Initiatives of energy conservation in India -Projects and programmes of BEE

Presentation by :K.K.CHAKARVARTI

BUREAU OF ENERGY EFFICIENCY NEW DELHI

State level meeting with Certified Energy Managers and Energy Auditors-

6th February,2014

Cochin

Contents

Legislative and Institutional Framework on

Energy Efficiency in India

EE Initiatives in Industry, Buildings and

Appliances

National Mission for Enhanced Energy

1

2

National Mission for Enhanced Energy

Efficiency (NMEEE)

Voluntary Initiatives to promote Energy

Efficiency

Conclusions

2

3

4

5

Legislative and Institutional Framework

1

Framework

3

Energy Efficiency in IndiaEnergy Efficiency in India

INTRODUCTION

� India has made rapid strides towards economic self-reliance over the last few decades.

� Impressive progress has been made in all sectors ofeconomy necessitating growing consumption of energy

� Conventional source of energy such as coal, oil and gasare scarce and exhaustible.

� Consumption of fossil fuel resources also leads to Globalwarming and climate changewarming and climate change

� Hence, all initiatives needs to be undertaken to ensure

the efficient use of the available energy resources to

manage energy supply and minimize the impact of

energy use on environment.

� This has led the Government of India through the Energy

Conservation Act and the Bureau of Energy Efficiency to

launch several energy efficiency improvement initiatives.4

��EC Act enacted in October 2001EC Act enacted in October 2001

��BecameBecame effectiveeffective fromfrom 11stst MarchMarch 20022002

�� BureauBureau ofof EnergyEnergy EfficiencyEfficiency (BEE)(BEE)operationalizedoperationalized fromfrom 11stst MarchMarch 20022002 andandStateState DesignatedDesignated AgenciesAgencies establishedestablished inin 3232States/UnionStates/Union TerritoriesTerritories

THE INDIAN ENERGY CONSERVATION ACT

States/UnionStates/Union TerritoriesTerritories

��EnergyEnergy efficiencyefficiency institutionalinstitutional practicespractices andandinitiativesinitiatives inin IndiaIndia areare nownow mainlymainly beingbeingguidedguided throughthrough variousvarious voluntaryvoluntary andandmandatorymandatory provisionsprovisions ofof thethe EnergyEnergyConservationConservation ActAct

5

THE INDIAN ENERGY CONSERVATION ACT

� The five major provisions of EC Act relate to:

� Designated Consumers (mainly energy intensive industries andbuildings) to comply with the specific energy consumption norms forthe manufactured products and services and establishment ofenergy management system,

� Standards and Labeling of energy consuming appliances, gadgetsand equipment to ensure promotion of energy efficiency of the newstocks entering the marketstocks entering the market

� Energy Conservation Building Code ensuring that newcommercial buildings constructed in the country have less electricityconsumption

� Creation of Institutional Set up (Bureau of Energy Efficiency at theFederal level and State Designated Agencies at the State level) foreffective coordination of the energy conservation efforts in thecountry and

� Establishment of Energy Conservation Fund at Centre and Statesto provide necessary financial support for energy efficiencyinitiatives in the country. 6

Energy Efficiency Initiatives

IndustryIndustry, Buildings , Buildings and Appliances and Appliances

2

7

IndustryIndustry, Buildings , Buildings and Appliances and Appliances

Energy Manager Certification and Energy Audits

� 9 energy intensive industry including Railways

have been notified as designated consumers

� 14 National Certification examinations have

certified about 10,500 Certified Energy

Managers, out of which 7300 are also qualified

as Certified Energy Auditors

8

as Certified Energy Auditors

� Baseline energy audits studies carried out inabout 500 units of 8 energy intensive industryand thermal power units.

� Guide Books on EE and Energy Audit Manualsprepared

Standards and labeling

� 16 Equipment and Appliances covered under S&L

Programme

� All the refrigerators (frost free), air conditioners,

distribution transformers and fluorescent tube lights

that are sold in India must have a BEE Star label

� India became the first country in the world to� India became the first country in the world to

comprehensively regulate the performance, safety,

and quality of light-emitting diodes (LEDs).

