ROADMAP DESCRIPTION AND PERFORMANCE ANALYSIS – INDIA

1. ROADMAP DESCRIPTION AND PERFORMANCE ANALYSIS – INDIA Saurabh Kumar & ArijitSengupta Atlantic Energy Efficiency

2. Per Capita energy consumption among the lowest in the world: 29% of world average and 7% of USA in 2007 (IEA 2009). Share of non‐commercial energy in the primary energy consumption of India declining: 26% in 2007‐08 to 10% in 2031‐32. The demand for primary energy supply is likely to increase by 3 to 4 times and its electricity generation capacity by about 6 times. Energy efficiency across all sectors of the economy is a vital ingredient in the growth strategy being pursued by the GOI. 1. INTRODUCTION Source: Planning Commission, Integrated Energy Policy

3. 2. EE POLICY INSTRUMENTS • (a)Legal Framework: EC Act empowers the Central and State Govt. to take the following regulatory steps to encourage market based energy efficiency: • Industrial Energy Efficiency • Notify energy intensive industries, other establishments and commercial buildings as designated consumers. • Establish and prescribe energy consumption norms and standards for designated consumers; • Buildings • Prescribe energy conservation building codes for efficient use of energy and its conservation in commercial buildings; • Direct owners or occupiers of commercial buildings to comply with the provisions of energy conservation building codes; • Appliances • Direct mandatory display of label on notified equipment and appliance; • Specify energy consumption standards for notified equipment and appliance;

4. 2. EE POLICY INSTRUMENTS • (b) Institutional arrangements • BEE is the nodal agency at the Central level and SDAs at the state level. • These institutions are empowered with regulatory, promotional and enforcement roles under the Act. • Out of the 35 States / Union Territories, so far, 32 states/Union Territories have set up their SDAs. • While BEE and SDAs are regulatory bodies, the Government of India, has set up a corporate entity, the “Super ESCO” namely EESL. • (c) Action Plan for promoting energy efficiency (2007 – 2012): • MEPS) and comparative (pictorial) labels on end use appliances • Energy Efficiency in New and Existing buildings • Promoting Energy Efficiency in Household Lighting Sector • Municipal & Agriculture DSM • Small & Medium Enterprise • Information and Outreach

5. 2. EE POLICY INSTRUMENTS • (d) National Mission for Enhanced Energy Efficiency (NMEEE) • NMEEE is one of the eight national missions under the NAPCC announced by the Hon’ble Prime Minister in 2008. • NMEEE sets a target saving of about 23 million tons oil-equivalent of fuel savings alongwith an avoided capacity addition of over 19,000 MW and GHG emission reduction of 98.55 million tons annually by 2015. • NMEEE will initiate the first market based instrument for trading energy saving certificates by notified large industries. • The programmes under NMEEE are • Perform Achieve and Trade. • Market Transformation for Energy Efficiency. • Energy Efficiency Financing Platform. • Framework for Energy Efficient Economic Development.

6. 2. EE POLICY INSTRUMENTS • (e) Energy Efficiency Services Limited (EESL) • Energy Efficiency Services Limited (EESL), a JV of NTPC Limited, PFC, REC and POWERGRID has been set up to facilitate implementation of EE projects and to be the implementation arm for Central government and state governments. • The authorized share capital of the company is USD 45 million and the paid-up capital USD 25 million with equal contribution from all PSUs. • The objectives of EESL are: • To facilitate implementation of energy efficiency projects for Demand Side Measures including municipal functions, agriculture, public building, lighting etc. • Partner with private ESCO’s and other companies to promote energy efficiency. • To provide consultancy services in the field of energy efficiency, CDM projects, and other related areas. • To identify and impart training to build the capacity of stakeholders.

7. (3i)Minimum Energy Performance Standards • 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 • Mandatory labeling for ACs, Refrigerators, Tubelights (TL), and Distribution Transformers already in place • 90% of TL, 80% of Refrigeration and 75% of AC industry on board • Consumer awareness campaign launched • Independent institutional mechanism for check and challenge testing on random basis for labeled equipments conducted • The programme under voluntary regime is in place for Motors, Geysers, Ceiling fans, Color TVs, Agricultural pump sets and LPG stoves.

8. (3ii) Buildings – New & Existing • ECBC covers new commercial buildings with connected load greater than 500 KW • ECBC includes • 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) • The star rating of office buildings and BPOs has been launched . • This will create a demand in the market for energy efficient buildings based on actual performance of the building in terms of specific energy usage. • Energy audit studies in over 500 government buildings across the country has been undertaken. • To promote ESCO delivery mechanism, 80 ESCOs have been accredited.

