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    Energy Conservation Act 2001

    Sri Dinesh Kumar D.K,

    Assistant Technical Officer

    Karnataka Renewable Energy Development Ltd(Karnataka State Designated Agency)

    Bangalore

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    Installed Capacity in MW

    All India-1,43,311.01 as on 7/6/2008

    COAL, 76,298,

    88%

    NUCLEAR, 4120%

    RENEWABLE,

    11125, 8%

    GAS, 14656, 21%

    OIL, 1201, 75%

    HYDRO

    35908, 76%

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    ALL INDIA 11,478.36 as on31.12.2007

    RENEWABLE ENERGY Installed CapacityIN MW

    WIND POWER, 7844 .57%

    BIO POWER, 605, 5%

    SOLAR, 2, 0%

    SMALL HYDRO,

    2045.61%

    COGENERATION,

    719.83% WASTE TO ENERGY,

    55.20%

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    The Target ahead

    507 545719

    975

    Mar.'01 (act.) Mar.'03 (act.) Mar.'07 (est.) Mar.'12 (est.)

    78037 81492

    115705

    157107 *

    Peak

    requirement

    in MW

    Energy

    requirement

    in BU

    By the year 2012, Indias peak demand would be 1,57,107 MW

    with energy requirement of 975 BU.

    * Capacity to increase to 212,000 MW by year 2012 to meet the peak

    demand of 1,57,107 MW.

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    Generator-wise Installed Capacity

    As on 26.12.2007

    NCE19%

    IPPs &Others

    4%

    KPC-

    Hydel

    41%

    CGS

    16%

    KPC-

    Thermal

    20%

    Source Inst.Cap.

    (MW) %KPC-Hydel 3392 41

    KPC-Thermal 1598 20

    CGS (alln. Only) 1315 16

    NCE 1543 19

    IPPs &

    Others

    346 4

    Total 8194 100

    Break-up for NCE Projects (MW)

    Wind 838

    Co-gen. 355

    Mini-Hydel 253

    Bio-Mass 97

    http://www.acclaimimages.com/usepolicy.html
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    NCE19%

    IPPs &

    Others4%

    KPC-

    Hydel41%

    CGS16%

    KPC-Thermal

    20%

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    Energy Conservation Act, 2001

    Energy Conservation Act, enacted in October 2001. BEEcreated as the nodal statutory body to improve energyefficiency through: Standards and labeling for appliances

    Energy Conservation Building Codes (ECBC)

    Energy consumption norms for Designated Consumers

    Certification and accreditation of energy auditors andenergy managers

    Dissemination of information and best practices

    Capacity Building

    Establish EE delivery systems through Public-PrivatePartnerships

    The Act creates the Bureau of Energy Efficiency (BEE) inthe centre, and State Designated Agencies (SDAs) in thestates

    30 states have created SDAs, in Karnataka KREDL is theDesignated Agency for Implementing EC Act 2001

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    Energy Conservation Act, 2001

    BEE was set up in March 2002 under the provisions of

    Energy Conservation Act of 2001 to provide a legalframework for the governments energy efficiencyinitiatives in the country.

    The Bureaus mission is to develop policies andstrategies with a thrust on self regulation and marketprinciples with the primary objective of reducing energyintensity of the Indian economy.

    Develop and recommend to the Central Governmentnorms for processes and energy conservationstandards

    Develop and recommend minimum energyperformance standards and labeling design forequipment and appliances

    Develop and recommend specific energy conservationbuilding codes

    Recommend notifying any user or class of users ofenergy as designated consumers

    Take necessary measures to create awareness anddisseminate information for efficient use of energy andits conservation

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    Energy Efficiency Initiatives

    Regulating power plant energy efficiency Regulators are tightening power plant conversion efficiency

    norms

    Appliance standards and labeling House-hold refrigerators, fluorescent tube lights, air

    conditioners and transformers have been included in theprogramme on voluntary basis

    Labels for other appliances/equipment, such as electricmotors, LPG burners, ceiling fans and consumerelectronics are under preparation

    Energy Conservation Building Code Launched on 27th May 2007 on voluntary basis; applies to

    new, large commercial buildings

    Reduces energy demand by 40 to 60 %

    Demand-Side Management Adoption of CFLs by households

    Can reduce demand by 20,000 MW

    CDM is being utilized to incentivize these programmes

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    Barriers To Energy Efficiency

    Lack of proliferation of DSM projects andconcepts

    Lack of information about comparativeenergy use especially of appliancesbought by retail consumers

    Perceived risk due to lack of confidencein performance of new technologies inappliances, building design, industrialtechnologies

    Higher cost of energy-efficienttechnologies

    Asymmetry in sharing of costs andbenefits especially in the buildingsector

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    Barriers To Energy Efficiency Tariff Reforms

    Two part tariffs

    Time of Day tariffs Power Factor incentive and penalty/Reactive Power

    Charges

    Penal Charges for overdrawal

    Cost reflective tariffs

    Load Management Directives To reduce loads for industry (MERC)

    Regulatory Directives to the consumers/licensees Factor DSM in power procurements (APERC/ MERC)

    Public awareness campaigns

    Funding Options for DSM

    Incentives to consumers for adopting efficient lighting, solarwater heater, etc.

