Financial Daily from THE HINDU group of publications Monday, Jun 05, 2006 |
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Industry & Economy
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Environment Energy efficiency key to `power for all' vision Our Bureau
Conserving energy Talks have been held with manufacturers of refrigerators, air conditioners on procedure to fix labels, set standards for minimum energy consumption. Govt is planning to introduce energy efficiency concept to children during their school education.
The Government's ambitious target of making power available to all citizens by 2012 relies heavily on renewed energy efficiency and conservation efforts that have been initiated in the country, since this is believed to be the least cost option to augment the gap between demand and supply. Nearly 25,000 MW of capacity creation through energy efficiency in the electricity sector alone has been estimated in India. Energy conservation potential for the economy as a whole has been assessed as 23 per cent, with maximum potential in industrial and agricultural sectors. Considering the vast potential of energy savings and benefits of energy efficiency, the Government had enacted the Energy Conservation Act, 2001. The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country.
SHORT TERM MEASURES
The Bureau of Energy Efficiency operationalised a complete pilot phase of programme for energy efficiency in Government buildings and prepared the action plan for wider dissemination and implementation. A process of energy audit of Government buildings has been completed for nine buildings. Legal performance contract agreement, payment security mechanism, bids selection and evaluation criteria have been provided to all building owners for implementation and five building owners have floated tenders. Monitoring and verification of energy savings have been undertaken from March 2005. The energy efficiency programmes include the Bureau of Energy Efficiency training core group members to implement energy efficiency in these buildings.
LONG TERM MEASURES
A potential of 23,700 MW has been assessed by the end of the Eleventh Five Year Plan period, with the thrust areas including industry-specific task forces, notifying more industries as designated consumers, conducting energy audit amongst notified designated consumers, recording and publication of best practises (sector-wise), developing energy consumption norms and monitoring of compliance with mandated provision by designated consumers. A standards and labelling (S&L) programme has also been identified as one of the key activities for energy efficiency improvements. The S&L programme when in place would ensure that only energy efficient equipment and appliance would be made available to the consumers. Initially, the equipment to be covered under the S&L programme include household refrigerators, air-conditioners, water heater, electric motors, agriculture pump sets, electric lamps and fixtures, industrial fans and blowers and air-compressors. Preliminary discussions have already taken place with manufacturers of refrigerators, air conditioners, agricultural pump sets, motors, etc., regarding procedure to fix labels and setting standards for minimum energy consumption. Also Demand Side Management (DSM) and increased electricity end use efficiency are together expected to mitigate power shortages to a certain extent and drastically reduce capital needs for power capacity expansion.
BUILDINGS, ESTABLISHMENTS
Energy audit studies conducted in several office buildings, hotels and hospitals indicate energy saving potential of 20-30 per cent. The potential is largely untapped, partly due to lack of an effective delivery mechanism for energy efficiency. Government buildings by themselves constitute a very large target market. The Centre has stated that it is committed to set an example by implementing the provisions of the Energy Conservation Act in all its establishments as a first initiative. To begin with, the Bureau has begun conduct of energy audit in the Rashtrapathi Bhawan, Parliament House, South Block, North Block, Shram Shakti Bhawan, AIIMS, Safdarjung Hospital, Delhi Airport, Sanchar Bhawan, and Rail Bhawan. Energy audit in the Rashtrapati Bhawan PMO, S.S. Bhawan, Sanchar Bhawan and the Rail Bhawan has been completed.
EDUCATING CHILDREN
Considering the need to make the next generation more aware regarding efficient use of energy resources, the Centre is in the process of introducing the concept to children during their school education. In this regard, a Steering Group comprising members from NCERT, CBSE, School Principals and Teachers has been constituted, which is assisting in preparing a detailed project covering review of the existing curriculum, training of teachers and sensitisation of school principals, undertaking practice oriented programme and launching of awareness campaign.
DELIVERY MECHANISMS
Although the benefits of energy efficiency are well known and recognised, investments in energy efficiency have not taken place due to variety of barriers faced by energy users, such as risk averseness and lack of motivation for making energy efficiency investments, and low credibility of energy auditors and their services and the lack of confidence in the ability of energy efficiency equipment to deliver energy savings as expected. An innovative way of overcoming such barriers, according to the Centre, is the approach of using performance contracting through energy service companies (ESCOs). The Bureau would be conducting investment grade audits in industries, which are proposed to be implemented on the performance contract basis by ESCOs.
On the SUPPLY SIDE
A number of pilot projects/demonstration projects have been taken up for load management and energy conservation through reduction of T&D losses in the system. The schemes under implementation included two pilot projects for energy audit study, with one in the distribution network of West Bengal State Electricity Board (WBSEB) sanctioned in 1994-95 with the Ministry of Power's contribution of Rs 181.03 lakh and the other in the distribution network of Kerala State Electricity Board sanctioned in the 1994-95 with the Ministry of Power's contribution of Rs 114.62 lakh, have been completed successfully by WBSEB and KSEB through REC, during the current financial year 2002-2003.
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