� Corporate average fuel consumption norms for

passenger cars in place

9

Commercial Buildings Floor Area - Growth Forecast

� Currently, ~ 659 million m2

� In 2030,~ 1,900 million m2 (estimated)*

� 66% building stock is yet to be constructed

Growth in the Indian Building Sector

659

million

m2

Current

34%

Yet to be

Built

66%

1,900 million m2

Year: 2010

* Assuming 5-6% Annual Growth Year :2030

10

Energy Conservation Building Code

� ECBC covering five climatic zonesof India (Hot & Dry, Warm &Humid, Composite, Temperate andCold) prepared

� ECBC set minimum energyefficiency standards for design andconstruction

� Mandatory Scope Coverscommercial buildings

11

commercial buildings

• Survey indicates about over 700ECBC-compliant buildings are atvarious stages of construction(2012-13)

� Star labeling programme(Voluntary) for day use officebuildings, BPOs and ShoppingMalls developed. So far, 150buildings have been rated undervarious categories.

Other EE Initiatives

� Bachat Lamp Yojana (BLY) (Energy Saving Lamp Scheme)

– Total sales of CFLs have increased to 350 million (in 2011) from 180

million (in 2008) when the Bachat Lamp Yojana (BLY) was

conceptualized.

– The doubling of CFL market, even though BLY has contributed to only

about 15% of the increase, suggests that the transformation

conceptualized under BLY has occurred.

� Agricultural Demand Side Management (DSM)� Agricultural Demand Side Management (DSM)

– Scheme was focused on replacement of inefficient pumps with BEE star

labeled energy efficient pumps.

– One pilot project was taken up in Western India for replacement of 2200

pumps: Savings achieved-24%

� Municipal DSM

– Bankable DPRs for 134 Urban Local Bodies (ULB) prepared which

shows overall potential saving of about 120 MW

– Energy conservation cells were created in ULBs to facilitate the

implementation of the DPRs

12

Other EE Initiatives

� SMEs� 375 detailed project reports in 25 SME clusters were

prepared for facilitation of implementation of Energy Efficiency in SME units.

� Strengthening of State Designated Agencies– 32 States have designated SDAs (State

Designated Agencies) to implement energyefficiency in their respective Statesefficiency in their respective States

– 33 demonstration projects in the area of streetlights and water pumping system have beenimplemented

– LED village campaign implemented in 24 States– Investment Grade Energy Audit (IGEA)

conducted in 491 public buildings across India.

13

National Mission for Enhanced Energy Efficiency

3

Enhanced Energy Efficiency (NMEEE)

14

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

• The National Action Plan on Climate Change was

released by Prime Minister of India in June 2008

• The Action Plan Outlines 8 Missions including

National Mission for Enhanced Energy Efficiency

(NMEEE)(NMEEE)

• The basic objective of the NMEEE mission is to

ensure a sustainable growth by an approximate mix

of 4 E’s, namely-Energy, Efficiency, Equity and

Environment and unlock energy efficiency

opportunities through market based mechanisms.

15

National Action Plan on Climate Change

Stimulate Funding

for ESCOsEnergy Intensive Industries

Targets for Mandatory

Energy Saving

PAT EEFP

NMEEE – Four New Initiatives

Fiscal

Instrument for EE

Partial Risk Guarantee Fund (PRGF)

Venture Capital Fund (VCF)

Public Procurement

Energy Efficient

AppliancesBLY

SEEP

DSM

FEEEDMTEE

NMEEE

17

Perform, Achieve & Trade (PAT)

� The key goal of the PAT scheme under National Mission

for Energy Efficiency (NMEEE) is to mandate specific

energy efficiency improvements for the most energy

intensive industries.

� The scheme builds on the large variation in energy

intensities of different units in almost every sector

� The energy intensity reduction target mandated for each

unit is dependent on its current efficiency : the reduction

target is less for those who are more efficient, and is

higher for the currently less-efficient units.

� The design of PAT is the result of extensive consultations

over the last two years (2010-11 and 2011-12), which

have contributed to its robustness and simplicity.