9. (3iii) Promoting EE in Household Lighting • Scheme seeks to replace estimated 400 million incandescent bulbs by CFLs- could save 6000 MW by 2012 • Quality CFLs having an average rated life of 6000 hours and above would be distributed to grid-connected residential households in exchange of an ICL. • 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. • BEE has prepared a Programme of Activities (PoA) as a voluntary coordinated effort to facilitate the scheme in the entire country and reduce transaction costs • Leveraging of CDM revenues to remove the high first cost barrier- market transformation in favor of efficient lighting. • Bachat Lamp Yojana scheme has been registered as a programme of activities by the CDM executive board of the UNFCCC in Bonn. • This is the largest CDM project ever registered for any country in the world and would enable electricity distribution companies to facilitate the switch from bulbs to CFLs in all households in the country.

10. (3iv) Municipal & Agriculture DSM • Municipalities are spending large amounts of their revenue on purchasing energy for providing local public services such as street lighting and water supply. • Energy efficiency in municipal water supply systems can save water and energy while reducing costs and improve service at the same time. • The situation analysis for Municipal DSM has been completed and the rank of States and cities has been prepared. • BEE has initiated Ag DSM, in which pump set efficiency upgradation would be carried out through PPP mode. • The objective is to create appropriate framework for market based interventions in the agricultural pumping sector by facilitating a conducive policy environment to promote PPP to implement the projects  • The five Discoms in four different states have been identified for implementing the Ag DSM pilot projects.

11. (3v) Small & Medium Enterprises • To stimulate energy efficiency measures in 25 high-energy consuming SME clusters. • To improve the energy efficiency and have a significant effect on the economic performance of the plant through reduction in variable costs. • Diagnostic studies are initiated and developed cluster specific energy efficiency manuals/booklets, • Three new SMEs clusters added under the programme. • Under the programme, activity of 7 clusters is completed. • In order to improve the energy performance in industry a pilot SGA programme has been initiated.

12. (3vi) Demonstration Projects • Several high impact demonstration projects with the SDAs were undertaken in the areas of • energy efficient street lighting, • revamping of drinking water pumping system and • energy efficiency in SME clusters. • The main objectives of these demonstration projects are: • To showcase the effectiveness of the most energy efficient device / technology through a practical demonstration • To finalise technical specification of the energy efficient device, bidding documents, monitoring protocol etc. to enable replication

13. (3vii) Information & Outreach • The objective of the nationwide awareness Campaign is to create awareness amongst public about energy efficiency and drive demand for such goods and services. • Appropriate communication has been designed by way of market research and a multi-media campaign has been under implementation for the last 3 years. • A national painting competition has been conducted every year since 2005 . The impactof thePainting Competition is at Table below: • The objective of the national painting competition is to create awareness amongst public about energy efficiency and drive demand for such goods and services.

14. (3viii) Energy Performance of Industry • The Government notified 9 energy intensive industrial sectors are 'Designated Consumer' who are required to • furnish energy returns, • comply with specific energy consumption norms and • conduct regular energy audits. • An online web enabled data collection and collation system has been developed to facilitate seamless filing of returns by the designated consumers. • To promote and recognize energy conservation efforts of the industries NECA are given away every year on 14th December. • Another initiative for the industrial sector to be undertaken under the NMEEE is the PAT. • PAT is a purely national scheme aimed at increasing the energy efficiency in energy intensive industries/ establishments in India

15. (3ix) Energy Performance of Transport Sector • India is an example of how personal mobility in urban areas can be achieved at relatively low average income levels. • The need, therefore, is to take such initiatives that would have a significant impact on the emission of GHG from the transport sector in urban areas, without adversely affecting the mobility and accessibility needs of the urban population • The following could be the main elements of a sustainable transport strategy: • Energy Consumption norms for vehicles • Fiscal Incentives for small cars • Greater reliance on public transport • Greater reliance on non-motorized modes • Incorporation of sustainable transport principles into the urban design of new settlements

16. 4. Performance Analysis VERIFIED ENERGY SAVINGS

17. 5. Key Lessons • Successful implementation of market based energy efficiency requires: • Enhanced Awareness and information dissemination amongst policy makers, regulators, general public. • Financing to encourage lending by capacity building outreach with banks. • Low transactions Costs by aggregating projects and bundling demand. • Capacity building of energy management professionals, policy makers, and other stakeholders

18. 6. Updates on Regulatory Framework • The amendment to the EC Act 2011 was passed by both houses of the Parliament in August 2010 and the highlights of the amendments are : • Smooth Implementation of PAT scheme • (a) Related to Energy Savings Certificates • Definition of ESCerts • Recommendations by BEE for issue of ESCerts • Allowing compliance by buying ESCerts by DCs • Defining MTOE • Power of Government to make rules • Prescribing value of MTOE • Enhancing Penalty for non-compliance of norms by DCs & for other non-compliance • Need to have one Appellate Tribunal for the electricity sector • Enhanced energy efficiency in the buildings sector - Include existing buildings and enlarge the coverage from 500 KW to 100 KW connected load • 4. Other amendments • Procedures for certification of energy managers, energy auditors, accredited energy auditors • Time limits for prohibition of manufacture of inefficient products • Allows DCs to prepare a scheme for not able to meet the targets set • Inclusion of the definition of equipment or appliance