1. Energy Efficiency in India
GRID
Energy Efficiency in India
Technology Facilitation Desk
Strictly Private and Confidential
Draft
December 2016

2. Agenda Background 3 1 Why Energy Efficiency? 4
Current Programs and Activities
Background
Agenda
Agenda
Background 3
1 Why Energy Efficiency? 4
2 Institutional and Regulatory Framework for EE 5
3 Energy Efficiency Investment Potential 6
4 EE related Business Models 7
Current Programs and Activities 8
5 Domestic Sector 9
6 Municipal and Building Sector 10
7 Agriculture and Industrial Sector 11
8 BEE Programs 12
Energy Efficiency in India 2

3. Background Background 3 1 Why Energy Efficiency? 4
Current Programs and Activities
Background
Agenda
Background
Background 3
1 Why Energy Efficiency? 4
2 Institutional and Regulatory Framework for EE 5
3 Energy Efficiency Investment Potential 6
4 EE related Business Models 7
Energy Efficiency in India 3

4. Importance of Energy Efficiency in India
1 Why Energy Efficiency?
Current Programs and Activities
Background
Agenda
Importance of Energy Efficiency in India
One of the key objectives of India’s INDC is
To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level.
43% growth in per capita energy consumption
10% reduction in energy intensity  Indian economy transformed toward service based economy  Initiatives like Make in India would reverse this trend
It should be noted that
Per capita energy consumption of India is approximately one third the global average
No country has reached Human Development Index of 0.9 without consuming 3.5 times India’s (HDI: 0.586) current per capita consumption
Energy Efficiency in India 4

5. 2 Institutional and Regulatory Framework for EE
Current Programs and Activities
Background
Agenda
Current Institutional and Regulatory Framework for Energy Efficiency in India
Electricity Act (2003)
Roles of utilities in promotion of efficient use of energy
Energy Conservation Act (2001)
Setting up of BEE and State Nodal Agencies
National Mission for Enhanced Energy Efficiency (NMEEE)
National Level
Bureau of Energy Efficiency (Policy maker)
Energy Efficiency Services Limited (Mother ESCO)
State Level
State ERCs (Regulators)
State Nodal Agencies (Policy Maker)
Supporting Institutions
Financial Institutions (SIDBI, IREDA, Tata Cleantech)
Bureau of Indian Standards)
Perform Achieve & Trade :
A market based mechanism to enhance cost effectiveness of improvements in EE in energy-intensive large industries and facilities, through certification of energy savings that could be traded.
Market Transformation for Energy Efficiency (MTEE): Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable.
Energy Efficiency Financing Platform (EEFP):
Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings.
Framework for Energy Efficient Economic Development (FEEED): Developing fiscal instruments to promote energy efficiency.
Energy Efficiency in India 5

6. Energy Efficiency Potential in major sectors
3 Energy Efficiency Investment Potential
Current Programs and Activities
Background
Agenda
Energy Efficiency Potential in major sectors
The overall energy efficiency investment potential in India is INR 173,500 crores (USD billion):
INR crore (USD 11.2 billion) projected under NMEEE out of which INR 30,000 crore of potential exists in energy intensive industries and remaining INR 44,000 crore in the other key demand side economic sectors
INR crore (USD 15.1 billion) based on recent trends in the market based investments towards LED street lighting solutions and innovative market transformative business models in the residential sector
Sector
EE Investment potential
(INR crore)
(USD Billion)
Energy Savings (Million TOE)
Demand Side Measures
Industry
19,949
3.0
9.45
Residential
74,237
11.2
5.95
Commercial Buildings
1,139
0.2
0.3
Municipal Street lights
25,200
3.8
0.72
Agriculture
30,000
4.5
2.58
Total (Demand Side Measures)
150,525
22.8
19.01
Supply Side Measures
Thermal Power
22,912
3.5
4.55
Total (Demand Side+ Supply Side)
173,437
26.3
23.56
Energy Efficiency in India 6

7. Key EE related Business Models adopted in India
Current Programs and Activities
Background
Agenda
Key EE related Business Models adopted in India
Cost recovery / Standard offer program/ Annuity Model
On bill financing models
ESCO
ESCO
Other commonly adopted business models are Shared Saving Model, Vendor Financing Model and Guaranteed Saving Model.
Energy Efficiency in India 7