18

PAT Scheme

� Covers 478 designated consumers in 8 sectors, consuming about 165 million toe energy.

� National Target = 6.686 million toe at the end of 1st PAT Cycle ( by 2014-15)

� Reducing India's CO2 emissions by 24 million tons / year in 2014-15.

-Achievement > Target E-Scerts

-Achievement < Target Purchase E-Scerts / Penalty

� The Energy Savings Certificates (ESCerts) so issued will be tradable on special trading platforms to be created in the two power exchanges (Indian Energy Exchange and Power Exchange India).

� The direct benefit for the participating industries in this period is reductions in input costs related to energy of approximately US$ 1250 million.

• Total EE Projects planned in 2012-15: 2057

• Total anticipated investment : US$ 3095 million

19

Designated Consumers- Kerala State

Sl No Designated Consumer

Net Heat Rate

(Kcal/KWh)-

Baseline

Net Product Output

(Million Units)-

Baseline

Net Heat Rate

(Kcal/KWh)-Target

1

Brahmapuram Diesel Power Plant

(BDPP)

Kochi

2115 175 2074

2BSES Kerala Power Project

Kochi1969 590 1965

3Kasargod Power Corporation Ltd

(KPCL)2265 69 2166

4Kozhikode Diesel Power Project

(KDPP)2150 350 2115

5

Rajiv Gandhi Combined Cycle

Project (NTPC)

Kayankulam

1994 2016 1988

Designated Consumers- Kerala State

Sl no Designated Consumer

Specific Energy

Consumption

(TOE/ton of

product)-Baseline

Product Output

(Ton)

Specific Energy

Consumption

(TOE/ton of

product)- Target

6Travancore Cochin Chemicals Ltd

Kochi0.299 50,430 0.282

7Hindustan Newsprint Ltd

0.660 1,08,221 0.6237Hindustan Newsprint Ltd

Kottayam0.660 1,08,221 0.623

8FACT (Ammonia)

Udyogamandal0.985 1,37,004 0.970

9Malabar Cements Limited,

Palakkad0.0971 12,10,539.37 0.0918

National Target of Energy Saving among all Sectors

S.NO. Sector

No. of

Identified

DCs

Annual

Energy

Consumption

(Million toe)

Share

Consumption

(%)

Apportioned

Energy

Reduction For

PAT Cycle-1

(Million toe)

1Power

(Thermal) 144 104.56 63.38% 3.211

22 Iron & Steel 67 25.32 15.35% 1.486

3 Cement 85 15.01 9.10% 0.815

4 Aluminium 10 7.71 4.67% 0.456

5 Fertilizer 29 8.20 4.97% 0.478

6 Paper & Pulp 31 2.09 1.27% 0.119

7 Textile 90 1.20 0.73% 0.066

8 Chlor- Alkali 22 0.88 0.53% 0.054

Total 478 164.97 100.00% 6.686

Sectoral Share in Energy Saving Target (%)(2012-15)

23

Fuel Composition Mix in PAT Sector Industries

Fuel Million toe %

Coal 142.3 85.36

Oil 4.33 2.60

Gas 17.14 10.28

Imported Electricity(Not from CPP)

2.94 1.76

Saving

Target

Baseline SEC

Achieved SEC

Compliance

Issued Escerts Penalty

Concept of Target, Compliance, ESCerts & Penalty

25

Target SEC

Scenario 1 Scenario 2

Compliance

Purchase Escerts

Development of new sector specific data Collection Form for Energy Return with inbuilt SEC Calculation sheet

Development of Sector Specific Normalisation Factors for

• Capacity Utilisation or PLF

• Intermediary products

• Product Mix

• Power Mix

• Fuel and Raw material Availability

• Fuel Quality

Monitoring and Verification

Market place for Energy efficiency Instruments

PAT Challenges

• Fuel Quality

• Environmental Concern

• Natural Disaster & Unforeseen Circumstances

Trading Platform: Finalization of the overall structure for issuance of Escerts

PAT Deepening and Widening

Identification of DCs in new Sectors and Definition for taking the PAT to another step

