Energy Conservation Act

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Energy Conservation Act BEE- An Overview

• By
• Jitendra Sood
• Energy Economist
• Bureau of Energy Efficiency
• Government of India

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Introduction

• India has an installed power generating capacity
  of 146,752.81MW (as On November 30, 2008)
  of which the thermal power stations share is
  92,892.64 MW (64).

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Indias Energy Intensity is fifth lowest in the
world

• Japan, Denmark, UK and Brazil have lower energy
  intensity
• Energy intensity is declining at about 1.5 per
  year

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Energy Use in India

• Energy consumption in India is low, though
  efficiency of use is reasonable
• Per capita energy consumption is 530 kgoe world
  average is 1770
• Energy intensity of Indian economy was 0.18
  kgoe/-GDP(PPP) in 2004 compared to 0.14 in
  Japan and 0.19 in the EU
• Energy demand is increasing due to rising
  incomes, accelerated industrialization,
  urbanization and population growth
• 2003-04 572 Mtoe
• 2016-17 842-916 Mtoe
• 2026-27 1406-1561 Mtoe
• Meeting the increasing demand only through
  increases in supply may lead to
• Reduced energy security due to volatility in
  availability and prices of imported fuels
• Adverse environmental impacts
• Strain on balance of payments
• Energy conservation and energy-efficiency are an
  essential part of national energy strategy

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• FEATURES OF INDIAN ENERGY CONSERVATION ACT

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ENERGY CONSERVATION ACT - 2001

• Enacted in October 2001
• Become effective from 1st March 2002 , and
  implemented in 2006.
• Bureau of Energy Efficiency (BEE)
  operationalized from 1st March 2002.
• MISSION OF BEE
• Develop policy and strategies with a thrust on
  self regulation and market principles, within the
  overall framework of the EC Act with the primary
  objective of reducing energy intensity of the
  Indian economy.

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Thrust Areas

1. Energy Efficiency (EE) in the industrial sector.
2. Demand Side Management in the power sector.
3. Standards and Labeling for appliances and
   equipment.
4. Energy Efficiency in buildings and
   establishments.
5. Energy Conservation Building Codes (ECBC).
6. Professional Certification and Accreditation.
7. Manuals and Codes.
8. Energy Efficiency Policy Research.
9. Energy Conservation Awareness in schools.
10. Delivery Mechanisms for EE services.

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• DESIGNATED CONSUMERS
• ( Energy Intensive Industries and other
  Establishments)
• (A programme to initially focus on energy policy
  issues of energy efficiency improvement in
  organized sectors such as energy intensive
  industries and commercial sector through
  establishment of energy management system,
  capacity building of energy professionals,
  implementation of energy audits, establishments
  of specific energy consumption norms and support
  to consumers on providing information on
  authentic energy data )
• Schedule to EC Act provides list of 15 energy
  intensive industries and other establishments to
  be notified as designated consumers (DC). DCs to
• Appoint or designate energy managers
• Get energy audits conducted by accredited energy
  auditors
• Implement techno-economic viable recommendations
• Comply with norms of specific energy consumption
  fixed
• Submit report on steps taken
• Out of 15 energy intensive industries 9 has
  been identified as Designated Consumers.

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DESIGNATED CONSUMERS
3.Cement
2.Fertilizers
1.Textiles
5.Chlor Alkali
6.Aluminium
4.Iron Steel
8.Textiles
9.Pulp Paper
7.Railways
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1) Criteria for Notification for a Industry as Designated Consumer Thermal Power Stations- 30,000 metric tonne of oil equivalent (MTOE) per year and above
2) Fertilizer- 30,000 metric tonne of oil equivalent (MTOE) per year and above
3) Cement- 30,000 metric tonne of oil equivalent (MTOE) per year and above
4) Iron Steel- 30,000 metric tonne of oil equivalent (MTOE) per year and above
5) Chlor-Alkali- 12,000metric tonne of oil equivalent (MTOE) per year and above
6) Aluminium- 7,500 metric tonne of oil equivalent (MTOE) per year and above
7) Railways- One traction substation in each Zonal Railway , Production units and Workshops of Indian Railways having total annual energy consumption of 30,000 MTOE or more under Ministry of Railways
8) Textile-3,000 metric tonne of oil equivalent (MTOE) per year and above
9) Pulp Paper-30,000 metric tonne of oil equivalent (MTOE) per year and above
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Designated Consumers (contd.)

• To strengthen the energy management and energy
  auditing capabilities in the country, 7 National
  Certification examinations for Energy Managers
  and Energy Auditors have been successfully
  conducted in 2004, 2005, 2006, 2007 May and
  Nov 2008 respectively in 28 centers all over the
  country.
• 61 energy auditing agencies have been accredited
  on the bases of their energy auditing
  capabilities and institutional set up.
• Accredited Energy Auditors have carried out about
  3000 energy audits on voluntary basis in the
  last 3 financial years (2003-06).
• Energy saving to the tune of 2041Million kWh,
  750960 Tons of Coal, beside savings in oil and
  gas, equivalent to Rs.6488 Million have been
  recommended by 21 such agencies during the past 3
  years.