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    CDM Based CFL Scheme

    Scheme announced by MOP seeks to replace

    estimated 400 million incandescent bulbs byCFLs- could save 6000 MW to 10,000 MW

    BEE to prepare a Programme of Activities(PoA) as a voluntary coordinated effort tofacilitate the scheme in the entire country.

    States informed about the scheme. High quality CFLs to be made available at the

    cost of incandescent bulbs

    Monitoring under an approved CDMmethodology (under PoA) to be done by BEE

    Energy Reduction as a result of use of CFL tobe monitored- CERs generated will be traded revenues to be used to service investmentsmade upfront

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    Standards & Labeling Programme

    To create appropriate legal and regulatoryenvironment for energy efficient end useproducts

    To provide the consumer an informed choiceabout energy saving by using efficient devices

    To gear up Indian industry to compete inmarkets that have made/ are making suchstandards mandatory.

    To stimulate market transformation in favour ofenergy efficient equipments and appliances-

    both from supply and demand side To reduce overall energy consumption by use

    of such equipments/ appliances- 18 BU by2012 (~3000 MW)

    To provide assistance/ support to Small &

    Medium Manufacturers

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    BEE LABEL

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    Energy Efficiency Programme In

    Buildings

    Energy saving potential in the range of 23% -46% has been identified through energy auditsconducted in public buildings

    Under the 1st phase of Energy Efficient Govt.

    Buildings Programme 9 public buildings weretaken up for energy audits

    17 additional Government buildings undertakenfor 2nd phase through performance contractingunder the ESCO route

    A national programme for existing buildings isunder preparation

    Innovative financial instruments for promotingperformance contracting are being developed to

    overcome lack of effective delivery mechanism

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    Designated Consumers (DC)

    EC Act mandates Government to designate

    consumers who consume electricity beyond abenchmarked limit.

    The DCs are required to appoint Energy Manager

    DCs are required to adhere to energy efficientconsumption norms stipulated

    DCs are required to submit consumption information,

    duly authenticated by the Energy Manager to BEE/SDAs as prescribed

    Auditors/ Managers certification examination held 3times successfully- over 2700 Auditors/ Managersaccredited/ certified- 4th examination being conducted

    Web based e-filing of energy consumption returns to

    be mandated soon- first of its kind initiative Govt. of India notified(12th march2007) 9 Energy

    Intensive Industries as Designated Consumers, i.eThermal Power Station, Fertilizer, Cement, Iron&Steel, Chlor-Alkali, Aluminium,Raiways,Textile&Pulp

    &paper.

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    Agriculture DSM Challenges & Road

    Map

    Challenges

    Availability of efficient pumps

    High first cost bias

    Location specific baseline

    Monitoring and verification

    Tragedy of commons-lack of incentive of farmer

    Risks- monitoring, economic, regulatory and political Suggested Measures

    Linkage with RGGVY/ APDRP and manufacturers

    ESCO (market based) investment model

    Participation of farmers in association with Utilities/

    ESCO Feeder level metering and verification- isolated feeders

    Providing incentives to farmers to maintain the baseline

    Involvement of Central/ State Govts, favorable policyand regulatory regime, access to finance and paymentsecurity

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    AG DSM-Subsidy linked Holistic

    Approach

    Engagement of all stakeholders

    Assess potential savings of electricity and water

    Create incentives for farmers as well as the state utility

    Analyze and plan the implementation of efficientpumps

    Conduct load research and establish a base line Provide a suitable subsidy linked funding mechanism

    with due incentives for an appropriate Public PrivatePartnership (PPP) model to work.

    Provide sufficient measures to ringfence all the risksassociated with such projects.

    Encourage measures that create awareness andeducation amongst farmers.

    Harness the collective action amongst local farmercommunity to diminish the effects of the free riders.

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    Road Map For DSM

    The following interventions are necessary

    Bulk procurement and distribution of CFLs, Adoption of Energy Conservation Building

    Code (ECBC),

    Promoting and mandating the use of energy

    efficient pumps and other energy efficient andappliances.

    Appropriate Financial and Tax incentives forEnergy Efficient equipments and applianceand their manufacture.

    All DISCOMS are in the process of creatingDSM cells.

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    Expected Outcomes

    Barriers for EE & DSM to be removed.

    The State Regulatory Commissionsand Utilities to be encouraged to

    implement the Conservation initiatives

    Engagement of StakeholdersIndustrial and Commercial users

    Time of use tariff for industrial and

    commercial users.

    Incentives to industry to adoptconservation/ efficiency measures

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    Thank YouFor more details log on to

    www.energymanagertraining.com

    www.bee-india.nic.in

    www.kredl.org.in

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