IMPLEMENTING ENERGY

CONSERVATION IN INDIA –
BEE ACTION PLAN

K.K.CHAKARVARTI
ENERGY ECONOMIST
BUREAU OF ENERGY EFFICIENCY

15TH OCTOBER, 2004

Economic growth is desirable for developing countries, and energy
is essential for economic growth.
If India is to achieve the targeted growth in GDP, it would need
commensurate input of energy, mainly commercial energy in the
form of coal, oil, gas and electricity.
India’s fossil fuel reserves are limited .
The known reserves of oil and natural gas may last hardly for 18
and 26 years respectively at the current reserves to production
ratio.
India has huge proven coal reserves (84 billion tonnes) may last
for about 200 years but the increasing ash content in Indian Coal
as well as associated greenhouse gas emission are the major
concern. In the business as usual scenario, the exploitable coal may
last for about less than 100 years
ENERGY DEMAND AND SUPPLY
On the energy demand and supply side, India is facing severe
shortages
70% of the total petroleum product demand is being met by
imports, imposing a heavy burden on foreign exchange
Country is also facing electric Power Shortages
Peak shortage –12%
Average shortages – 7%
Additional 100,000 MW required by 2012
Approximately Rs. 8000 billion investment required
Further , the per capita consumption in India is too low as
compared to developed countries (just 4% of USA and 20% of the
world average). The per capita consumption is targeted to grow to
about 1000 kWh per year by 2012
Installed Capacity of Power Sector in
India (as on 31st July,2004)
REGION HYDRO THERMAL NUCLE- WIND TOTAL
AR
COAL GAS DIESEL TOTAL

NORTHERN 10597 15915 3213 15 19143 1180 61 30980

WESTERN 5102 20792 5036 17 25845 760 597 32304

SOUTHERN 10328 13429 2613 939 16945 780 1209 29299

EASTERN 2459 15027 190 17 15235 0 3 17697

N.EASTERN 1134 330 751 143 1223 0 0 2357

ISLANDS 5 0 0 64 64 0 0 69

ALL INDIA 29625 65456 11840 1196 78491 2720 1870 112706
 Actual Power Supply Position
(2003 - 04)
ENERGY
Region Requirement Availability Surplus(+)/Deficit(-)
(MU) (MU) (MU) %
Northern Region 161595 152743 -8852 -5.5

Western Region 191680 171236 -20444 -10.7

Southern Region 144372 136844 -7528 -5.2

Eastern Region 54977 52287 -2690 -4.9

N. Eastern Region 6640 6288 -352 -5.3

All India 559264 519398 -39866 -7.1

 Anticipated Power Supply Position
at the end of 10th plan (2006-07)

PEAK DEMAND
Region Projected Availability Surplus(+)/Deficit(-)
(MW) (MW) (MW) %
Northern Region 35540 29471 -5799 -16.3
Western Region 35223 30301 -4922 -14.0
Southern Region 31017 25290 -5727 -18.5
Eastern Region 11990 14311 +2321 +19.4
N. Eastern Region 1875 2035 +160 +8.5
All India 115705 101725 -13980 -12.1
 EFFECTIVENESS OF ENERGY
UTILISATION
• Indian industrial sector accounts for half of the
commercial energy used in the country
• Wide variation in energy consumption co-efficient
among different units in the same industry using
comparable technologies (30-150 % )
• Energy efficient units improving their specific energy
consumption year after year
• Vast section of industry to still improve their energy
efficiency
• Also energy intensity per unit of GDP of Indian
economy is very high in comparison with developed
countries and Asian and world averages
• This points to vast scope for energy saving potential
IMPORTANCE OF ENERGY
CONSERVATION
Energy efficiency/conservation measures can reduce
peak and average demand.
One unit saved avoids 2.5 to 3 times of fresh capacity
addition.
Investment in energy efficiency/energy conservation is
highly cost effective.
Can be achieved less than Rs.10 million/MW
Also avoids investment in fuel, mining, transportation
etc.
Keeping the above factors in view and also to provide a
policy guidance,Government of India enacted the
Energy Conservation Act,2001
Enacted in October 2001
Become effective from 1st March 2002
Bureau of Energy Efficiency (BEE) operationalized from
1st March 2002.
 IMPORTANT FEATURES OF
ENERGY CONSERVATION ACT
1. STANDARDS AND LABELING
Evolve minimum energy consumption standards for notified
equipment and appliances
Prohibit manufacture, sale and import of equipment and
appliances not confirming to standards
Introduce mandatory labeling to enable consumers to make
informed choice
 Implementation status
( BEE Action Plan on Standards &Labeling)

