Overview

The World is in a transition phase and energy is central to it. India has been responsible for almost 10% of the increase in global energy demand since 2000. India’s energy demand in this period has almost doubled, pushing the country’s share in global demand up to 5.7% in 2013 from 4.4% at the beginning of the century. The primary energy demand in India has grown from about 441 Mtoe in 2000 to about 775 Mtoe in 2013. This demand is expected to increase to about 1250 (estimated by International Energy Agency) to 1500 (estimated in the Integrated Energy Policy Report) million toe in 2030. India’s energy consumption has almost doubled since 2000 and the potential for further rapid growth is enormous. Yet the increase in domestic energy production is far below than India’s consumption needs. By 2040 more than 40% of primary energy supply will be imported, up from 32% in 2013. It may also be noted that no country in the world has been able to achieve a Human Development Index of 0.9 or more without an annual energy supply of at least 4 toe per capita. Consequently, there is a large latent demand for energy services that needs to be fulfilled in order for people to have reasonable incomes and a decent quality of life.

 
Improving the energy efficiency meets the dual objectives of promoting sustainable development and of making the economy competitive. Recognizing the formidable challenges of meeting the energy needs and providing adequate and varied energy of desired quality in a sustainable manner and at reasonable costs, improving efficiency have become important components of energy policy. In addition, the environmental and health burdens arising out of the use of hydrocarbons may also force mankind towards energy efficiency and clean energy systems. Energy Conservation has also assumed enhanced importance with a view to conserve depleting energy resources.
 
Government of India has undertaken a two pronged approach to cater to the energy demand of its citizens while ensuring minimum growth in CO2 emissions, so that the global emissions do not lead to an irreversible damage to the earth system. On one hand, in the generation side, the Government is promoting greater use of renewable in the energy mix mainly through solar and wind and at the same time shifting towards supercritical technologies for coal based power plants. On the other side, efforts are being made to efficiently use the energy in the demand side through various innovative policy measures under the overall ambit of Energy Conservation Act 2001.
 
The Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing energy intensity of Indian economy. Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power is responsible for spearheading the improvement of energy efficiency in the economy through various regulatory and promotional instruments.  Bureau of Energy Efficiency (BEE) was set up as the statutory body on 1st March 2002 at the central level to facilitate the implementation of the EC Act. The Act provides regulatory mandate for: standards & labelling of equipment and appliances; energy conservation building codes for commercial buildings; and energy consumption norms for energy intensive industries. In addition, the Act enjoins the Central Govt. and the Bureau to take steps to facilitate and promote energy efficiency in all sectors of the economy. The Act also directs states to designate agencies for the implementation of the Act and promotion of energy efficiency in the state.
 
Ministry of Power, through Bureau of Energy Efficiency (BEE), has initiated a number of energy efficiency initiatives in the areas of household lighting, commercial buildings, standards and labelling of appliances, demand side management in agriculture/municipalities, SME's and large industries including the initiation of the process for development of energy consumption norms for industrial sub sectors, capacity building of SDA's etc.
 
SCHEMES TO PROMOTE ENERGY CONSERVATION AND ENERGY EFFICIENCY 1. Standard & Labeling Programme
 
 
The Energy Conservation Act, 2001, under section 14, empowers the Central Government to develop a standards and labeling(S&L) program which was formally launched on May 18, 2006, by the Ministry of Power, Government of India. The Bureau of Energy Efficiency (BEE) defines the energy performance standards for appliances and equipment and promotes and facilitates its adoption through several training, awareness and capacity building programs. The S&L scheme, a flagship program of BEE, is one of the most cost effective policy tool for improving appliance and equipment energy efficiency and lowering energy costs to the consumer. Mandatory energy efficiency standards coupled with labels that describe energy performance enable consumers to make informed choice for purchasing efficient products that save energy and reduce expenses.
 
