Energy efficiency - Renewable Energy Policies: A presentation from the International Conference on Energy Security organized by Centre for Public Policy Research, Cochin

1. Energy Efficiency
&
Renewable Energy
Policies:
A Few Rational Thoughts
Dr. R Harikumar
Head – Education & Training Division
Energy Management Centre – Kerala
www.keralaenergy.gov.in
CPPR Energy Security Conference
12-13 December 2014
Ernakulam
Disclaimer: The views expressed here are solely those of the presenter in his private capacity and do not in any way
represent the views of the EMC, Department of Power, or any other entity of the Kerala Government.

2. Agenda
• Barriers to improvement in energy efficiency
(ref: Amulya K.N. Reddy, ‘Barriers to improvements in energy efficiency’,
ENERGY POLICY, December 1991, pp 953-961)
• Policies employed & its status
• Suggestions/proposals

3. Barriers to improvements in energy
efficiency
• many consumers quite ignorant
• star-labelling program; utilisation of social/print/electronic media?, energy
information bureau
• higher initial cost
• still L1 holds good; subsidy being projected as a ‘bad word’, incentives like the
Tata Power model to be studied & replicated
• innovative finance mechanisms being explored; however, low interest loans
which created a housing sector boom could not be attempted in EE/RE
• ESCOs tried out in India from 90s; first ESCO in operation 1994; ESCO business in
industries proved not successful in India as in US where ESCOs work well in
buildings
• Energy services: hot/chilled water, steam; industrial/tourism cluster, malls,
technoparks
• RE: branding

4. Barriers/ Viewpoint …
contd…
• energy costs not significant
• review on tariff w.r.t telescopic model, with increase for high-end
consumers and not that much for energy misers
• difficulty home owners face in EE/RE installation
• electrical contractors & plumbers to be trained
• 10,000 rooftops in Kerala, IPO – equity + subsidy
• uncertainty about prices/ subsidies
• incentives to be announced for a 3-year period at least

5. Barriers/ Viewpoint …
contd…
• situation of having inherited inefficient devices
• modernisation package like house renovation scheme
• for new buildings, certified to be green, initial investments for green, turn
out to red after a couple of years’ operation
• Community cooking
• electricity profits decrease with every additional kWh saved
• DSM regulations; utility – whether they have the necessary expertise to
design and implement a program; linkage between utility & SDA?
• concentrate on centralized supplies
• decentralised option is good; solar could be modular, flexibility in
determining specs, tailor-made to suit user; who designs that? 112 MW in
homes (40% of the roof-top market), energy generation? O&M?

6. Barriers/ Viewpoint …
contd…
• potential cogenerators do not have rewards for exporting
• cogen in sugar mills, large industries – good; scope in medium scale units
also like the rice mills, plywood cluster; UNIDO cluster approach with
industries dept, present stage?
• level of energy services or magnitude of energy consumption, true
indicator of development?
• Energy – a market commodity or a social good; water?
• EE conscious citizens – civic sense
• formulation and implementation of energy efficiency programmes
require technical and managerial skills of a high order
• SDAs capacity evaluated, training need assessment done?
• Policy studies, working papers

7. Barriers/ Viewpoint …
contd…
• the inherent preference for large projects
• successful in BLY when bundled to create projects worth 1 crore +
• not supporting technological leap-frogging in developing countries
• induction cooker, laser-jet printers, 3G telecom services – all energy
guzzlers. Argue for pollution abatement, productivity enhancement, value
addition; but end-up with increase in absolute energy consumption:
rebound effect. Any chance in this race to meet our increasing demand?
• Less indigenous R&D efforts
• Bio-energy as thrust areas: Bottling biogas, clean stoves, NPIC
• Pumped storage, H2

8. Summing up
• subsidy for solar water heaters. incentive for cold water bathing?
• Acknowledging this reality, debates, discussions and studies are to be
commissioned to evolve inputs for special policies to protect the poor
and the environment in the long term.
• Whatever the virtues of the market as an allocator of capital, raw
materials and manpower, it cannot be entirely depended upon to
safeguard equity, inclusive growth, environmental externalities and
long-term interests of the society.

9. We have not inherited the earth from our fathers,
we have borrowed it from our children. - Unknown
hari@keralaenergy.gov.i
n

10. THANK YOU
February 2, 2015 Centre for Public Policy Research
Contact us:
Centre for Public Policy Research, Cochin, India
Email: cppr@cppr.in
Website: www.cppr.in