9
help turn energy conservation into a $7 9 billion
industry in Japan by 2020, about 10 times its size in
2000
Indo-Japanese Partnerships; the way forward
Energy Intensive sectors- Japanese technologies in energy
intensive industries – Japanese Steel industry can produce one ton
of steel using 20 percent less fuel than American steelmakers,
Paper industry is using waste-based or alternative energies for 38
percent of its power
SSIs – energy intensive SSIs include ceramic and glass industry,
foundry forging, brick manufacture food processing - factories in
foundry, forging manufacture, food-processing
the small-scale sector in India are generally less efficient compared
to larger enterprises, or to enterprises of equivalent capacity in other
g p p q p y
countries - lack of technical capacity in these enterprises to identify,
access, and adopt better technologies and operating practices
Projected Increasing demand in the Indian industry, combined with
the recent government initiatives, provide immense potential for
technology partnerships
“We generate our own environment. How can we
resent a life we‘ve created ourselves? Who’s to
blame, who‘s to credit but us? Who can change it,
us?
anytime we wish, but us?”
- Richard Bach
Thank you