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Energy Conservation Act 2001
Sri Dinesh Kumar D.K,
Assistant Technical Officer
Karnataka Renewable Energy Development Ltd(Karnataka State Designated Agency)
Bangalore
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Installed Capacity in MW
All India-1,43,311.01 as on 7/6/2008
COAL, 76,298,
88%
NUCLEAR, 4120%
RENEWABLE,
11125, 8%
GAS, 14656, 21%
OIL, 1201, 75%
HYDRO
35908, 76%
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ALL INDIA 11,478.36 as on31.12.2007
RENEWABLE ENERGY Installed CapacityIN MW
WIND POWER, 7844 .57%
BIO POWER, 605, 5%
SOLAR, 2, 0%
SMALL HYDRO,
2045.61%
COGENERATION,
719.83% WASTE TO ENERGY,
55.20%
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The Target ahead
507 545719
975
Mar.'01 (act.) Mar.'03 (act.) Mar.'07 (est.) Mar.'12 (est.)
78037 81492
115705
157107 *
Peak
requirement
in MW
Energy
requirement
in BU
By the year 2012, Indias peak demand would be 1,57,107 MW
with energy requirement of 975 BU.
* Capacity to increase to 212,000 MW by year 2012 to meet the peak
demand of 1,57,107 MW.
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Generator-wise Installed Capacity
As on 26.12.2007
NCE19%
IPPs &Others
4%
KPC-
Hydel
41%
CGS
16%
KPC-
Thermal
20%
Source Inst.Cap.
(MW) %KPC-Hydel 3392 41
KPC-Thermal 1598 20
CGS (alln. Only) 1315 16
NCE 1543 19
IPPs &
Others
346 4
Total 8194 100
Break-up for NCE Projects (MW)
Wind 838
Co-gen. 355
Mini-Hydel 253
Bio-Mass 97
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NCE19%
IPPs &
Others4%
KPC-
Hydel41%
CGS16%
KPC-Thermal
20%
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Energy Conservation Act, 2001
Energy Conservation Act, enacted in October 2001. BEEcreated as the nodal statutory body to improve energyefficiency through: Standards and labeling for appliances
Energy Conservation Building Codes (ECBC)
Energy consumption norms for Designated Consumers
Certification and accreditation of energy auditors andenergy managers
Dissemination of information and best practices
Capacity Building
Establish EE delivery systems through Public-PrivatePartnerships
The Act creates the Bureau of Energy Efficiency (BEE) inthe centre, and State Designated Agencies (SDAs) in thestates
30 states have created SDAs, in Karnataka KREDL is theDesignated Agency for Implementing EC Act 2001
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Energy Conservation Act, 2001
BEE was set up in March 2002 under the provisions of
Energy Conservation Act of 2001 to provide a legalframework for the governments energy efficiencyinitiatives in the country.
The Bureaus mission is to develop policies andstrategies with a thrust on self regulation and marketprinciples with the primary objective of reducing energyintensity of the Indian economy.
Develop and recommend to the Central Governmentnorms for processes and energy conservationstandards
Develop and recommend minimum energyperformance standards and labeling design forequipment and appliances
Develop and recommend specific energy conservationbuilding codes
Recommend notifying any user or class of users ofenergy as designated consumers
Take necessary measures to create awareness anddisseminate information for efficient use of energy andits conservation
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Energy Efficiency Initiatives
Regulating power plant energy efficiency Regulators are tightening power plant conversion efficiency
norms
Appliance standards and labeling House-hold refrigerators, fluorescent tube lights, air
conditioners and transformers have been included in theprogramme on voluntary basis
Labels for other appliances/equipment, such as electricmotors, LPG burners, ceiling fans and consumerelectronics are under preparation
Energy Conservation Building Code Launched on 27th May 2007 on voluntary basis; applies to
new, large commercial buildings
Reduces energy demand by 40 to 60 %
Demand-Side Management Adoption of CFLs by households
Can reduce demand by 20,000 MW
CDM is being utilized to incentivize these programmes
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Barriers To Energy Efficiency
Lack of proliferation of DSM projects andconcepts
Lack of information about comparativeenergy use especially of appliancesbought by retail consumers
Perceived risk due to lack of confidencein performance of new technologies inappliances, building design, industrialtechnologies
Higher cost of energy-efficienttechnologies
Asymmetry in sharing of costs andbenefits especially in the buildingsector
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Barriers To Energy Efficiency Tariff Reforms
Two part tariffs
Time of Day tariffs Power Factor incentive and penalty/Reactive Power
Charges
Penal Charges for overdrawal
Cost reflective tariffs
Load Management Directives To reduce loads for industry (MERC)
Regulatory Directives to the consumers/licensees Factor DSM in power procurements (APERC/ MERC)
Public awareness campaigns
Funding Options for DSM
Incentives to consumers for adopting efficient lighting, solarwater heater, etc.
