7 Initiatives by the Government to Promote Energy

Efficiency and Energy Conservation

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7 Initiatives by the Government to Promote Energy Efficiency and Energy Conservation Filed Under: Economics
Notes Energy efficiency involves efficient utilization of energy resources. This is necessary for sustainable
development. Energy efficiency increases productivity, and significantly reduce Green House Gas emissions ,
solid waste production and thermal pollution. Initiatives to Promote Energy Conservation and Energy Efficiency
In this article, we discuss a few initiatives for Energy efficiency and Energy conservation taken by Government of
India through Bureau of Energy Efficiency (BEE), Ministry of Power. 1. Standards and Labeling by the Bureau of
Energy Efficiency (BEE) The Bureau of Energy Efficiency (BEE) initiated the Standards & Labeling programme for
equipment and appliances in 2006 to provide the consumer with an informed choice about the energy saving.
The energy efficiency labelling programs under BEE are intended to reduce the energy consumption of
appliance without diminishing the services it provides to consumers. ‘Star Rating’ mobile app UPSC Prelims
2020 Test Series - Register Now! This app is linked to the Standards and Labeling database. It provides the user
with a platform to compare personalized energy saving devices across the same class and get a real-time
feedback from consumers so that they can make an informed purchase decision. Apart from being a one-stop
solution for customers, it’s also a valuable tool for policymakers to access the accumulated data and analyse
the feedback of the market at any given point in time. 2. Energy Conservation Building Codes (ECBC) by the
Ministry of Power The Energy Conservation Building Code (ECBC) was launched by Ministry of power for new
commercial buildings in 2007. It sets minimum energy standards for new commercial buildings. In order to
promote a market pull for energy efficient buildings, Bureau of Energy Efficiency developed a voluntary Star
Rating Programme for buildings which are based on the actual performance of a building. The updated version
of ECBC came in 2017 which sets parameters for builders, designers and architects to integrate renewable
energy sources in building design with the inclusion of passive design strategies. The code aims to optimise
energy savings with the comfort levels for occupants and prefers life-cycle cost-effectiveness to achieve energy
neutrality in commercial buildings. 3. National Mission for Enhanced Energy Efficiency (NMEEE) under NAPCC
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National
Action Plan on Climate Change (NAPCC) . NMEEE aims to strengthen the market for energy efficiency by
creating conducive regulatory and policy regime and has envisaged fostering innovative and sustainable
business models to the energy efficiency sector. The NMEEE has four initiatives to enhance energy efficiency in
energy-intensive industries which are as follows: Perform, Achieve and Trade Scheme (PAT): A market-based
mechanism to enhance the cost-effectiveness in improving the Energy Efficiency in Energy Intensive industries
through certification of energy saving which can be traded. Units which are able to achieve specific energy
consumption (SEC) level that is lower than their targets can receive energy savings certificates (ESCerts) for
their excess savings. The ESCerts could be traded on the Power Exchanges and bought by other units under
PAT who can use them to meet their compliance requirements. Market Transformation for Energy Efficiency
(MTEE): Under MTEE, two programmes have been developed i.e. Bachat Lamp Yojana(BLY) and Super-Efficient
Equipment Programme (SEEP). BEE promotes the use of LED lights using the institutional structure of BLY
Programme. SEEP is a program designed to bring accelerated market transformation for super-efficient
appliances by providing financial stimulus innovatively at critical point/s of intervention. Energy Efficiency
Financing Platform (EEFP): This is a platform for the creation of mechanisms that would help finance demand-
side management programmes in all sectors by capturing future energy savings. Under this, MoUs have been
signed with financial institutions to work together for the development of energy efficiency market and for the
identification of issues related to this market development. Framework for Energy Efficient Economic
Development (FEEED): This is for development of fiscal instruments to promote energy efficiency. Under this
two initiative are taken: Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) is risk sharing mechanism to
provide commercial banks with a partial coverage of risk involved in extending loans for energy efficiency
projects. The Venture Capital Fund for Energy Efficiency (VCFEE) is a fund to provide equity capital for energy
efficiency projects. The support under VCFEE is limited to Government buildings and municipalities. 4. School
Education Program by Bureau of Energy Efficiency and NCERT There is a need to make the next generation
more aware regarding efficient use of energy resources. In this regard, promotion of energy efficiency in

