7 Initiatives by the Government to Promote Energy Efficiency and Energy Conservation

Energy efficiency involves efficient utilization of energy resources. This is necessary for sustainable development. Energy efficiency increases productivity, and significantly reduce Green House Gas emissions, solid waste production and thermal pollution.

Initiatives to Promote Energy Conservation and Energy Efficiency
In this article, we discuss a few initiatives for Energy efficiency and Energy conservation taken by Government of India through Bureau of Energy Efficiency (BEE), Ministry of Power.

1. Standards and Labeling by the Bureau of Energy Efficiency (BEE)
The Bureau of Energy Efficiency (BEE) initiated the Standards & Labeling programme for equipment and appliances in 2006 to provide the consumer with an informed choice about the energy saving.

The energy efficiency labelling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers.

‘Star Rating’ mobile app

This app is linked to the Standards and Labeling database. It provides the user with a platform to compare personalized energy saving devices across the same class and get a real-time feedback from consumers so that they can make an informed purchase decision. Apart from being a one-stop solution for customers, it’s also a valuable tool for policymakers to access the accumulated data and analyse the feedback of the market at any given point in time.

2. Energy Conservation Building Codes (ECBC) by the Ministry of Power
The Energy Conservation Building Code (ECBC) was launched by Ministry of power for new commercial buildings in 2007. It sets minimum energy standards for new commercial buildings.

In order to promote a market pull for energy efficient buildings, Bureau of Energy Efficiency developed a voluntary Star Rating Programme for buildings which are based on the actual performance of a building.

The updated version of ECBC came in 2017 which sets parameters for builders, designers and architects to integrate renewable energy sources in building design with the inclusion of passive design strategies. The code aims to optimise energy savings with the comfort levels for occupants and prefers life-cycle cost-effectiveness to achieve energy neutrality in commercial buildings.

3. National Mission for Enhanced Energy Efficiency (NMEEE) under NAPCC
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC). NMEEE aims to strengthen the market for energy efficiency by creating conducive regulatory and policy regime and has envisaged fostering innovative and sustainable business models to the energy efficiency sector.

The NMEEE has four initiatives to enhance energy efficiency in energy-intensive industries which are as follows:

Perform, Achieve and Trade Scheme (PAT):
A market-based mechanism to enhance the cost-effectiveness in improving the Energy Efficiency in Energy Intensive industries through certification of energy saving which can be traded.

Units which are able to achieve specific energy consumption (SEC) level that is lower than their targets can receive energy savings certificates (ESCerts) for their excess savings.

The ESCerts could be traded on the Power Exchanges and bought by other units under PAT who can use them to meet their compliance requirements.

Market Transformation for Energy Efficiency (MTEE):
Under MTEE, two programmes have been developed i.e. Bachat Lamp Yojana(BLY) and Super-Efficient Equipment Programme (SEEP).

BEE promotes the use of LED lights using the institutional structure of BLY Programme. SEEP is a program designed to bring accelerated market transformation for super-efficient appliances by providing financial stimulus innovatively at critical point/s of intervention.

Energy Efficiency Financing Platform (EEFP):
This is a platform for the creation of mechanisms that would help finance demand-side management programmes in all sectors by capturing future energy savings. Under this, MoUs have been signed with financial institutions to work together for the development of energy efficiency market and for the identification of issues related to this market development.

Framework for Energy Efficient Economic Development (FEEED):
This is for development of fiscal instruments to promote energy efficiency. Under this two initiative are taken:

Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) is risk sharing mechanism to provide commercial banks with a partial coverage of risk involved in extending loans for energy efficiency projects.

The Venture Capital Fund for Energy Efficiency (VCFEE) is a fund to provide equity capital for energy efficiency projects. The support under VCFEE is limited to Government buildings and municipalities.

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