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Designated Consumers (contd.)

• Manuals and Codes
• Manuals and codes on 7 Technologies (Equipment)
  Lighting Systems Dryers Cogeneration Plants
  Electric Motors Electric Transformers Fluid
  piping systems (network), insulation and Air
  Conditioners/Chillers (HVAC) have been prepared.
• The manuals and code would help in standardizing
  the process of energy audit to support energy
  manager and energy auditors

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BEE Codes Manuals
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Standards and Labeling of Appliances

• (A programme initially to focus on energy
  policy issues of energy efficiency improvement in
  unorganized sectors such as domestic and
  agriculture sectors through improvement of
  designed energy efficiencies of energy consuming
  appliances and providing this information on
  comparative basis in the form of energy labels)
• Evolve minimum energy performance standards
  (MEPS) for notified equipment and appliances
• Prohibit manufacture, sale and import of
  equipment and appliances not confirming to MEPS
• Introduce Energy labeling to enable consumers to
  make informed choice
• The National Energy Labeling Programme has been
  launched by Union Minister of Power on 18th May,
  2006
• House-hold refrigerators, fluorescent tube lights
  (4 feet), general purpose electric motors and air
  conditioners have been included in the programme
  on voluntary basis 70 of refrigerator
  production, 90 of tube light production and 40
  of AC production is now covered by the programme.
• Other appliances/equipment, such as, LPG burners
  and ceiling fans are also planned to be launched.

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Products for Energy-Efficiency Labels
Frost Free (No-Frost) Refrigerator
Tubular Fluorescent Lamps
Room Air Conditioners
Direct Cool Refrigerator
Distribution Transformer
Induction Motors
Pumps Sets
Ceiling Fans
LPG
Electric Geysers
Color TV
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Future - Equipments / appliances for SL
Home Appliances

• Water Heaters
• Washing Machines
• Electronic Ballast
• Computer Monitors
• Kerosene Stoves
• Consumer Electronics

• Uninterrupted Power Supply (UPS)
• External Power Supplies (EPS)
• Battery Chargers (BCs)

Motor systems

• Agricultural pump sets
• Industrial Fans Blowers
• Industrial Fans Blowers

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Sample Labels
Refrigerator
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Impact of SL on Environment
Appliance CO2 Reduction as an impact of Star labeling
AC 0.106476 Million Tons
Refrigerator 0.946334 Million Tons
TFL 0.146880 Million Tons
TOTAL 1.1996690 Million Tons
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ENERGY CONSERVATION BUILDING CODE

• ECBC covering five climatic zones of India (Hot
  Dry, Warm Humid, Composite, Temperate and Cold)
  prepared
• ECBC set minimum energy efficiency standards for
  design and construction
• Mandatory Scope Covers commercial buildings
• Connected load in excess of 500 kW or
• Contract demand in excess of 600 kVA
• Applies to New Construction only

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Energy Conservation Building Code ( contd.)

• ECBC covers the following components of a
  building
• Building Envelope (Walls, Roofs, Windows)
• Lighting (Indoor and Outdoor)
• Heating Ventilation and Air Conditioning (HVAC)
  System
• Solar Hot Water Heating
• Electrical Systems
• Minister of Power launched ECBC on voluntary
  basis on 27th May, 2007 mandatory after
  capacity building and implementation experience
• Impact of ECBC - Reduced Energy use for buildings
  
• National Benchmark 180 kWh/m2/year
• ECBC Compliant building 110 kWh/m2/year

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Bachat Lamp Yojana

• Bachat Lamp Yojna a CDM based scheme was launched
  on 28th May, 2008.
• Scheme seeks to replace estimated 400 million
  incandescent bulbs by CFLs which could save
  estimated 6000 MW by 2012
• BEE is in the process of preparing a Programme of
  Activities (PoA) which is a voluntary coordinated
  effort to facilitate the scheme in the entire
  country and reduce transaction costs of
  individual projects
• 18 CFL manufacturers/ suppliers have agreed to
  participate- 14 states have taken up steps
  towards implemetation of scheme in their
  respective DISCOM regions.
• Monitoring Plan has been finalised
• 1 pilot project registered at UNFCCC on 26th Sept
  2008. PDDs for Haryana , Andhra Pradesh,
  Maharashtra have been submitted to CDM Executive
  Board for registration.
• Leveraging of CDM revenues to remove the high
  first cost barrier to enable market
  transformation in favour of efficient lighting.

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Demand Side Management (DSM) to Reduce Risk

• Bachat Lamp Yojana (Lamp Savings Programme)
• Energy efficiency upgrades in existing buildings
• Agriculture DSM Municipal DSM

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Union Power Minister Shri Sushil Kumar Shinde
launched ECBC on voluntary basis on 27th May,
2007
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ENERGY SERVICES COMPANIES(ESCOS)

• The Bureau of Energy Efficiency has also taken
  necessary steps to encourage the supply of
  performance-contract based energy-efficiency
  enhancement services through Energy Service
  Companies (ESCOs).
• An exercise for expanding the number of existing
  ESCOs through an open invitation and evaluation
  process was taken up by BEE, whereby 37 ESCOs
  were found eligible for short listing.
• An accreditation exercise of ESCOs, in terms of
  success in implementation of energy efficiency
  projects, ability of technical man-power, and
  financial strength to invest in such projects,
  was carried out by CRISIL and ICRA, with
  technical and financial support of BEE.

