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Planning Commision Report on Energy 2006

Planning Commision Report on Energy 2006

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Publicado porNicholas Porter

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Published by: Nicholas Porter on Dec 14, 2009
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In many cases of energy equipment the annual costs of operation predominate as compared
to the capital cost. However the operating costs are often not considered at the time of the
purchase, as they are part of the total electricity bill and recurring maintenance costs. The
purchase decision is based on the initial cost. Table shows the initial cost and the annualised
life cycle cost (ALCC) for some typical energy appliances based only on the annual electricity
cost since it is the main cost component for these products.

Table: Comparison of Initial Cost and Life Cycle Cost

Sl.Equipment

Rating

Initial cost

Annual

ALCC

Cost of

No.

(Rs)

Electricity

(Rs)

electricity as

Cost (Rs)

%of ALCC

1.

Motor

20 hp

45,000

600,000

605,720

99.0

2.

EE Motor

20 hp

60,000

502,600

512,700

98.0

3.

Incandescent Lamp

100 W

10

1168

1198

97.5

4.

CFL

11 W

350

128

240

53.6

87

Policy for Energy Efficiency and Demand Side Management

Figure 6.1
Reduction in the Energy Consumption of Refrigerators Sold in the United States of America

Source: Wiel, S. (2001)9

Promote Urban Mass Transport:

Promote urban mass transport by
providing quality services which may
be partially financed by imposing
congestion, pollution and parking
charges on those who use personalised
motor transport. Plan for future mass
transport corridors in smaller cities and
acquire the right-of-way. As the city
grows, the permissible built up area
may be gradually increased. However
the additional right to build should
remain with the local government,
which it can auction to finance mass
transport and other urban
infrastructure.

Fuel Efficient Vehicles: Promote
hybrid vehicles in India, which are
internationally already available
commercially. Also promote the
already commercial flexi fuel vehicles

that can burn varying proportions of
ethanol-blended fuels.

12.

At an 8 percent growth rate, we will
nearly double our capital stock in nine years.
Energy using equipment and appliances will
also spread rapidly. Thus, the manufacturers of
equipment and appliances should be targeted
to force the pace of improvement in energy
efficiency. The following steps may be taken
to improve efficiency of energy consuming
equipment:

Mandate time bound targets of energy
efficiency for industrial equipment,
boilers, and appliances such as motor
vehicles, pump sets, refrigerators, water
heaters, boilers, etc.

Create

competition

among
manufacturers to be the first to achieve
the target through a “golden carrot”
which is a large monetary reward to

9

Wiel, S. (2001): Introduction, Energy Efficiency Labels and Standards: A Guidebook for Appliances,
Equipment, and Lighting
, S. Wiel and J.E. McMahon, eds. (Washington, D.C., Collaborative Labelling and
Appliance Standards Programme (CLASP).

88

Integrated Energy Policy

the first one to commercialise products
which provide, say a minimum saving
of 20% over the best existing design
within a given time frame. The Super
Energy Efficient Refrigerator Project
in the US is a successful example of
such a policy initiative(see Figure 6.1).

Mandate clear and informative labelling
in well-designed standardised forms for
equipments and appliances. Combine
this with consumer awareness
programmes that illustrate the savings
and possible associated gains.

Strengthen appropriate labelling by
creating regional facilities for testing
and certification. Such a labelling/
standards initiative should be supported
by analytical studies to establish
equipment consumption benchmarks
(minimum achievable energy
consumption targets).

13.

Industries may need technical support
to identify and execute energy saving options.
Energy service companies (ESCOs) can provide
such support. We need to promote and facilitate
ESCOs. Some possibilities include—

Financing Support – The support for
ESCOs could be in the form of

payment security mechanisms (this may
be required for projects in
municipalities, government buildings),
partial credit guarantees, or venture
capital. Financial institutions may be
encouraged to provide these.

Encouraging different business models
– For ESCOs to be successful in India
a variety of alternative business models
need to be attempted to determine the
appropriate ones in the Indian context.
The BEE could facilitate 15-20
demonstration ESCO projects in
different sectors. These should be well-
documented, independently monitored
and made available to the public. This
will encourage more entrepreneurs to
invest in ESCOs.

ESCOs as producers of “Negawatts”
may be given the same tax breaks that
are available for renewable energy
programmes or other energy
investments.

Providing an institutional framework
for independent monitoring &
evaluation of projects delivered by
ESCOs. This would involve
independent testing laboratories and
setting benchmark standards.

89

Policy for Renewable and Non-Conventional Energy Sources

An examination of India’s primary
energy balance shows that renewables account
for about 32% of primary energy consumption
in 2003-04. Of this, the major contributor is
traditional biomass mainly used in cooking
followed by electricity generation from large
hydro plants. The actual share of modern
renewables (see Figure 7.1) in India’s energy
mix is significantly lower (about 2% of the
total).

2.

Adverse local environmental impacts

(SO

x, NO

x, SPM) and global environmental

impacts (green house gas emissions mainly due
to carbon dioxide) associated with fossil fuel
use have resulted in an increased emphasis on
renewables. Figure 7.1 shows a listing of some
of the commonly used renewable options.
Renewables can be used for space heating,
cooling, water pumping, cooking and for almost
any end-use that is presently met by fossil
fuels.

3.

As the country is short of energy
resources the need to develop all energy sources
including renewable options is paramount. Our

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