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schools is being promoted through the establishment of Energy Clubs. Bureau of Energy Efficiency intends to
prepare the text/material on Energy Efficiency and Conservation for its proposed incorporation in the existing
science syllabi and science textbooks of NCERT for classes 6th to 10th. 5. Human Resource Development (HRD)
The potential for improvement of energy efficiency of processes and equipment through awareness creation is
vast. A sound policy for creation, retention and up gradation of skills of Human Resources is very crucial for
penetration of energy efficient technologies and practices in various sectors. The component under HRD
comprises of theory cum practice-oriented training programme and providing Energy Audit Instrument Support
to the citizens. 6. Promotion of Energy Efficient LED Bulbs – UJALA scheme Hon’ble Prime Minister Sh. Narendra
Modi described the LED bulb as “Prakash Path” – “way to light”. The initiative is part of the Government of
India’s efforts to spread the message of energy efficiency in the country. UJALA scheme aims to promote
efficient use of energy at the residential level, enhance the awareness of consumers about the efficacy of using
energy efficient appliances and aggregating demand to reduce the high initial costs thus facilitating higher
uptake of LED lights by residential users. It may be noted that the scheme was initially labelled DELP (Domestic
Efficient Lighting Program) and was relaunched as UJALA. 7. Promotion of Electric vehicle: – National Electric
Mobility Mission Plan (NEMMP) The government of India launched the National Electric Mobility Mission Plan
(NEMMP) 2020 in 2013. It aims to achieve national fuel security by promoting hybrid and electric vehicles in the
country. There is an ambitious target to achieve 6-7 million sales of hybrid and electric vehicles year on year
from 2020 onwards. The government aims to provide fiscal and monetary incentives to kick-start this nascent
technology; for e.g.Demand side incentives to facilitate the acquisition of hybrid/electric vehicles, Promoting
R&D in technology including battery technology, power electronics, motors, systems integration etc. The
government has launched the scheme namely Faster Adoption and Manufacturing of Hybrid & Electric Vehicles
(FAME India) under NEMMP 2020 in the Union Budget for 2015-16. The scheme will provide a major push for
early adoption and market creation of both hybrid and electric technologies vehicles in the country. The scheme
has 4 focus areas i.e. Technology development, Demand Creation, Pilot Projects and Charging Infrastructure.
Conclusion Quote – “We all have our personal doomsday scenarios with respect to an extremely “Energy
Hungry ” world”. The Perform, Achieve and Trade Scheme (PAT) scheme is a unique and innovative initiative,
perhaps with no precedence anywhere else in the world. PAT would become a valuable model for other
countries to adopt for their own energy efficiency programmes with a business perspective. Standards and
Labelling of equipment and appliances programme have created a market transformation. PS: If you come
across any other initiatives or schemes by the Government or private sector for energy efficiency and energy
conservation, feel free to mention the same in the comments. Article by: Arun Kumar Share 244 Tweet
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2018

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Energy efficiency involves efficient utilization of energy resources. This is necessary for
sustainable development. Energy efficiency increases productivity, and significantly
reduce Green House Gas emissions, solid waste production and thermal pollution.

Initiatives to Promote Energy Conservation and Energy

Efficiency
In this article, we discuss a few initiatives for Energy efficiency and Energy conservation
taken by Government of India through Bureau of Energy Efficiency (BEE), Ministry of
Power.

1. Standards and Labeling by the Bureau of Energy Efficiency

(BEE)
The Bureau of Energy Efficiency (BEE) initiated the Standards & Labeling programme for
equipment and appliances in 2006 to provide the consumer with an informed choice
about the energy saving.

The energy efficiency labelling programs under BEE are intended to reduce the energy
consumption of appliance without diminishing the services it provides to consumers.

‘Star Rating’ mobile app

UPSC Prelims 2020 Test Series - Register Now!

This app is linked to the Standards and Labeling database. It provides the user with a
platform to compare personalized energy saving devices across the same class and get a
real-time feedback from consumers so that they can make an informed purchase
3/7
decision. Apart from being a one-stop solution for customers, it’s also a valuable tool for
policymakers to access the accumulated data and analyse the feedback of the market at
any given point in time.

2. Energy Conservation Building Codes (ECBC) by the

Ministry of Power
The Energy Conservation Building Code (ECBC) was launched by Ministry of power for
new commercial buildings in 2007. It sets minimum energy standards for new
commercial buildings.

In order to promote a market pull for energy efficient buildings, Bureau of Energy
Efficiency developed a voluntary Star Rating Programme for buildings which are based
on the actual performance of a building.

The updated version of ECBC came in 2017 which sets parameters for builders, designers
and architects to integrate renewable energy sources in building design with the
inclusion of passive design strategies. The code aims to optimise energy savings with the
comfort levels for occupants and prefers life-cycle cost-effectiveness to achieve energy
neutrality in commercial buildings.

3. National Mission for Enhanced Energy Efficiency (NMEEE)

under NAPCC
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight
missions under the National Action Plan on Climate Change (NAPCC). NMEEE aims to
strengthen the market for energy efficiency by creating conducive regulatory and policy
regime and has envisaged fostering innovative and sustainable business models to the
energy efficiency sector.

