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Policies & Regulations > BEE Initiatives |
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BEE Initiatives
Government of India enacted the Energy Conservation Act, 2001 to coordinate various
activities associated with efficient use of energy and its conservation. The Bureau
of Energy Efficiency (BEE), a statutory body under Ministry of Power, was set up
under Section 3 of the Act as the nodal agency to coordinate this activity with
the assistance of the State Designated Agencies. The aim of this institutional framework is to stimulate market transformation and initiate other interventions in favour
of DSM and energy efficiency in the country with the involvement of all stakeholders.
The Bureau of Energy Efficiency has initiated many schemes for improving energy
efficiency and many of them are DSM measures also. These flow from the provisions
of the Energy Conservation Act, 2001. Some of the programmes, which BEE has undertaken
in the area of DSM, are as follows:
Lighting DSM Standards & Labeling Programme Energy Conservation Building Code & Energy Efficiency in Existing Building programme Investment grade audits in buildings Star rating of buildings BEE-ECBC programmes under implementation Municipal DSM Agricultural DSM
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Lighting DSM:
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In the lighting sector, DSM measures could have a significant impact. The large
contribution of (domestic, commercial and street) lighting to peak loads makes it
attractive for the utility to offer incentives for the adoption of efficient lighting
practices by consumers. This would result in reduction of costly peak-load power
procurement. This has led some distribution companies to incentivise purchase of
Compact Fluorescent Lamps (CFLs) by the consumers. BEE has initiated Bachat Lamp
Yojana (BLY) Scheme to promote energy efficient lighting in India. CFLs consume
only 1/4th to 1/5th of the energy used by ICLs to provide the same level of light.
Under the BLY scheme, long-life, quality CFLs would be distributed by investor to
grid-connected residential households in exchange of an incandescent lamp (ICL)
and INR 15.
Each household can get a maximum of four self-ballasted CFLs under the scheme. Approximately
700,000 CFLs can be distributed within a single project. Long life quality CFLs
distributed to a household under the scheme would have an average rated life of
6000 hours and above. Three types of ICL lamp wattages commonly in use viz. 40 W,
60 W and 100 W are likely for replacement under the BLY scheme. The BLY scheme upon
implementation would result in reducing an estimated :
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6000 MW of electricity generation capacity translating into a potential saving of
INR 24000 crores per annum
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Combined GHG emission savings on replacing an estimated 400 million ICLs with CFLs
would result in reducing 20 million tonnes of (CO2) from grid-connected power plants.
There are no mandatory requirements in India requiring the use of energy efficient
CFL at the household level. Hence, the BEE has prepared a unique project design
where three key players the BEE, the investors and the Electricity Distribution
Companies (DISCOMs) come together and supply the households with CFLs voluntarily.
To bridge the cost differential between the market price of the CFLs and the price
at which they are distributed to households, the Clean Development Mechanism (CDM)
is harnessed. The investor would cover the project cost through the sale of Green
house gas (GHG) emission reductions achieved in their respective project areas.
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Standards & Labeling Programme:
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The Standards and Labeling programme is a key thrust area of BEE. Central Government,
under the Energy Conservation Act, 2001 has powers to direct display of labels on
specified appliances or equipment (14.d), Enforce minimum efficiency standards by
prohibiting manufacture, sale, and import of products not meeting the minimum standards
(14.c). The objectives of this program is to provide the consumer an informed choice
about the energy saving, and thereby the cost saving potential of the marketed household
appliances or other equipment. This is expected to impact the energy savings in
the medium and long run while at the same time it will position domestic industry
to compete in such markets where norms for energy efficiency are mandatory. The
scheme was launched by the Hon’ble Minister of Power on 18 May 2006 and is currently
invoked for 10 equipments/appliances, e.g. ACs, Tube lights, Refrigerators, Distribution
Transformers, Motors, Geysers, Ceiling fans, Color TVs, Agricultural pump sets and
LPG stoves, of which the first 4 are being notified under mandatory labeling from
6th January, 2010. In the future, the scheme will cover several more domestic and
industrial equipments and appliances with the objective of conserving the power
consumed by these.
The programme seeks to:
Introduce Notification for mandatory labelling. Have an extensive and sustained outreach and awareness campaign to educate consumers.
Include 20 high energy consuming end use equipments and appliances by 2012. Initiate check testing by an Independent Agency (RITES) to ensure credibility of
the scheme. Stimulate market transformation in favour of energy efficient equipments and appliances
that adhere to Minimum Energy Performance Standards (MEPS).
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Energy Conservation Building Code & Energy Efficiency in Existing Building programme:
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Energy Conservation Building Codes (ECBC) set minimum energy performance standards
for commercial buildings. Under section 14 (p) of the Energy Conservation Act, 2001,
Central Government has powers to prescribe ECBC for commercial buildings (at present
having a connected load of 500 KW) or building complex for efficient use of energy
and its conservation. The state governments have the flexibility to modify ECBC
to suit local or regional needs. The ECBC was launched on 27th May, 2007 and is
presently in vogue on voluntary basis. ECBC is expected to be made mandatory in
future after the following issues have been suitably addressed:
Adequate numbers of architects, builders, contractors having technical capacity
to design and implement ECBC is available. The compliance procedures have been finalized in consultation with states/ municipal
agencies. Adequate manufacturing and marketing capabilities for the inputs materials required
for ECBC complaint buildings is made available by a successful market transformation
programme. Appropriate level of awareness, understanding and education regarding ECBC is developed.