PAT Cycle II: Fixing of

Baseline data for Existing DCs

for PAT Cycle II

Framework for Energy Efficient Economic Development (FEEED)

� Fiscal instruments to facilitate energy efficiencyprojects implementation have been developed:

� PRGFEE: Debt guarantee to Financial Institutions forESCO (Energy Service Companies) investments (uptoRs. 3.0 Crores or 50% of loan, whichever is less)

� VCFEE: Equity investments in ESCO projects (uptoRs 2.0 crores or 15% of equity, whichever is less)Rs 2.0 crores or 15% of equity, whichever is less)

� Public Procurement: Public procurement of energyefficient appliances in the Public sector has beeninitiated. This is expected to save 250 MW of Power .Initially the appliances which have been considered forpublic procurement include Split air conditioners (usagemore than 1000 hrs/year), ceiling fans & water heaters(all 5 Stars) and frost free refrigerators ( 4 Stars)

27

Voluntary Initiatives to promote Energy Efficiency

4

promote Energy Efficiency

28

National Energy Conservation Awards

� Motivated industry and other establishment to adoptenergy efficiency measures

� Scheme has become very popular among industriesand buildings, as is evident from increasingparticipation level (829 nominations in 2013 incomparison to 123 nominations in 1999)

29

ENCOURAGING RESPONSE FROM INDIAN INDUSTRY AND OTHER ESTABLISMENTS IN THE

NATIONAL ENERGY CONSERVATION AWARD SCHEME (1999-2013)

500

600

700

800

900

388 384

558592

644

773

829

No

. o

f P

art

icip

ati

ng

Un

its

0

100

200

300

400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

123 120157

174191

297

343

388 384368

No

. o

f P

art

icip

ati

ng

Un

its

Year

30

INCREASE IN THE EQUIVALENT AVOIDED CAPACITY PER

YEAR BY THE PARTICIPATING UNITS (1999-2013)

400

500

600

700

800

308325

359 357

504

616

711

Eq

uiv

ale

nt

av

oid

ed

cap

acit

y i

n M

W

0

100

200

300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

45

100 90

122103

155

252 245

308

Eq

uiv

ale

nt

av

oid

ed

cap

acit

y i

n M

W

Year

31

MONETARY SAVING ACHIEVED PER YEAR BY PARTICIPATING UNITS IN THE

NATIONAL ENERGY CONSERVATION AWARD SCHEME (1999-2013)

2500

3000

3500

4000

4500

2377

2138

2390

2886

4141

An

nu

al

Sav

ing

s in

Rs. C

rore

s

0

500

1000

1500

2000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

205

366

587 594539

763

993

1135

1843 1859

An

nu

al

Sav

ing

s in

Rs. C

rore

s

Year

32

YEAR WISE ENERGY SAVINGS ACHIEVED BY PARTICIPATING UNITS IN MINISTRY OF

POWER’S ENERGY CONSERVATION AWARD SCHEME

(From 1999 to 2013)

Year

No. of

Participating

industrial

units

Annual

Savings in

Rs. Crores

One time

investment

in

Rs. Crores

Electrical Energy SavingFurnace Oil

& Other

liquid fuel

Savings, in

Lakhs kL

Coal Savings

in Lakh

Metric

Tonnes

Gas Savings

in Lakh cubic

metresMillion kWh

Equivalent

avoided

capacity in

MW

2013 829 4141 4537 4354 711 3.79 25.54 4993

2012 773 2886 1948 4177 616 2.65 25.53 4303

2011 644 2390 2201 3421 504 3.29 33.21 4085

2010 592 2138 5457 2422 357 3.41 23.42 8338

2009 558 2377 3180 2451 359 5.65 12.4 42742009 558 2377 3180 2451 359 5.65 12.4 4274

2008 368 1859 2493 2216 325 1.85 3.47 15729

2007 384 1843 2923 1620 308 1.25 5.86 15379

2006 388 1135 1266 1288 245 1.19 5.17 29044

2005 343 993 1319 1327 252 2.4 7.58 13122

2004 297 763 1364 814 155 2.49 5.37 18585

2003 191 539 1071 542 103 2.21 12.65 73181

2002 174 594 691 641 122 1.7 7.4 35588

2001 157 587 659 485 90 2.21 4.79 3929

2000 120 366 630 524 100 1.327 0.64 707

1999 123 205 940 205 45 1.62 2.15 2444

Total 15 years22816 30679 26487 4292 37.04 175.18 233702

33

Painting Competition on Energy Conservation for School Students

� The scheme aims at sensitizing the children towards

issues of energy conservation

� Ministry of Power and Bureau of Energy Efficiency

have been organizing painting competitions on

energy conservation for the last 9 years for school

students at School, State and National levels.