Notification empowering manufacturers to affix energy labels to

be issued during March 2005 for one product ( household
refrigerator).
Technical committees have been set up for air conditioners,
refrigerators, agricultural pump sets , motors, lighting & ballasts
and distribution transformers.
The above committees to design technical parameters for labelling,
star rating plan, testing procedures and protocol for refrigerators
and air conditioners and FTL ballast.

Accreditation of laboratories is under progress

Rating plan for air conditioners and refrigerators is in final stages
2. DESIGNATED CONSUMERS
Schedule to EC Act provides list
of 15 energy intensive industries
and other establishments to be
notified as designated consumers
(DC). DCs to
Appoint or designate energy
managers
Get energy audits conducted
by accredited energy
auditors
Implement techno-economic
viable recommendations
Comply with norms of
specific energy consumption
fixed
Submit report on steps taken
 Implementation status
( BEE Action Plan on Designated Consumers )

‰ Strengthening energy management and energy auditing capabilities of

energy professionals: To strengthen the energy management and energy
auditing capabilities in the country, first National Certification
examination for Energy Managers and Energy Auditors was successfully
conducted on 22-23 May,2004 in 23 centers all over the country in which
2560 candidates appeared .

‰ Certified energy mangers to be appointed or designated by designated

consumers whereas certified energy auditors will be considered for
accreditation
‰ Accreditation of energy auditors: Meanwhile, process for temporary
accreditation of energy auditors for a limited period ( 3 years ) initiated in
order to gain experience. Total 104 applications from ESCOs and
individuals were received for temporary accreditation.
‰ Two separate high level committees constituted for evaluating the above
applications on the base of their energy auditing capabilities and
institutional set up.
‰ 62 energy auditing agencies qualified for temporary accreditation.
 Implementation status
( BEE Action Plan on Designated Consumers )

‰ Manuals and Codes for standardizing the process of energy auditing

‰ Draft code on 7 Technologies (Equipment) Lighting Systems; Dryers;
Cogeneration Plants; Electric Motors; Electric Transformers; Fluid
piping systems (network) ,insulation and Air Conditioners/Chillers
(HVAC) are prepared.
ƒ The energy performance codes would provide a definite method of field
testing of utility equipment in the designated consumer premises.
ƒ The energy performance codes would improve credibility of energy audits
& provide industry and energy managers as to what to expect from the
energy audit.

‰ Fixation of norms for different industrial sector

To start with, Cement and Pulp & Paper sectors have been selected for
fixation of specific energy consumption norms. Project to be completed
by December 2004
 Implementation status
( BEE Action Plan on Designated Consumers )
Voluntary program to promote energy efficiency in Indian industrial
sector

‰ Indian Industry Programme for Energy Conservation ( IIPEC )

¾ Task forces formed in Cement, Pulp & Paper, textile, fertiliser,
chlor-alkali, petrochemical, refinery and aluminium industry. 2/3
meetings of the task force held and best practices shared and
activities expanded.
¾ Task force members took voluntary target for saving Rs.40 million
annually.
¾ Best practices recorded and published through CDs and also
incorporated in BEE’s website which is being updated
periodically for use of designated consumers.
¾ Industries being approached to take commitments. Industries
like Reliance, INDAL, Rashtriya Ispat Nigam Limited, Moral
Overseas Ltd, BK BIRLA Group of Companies committed to
reduce energy consumption .
VOLUNTARY EC POLICY DECLARATION BY
INDIAN INDUSTRY
 Implementation status
( BEE Action Plan on Designated Consumers )

ƒ Development of dedicated energy manager website To support the capacity

building of Energy Managers and Energy Auditors, an interaction
dedicated website, www.energymanagertraining.com launched in
March 2003.
ƒ This interactive website provides information on best practices,
presentations made in the Task Force meetings and other Bureau’s
programmes, workshops & seminars, information on energy
management and technical papers, energy efficient technologies,
events, problems & solutions etc.
ƒ Currently, website has recorded more than 2,00,000 hits
 Implementation status
( BEE Action Plan on Designated Consumers )

Small Group Activities on Energy Conservation

¾ BEE supports designated consumers in improving its energy efficiency
through launch of voluntary programs.

