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Reducing Energy Intensity
of the Indian economy
Bureau of Energy Efficiency
Saurabh Diddi
Energy Economist,
Indian Energy Profile
Bureau of Energy Efficiency
Coal
44.1%
Oil
22.7%
Natural Gas
5.7%
Nuclear
1.2%
Hydro
1.6%
Geothermal,
Solar
0.5% Biofuels &
Waste
24.3%
Total Primary Energy Supply, 2013
(775 million toe)
Industry
33.9%
Transport
14.2%
Residential
34.6%
Commercial &
Public Service
3.9%
Agriculture
4.5%
Non Energy
Use
8.9%
Energy Consumption, 2013
179.3
18.9
4.9
0
50
100
150
200
Transformation
Losses (mtoe)
Domestic
Commercial
Industries
Public Lighting
Traction
Agriculture
Public Works
Others
ElectricityGeneration
Losses
26.59% 9.88% 34.89% 20.27%
1.14%
2.07%
2.55%
2.62%
Electricity Consumption - 750 BU (2013-14)
Domestic Commercial Industry Agriculture Public Lighting Traction Public Works Misc
Energy Intensity continues to decline
Bureau of Energy Efficiency
EnergyIntensity,Kgoe/$-GDP(at2005PPPPrices)
Source: IEA Energy Statistics, 2000-2010
Energy Intensity is the ratio of total primary energy supply to GDP of the country
How much energy is required?
Bureau of Energy Efficiency
India
Expected Energy Intensity
Bureau of Energy Efficiency
0.0100
0.0110
0.0120
0.0130
0.0140
0.0150
0.0160
0.0170
0.0180
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
EnergyIntensity(kgoe/Rs)
Energy Intensity
India - Efficent Scenario India - BAU Scenario
Total Avoided Capacity – 28,600 MW Annual Fuel savings - 44 million toe
Energy Efficiency –
Challenges & Opportunities
• Energy intensity decline implies that investment in energy
efficiency alone is about 1-2% of total investment in the
Indian economy
• Further opportunities are not exploited because of
– higher first cost of energy - efficient technologies
– perceived risk of uncertainty about energy performance
– split incentives – especially for buildings
– high transactions cost
– poor financial health of municipalities and state-owned PSUs
– low electricity prices for agriculture and low income households
Bureau of Energy Efficiency
• Energy Conservation (EC) Act, 2001
– Objective
• Develop policy and strategies with the primary objective of reducing energy intensity of the
Indian economy through energy efficiency and conservation, within overall framework of the
Energy Conservation Act.
– EC Act enacted in October 2001, effective from 1st March 2002
– Bureau of Energy Efficiency (BEE) operationalized from 1st March 2002.
• National Action Plan for Climate Change, 2008
– National Mission on Enhanced Energy Efficiency (NMEEE) provides
mandate for market-based mechanisms to promote energy efficiency
– National Mission on Sustainable Habitat seeks to incorporate energy-
efficiency requirements in building byelaws
Enabling Mechanisms for BEE
• Designated Consumers (mainly energy intensive industries) to comply with
the specific energy consumption norms for the manufactured products and
services and establishment of energy management system,
• Standards and Labeling of energy consuming appliances, gadgets and
equipment to ensure promotion of energy efficiency of the new stocks
entering the market
• Energy Conservation Building Code ensuring that new commercial buildings
constructed in the country have less electricity consumption
• Creation of Institutional Set up (Bureau of Energy Efficiency) for effective
coordination of the energy conservation efforts in the country and
• Establishment of Energy Conservation Fund at Centre and States to provide
necessary financial support for energy efficiency initiatives in the country.
Major Provisions of EC Act
Institutional Setup
Governing Council
(Chaired by Minister of Power)
Management Advisory Committee
(Chaired by Secretary - Power)
Director General
Secretary
Energy Economist (6)/
Deputy Director General
Energy Economist (4)
National Mission for Enhanced Energy
Efficiency (NMEEE)
Assistant Energy Economist (3) Assistant Energy Economist (3)
Project Engineers Project Engineers
Role at Federal Level (BEE)
• Functions of the Bureau are as follows:
1. the process and energy consumption standards required to be notified;
2. the labelling of certain equipment requiring some input of energy, along with the
prescription about the display of standards upon such labels;
3. to notify users or class of users as ‘designated consumers’ under this law;
• In addition to these, the Bureau according to its functions under the law has
to take suitable steps to:
1. create awareness and disseminate information for efficient use of energy and
conservation
2. training of personnel;
3. strengthen consultancy services;
4. promote research and development in the field of energy efficiency
5. the develop good testing and certification procedure;
6. promote use of energy efficient process, equipment, devices and systems;
7. promote innovative financing of energy efficiency projects; etc.,
• A DEVELOPMENT AGENCY:
– Database, Policy formulation, Annual reports & review,
Awareness creation, capacity building
• A FACILITATOR:
– Demo project, Public Private Partnership (PPP)
• A REGULATORY AGENCY:
– Enforce for implementation of various mandatory
requirements which are notified
• A CO-ORDINATOR:
– Co-ordination with BEE as well as with State Govt.