� The scheme is being executed in all the 28 States� The scheme is being executed in all the 28 States

and 7 UTs of India

� In the year 2013, more than 4,500,000 students

participated in comparison to about 343,000 students

in 2005.

34

National Painting Competition Prize Distribution Function 2013

35

Hon’ble President, Shri Pranab Mukherjee presented the National Painting Competition Prizes, at the National Energy Conservation Awards function, in New Delhi on December 16, 2013. The Minister of State (Independent Charge) for Power, Shri Jyotiraditya Madhavrao Scindia is also seen.

Painting Competition on Energy Conservation

36

Painting Competition on Energy ConservationPainting Competition on Energy Conservation

K R K R RoshniRoshni, Standard V, Tamil Nadu (India), Standard V, Tamil Nadu (India)

37

ISO 50001 Energy Management System

� More than 200 industrial units have declared theirenergy policy .

� PAT mechanism has all factors which are part of EnMS

� Relatively easier for Indian industry and buildings toadopt EnMs standard and achieve and sustain higherlevels of energy efficiency

� Around 60 establishments including buildings andindustry in India have been certified for ISO 50001 EnMS

� The Delhi International Airport Limited (DIAL) became� The Delhi International Airport Limited (DIAL) becamethe first airport operator and Dahanu Thermal PowerStation, Maharashtra (India) became the first ThermalPower Station in the world to receive this certificationafter its publication in mid 2011.

38

ISO 50001Certified Establishment in India-First Power Plant

• Dahanu Thermal Power Station (2x 250 MW) (DTPS) inMaharashtra, ( Western India)

• “After receiving ISO 50001, DTPS would derive numerousbenefits of energy management- making better use ofexisting energy-consuming assets, monitoring andmanaging reductions in GHG emissions, managing energyuse and costs, implementation of new energy-efficientuse and costs, implementation of new energy-efficienttechnologies and management of energy resources.”

-Mr. Lalit Jalan, CEO, Reliance Infrastructure Limited, India

39

Conclusions

5

40

Impact of Energy Efficiency Initiatives

� Standards and Labelling of equipment and appliancesprogramme has created a market transformation

� Energy saving targets have been fixed for 8 sectors ofenergy intensive industry- 6.686 million ton of oilequivalent by 2014-15

� The PAT scheme is a unique and innovative initiative,perhaps with no precedence anywhere else in theworld.world.

� PAT would become a valuable model for othercountries to adopt for their own energy efficiencyprogrammes with a business perspective.

� Various activities under different initiatives haveresulted in savings in avoided power generationcapacity of about 10,836 MW during 11th Five YearPlan (2007-2012).

41

12th Plan(2012-17): Projected Energy Savings

� The strategies adopted during the 11th Five Year Plan(2007-12) have showed encouraging outcomes.

� 12th Plan (2012-17) will carry forward the existingschemes as well as further strengthen the EEinitiatives to accelerate the process ofimplementation of energy efficiency measures toachieve the desired energy savings.achieve the desired energy savings.

� Projected Savings in Billion kWh (BU):

� 44.85 BU (consumer end)

� 60.17 BU (at generating side)

� Additional thermal energy saving equivalent to21.30 million ton of oil equivalent energy is expectedto be achieved by 2016-17

42

We all have our personal doomsday scenarios with respect to an extremely

“energy hungry” world

Year 1800Year 2000

Year 1900

Year 1800Year 2050

Year 2020

Year 2000

43

Visit us at www.energymanagertraining.comwww.bee-india.nic.in

44