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Launch of Report on Situation Analysis of
Commercial Buildings in India on 24 November
2008 at New Delhi
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Launch of Report on Accredited ESCOS on 24
November 2008 at New Delhi
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Eight National Misssions

• National Solar Mission.
• National Mission for Enhanced Energy Efficiency.
• National Mission on Sustainable Habitat
• National Water Mission
• National Mission for Sustaining the Himalayan
  Ecosystem
• National Mission for a Green India
• National Mission for sustainable agriculture
• National Mission for Strategic Knowledge for
  climate Change

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National Mission for Enhanced Energy Efficiency.

• Market Transformation for Energy Efficiency
  (MTEE)
• Energy Efficiency Financing Platform (EEFP)
• Framework for Energy Efficient Economic
  Development (FEEED)
• Capacity building for Banks and Financial
  Institutions
• Institutional Arrangements

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• Market Transformation for Energy
  Efficiency(MTEE)
• 1. BEE has undertaken PoA (program of
  activities) for efficient lighting in domestic
  sector (Bachat Lamp Yojna), Municipal DSM,
  Agriculture DSM,SME sector, Commercial sector and
  Distribution Transformers.
• 2. CDM Potential in Power and Energy Efficiency
  Sector.
• Renovation/Retrofit, Replacement,
  Green-Field, Fuel
• Switch, Captive generation.
• 3. Removal of Barriers to CDM in India
• Promote cleaner technologies by leveraging
  CDM
• Removal of implemetation barriers for renewables.
• Regulatory incentives to promote cleaner
  technologies use in the country.
• Promotion of Cogeneration,Supercritical boilers
  in UMPPs.
• Promotion of public transport and fuel efficiency
  in the transport sector.
• DSM initiatives in various sectors like
  industry, agriculture, SMEs, Municipalities,
  buildings, etc.

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Energy Efficiency Financing Platform(EEFP)

• 1. Overall energy efficiency investment market
  size under ESCO system of performance contract in
  India has been estimated by the ADB at Rs 140 bn
  (Rs.14000 crores).
• 2. Demonstration Projects in Government
  buildings
• Covering the entire project cycle from audit to
  performance measurement and verification
• Design of standard performance contract.
• Design of Financial mechanism for project
  funding.
• Project Implementation and post evaluation of
  impact.
• Capacity building among ESCOs and project owners.
• 3. Removal of Financing Barrier for ESCOs
• 4. Promotion of ESCOs through government
  programs in Commercial. Municipal, Agriculture
  and Small and Medium Enterprises sectors.
  Accrediation of ESCOs through rating agencies
  like CRISIL and ICRA

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Framework for Energy Efficient Economic
Development(FEEED)

• 1.Partial Risk Guarantee Fund (PRGF)
• 2.Venture Capital Fund for Energy Efficiency
  (VCFEE)
• 3. Incentives to Central Public Sector
  Undertaking (CPSUs) to take up energy
  efficiency.
• 4.Energy Efficient Public Procurement
• 5.Tax/Duty Exemptions for Promotion of Energy
  Efficiency.

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National Energy Conservation Awards

• BEE coordinates this voluntary activity on behalf
  of Ministry of Power
• Due to consistent efforts put in by BEE, scheme
  has become very popular among industries, as is
  evident from increasing participation level

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The President, Smt. Pratibha Devisingh Patil
presenting the National Energy Conservation
Awards-2007 at the National Energy Conservation
Day function, in New Delhi on December 14, 2007.
The Union Power Minister, Shri Sushil Kumar
Shinde is also seen.
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Encouraging response from Indian Industry in the
Energy Conservation Award Scheme (1999-2008)
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Electrical Energy Saving in terms of Equivalent
Avoided Capacity in MW
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CONCLUSIONS

• The increasing preference for commercial energy
  has led to a sharp increase in the demand for
  electricity and fossil fuels.
• Use of Fossil Fuels result in emission of huge
  quantity of carbon dioxide causing serious
  environmental damages.
• There is a considerable potential for reducing
  energy consumption by adopting energy efficiency
  measures at various sectors of India.
• Energy efficiency will not only reduce the need
  to create new capacity requiring high investment,
  but also result in substantial environmental
  benefits.
• With the enactment of the Indian Energy
  Conservation Act, 2001, an institutional
  framework is now available for promoting energy
  efficiency in all sectors of the economy
• Efficient use of energy and its conservation is
  succeeding as a program as now there is a strong
  institutional set up in the country and opinion
  leaders and captains of industry are taking lead
  in implementing the best practices supporting the
  conservation programme

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ENERGY IS LIFE
JOIN
HANDS
IN
CONSERVING IT
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