¾ Experts invited from Japan for establishing small group activity focused
on energy conservation
- 4 industrial units in textile and cement sector implemented the concept
- Feed back indicate about 5 % savings through housekeeping and no
cost measures.
- Small group activity to be expanded to all industries
National Energy Conservation Awards
¾ Industries motivated through National Energy Conservation Award
scheme.
¾ In 2002-03, participating industrial units saved Rs. 5390 millions per year
against an investment of Rs. 10710 millions
¾ Electricity savings achieved resulted in avoided capacity equivalent to 103
MW
 Energy savings achieved by the
participating units(1999-2003)
Year Savings Invest Electrical Energy Furnace Coal Gas
in ment in Saving Oil Savings savings
Rs.Cr- Rs. Million Equivalent Savings in in Lakh
ores Crores Kwh Avoided in Lakhs Lakhs Cubic
Capacity KL Metric Meters
in MW tonnes

2003 539 1071 542 103 2.21 12.65 73181

2002 594 691 641 122 1.7 7.4 35588
2001 587 659 485 90 2.21 4.79 3929
2000 366 630 524 100 1.327 0.64 707
1999 205 940 205 45 1.62 2.15 2444
Total 5 2,291 3,991 2,397 460 9.067 27.63 115,849
years
 Summary – Designated Consumer
Results achieved /expected

• 62 Accredited Energy Auditing firms in place by January 2005

• 800 Certified Energy Managers and Certified Energy Auditors in
place by November, 2004.
• Norms for cement and pulp & paper industry in place by
August,2005.
• Two interactive Websites in place
• Target of energy saving worth Rs 40 million committed by
participating industries.
• Capacity building of 750 energy managers through IIPEC and
familiarization programme
• 7 energy auditing codes for utility equipment in place by
December,2004
• Savings of 460 MW of electric power, as equivalent avoided
capacity, achieved during 1999-2003 through National Energy
Conservation Award Scheme
3.ENERGY CONSERVATION BUILDING
CODES
¾ Central Government to prepare guidelines on ECBC
• To be modified by States to suit local
climatic conditions
• To be applicable to new buildings having
connected load of 500 KW
Implementation status (ECBC)-BEE Action Plan
¾ ECBC structure and analysis methodology prepared
and discussed in committee of experts meeting held in
March 04
¾ Data collection and stringency analysis in progress,
first draft of ECBC for stakeholder review expected to
be ready by December,2004
 ENERGY EFFICIENCY IMPROVEMENT
IN GOVERNMENT BUILDINGS
Implementation Status- BEE Action Plan
¾ Energy audit studies completed in 9 buildings - Rashtrapati
Bhawan, Prime Minister’s Office and Defence Ministry blocks in
South Block, Rail Bhawan, Sanchar Bhawan, Shram Shakti
Bhawan, Transport Bhawan, R&R Hospital, Terminal I, Terminal
II and Cargo Sections of Delhi Airport, and AIIMS
¾ Savings potential between 25 to 46 % identified in the above
buildings
¾ Implementation plan through ESCO participation prepared
¾ Rashtrapathi Bhawan, Prime Minister’s Office, Shram Shakti
Bhawan, and Transport Bhawan ,Rail Bhawan AAI, Sanchar
Bhawan have invited tenders. AIIMS is expected to issue NIT
in the first week of October,2004
¾ Rashtrapathi Bhawan has awarded the implementation
contract and other buildings are expected to award the contact
within two month time
ENERGY AUDIT RESULTS
 CONCLUSIONS
• The increasing preference for commercial energy has led to a sharp
increase in the demand for electricity and fossil fuels.
• Use of Fossil Fuels result in emission of huge quantity of carbon
dioxide causing serious environmental damages.
• There is a considerable potential for reducing energy consumption
by adopting energy efficiency measures at various sectors of our
country.
• Energy efficiency will not only reduce the need to create new
capacity requiring high investment, but also result in substantial
environmental benefits.
benefits
• With the enactment of the Energy Conservation Act, 2001, a legal
framework is now available for promoting energy efficiency in all
sectors of the economy
• Efficient use of energy and its conservation will succeed as a
programme if opinion leaders and captains of industry take the lead
in supporting the conservation programme