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CDM Based CFL Scheme
Scheme announced by MOP seeks to replace
estimated 400 million incandescent bulbs byCFLs- could save 6000 MW to 10,000 MW
BEE to prepare a Programme of Activities(PoA) as a voluntary coordinated effort tofacilitate 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 CDMmethodology (under PoA) to be done by BEE
Energy Reduction as a result of use of CFL tobe monitored- CERs generated will be traded revenues to be used to service investmentsmade upfront
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Standards & Labeling Programme
To create appropriate legal and regulatoryenvironment for energy efficient end useproducts
To provide the consumer an informed choiceabout energy saving by using efficient devices
To gear up Indian industry to compete inmarkets that have made/ are making suchstandards mandatory.
To stimulate market transformation in favour ofenergy efficient equipments and appliances-
both from supply and demand side To reduce overall energy consumption by use
of such equipments/ appliances- 18 BU by2012 (~3000 MW)
To provide assistance/ support to Small &
Medium Manufacturers
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BEE LABEL
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Energy Efficiency Programme In
Buildings
Energy saving potential in the range of 23% -46% has been identified through energy auditsconducted in public buildings
Under the 1st phase of Energy Efficient Govt.
Buildings Programme 9 public buildings weretaken up for energy audits
17 additional Government buildings undertakenfor 2nd phase through performance contractingunder the ESCO route
A national programme for existing buildings isunder preparation
Innovative financial instruments for promotingperformance contracting are being developed to
overcome lack of effective delivery mechanism
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Designated Consumers (DC)
EC Act mandates Government to designate
consumers who consume electricity beyond abenchmarked limit.
The DCs are required to appoint Energy Manager
DCs are required to adhere to energy efficientconsumption 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 3times successfully- over 2700 Auditors/ Managersaccredited/ certified- 4th examination being conducted
Web based e-filing of energy consumption returns to
be mandated soon- first of its kind initiative Govt. of India notified(12th march2007) 9 Energy
Intensive Industries as Designated Consumers, i.eThermal Power Station, Fertilizer, Cement, Iron&Steel, Chlor-Alkali, Aluminium,Raiways,Textile&Pulp
&paper.
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Agriculture DSM Challenges & Road
Map
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 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 policyand regulatory regime, access to finance and paymentsecurity
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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 efficientpumps
Conduct load research and establish a base line Provide a suitable subsidy linked funding mechanism
with due incentives for an appropriate Public PrivatePartnership (PPP) model to work.
Provide sufficient measures to ringfence all the risksassociated with such projects.
Encourage measures that create awareness andeducation amongst farmers.
Harness the collective action amongst local farmercommunity to diminish the effects of the free riders.
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Road Map For DSM
The following interventions are necessary
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 andappliances.
Appropriate Financial and Tax incentives forEnergy Efficient equipments and applianceand their manufacture.
All DISCOMS are in the process of creatingDSM cells.
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Expected Outcomes
Barriers for EE & DSM to be removed.
The State Regulatory Commissionsand Utilities to be encouraged to
implement the Conservation initiatives
Engagement of StakeholdersIndustrial and Commercial users
Time of use tariff for industrial and
commercial users.
Incentives to industry to adoptconservation/ efficiency measures
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Thank YouFor more details log on to
www.energymanagertraining.com
www.bee-india.nic.in
www.kredl.org.in
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