Role at State Level
(State Designated Agencies)
• Capacity Building
– Certified Energy Auditors and Managers
– Accredited Energy Auditors
– Capacity building of DISCOMs
– Energy Service Companies (ESCO)
• Standards & Targets
– Standard & Labeling of Appliances
– Energy Conservation Building Codes
– Perform, Achieve and Trade (PAT)
• Demand Side Management (Implementation)
– Super Efficient Equipment Program
– Bachat (Savings) Lamp Yojana (Scheme)
– Energy Efficiency in Small & Medium Enterprises
– Municipal and Agriculture DSM
Major Schemes of BEE
• Awareness
– National Energy Conservation Awards
– National Painting Competition
• Funds
– Partial Risk Guarantee Fund for Energy Efficiency
– Venture Capital Fund for Energy Efficiency
– National Energy Conservation Fund
• State Level
– Capacity building of State Designated Agencies (SDA)
– State Energy Conservation Fund
– Demonstration Studies
– Enforcement
Major Schemes of BEE
BEE Star Label Formats
Bureau of Energy Efficiency
Comparative Label
Endorsement Label
List of Appliances
Bureau of Energy Efficiency
MandatoryVoluntaryUnder ProcessUnder Selection
RAC
FFR
DT
TFL
DCR
Ceiling Fans
Laptop
Pumps
Geysers
Color TV
Motors
Ballast
Office
equipment
Cassette
type AC
Inverters
Inverter AC
LED lamps
LPG Stove
DG Pump
DG Set
Boilers
Volt. Stab
Batteries
Passenger Cars
Set Top Box
DC Based Appl
Solar Water Heater
Solar PV
Induction
Stove
Microwave
Electric
Chimney
Nature of S&L Regulations
• Standards & Regulations prescribe limits on the energy
consumption (or minimum levels of the energy efficiency) of
manufactured products.
• “Standards” commonly encompasses two possible meanings:
– well-defined test protocols to obtain a sufficiently accurate estimate
– target limits on energy performance
• S&L in India works on a model in which the manufacturer
provides information related to energy consumption and/or
efficiency of the product on the label as prescribed.
Bureau of Energy Efficiency
Efficiency Trends (Air Conditioner) –
Star-wise Breakup
Bureau of Energy Efficiency
0
500000
1000000
1500000
2000000
2500000
2008 2009 2010 2011 2012 2013 2014
1 2 3 4 5
Efficiency Trends (Air Conditioner) –
Star-wise with 2010 levels
Bureau of Energy Efficiency
0
500000
1000000
1500000
2000000
2500000
3000000
2008 2009 2010 2011 2012 2013 2014
1 2 3 4 5
AC Trends – 2010 Vs 2014
Bureau of Energy Efficiency
1
9%
2
42%3
31%
4
4%
5
14%
2010
1
3%
2
24%
3
48%
4
4%
5
21%
2014
AC Trends – 2010 Vs 2014 (2010 levels)
Bureau of Energy Efficiency
1
9%
2
42%3
31%
4
4%
5
14%
2010 1
0%
2
2%
3
10%
4
21%
5
67%
2014
Impact of Programmes
Bureau of Energy Efficiency
0.0
23.8 21.0
32.6
37.6
45.2
50.2
61.3
48.9
40.1
49.1
65.9 67.5 69.2
0 0.5 1.3 2.3 3.4 4.7 6
8.85
13.83
17.79
22.23
26.42
29.32
32.35
290 288 300
304 317 329
347 362
386
421
444 452
470
489
0
100
200
300
400
500
600
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Milliontonnesofoilequivalent(mtoe)
Milliontonnesofoilequivalent(mtoe)
Saving due to EE (mtoe) Saving by BEE Schemes(mtoe) TFEC (mtoe)
Direct impact of programmes is about 6%; goal is to enhance it to 10%
Awareness – Mobile Application
Bureau of Energy Efficiency
App - Features
Bureau of Energy Efficiency
App - Features
Bureau of Energy Efficiency
THANK YOU
Bureau of Energy Efficiency
BEE LAWS
Energy Efficiency works better if first and second BEE laws are
implemented together
First BEE law:
Buy Energy Efficient
Second BEE law:
Be Energy Efficient

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Reducing energy intensity of the Indian economy, Saurabh Diddi, Bureau of Energy Efficiency, India

  • 1. Reducing Energy Intensity of the Indian economy Bureau of Energy Efficiency Saurabh Diddi Energy Economist,
  • 2. Indian Energy Profile Bureau of Energy Efficiency Coal 44.1% Oil 22.7% Natural Gas 5.7% Nuclear 1.2% Hydro 1.6% Geothermal, Solar 0.5% Biofuels & Waste 24.3% Total Primary Energy Supply, 2013 (775 million toe) Industry 33.9% Transport 14.2% Residential 34.6% Commercial & Public Service 3.9% Agriculture 4.5% Non Energy Use 8.9% Energy Consumption, 2013 179.3 18.9 4.9 0 50 100 150 200 Transformation Losses (mtoe) Domestic Commercial Industries Public Lighting Traction Agriculture Public Works Others ElectricityGeneration Losses 26.59% 9.88% 34.89% 20.27% 1.14% 2.07% 2.55% 2.62% Electricity Consumption - 750 BU (2013-14) Domestic Commercial Industry Agriculture Public Lighting Traction Public Works Misc
