Energy Efficient Procurement through use of Life Cycle Cost Analysis Tools
The annual
expenditure on public procurement in India is around US$ 180 today which represents
around 13% of the national budget. Out of this, annual
energy-related expenditure is around US$ 20 billion, which also included procurement
of energy related products. Hence harnessing government purchasing power can be
capable of yielding very impressive savings, and enhance market transformation of
energy-efficient products. Energy Efficient Procurement has been very clearly identified
as an area of focus in the Integrated Energy Policy as well as in National Mission
for Enhanced Energy Efficiency.
To save energy and to transform the market in favour of energy efficient products,
government can mandate the purchase of energy-efficient products in the public sector.
Government facilities and services - national and local - are often the largest
energy users within a country, and "leadership by example" by government can be
a powerful driver for a national energy efficiency strategy. Government, as a large
buyer of energy-using equipment and services, can also lead the entire economy toward
greater energy efficiency, creating entry markets for domestic suppliers and stimulating
competition in providing high-efficiency products and services.
It is a well know fact that purchasing the most energy efficient equipment and appliances,
results in lesser energy consumption. However the most energy efficient products
may have higher price tags. If price is the major criteria of selection and choice
during purchasing, the consumer cannot be motivated to buy the most energy efficient
product model. In such cases, life cycle cost analysis can be very helpful to select
the product for procurement.
BEE under the project “Development of Policy Guidelines and Life Cycle Cost Tools
for Energy Efficient Procurement” has developed Life Cycle Cost Analysis (LCC) Tools for
a few products like Air Conditioners, Refrigerators, Motors, Pumps and Lighting
Products. These tools have been developed with an aim that the energy consuming
products can be procured on the basis of their Life Cycle Cost Analysis rather than
on least cost basis. Tools for other energy consuming products will be developed
in due course of time.
LCCA Tool - Air Conditioners Click Here to Download LCCA Tool - Refrigerators Click Here to Download LCCA Tool - Transformers Click Here to Download LCCA Tool - Motors Click Here to Download LCCA Tool - Industrial Fans Click Here to Download LCCA Tool - Pumps Click Here to Download
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