National Mission for Enhanced Energy Efficiency (NMEEE) Energy Synergy Dialogue with Dr. Ajay Mathur Director General Bureau of Energy Efficiency 1st February, 2011 New Delhi

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE) The National Action Plan on Climate Change was released by Honorable Prime Minister of India in June 2008 The Action Plan Outlines 8 Missions including National Mission on Enhanced Energy Efficiency (NMEEE)8 Missions The Mission has outlined specific goalsgoals

Chronology of Events of NMEEE 30 th June 2008 : Honable PM releases the National Action Plan of Climate Change September 2008 : NMEEE endorsed by steering Committee, MoP 3 rd October 2008 : Discussion on Draft outline in PMO 14 th Nov 2008 : First consultation workshop at Mumbai 24 th August 2009 : PMs council on Climate Change approves NMEEE in principle 1 st December 2009 : EFC recommends the implementation plan of NMEEE to Cabinet with a financial outlay of Rs crores May 2010 : Cabinet approves the financial outlay Ammendment to EC Act, 2001 passed in parliament

NMEEE – Four New Initiatives NMEEE PATMTEEEEFPFEEED Energy Intensive Industries Targets for Mandatory Energy Saving Energy Efficient Appliances BLY SEEP DSM Stimulate Funding for ESCOs Fiscal Instrument for EE PRGF VCF Public Procurement

Market Transformation for Energy Efficiency (MTEE) Shift to energy appliances in designated sectors through innovative measures to make the product more affordable Lighting CDM Project –PoA has been registered by UNFCCC in June 2010 –23 projects have been prepared & another 50 are under preparation –20 million CFLs have been distributed under BLY scheme Development of Super Efficient Equipment Program (SEEP) –Reduce energy consumption and enable DSM –Reduce cost of Energy efficient Equipment through accelerated market stimulation –Encourage domestic manufacturing

Energy Efficiency Financing Platform(EEFP) Stimulate necessary funding for ESCOs based on delivery mechanism MoU with M/S PTC India, M/S SIDBI & HSBC bank signed by BEE –PTC India has started financing in several building energy efficiency projects –SIDBI has taken up projects for 25 SME clusters Investment Grade Energy Audits –Completed for large public buildings in different states of the country –Will be taken up for implementation through ESCO route

Framework For Energy Efficient Economic Development(FEEED) To develop fiscal instruments to promote energy efficiency Partial Risk Guarentee Fund (PRGF) and Venture Capital Fund (VCF) –Rs crores allocated for both the funds in –Implementation document is under preparation –These funds are expected to operationalize by March 2011 Proposal on Energy efficiency in Public Procurement approved in principle by CoS –Guidelines to be issued by Ministry of Finance are under preparation Detailed proposal on Tax/Duty concessions for energy efficiency will be submitted to Department of revenue

PAT Scheme : Background & Scope (1) Covers 563 designated consumers in 8 sectorsdesignated consumers All DCs consume about 231 mtoe energy i.e. about 60% of total energy consumption of the countryDCs consume about 231 mtoe energy Targets would be given to all DCs to achieve the same within a time frameTargets –Achievement > Target E-Scerts –Achievement < Target Purchase E-Scerts / Penalty National Target = 10 mtoe at the end of 1st PAT Cycle ( April 2011 – March 2014)

PAT Scheme : Background & Scope (2) Large band-with in Specific Energy Consumption (As per the BEE sectoral Study)Large band-with Energy Usage Pattern is varying extremely due to various diversitiesdiversities Hence, the targets would be Plant Specific

PAT Scheme : Approach Towards Target Setting Sectoral Target will be on pro-rata basis of energy consumption among 8 sectors to achieve National Targetpro-rata basis Establishment of Baseline : (Example)Example –As per reported data of last 5 years ( to ) –Normalization Factor (capacity utilization) –Arithmetic Average of last 3 years value Targets to be statistically calculated based on relative SEC approach after grouping the DCs suitably (Example - Aluminium)relative SEC Example - Aluminium Estimated targets to be justified by the saving potential available –Baseline Energy Audits The target to be reviewed by an expert committee before notification

Status : PAT Scheme 5 years data from 563 DCs collected though the notified format Data compilation & Analysis in Progress Baseline Energy Audit to kick-off from Feb 2011 by CEAs PAT Consultation Document is under review 4 stakeholder workshops conducted at Delhi, Mumbai, Chennai and number of meetings held with different Industry groups Meeting held with various Ministries & Departments Discussion with Industry Associations done The methodology for M&V system, Issuance of E-Scerts & Trading is under design stagemethodology

PAT Legal Framework Furnish report of energy consumption to the Designated Authority of the State as well as to BEE (section 14(k)). Designate or appoint an Energy Manager who will be in-charge of submission of annual energy consumption returns of the Designated Agencies and BEE (section 14 (l)). Comply with the energy conservation norms and standards prescribed under section 14 (g) of the Act. Purchase Energy Saving Certificates (ESCerts) for compliance to section 14 (g) in the event of default. The Act has been amended with the addition of new sub-section 14A to enable this and section 14A(2) allows such trading. EScerts are defined by adding a new sub- section 2(ma). Monitoring and Verification of compliance by Designated Energy Auditors (DENA) which will be prescribed the Government/ BEE under section 14A/13 (p) of the Act. Excess achievement of the target set would entail issuance of ESCerts under section 14A(1). Penalty for non-compliance being Rs. 10 lakhs and the value of non-compliance measured in terms of the market value of tones of oil equivalent by inserting a new section 26(1A). BEE to be the overall regulator and dispute resolution agency and Energy Efficiency Service Ltd. (EESL) to be the process manager.

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