The NMEEE has four initiatives to enhance energy efficiency in energy-intensive

industries which are as follows:

1. Perform, Achieve and Trade Scheme (PAT):

A market-based mechanism to enhance the cost-effectiveness in improving the Energy

Efficiency in Energy Intensive industries through certification of energy saving which can
be traded.

Units which are able to achieve specific energy consumption (SEC) level that is lower
than their targets can receive energy savings certificates (ESCerts) for their excess
savings.

The ESCerts could be traded on the Power Exchanges and bought by other units under
PAT who can use them to meet their compliance requirements.

4/7
 2. Market Transformation for Energy Efficiency (MTEE):

Under MTEE, two programmes have been developed i.e. Bachat Lamp Yojana(BLY) and
Super-Efficient Equipment Programme (SEEP).

BEE promotes the use of LED lights using the institutional structure of BLY Programme.
SEEP is a program designed to bring accelerated market transformation for super-
efficient appliances by providing financial stimulus innovatively at critical point/s of
intervention.

3. Energy Efficiency Financing Platform (EEFP):

This is a platform for the creation of mechanisms that would help finance demand-side
management programmes in all sectors by capturing future energy savings. Under this,
MoUs have been signed with financial institutions to work together for the development
of energy efficiency market and for the identification of issues related to this market
development.

4. Framework for Energy Efficient Economic Development (FEEED):

This is for development of fiscal instruments to promote energy efficiency. Under this
two initiative are taken:

Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) is risk sharing mechanism
to provide commercial banks with a partial coverage of risk involved in extending loans
for energy efficiency projects.

The Venture Capital Fund for Energy Efficiency (VCFEE) is a fund to provide equity
capital for energy efficiency projects. The support under VCFEE is limited to Government
buildings and municipalities.

4. School Education Program by Bureau of Energy Efficiency

and NCERT
There is a need to make the next generation more aware regarding efficient use of
energy resources. In this regard, promotion of energy efficiency in schools is being
promoted through the establishment of Energy Clubs.

Bureau of Energy Efficiency intends to prepare the text/material on Energy Efficiency and
Conservation for its proposed incorporation in the existing science syllabi and science
textbooks of NCERT for classes 6th to 10th.

5. Human Resource Development (HRD)

The potential for improvement of energy efficiency of processes and equipment through
awareness creation is vast. A sound policy for creation, retention and up gradation of
skills of Human Resources is very crucial for penetration of energy efficient technologies
5/7
and practices in various sectors.

The component under HRD comprises of theory cum practice-oriented training

programme and providing Energy Audit Instrument Support to the citizens.

6. Promotion of Energy Efficient LED Bulbs – UJALA scheme

Hon’ble Prime Minister Sh. Narendra Modi described the LED bulb as “Prakash Path” –
“way to light”. The initiative is part of the Government of India’s efforts to spread the
message of energy efficiency in the country.

UJALA scheme aims to promote efficient use of energy at the residential level, enhance
the awareness of consumers about the efficacy of using energy efficient appliances and
aggregating demand to reduce the high initial costs thus facilitating higher uptake of LED
lights by residential users. It may be noted that the scheme was initially labelled DELP
(Domestic Efficient Lighting Program) and was relaunched as UJALA.

7. Promotion of Electric vehicle: – National Electric Mobility

Mission Plan (NEMMP)
The government of India launched the National Electric Mobility Mission Plan
(NEMMP) 2020 in 2013. It aims to achieve national fuel security by promoting hybrid and
electric vehicles in the country. There is an ambitious target to achieve 6-7 million sales
of hybrid and electric vehicles year on year from 2020 onwards.

The government aims to provide fiscal and monetary incentives to kick-start this nascent
technology; for e.g.Demand side incentives to facilitate the acquisition of hybrid/electric
vehicles, Promoting R&D in technology including battery technology, power electronics,
motors, systems integration etc.

The government has launched the scheme namely Faster Adoption and
Manufacturing of Hybrid & Electric Vehicles (FAME India) under NEMMP 2020 in the
Union Budget for 2015-16. The scheme will provide a major push for early adoption and
market creation of both hybrid and electric technologies vehicles in the country. The
scheme has 4 focus areas i.e. Technology development, Demand Creation, Pilot Projects
and Charging Infrastructure.

Conclusion
Quote – “We all have our personal doomsday scenarios with respect to an extremely “Energy
Hungry ” world”.

The Perform, Achieve and Trade Scheme (PAT) scheme is a unique and innovative
initiative, perhaps with no precedence anywhere else in the world. PAT would become a
valuable model for other countries to adopt for their own energy efficiency programmes

6/7
with a business perspective. Standards and Labelling of equipment and appliances
programme have created a market transformation.

PS: If you come across any other initiatives or schemes by the Government or private
sector for energy efficiency and energy conservation, feel free to mention the same in
the comments.

Article by: Arun Kumar

7/7