A recent report titled “Impact of energy efficiency measures for the year 2018-19” was released by the Ministry of Power and New & Renewable Energy. The report was prepared by PWC Ltd, a third-party agency engaged by the Bureau of Energy Efficiency (BEE). Since 2017-18, BEE has been enlisting a third-party expert agency each year to compare estimated and actual energy consumption resulting from various energy efficiency schemes. The aim of this review is to the evaluate performance and impact of the main energy efficiency programs in India, relating to total energy saved and the consequent reduction in CO2 emissions.
Key Findings
The implementation of various energy efficiency schemes led to total electricity savings amounting to 113.16 Billion Units in 2018-19, a 9.39% reduction in net electricity consumption. In terms of energy saving, the total for the year 2018-19 reached 23.73 Mtoe (million Tonne of Oil Equivalent), or 2.69% of the total primary energy supply. Correspondingly, these efforts resulted in a reduction of 151.74 Million Tonnes of CO2 emissions. Major contributing programs in this study include the Perform, Achieve and Trade Scheme, Standards & Labelling Programme, UJALA Programme, and Municipal Demand Side Management Programme.
Perform, Achieve and Trade Scheme
Initiated in 2011 under the Bureau of Energy Efficiency’s National Mission of Energy Efficiency, this scheme introduces a market-based mechanism to further incentivize energy efficiency in substantial energy-intensive industries. Energy Savings Certificates (ESCerts) are issued to those plants outperforming their targets, while underachieving plants can purchase ESCerts through Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). This scheme creates an energy efficiency market through tradable certificates.
Standards & Labelling Programme
This BEE initiative aims to provide consumers with an informed choice regarding the energy-saving and thus cost-saving potential of marketed products. It specifically targets high energy end-use equipment and appliances, displaying their energy performance labels and enforcing minimum energy performance standards.
UJALA Programme
Launched in 2015, the UJALA programme sought to replace 77 crore incandescent lamps with LED bulbs. This phase-wise LED distribution counters the high costs previously associated with adopting energy-efficient systems. By promoting efficient lighting and raising awareness on the use of efficient equipment, this programme helps reduce electricity bills and protect the environment.
Municipal Demand Side Management Programme
Commenced during the Eleventh five-year plan (2007-2012), this BEE programme aims to enhance the energy efficiency of Urban Local Bodies (ULBs). By improving overall energy efficiency, substantial savings can be achieved in electricity consumption, resulting in cost savings for ULBs.
About Bureau of Energy Efficiency (BEE)
The BEE is a statutory body under the Ministry of Power, Government of India, established through the Energy Conservation Act, 2001. Its primary function is to develop policies and strategies aimed at reducing the energy intensity of the Indian economy. BEE coordinates with designated consumers, agencies, and other organizations to identify and utilize existing resources and infrastructure for its operations.
India’s Pledge and Achievement
At the Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC), India pledged to reduce the energy intensity of its economy by 33 to 35% compared to 2005 levels by 2030. In essence, energy intensity is the amount of energy required to produce one unit of Gross Domestic Product (GDP). With its energy efficiency initiatives, India has already reduced the energy intensity of its economy by 20% compared to 2005 levels.
Significance of Energy Efficiency
Energy efficiency is crucial in reducing greenhouse gas emissions, decreasing demand for energy imports, and lowering costs on both a household and economy-wide level. The report serves as an important source in highlighting the progress and impact of energy efficiency programmes in India.
