International Energy Council IEC 2013 Securing tomorrow’s energy today: Policy & Regulations Market Transformation in Energy Efficiency International Energy Council

Background, policies & programs Deloitte

Introduction The Integrated Energy Policy & other modeling exercises identified that promotion of energy efficiency could avoid ~ 25 GW of generation capacity from current levels. Energy conservation potential in the economy was estimated to be around 23%. Maximum Energy Conservation potential exists in industrial, equipment and appliance and commercial sectors Energy Conservation Act, 2001 (EC Act): The Act outlines a legal and institutional arrangement and a regulatory mechanism for energy efficiency. Five major provisions of EC Act : Standard and Labeling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (BEE) Establishment of Energy Conservation Fund. Deloitte

Initiatives under NMEEE National Mission on Enhanced EE (NMEEE) was launched in 2008 under NAPCC: Perform Achieve and Trade - A market based mechanism to enhance cost effective measures for improving energy efficiency in energy-intensive large industries and facilities, through certified energy savings that could be traded. Market Transformation -shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. EE Financing Platform: Creation of mechanisms that would help finance demand side management programs in all sectors by capturing future energy savings. New initiates : Super Energy Efficient Program (SEEP) and Smart Grid.

Issues and Constraints Deloitte

Issues and Constraints - 1 Building awareness amongst Designated Consumers and ensuring acceptability of the PAT regime. Most of the State Designated Agencies lack capabilities and adequate man-power to implement EE and PAT schemes Significant energy conservation can be achieved through adoption of advanced technologies like - cogeneration/tri-generation, low grade heat recovery, heat pumps, innovative integration of renewables. Advanced technical capabilities are needed for analysis and coming up with practical implementable solutions. There is a need for high quality ESCOs and a standard IMVP. Also a need to have a standardized energy management system e.g., ISO 50001. Capacity of commercial banks and FIs in evaluation of EE & RE technologies is limited, needs enhancing. Deloitte

Issues and Constraints - 2 Desperate need to enhance the capabilities of the local labs to carry out testing of appliances that comply with international testing protocols. Need to collaborate internationally and share experiences in market transformation of equipment and appliances. Need for an institutional set-up to address all aspects related to effective implementation of market transformation aspects. Increased role for the private sector in R&D and financing of new technologies . Issues related to smart grid security & controls as well as interoperability standards need to be addressed to work out an India-specific solution. Need for a coordinated approach to address energy needs in an efficient manner to relevant end-users. Deloitte

Discussion points for the panel Deloitte

Discussion points for the panel - 1 PAT: DCs are quite uncertain of the PAT market mechanism and its integration with other forms such as REC and CDM. Need to intensify consultations and institutionalize shadow operations before mandatory phase. S&L: What obstacles prevent expansion of mandatory labeling to hereto voluntary labeled appliances? What measures are required to be taken to narrow the gap between the best achievable technologies and present 5 star technologies for various appliances? ECBC: What capacity building programs of various stakeholders like builders, architects, financiers etc. are now being addressed to meet the rapid growth rates in the residential and commercial sectors? Integrating renewable energy technologies in buildings, the concept of green buildings, etc. require a multi-disciplinary approach while considering local agro- climatic conditions how are these concepts introduced to the students or new practitioner? Deloitte

Discussion points for the panel -2 T&D How can DISCOMs ensure proper standards in implementation of distribution system to keep the losses to a minimum? Can use of substandard equipment be avoided? Introduction of smart-grids may be the panacea. What is the progress on developing India-specific standards and solution-sets? Financing aspects: Need for innovation in financing as well capacity building of Financial Institutions to ensure EE financing intensifies in the country. Although the concept of ESCOs has been around for a few decades it has still not taken off in India. Institutional Issues: There seem to be a lack of an integrated approach to provide rationale and cost- effective energy solutions across the economy because Ministries are constituted based on energy resources rather than energy services. What steps the Government needs to take to provide an integrated solution? Deloitte