8. Current Programs and Activities
Background
Agenda
Current Programs and Activities
Current Programs and Activities 8
5 Domestic Sector 9
6 Municipal and Building Sector 10
7 Agriculture and Industrial Sector 11
8 BEE Programs 12
Energy Efficiency in India 8

9. National Level EE Interventions in India Domestic Sector
Current Programs and Activities
Background
Agenda
National Level EE Interventions in India Domestic Sector
LED Bulbs:
UJALA program of Government of India which is managed by the EESL (a public sector undertaking) has an ambitious target for replacement of 77 crores incandescent bulbs (which is the annual market) with LED bulbs.
Based on the success of this program, the Government (EESL) has launched similar for other domestic appliances
LED Tubelights
EESL had floated a tender for 1 crore LED tube lights. The discovered price of these tube lights is sub INR 140 for a 20 W light
The tubelights would be available to consumers at a cost of INR 220 inclusive of all taxes and other costs
The program is running concurrently with UJALA in many states
Domestic Fans:
EESL has also floated a tender for more than 10 lakh 5 star fans and super efficient fans.
The fans are distributed at INR 1150 (upfront payment ) or INR 1200 (EMI)
Distribution already undergoing in Andhra Pradesh and Uttar Pradesh
Another 5 states would be added soon
Energy Efficiency in India 9

10. National Level EE Interventions in India Municipal and Building Sector
Current Programs and Activities
Background
Agenda
National Level EE Interventions in India Municipal and Building Sector
National Efficient Street Light Program:
The Government of India launched the national efficient street light program with a target to replace 3.5 crore street lights with LEDs.
The success of this program has resulted in many state level interventions in Gujarat and Tamil Nadu
In building sector multiple programs have been undertaken at both national and regional levels
Notification of ECBC
Energy Efficiency Building Code is notified by 9 states in India.
EESL – Building Project:
EESL is working with Central Public Works Department (CPWD) to replace around 10 lakh appliances including lights, fans and air conditioners in government buildings
Energy Efficiency in India 10

11. 7 Agriculture and Industrial Sector
Current Programs and Activities
Background
Agenda
National Level EE Interventions in India Agriculture and Industrial Sectors
Agriculture Demand Side Management
Bureau of Energy Efficiency had launched the national AgDSM program and created bankable DPRs for more than 8 states in India incl. launching the first project in Maharashtra
EESL further implemented pilot projects in states of Andhra Pradesh and Karnataka
EESL is launching the first large scale AgDSM program in Andhra Pradesh (1.5 lakh pumps).
The program would be further extended to Maharashtra, Karnataka and Rajasthan
Industrial Sector
Perform Achieve and Trade (Large Industries)
PAT came into effect.
PAT Cycle I ( )
478 DCs in eight energy intensive sectors notified targets.
Account for 60% of total primary energy consumption
End of first compliance cycle. Expected energy savings 6-7 million toe
PAT Cycle II ( )
621 DCs in 11 energy intensive sectors notified targets
EESL is a key technical support partner of BEE
MSMEs
Activities funded by various multilateral and bilateral on-going
Energy Efficiency in India 11

12. Bureau of Energy Efficiency Programs
8 BEE Programs
Current Programs and Activities
Background
Agenda
Bureau of Energy Efficiency Programs
Started by BEE in 2006
Total of 21 appliances, with the label being mandatory for 7 appliances.
Newer segments looked at Passenger Cars, Solar PV, Solar Water Heater, DC based appliances, Boilers, etc.
Energy Savings from to
About 18 GWH (BU)
Approximately INR 7200 cr.
Standard and Labelling
BEE and EESL launched a nation wide capacity building programme to mainstream DSM into utility operations.
Currently supports 30 selected DISCOMS in undertaking load research activities and developing DSM action plans. Apart from the load research activities
EESL has provided two DSM experts (one technical & one financial expert)
Capacity building of Utilities on DSM
Instituted by Ministry of Power with objective of promoting Energy Conservation among all sectors of economy
39 sub-sectors of economy recognized
Equivalent MW savings of participating units increased from 45 MW in 1999 to 857 MW in 2014
National Energy Conservation Awards (NECA)
Energy Efficiency in India 12

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