ENERGY CONSERVATION AND EFFICIENCY DSM Initiatives in India

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ENERGY CONSERVATION AND EFFICIENCYDSM
Initiatives in India

• Secretary
• BUREAU OF ENERGY EFFICIENCY
• NEW DELHI
• (Ministry of Power)
• 10th September 2007

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Energy Conservation and Efficiency
Issues to be addressed
Strategy / Line of Action

• Barriers for EE DSM to be removed.
• The State Regulatory Commissions and Utilities to
  be encouraged to implement the Conservation
  initiatives
• Engagement of Stakeholders
• Industrial and Commercial users
• Time of use tariff for industrial and commercial
  users.
• Incentives to industry to adopt conservation/
  efficiency measures
• States
• - Encourage implementation of DSM programmes in
  Agriculture/ Municipalities
• Domestic consumers
• Ensuring availability at low cost and promoting
  use of low cost CFLs.
• Awareness

• Energy Efficiency and Demand Side Management
  relevant for
• Avoiding fresh generating capacity
• Flatten the load curve
• Savings of energy and cost
• Measures initiated
• CFL programmes in States
• Standards and Labeling program.
• Energy Efficiency programmes in existing
  buildings
• Energy Conservation Building Codes (ECBC)
• Capacity building of SDAs
• Demand Side Management in Agriculture
• Designated Consumers and implementation of EC Act

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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

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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

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Electricity Use in the Commercial Sector is
increasing
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Energy Intensity in Cement Sector
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Demand Side Management (DSM)

• CMs conference chaired by Honble 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
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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

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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

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• 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

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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 Honble Union Minister of Power on 18th May,
2006.
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(No Transcript)
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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
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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

• 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

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Existing Buildings Programme
Energy Audit Results
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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

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Designated Consumers and SMEs Programme
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Agricultural DSM-Challenges and Road Map

• SUGGESTED MEASURES
• Linkage with RGGVY/ APDRP and manufacturers
• ESCO (market based) investment model
• Participation of farmers in association with
  Utilities/ ESCO
• Feeder level metering and verification- isolated
  feeders
• Providing incentives to farmers to maintain the
  baseline
• Involvement of Central/ State govts, favorable
  policy and regulatory regime, access to finance
  and payment security

• Challenges
• Availability of efficient pumps
• High first cost bias
• Location specific baseline
• Monitoring and verification
• Tragedy of commons-lack of incentive of farmer
• Risks- monitoring, economic, regulatory and
  political

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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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