INFOCUS | ENERGY EFFICIENCY | INTERVIEW
Need to make consumers aware of energy efficiency The Government of India set up the Bureau of Energy Efficiency (BEE) on 1 March 2002 under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 with the primary objective of reducing energy intensity of the Indian economy. This will be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors. Towards this the BEE co-ordinates with designated consumers, designated agencies and other organizations to recognize, identify and utilize the existing resources and infrastructure in performing the functions assigned to it under the Energy Conservation Act. Irfan Alam spoke with Abha Shukla, Secretary, BEE on the bureau’s journey so far. |16| India-China Chronicle April 2012
ICC: The Energy Conservation Act was introduced in 2001 and the BEE was launched in 2002. What has been the experience over the last 10 years? In the beginning initiatives were slow. Work really started in 2007 and most schemes got sanctioned in 2007-08. In the past 3-4 years we have worked in four major areas. Our focus was on demand side management and small and medium scale enterprise as well as in the agriculture sector. We have also started schemes like the Bachat Lamp Yojana (BLY), which was the part of the demand side management and we wanted to leverage the Clean Development Mechanism (CDM). We have arrived at a huge target for ourselves. Then the third was the standard and labelling scheme for application, energy consuming appliances. For now 40 major applications are covered and out of which four appliances are in the mandatory phase. These are PC, Distribution Transformers, Refrigerators and Tubelights. Then another area which we wanted to tap was the commercial building; along with commercial buildings we have also tried to look at the option of electro-fitting old buildings, but our main focus remains on the new commercial buildings. These are the major areas where we have really focused our efforts. Last year we started a brand new scheme for industries. Until then we hardly had announced anyone as designated consumers. Because the Energy Efficiency Act says that we can designate energy consumers as designated consumers and we can put some condition on them. If we designate them as designated consumers then they have to file compulsory energy data and undertake energy audits. We have identified 477 major industrial units and eight major industries. Like power plants, cement, iron and steel, aluminum are all energy inclusive units. We conduct a baseline survey and accordingly we decide energy saving targets for them. This eventually will be mandatory for all industries. Till now the targets have not been made applicable to industries and we are yet to notify those targets.
This remains our prime concern and will be completed as soon as possible. What is the Conservation Scenario? The target of 10,000 Mega-Watt in the 11th five year plan has almost been achieved; we have already crossed 89-90 per cent mark. It is about two months behind but we are about to achieve the planned year target. This in nutshell is what we have achieved so far.
very similar to the general SMEs and is not secondary in any way; it has to be treated equal. Because efficiency is something which at least the domestic sector cannot regulate, you have to promote it. This is true that the approach for both things is entirely different. Because when we talk of new and renewable energy we talk about the development of that area. So it is necessary to tap that energy.
How does the coordination with line agencies at the state or district levels take place since there is no dedicated agency at these levels?
But somewhere I don’t think that margin or distinction between conservation and energy has been brought about very clearly. What do you think?
The Act says that at the state level we can designate any agency which will coordinate with different line agencies. And we accordingly have designated different departments, some were probably state regulatory commissions and in some places energy departments were designated. Actually they have overburdened themselves. The Ministry of New and Renewable Energy (MNRE) has more targets with larger budgets. They are already overburdening with whatever the MNRE has given them. There are two missions under the same plan that is the enhance efficiency plan – it is
I agree with you, but the point is, if a thing becomes too diversified in itself then it becomes difficult to handle. Conservation and efficiency are the two similar kinds of things which are equally diversified in nature. Because when we talk about only energy efficiency, then there are buildings, there are appliances, there are industries and many more things. Similarly when we talk of MNRE again they have got the world out there. So, I think the agency which is handling all these things are already overburden with targets because ultimately we only talk in terms of targets. It is also supposed to be acApril 2012 India-China Chronicle |17|
INFOCUS | ENERGY EFFICIENCY | INTERVIEW
business for a long time whereas for starters like us it will take some time.
cording to some budget. So, it is fine they can empathize with our sensitivity store energy efficiency. I think there are a few states were officers have been very dynamic and could bring about a few changes. But then it depends on the individual – you will find that in the same state they are doing very well where they are taking a personal interest, but in some states they are taking more interest in energy efficiency rather than in new renewable energy, whereas in others they are more interested in new and renewable rather than energy efficiency. Where does the country stand in terms of energy efficiency achievement targets? Are we placed at par with other developed countries in terms of achieving what we set out to achieve? It depends. What do you compare yourself with? There has to be a reference point which is very important. I have stayed in some countries where they have been into energy efficiency
for a long time, almost three to four decades. And that is why they are well ahead of us. Like the US, they have a standardization agency for a long time. When we talk about buildings, Switzerland has done a lot. Similarly Norway, Germany and Sweden are much ahead of us. It is just because they are in this
Do laws or policies actually matter? Energy conservation or any resource conservation law is something you can promote rather than regulate. I don’t think that in each household you can ensure that some amount of energy will be conserved or bring about efficiency. You can only promote it. But you all are silent on the promotional aspect your voice is very clear on conservation aspect. As far as the policies which were put in place by BEE or Government of India they are not directly doing it, we are assisting them (government). They are basically promotional in nature. For example, the standards and labelling scheme is market driven; we opened this idea to the consumers and by and by it was accepted by the consumers and markets were developed over a period of time for targeting products. I think people are getting more and more aware about energy efficiency. What needs to be done about consumer behaviour and markets? Consumers actually don‘t care: If you have two products in the market, one with four star rating and other without any label, consumers will go for the product which costs less. The majority of consumers go for price, only a small number of consumers who are aware opt for star rating. In developed countries where consumers are more aware they will replace old appliances with the new labelled ones for efficiency as per the new standards. Energy efficiency develops with the passage of time. The sense of energy efficiency will develop only when people become aware of energy efficiency. So, you cannot put it on the consumer, or cannot make it mandatory. Ultimately if the consumer has money, he will buy the star rated product. For such a
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shift, there has to be awareness which will take time. And for awareness to spread education is essential. Standards are getting better every year, and so the EER (Energy Efficiency Ratio) is changing every year or two. Is there any specific programme aimed at SME clusters? SME is the only area where we have adopted this approach of clusters. We have identified 25 clusters and we have conducted energy audits report which has been shared with associations of the small scale industry. A number of them have been implemented because there is one component of energy efficiency, which is called low cost measures. And by implementing these low cost measures, around 15-20 per cent of energy efficiency can be achieved. For that matter we have been coordinating with a Japanese agency which is our counterpart in energy efficiency. They have been imparting training to our SMEs for the past of four years. Do you think there is any connectivity between water and energy efficiency? Something called watery or water use efficiency as it is termed, and whether you are doing some-
thing about it. Is there any connect between National Water Mission’s objectives of achieving 20 per cent enhanced water efficiency and targets under the EE Mission. Yes, there are close links between water and energy use especially when we talk about the sector. And last year we conducted a study that shows how these two things can be linked together. Even if go for energy efficiency farms the water table and water output are the major factors affecting our schemes. We have to take into account that these two things must go together. I think we have conducted one study, but right now I will not be able to tell about it because it still has to take shape. These are initial thoughts but we realize that these are very important and need to work out ways to formalize central training, to coordinate with different agencies, because coordination is the biggest issue for any modern machinery. Because everyone has their own goal, targets, rules and regulation, coordination at times becomes very difficult. But then everyone is realizing that this needs to be done. There is definitely a link between the two age and it was discussed in our meeting with the Planning Commission. April 2012 India-China Chronicle |19|