  • 3. Energy Intensity continues to decline Bureau of Energy Efficiency EnergyIntensity,Kgoe/$-GDP(at2005PPPPrices) Source: IEA Energy Statistics, 2000-2010 Energy Intensity is the ratio of total primary energy supply to GDP of the country
  • 4. How much energy is required? Bureau of Energy Efficiency India
  • 5. Expected Energy Intensity Bureau of Energy Efficiency 0.0100 0.0110 0.0120 0.0130 0.0140 0.0150 0.0160 0.0170 0.0180 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EnergyIntensity(kgoe/Rs) Energy Intensity India - Efficent Scenario India - BAU Scenario Total Avoided Capacity – 28,600 MW Annual Fuel savings - 44 million toe
  • 6. Energy Efficiency – Challenges & Opportunities • Energy intensity decline implies that investment in energy efficiency alone is about 1-2% of total investment in the Indian economy • Further opportunities are not exploited because of – higher first cost of energy - efficient technologies – perceived risk of uncertainty about energy performance – split incentives – especially for buildings – high transactions cost – poor financial health of municipalities and state-owned PSUs – low electricity prices for agriculture and low income households Bureau of Energy Efficiency
  • 7. • Energy Conservation (EC) Act, 2001 – Objective • Develop policy and strategies with the primary objective of reducing energy intensity of the Indian economy through energy efficiency and conservation, within overall framework of the Energy Conservation Act. – EC Act enacted in October 2001, effective from 1st March 2002 – Bureau of Energy Efficiency (BEE) operationalized from 1st March 2002. • National Action Plan for Climate Change, 2008 – National Mission on Enhanced Energy Efficiency (NMEEE) provides mandate for market-based mechanisms to promote energy efficiency – National Mission on Sustainable Habitat seeks to incorporate energy- efficiency requirements in building byelaws Enabling Mechanisms for BEE
  • 8. • Designated Consumers (mainly energy intensive industries) to comply with the specific energy consumption norms for the manufactured products and services and establishment of energy management system, • Standards and Labeling of energy consuming appliances, gadgets and equipment to ensure promotion of energy efficiency of the new stocks entering the market • Energy Conservation Building Code ensuring that new commercial buildings constructed in the country have less electricity consumption • Creation of Institutional Set up (Bureau of Energy Efficiency) for effective coordination of the energy conservation efforts in the country and • Establishment of Energy Conservation Fund at Centre and States to provide necessary financial support for energy efficiency initiatives in the country. Major Provisions of EC Act
  • 9. Institutional Setup Governing Council (Chaired by Minister of Power) Management Advisory Committee (Chaired by Secretary - Power) Director General Secretary Energy Economist (6)/ Deputy Director General Energy Economist (4) National Mission for Enhanced Energy Efficiency (NMEEE) Assistant Energy Economist (3) Assistant Energy Economist (3) Project Engineers Project Engineers
  • 10. Role at Federal Level (BEE) • Functions of the Bureau are as follows: 1. the process and energy consumption standards required to be notified; 2. the labelling of certain equipment requiring some input of energy, along with the prescription about the display of standards upon such labels; 3. to notify users or class of users as ‘designated consumers’ under this law; • In addition to these, the Bureau according to its functions under the law has to take suitable steps to: 1. create awareness and disseminate information for efficient use of energy and conservation 2. training of personnel; 3. strengthen consultancy services; 4. promote research and development in the field of energy efficiency 5. the develop good testing and certification procedure; 6. promote use of energy efficient process, equipment, devices and systems; 7. promote innovative financing of energy efficiency projects; etc.,
