ENERGY CONSERVATION AND EFFICIENCY DSM Initiatives in India

Secretary BUREAU OF ENERGY EFFICIENCY

NEW DELHI (Ministry of Power)
10th September 2007

Energy Conservation and Efficiency

Strategy / Line of Action Issues to be addressed
 Barriers for EE & DSM to be removed.  The State Regulatory Commissions and Utilities to be  Energy Efficiency and Demand encouraged to implement the Side Management relevant for Conservation initiatives - Avoiding fresh generating Energy  Engagement of Stakeholders capacity Conservation Industrial and Commercial users - Flatten the load curve potential assessed - 20,00 - Time of use tariff for industrial - Savings of energy and cost as at present 0MW and commercial users. Potential harnessed : - Incentives to industry to adopt  Measures initiated : - During Xth Plan - 877 * conservation/ efficiency - CFL programmes in States period MW measures - Standards and Labeling States program. - 10,00 - Target for XIth Plan period 0 MW - Energy Efficiency programmes - Encourage implementation of DSM programmes in Agriculture/ in existing buildings Municipalities * as indicated by participating - Energy Conservation Building units in the National Energy Codes (ECBC) Conservation award scheme, Domestic consumers - Capacity building of SDAs for the previous five years. - Ensuring availability at low cost - Demand Side Management in and promoting use of low cost Agriculture CFLs. - Designated Consumers and - Awareness implementation of EC Act

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

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

Electricity Use in the Commercial Sector is increasing

Energy Intensity in Cement Sector

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

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

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

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

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/ Manufacturers support to Small & Medium

The National Energy Labeling Programme launched by Honble Union Minister of Power on 18th May, 2006.

S. No.

Particulars

Refrigerat ors (Frost Free) 5.5

Refrigerator s (Direct Cool) 22.5

Refrigerato rs (All)

TFL

ACs

Ceiling Fans (1200 mm) 67

Motors (<15k W) 1.68

Total (With out CFL)

CFL

1.

No. of products currently in use (Million) (31 December 2005) Total energy use by the products (Million kWh/Year) (2005-06) Contribution to demand (MW) (2005-06) Current Annual Sales (Million/Year) Energy Savings Potential

28

338

7.09

108

2. 3.

3500

7300

10800 2209

31202 6383

8447

15075

24988

90512 18516

2464 504

716

1493

1728

3084

5112

4.

1.04

2.82

3.86

195

1.3

16

0.36

57

5. 6. 7. 8.

2007 (Million kWh/Year) 2011 (Million kWh/Year) 2015 (Million kWh/Year) 2020 (Million kWh/Year) Demand Saving Potential (MW)

50 674 3153 9436

119 1136 3235 8166

169 1810 6388 17602

325 674 1397 3476

34 479 2071 8682

3365 9747 23698 48408

314 974 3051 6455

4207 13684 36605 84623

3016 4644 8122 13081

9. 10.

2007 2011

10 138

24 232

35 370

66 138

7 98

688 1994

64 199

860 2799

617 950

11.

2015

645

662

1307

286

424

4848

624

7489

1662

12.

2020

1930

1671

3601

711

1776

9903

1320

17311

2676

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

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
Month August, 2006 September,2006 October, 2006 November, 2006 Estimated savings, kWh 93080 97549 97549 105642 Acutal Savings achieved, kWh 124466 142597 169179 222567

 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

Existing Buildings Programme

Energy Audit Results

Building Particulars

Annual Energy Consumption (Million kWh) 3.4 0.8 2.6 2.0 10.0 71.3 2.4 36.9

Annual Energy Savings (Million kWh) 0.8 0.3 1.2 0.8 2.9 1.6 0.6 9.3

Percentage Savings (kWh)

Annual Energy Savings (Million Rupees) 5.0 1.7 7.6 4.3 8.8 5.9 4.0 7.1

Investment (Million Rupees)

Rashtrapati Bhawan Prime Minister Office Sanchar Bhawan Shram Shakti Bhavan & Transport Bhawan R R Hospital Air Port Rail Bhawan AIIMS

23 32 46 39

5.1 5.0 14.7 15.8 4.5 18.0 16.3 107.0

28 20 25 29

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

Designated Consumers and SMEs Programme

Strategies
Short Term Initiate comprehensive energy consumption norm studies in 15 sub-sectors Development of specific energy consumption norms for 3 sectors Initiate comprehensive studies in 25 clusters of SMEs Initiate studies to establish specific fuel consumption norms in Transport sector Initiate online reporting system for energy data Preparation of industry specific manuals of energy efficient technologies and consumption norms Dissemination of best practices, demonstrative case studies Reporting and verification protocols, training and capacity building at cluster/ sub-sector level Energy consumption norms for 6 sectors Target of at least 5% reduction at each sub-sector and cluster level Integration of efficient fuel consumption norms in transport sector

Medium Term

Long Term

Agricultural DSM-Challenges and Road Map

Challenges Availability of efficient pumps High first cost bias Location specific baseline Monitoring and verification Tragedy of commonslack of incentive of farmer Risksmonitoring, 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 policy and regulatory regime, access to finance and payment security

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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