The scheme is invoked for 21 equipment/appliances, out of 21 appliances, 8 appliances are under mandatory domain and remaining 13 appliances are under voluntary domain. The energy efficiency labeling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers. Further, the standards and label for refrigerators and air-conditioners have been periodically made more stringent. As a result, the least-efficient products are removed from the market and more efficient products are introduced. The Corporate Average Fuel Consumption Standards (CAFC) for passenger cars has been notified on 3rd April, 2015.
The World is in a transition phase and energy is central to it. India has been responsible for almost 10% of the increase in global energy demand since 2000. India’s energy demand in this period has almost doubled, pushing the country’s share in global demand up to 5.7% in 2013 from 4.4% at the beginning of the century. The primary energy demand in India has grown from about 441 Mtoe in 2000 to about 775 Mtoe in 2013. This demand is expected to increase to about 1250 (estimated by International Energy Agency) to 1500 (estimated in the Integrated Energy Policy Report) million toe in 2030. India’s energy consumption has almost doubled since 2000 and the potential for further rapid growth is enormous. Yet the increase in domestic energy production is far below than India’s consumption needs. By 2040 more than 40% of primary energy supply will be imported, up from 32% in 2013. It may also be noted that no country in the world has been able to achieve a Human Development Index of 0.9 or more without an annual energy supply of at least 4 toe per capita. Consequently, there is a large latent demand for energy services that needs to be fulfilled in order for people to have reasonable incomes and a decent quality of life.
 
Improving the energy efficiency meets the dual objectives of promoting sustainable development and of making the economy competitive. Recognizing the formidable challenges of meeting the energy needs and providing adequate and varied energy of desired quality in a sustainable manner and at reasonable costs, improving efficiency have become important components of energy policy. In addition, the environmental and health burdens arising out of the use of hydrocarbons may also force mankind towards energy efficiency and clean energy systems. Energy Conservation has also assumed enhanced importance with a view to conserve depleting energy resources.
 
Government of India has undertaken a two pronged approach to cater to the energy demand of its citizens while ensuring minimum growth in CO2 emissions, so that the global emissions do not lead to an irreversible damage to the earth system. On one hand, in the generation side, the Government is promoting greater use of renewable in the energy mix mainly through solar and wind and at the same time shifting towards supercritical technologies for coal based power plants. On the other side, efforts are being made to efficiently use the energy in the demand side through various innovative policy measures under the overall ambit of Energy Conservation Act 2001.
 
The Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing energy intensity of Indian economy. Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power is responsible for spearheading the improvement of energy efficiency in the economy through various regulatory and promotional instruments.  Bureau of Energy Efficiency (BEE) was set up as the statutory body on 1st March 2002 at the central level to facilitate the implementation of the EC Act. The Act provides regulatory mandate for: standards & labelling of equipment and appliances; energy conservation building codes for commercial buildings; and energy consumption norms for energy intensive industries. In addition, the Act enjoins the Central Govt. and the Bureau to take steps to facilitate and promote energy efficiency in all sectors of the economy. The Act also directs states to designate agencies for the implementation of the Act and promotion of energy efficiency in the state.
 
Ministry of Power, through Bureau of Energy Efficiency (BEE), has initiated a number of energy efficiency initiatives in the areas of household lighting, commercial buildings, standards and labelling of appliances, demand side management in agriculture/municipalities, SME's and large industries including the initiation of the process for development of energy consumption norms for industrial sub sectors, capacity building of SDA's etc.
 
SCHEMES TO PROMOTE ENERGY CONSERVATION AND ENERGY EFFICIENCY 1. Standard & Labeling Programme
 
 
The Energy Conservation Act, 2001, under section 14, empowers the Central Government to develop a standards and labeling(S&L) program which was formally launched on May 18, 2006, by the Ministry of Power, Government of India. The Bureau of Energy Efficiency (BEE) defines the energy performance standards for appliances and equipment and promotes and facilitates its adoption through several training, awareness and capacity building programs. The S&L scheme, a flagship program of BEE, is one of the most cost effective policy tool for improving appliance and equipment energy efficiency and lowering energy costs to the consumer. Mandatory energy efficiency standards coupled with labels that describe energy performance enable consumers to make informed choice for purchasing efficient products that save energy and reduce expenses.
 
The scheme is invoked for 21 equipment/appliances, out of 21 appliances, 8 appliances are under mandatory domain and remaining 13 appliances are under voluntary domain. The energy efficiency labeling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers. Further, the standards and label for refrigerators and air-conditioners have been periodically made more stringent. As a result, the least-efficient products are removed from the market and more efficient products are introduced. The Corporate Average Fuel Consumption Standards (CAFC) for passenger cars has been notified on 3rd April, 2015.