  • 11. • A DEVELOPMENT AGENCY: – Database, Policy formulation, Annual reports & review, Awareness creation, capacity building • A FACILITATOR: – Demo project, Public Private Partnership (PPP) • A REGULATORY AGENCY: – Enforce for implementation of various mandatory requirements which are notified • A CO-ORDINATOR: – Co-ordination with BEE as well as with State Govt. Role at State Level (State Designated Agencies)
  • 12. • Capacity Building – Certified Energy Auditors and Managers – Accredited Energy Auditors – Capacity building of DISCOMs – Energy Service Companies (ESCO) • Standards & Targets – Standard & Labeling of Appliances – Energy Conservation Building Codes – Perform, Achieve and Trade (PAT) • Demand Side Management (Implementation) – Super Efficient Equipment Program – Bachat (Savings) Lamp Yojana (Scheme) – Energy Efficiency in Small & Medium Enterprises – Municipal and Agriculture DSM Major Schemes of BEE
  • 13. • Awareness – National Energy Conservation Awards – National Painting Competition • Funds – Partial Risk Guarantee Fund for Energy Efficiency – Venture Capital Fund for Energy Efficiency – National Energy Conservation Fund • State Level – Capacity building of State Designated Agencies (SDA) – State Energy Conservation Fund – Demonstration Studies – Enforcement Major Schemes of BEE
  • 14. BEE Star Label Formats Bureau of Energy Efficiency Comparative Label Endorsement Label
  • 15. List of Appliances Bureau of Energy Efficiency MandatoryVoluntaryUnder ProcessUnder Selection RAC FFR DT TFL DCR Ceiling Fans Laptop Pumps Geysers Color TV Motors Ballast Office equipment Cassette type AC Inverters Inverter AC LED lamps LPG Stove DG Pump DG Set Boilers Volt. Stab Batteries Passenger Cars Set Top Box DC Based Appl Solar Water Heater Solar PV Induction Stove Microwave Electric Chimney
  • 16. Nature of S&L Regulations • Standards & Regulations prescribe limits on the energy consumption (or minimum levels of the energy efficiency) of manufactured products. • “Standards” commonly encompasses two possible meanings: – well-defined test protocols to obtain a sufficiently accurate estimate – target limits on energy performance • S&L in India works on a model in which the manufacturer provides information related to energy consumption and/or efficiency of the product on the label as prescribed. Bureau of Energy Efficiency
  • 17. Efficiency Trends (Air Conditioner) – Star-wise Breakup Bureau of Energy Efficiency 0 500000 1000000 1500000 2000000 2500000 2008 2009 2010 2011 2012 2013 2014 1 2 3 4 5
  • 18. Efficiency Trends (Air Conditioner) – Star-wise with 2010 levels Bureau of Energy Efficiency 0 500000 1000000 1500000 2000000 2500000 3000000 2008 2009 2010 2011 2012 2013 2014 1 2 3 4 5
  • 19. AC Trends – 2010 Vs 2014 Bureau of Energy Efficiency 1 9% 2 42%3 31% 4 4% 5 14% 2010 1 3% 2 24% 3 48% 4 4% 5 21% 2014
  • 20. AC Trends – 2010 Vs 2014 (2010 levels) Bureau of Energy Efficiency 1 9% 2 42%3 31% 4 4% 5 14% 2010 1 0% 2 2% 3 10% 4 21% 5 67% 2014
  • 21. Impact of Programmes Bureau of Energy Efficiency 0.0 23.8 21.0 32.6 37.6 45.2 50.2 61.3 48.9 40.1 49.1 65.9 67.5 69.2 0 0.5 1.3 2.3 3.4 4.7 6 8.85 13.83 17.79 22.23 26.42 29.32 32.35 290 288 300 304 317 329 347 362 386 421 444 452 470 489 0 100 200 300 400 500 600 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Milliontonnesofoilequivalent(mtoe) Milliontonnesofoilequivalent(mtoe) Saving due to EE (mtoe) Saving by BEE Schemes(mtoe) TFEC (mtoe) Direct impact of programmes is about 6%; goal is to enhance it to 10%
  • 22. Awareness – Mobile Application Bureau of Energy Efficiency
  • 23. App - Features Bureau of Energy Efficiency
  • 24. App - Features Bureau of Energy Efficiency
  • 25. THANK YOU Bureau of Energy Efficiency BEE LAWS Energy Efficiency works better if first and second BEE laws are implemented together First BEE law: Buy Energy Efficient Second BEE law: Be Energy Efficient