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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

Installed Capacity in MW All India-1,43,311.01 as on 7/6/2008

RENEWABLE, 11125, 8% NUCLEAR, 4120% HYDRO 35908, 76%

OIL, 1201, 75%

COAL, 76,298, 88%

GAS, 14656, 21%


ALL INDIA 11,478.36 as on 31.12.2007

COGENERATION, 719.83% SOLAR, 2, 0% WASTE TO ENERGY, 55.20% BIO POWER, 605, 5%

SM ALL HYDRO, 2045.61%

WIND POWER, 7844.57%

The Target ahead

By the year 2012, Indias peak demand would be 1,57,107 MW with energy requirement of 975 BU.

Peak requirement in MW

157107 * 78037 81492 115705

Energy requirement in BU

975 507 545 719

Mar.'01 (act.) Mar.'03 (act.)

Mar.'07 (est.)

Mar.'12 (est.)

* Capacity to increase to 212,000 MW by year 2012 to meet the peak demand of 1,57,107 MW.

Generator-wise Installed Capacity

KPCThermal 20%

IPPs & Others 4%

As on 26.12.2007 Source

CGS 16%

Inst.Cap. (MW) 3392 1598

41 20

KPC-Hydel KPC-Thermal

CGS (alln. Only)


1543 346

19 4

KPCHydel 41%

NCE 19%

IPPs & Others




Break-up for NCE Projects (MW)

Wind Co-gen. Mini-Hydel Bio-Mass 838 355 253 97

KPCThermal 20%

IPPs & Others 4%

CGS 16%

KPCHydel 41%

NCE 19%

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 (ECBC) 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, in Karnataka KREDL is the Designated Agency for Implementing EC Act 2001

Energy Conservation Act, 2001

BEE was set up in March 2002 under the provisions of Energy Conservation Act of 2001 to provide a legal framework for the governments energy efficiency initiatives in the country. The Bureaus mission is to develop policies and strategies with a thrust on self regulation and market principles with the primary objective of reducing energy intensity of the Indian economy. Develop and recommend to the Central Government norms for processes and energy conservation standards Develop and recommend minimum energy performance standards and labeling design for equipment and appliances Develop and recommend specific energy conservation building codes Recommend notifying any user or class of users of energy as designated consumers Take necessary measures to create awareness and disseminate information for efficient use of energy and its conservation

Energy Efficiency Initiatives

Regulating power plant energy efficiency

Regulators are tightening power plant conversion efficiency norms House-hold refrigerators, fluorescent tube lights, air conditioners and transformers have been included in the programme on voluntary basis Labels for other appliances/equipment, such as electric motors, LPG burners, ceiling fans and consumer electronics are under preparation Launched on 27th May 2007 on voluntary basis; applies to new, large commercial buildings Reduces energy demand by 40 to 60 % Adoption of CFLs by households Can reduce demand by 20,000 MW

Appliance standards and labeling

Energy Conservation Building Code

Demand-Side Management

CDM is being utilized to incentivize these programmes

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 building sector

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 To reduce loads for industry (MERC) Factor DSM in power procurements (APERC/ MERC)

Load Management Directives

Regulatory Directives to the consumers/licensees

Public awareness campaigns Funding Options for DSM

Incentives to consumers for adopting efficient lighting, solar water heater, etc.

Key Regulatory Interventions

Provide energy use information

Labeling of appliances Energy use information by units within industrial sectors Bulk procurement Utility-driven Demand Side Management Performance guarantee contracting, through ESCOs Building Codes Sectoral energy consumption norms in industry

Reduce perceived risk

Mandate standards

CDM Based CFL Scheme

Scheme announced by MOP 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. To stimulate market transformation in favour of energy efficient equipments and appliancesboth 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/ support to Small & Medium Manufacturers


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 Govt. of India on 27th May,2007

Energy Efficiency Programme In Buildings

Energy saving potential in the range of 23% 46% has been identified through energy audits conducted in public buildings Under the 1st phase of Energy Efficient Govt. Buildings Programme 9 public buildings were taken up for energy audits 17 additional Government buildings undertaken for 2nd phase through performance contracting under the ESCO route A national programme for existing buildings is under preparation Innovative financial instruments for promoting performance contracting are being developed to overcome lack of effective delivery mechanism

Designated Consumers (DC)

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 Govt. of India notified(12th march2007) 9 Energy Intensive Industries as Designated Consumers, i.e Thermal Power Station, Fertilizer, Cement, Iron &Steel, Chlor-Alkali, Aluminium,Raiways,Textile&Pulp &paper.

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 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.

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 and appliances. Appropriate Financial and Tax incentives for Energy Efficient equipments and appliance and their manufacture. All DISCOMS are in the process of creating DSM cells.

Expected Outcomes

Barriers for EE & DSM to be removed. The State Regulatory Commissions and Utilities to be encouraged to implement the Conservation initiatives Engagement of Stakeholders Industrial and Commercial users Time of use tariff for industrial and commercial users. Incentives to industry to adopt conservation/ efficiency measures

Thank You
For more details log on to

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