Government leadership in taking the energy efficiency measures in the commercial
sector is critical. Central/ State Governments must initiate necessary and appropriate
measures, including fiscal incentives to promote energy efficiency in new as well
as old commercial buildings.
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Investment grade audits in buildings :
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Energy audit studies in buildings have shown 23%-46% potential for energy savings
in government and commercial office buildings. As per the study done, the estimated
saving potential in buildings through ECBC is 3.2 billion units (source ADB). BEE
is promoting the implementation of energy efficiency measures in existing buildings
through Energy Service Companies (ESCOs) which provide an innovative business model
through which the energy-savings potential in existing buildings can be captured
and the risks faced by building owners can also be addressed. The performance-contract
based payments for energy savings achieved through the interventions carried out
by the ESCO ensure that savings are achieved and that the payments by the building
owners to the ESCO are related to the achievement of these savings.
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Star rating of buildings :
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In order to further accelerate the energy efficiency activities in the commercial
building sector, BEE developed a Star rating programme for office buildings which
is based on the actual performance of a building in terms of its specific energy
usage in kwh/sqm/year. The programme rates office buildings on a 1-5 Star scale,
with a 5 Star labeled building being the most efficient. The Star rating Programme
provides public recognition to energy efficient buildings and creates a ‘demand
side’ pull for such buildings. Buildings with a connected load of 100 KW and above
are being considered under the BEE Star rating scheme. It will be subsequently extended
to other building types and different climatic zones.
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BEE-ECBC programmes under implementation :
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A national programme for existing buildings is under preparation Innovative financial instruments for promoting performance contracting are being
developed to overcome lack of effective delivery mechanism Guidelines to promote EEMs in existing buildings have been framed. Energy Assessment guide- Launched by BEE to promote energy efficiency in existing
buildings. 35 ESCOs empanelled with BEE after accreditation by CRISIL/ICRA. BEE to support Ministry of Railways for taking up IGEAs of 20 stations/ administrative
buildings. 26 Govt. buildings taken up for energy audit through ESCO route 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 BEE has signed MoU with ESIC to take up energy efficiency implementation in the
150 hospitals across the country in phased manner Hon’ble President of India has launched an initiative “ROSHINI”- BEE to take up
EEMs of entire President estate Hon’ble Minister of Power launched Star rating of buildings on 25.02.09
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Municipal DSM:
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The global trend towards increased urbanisation requires municipal bodies to provide
services such as streetlights, solid waste management, sewage treatment & disposal,
etc. All these activities consume significant amount of electricity, usually in
an inefficient manner. The cost of energy sometimes constitutes more than 50% of
the municipality’s budget and implementing efficiency measures could reduce it by
at least 25%. There is a potential to save around 10 billion rupees by implementing
energy efficiency measures. Almost all municipal bodies depend on government support
to meet their development and operating expenses. Government of India, through the
Bureau of Energy Efficiency has initiated a programme to cover 175 municipalities
in the country by conducting investment grade energy audits and preparation of detailed
project reports. Energy Service Companies are being encouraged to take up the implementation
of the programme with the help of financial institutions. Utilities must encourage
implementation of DSM measures to relieve their network of such inefficient load.
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Agricultural DSM:
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Agriculture accounts for about 27% of electricity consumption in the country, which
is increasing due to rural electrification efforts of the Government. The electricity
is largely used in agricultural pump sets which generally have very poor efficiency.
Most of the pilot projects as well as other studies project potential of 45-50%
by mere replacement of inefficient pumps. Overall electricity savings (from 20 million
pumps) is estimated at 62.1 billion units annually. This is estimated to translate
in to the yearly savings of 18000 crores, which reduce the subsidy burden of states
with that same amount. Since agricultural tariffs are usually the lowest and also
highly subsidized, there is no incentive to the agricultural consumer to improve
efficiency of the pump set. However, utilities are not able to recover economic
price on every unit of energy sold to these categories of consumers and therefore
need to aggressively target these consumers for DSM measures. BEE has prepared an
Agricultural DSM (Ag. DSM) programme in which pump set efficiency upgradation could
be carried out by an Energy Service Company (ESCOs) or the distribution company.
The Ag-DSM programme for preparation of DPRs has already been initiated by BEE as
pilot projects in 5 states, viz, Maharashtra, Gujarat, Haryana, Punjab & Rajasthan.
One DPR in Solapur dist of Maharashtra is ready for implementation purpose. The
result of the study is encouraging with the saving potential of 40% by replacement
of inefficient pumps with Star rated pumpsets. The project IRR is 19%, which can
increase to 23% with CDM benefits. BEE is also developing a methodology for CDM
in Ag-DSM project so that it becomes more attractive. The implementation for replacement
of inefficient pumps with Star rated pumpsets will be done through the ESCO/Utility
who would invest in energy efficiency measures on a rural pump set feeder on which
supply quality enhancements (such as feeder segregation & High Voltage Direct
Supply [HVDS]) have already been carried out. The intervention would lead to lower
energy supply on the feeder, and hence, could result in lower subsidy to be paid
by the State Government. Part of the savings in the subsidy would be paid to the
ESCO/Utility on an annual basis, over a period of time, to pay for their investment
in pump set upgradation. To ring-fence the payment security mechanism, a large Financial
Institutions may be brought in to provide loan to the project as well as adequate
payment security mechanism to the investors. Utilities can play the important role
of Monitoring and Verification. Government, through BEE is providing resources to
create a shelf of bankable DPRs in the agriculture sector to mainstream the scheme.
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