Domestic Efficient Lighting Programme (DELP)

As per the statistics of the Electric Lamp and Component Manufactures Association of India (ELCOMA), more than 76 crores (760 million) incandescent lamps (ICLs) were sold in India in 2012. The ICL lamps currently being used by the domestic consumers are of mainly 40 - 60W capacity. The ICL lamps are very inefficient, which converts less than 5% of the energy into visible light and the remaining is converted as heat. In addition, the lamp life of ICLs is only 1,000 hours.

The ICL lamps currently being used by the domestic consumer in the country can be easily replaced by an LED lamp of 7 W under this policy. The LED lamp consumes 85% less electricity as compared to ICLs for delivering same light output. The lamp life of LEDs is 30,000 hours.

The overall aim of the policy is to replace all 760 Million existing ICLs in the country with LEDs to reduce electricity demand, GHG emissions and improve energy security.

It is a national policy.

Relevant sectors

• Residential

LED Lighting

Lighting for domestic consumers

The policy recommends the use of high quality LED bulbs conforming to the national BIS standards. The minimum lamp efficacy specified in the standards is 70 lm/W (lumen per Watt).

Relevant target groups

• Manufacturer This programme creates huge demand for LED lamps and thereby increases business opportunity for manufacturers.
• User LED lamps are distributed to domestic consumers at a much lower price compared to the actual market price.
• Energy company Reduced electricity demand due to this program allows utilities to provide better services and also improves energy security.
• Governmental actor This helps in meeting country’s GHG emission reduction targets

Direct beneficiaries

• Manufacturer

  This programme creates huge demand for LED lamps and thereby increases business opportunity for manufacturers.

• User

  Electricity bills are reduced. Consumers receive LED lamps meeting BIS requirements and a free replacement warranty of 3-5 years.

Indirect beneficiaries

• Governmental actor

  This helps in meeting country’s GHG emission reduction targets and improves the energy security scenario of the country

• Energy company

  Reduction in demand leads to better management of electricity distribution and results in lower instances of load shedding.

Relevant barriers

• Economic and financial barriers: The key barrier to efficient lighting is its higher first cost (Market price a typical LED lamp is INR 400 as compared to CFL which is sold at INR 100 and ICL which is sold at INR 10). It is address by providing LED bulbs to each household at reduced price of INR 72 per lamp along with easy financing option through EMI (allowing for approximately 80% reduction of the price)
• Knowledge and information barriers: It is addressed through media campaigns in social networking websites and print media.

Relevant incentives

• Saved energy costs: LEDs consume 85% less energy as compared to ICLs for delivering same light output per lamp. This leads to huge energy cost savings.
• Contribution to protection of the environment: LEDs in household sector can reduce the electricity consumption by as much as 50 billion kWh every year at national level that in turn results in reduced CO₂ emissions.

Energy conservation act 2001 (EC) was enacted to provide a conducive regulatory and policy framework to catalyse market based energy efficiency implementation. The EC act mandates to maintain minimum energy performance standards (MEPS) for various appliances. The DELP program is a market based implementation program targeting efficiency in household lighting. MEPS have been defined for the LED lamps under DELP as per the BIS standards. There is no requirement for labelling at present. DELP programme also includes an element of media campaign that falls under the specific policy measure ‘transparency and information’.

Under the Market Transformation for Energy Efficiency (MTEE) the programmes DELP and BLY are currently focusing on increasing energy efficiency in domestic lighting. However, BLY now ceased to exist.

• Significant reduction of the purchase price of LED as compared to market price (80% reduction)
• Purchase of LEDs through easy payment options (EMI).

• Cost of LED lamps can be reduced further.
• The policy could potentially include other type of lamps like FTL (Fluorescent tube lamps) to be change with LED tube lamps.
• Other household products & appliances can also be added. For example ceiling fans etc.

The following pre-conditions are necessary to implement Domestic Efficient Lighting Programme:
Agencies or other actors responsible for implementation
EESL and state DISCOMs

Funding
A financial contract is prepared between state DISCOMs and EESL before implementation. Based on this agreement the fund flow is from consumer to the DISCOM, to EESL, and finally to the manufacturer.
The program is financed by EESL that carries out the bulk procurement of LED lamps through an online tender process for the DISCOMs based on their consumer lighting points. The direction of the fund flow is from consumer to the DISCOM, to EESL, and finally to the manufacturer.
The consumers need to pay INR 10 per lamp as an upfront cost and the remaining cost is recovered from the consumers’ monthly electricity bill in the form of EMIs of INR 10 per lamp per month.

Test procedures
The LEDs must conform to the BIS (Bureau of Indian Standards) IS 16101 to IS 16108 in order to ensure that MEPS are met and to maintain the quality of the lamps.
The LED lamps dispensed under the project are stamped before they enter the market, so that their resale is avoided.

Other preconditions
Consumers need to register requests to DISCOMs for procuring LED lamps under Domestic Efficient Lighting Programme” (DELP).

Elements of programs are as under –

• DISCOM in consultation with EESL will identify an area for implementation of DELP.
• EESL, DISCOM and SERC (State electricity regulatory company), will agree upon the technical and financial framework of the programme and will file the petition thereafter.
• Tendering, Quality assurance & Procurement of LED lamps will be carried out by EESL from the manufacturer.
• Distribution of LED lamps to the consumer is being managed by DISCOMs at their designated outlets, where a domestic consumer can get the lamp on the producing their electricity bill along with photo identity proof.

Quantified target
The overall estimated annual energy saving target is of 50 billion kWh per year, which is equivalent to around 19,000 MW of avoided generation capacity.
In the first phase 100 cities are targeted for completion by March 2016.

Actors responsible for design
EESL (Energy Efficiency Services Limited)

Actors responsible for implementation
DISCOM (Power Distribution Company)

Monitoring
The LED sales inventory data is available with each DISCOM which is then uploaded in the real time data monitoring portal (National DELP dashboard which can be accessed at http://delp.in/) developed by EESL, which indicates number of LED lamps distributed, energy saved per day, cost saved per day, avoided peak demand and CO₂ reduction per day. The data is available for different states and cities also. The overall monitoring agency for this data is EESL.

Evaluation
The National DELP dashboard evaluates the energy savings based on the distribution of LED lamps on an online platform (http://delp.in/).

• Dynamic market transformation and/or innovation: This project is a pan India project with high visibility and monitoring and verification. This policy gives high visibility to ESCOs like EESL, which helps in trust building in future policy measures in other segments.

Design for sustainability aspects
Unlike CFLs, LED lamps do not contain mercury and also the light of LED is free from UV radiation, thus eliminating harmful health effects.

Co-benefits
Due to huge demand of LED lamps under this programme there is an increase in the manufacturing and thus promoting job opportunities in the country.
Due to higher lamp life of LED lamps, there will be less replacement as compared to conventional lamps, which results into monetary savings.

The target is to cover 100 cities under this programme by March 2016, the annual energy saving target is 50 billion kWh.

Concrete figures in energy savings/year
The overall target is of 50 billion kWh per year of electricity saving which is equivalent to around 19,000 MW of avoided generation capacity

The policy is new and is already under implementation in different states of the country; therefore no ex-post evaluation has been carried out. However real time national DELP dashboard has been created which shows the actual energy saved per day (3,64,60,481 kWh energy savings per day).

Latest procurement price of EESL for the month of March 2016 of LED under DELP scheme is only INR 55, whereas it was INR 310 in January 2014, which shows significant reduction in prices of LEDs.

INR 14,58,41,925 saving per day is achieved through DELP scheme as of dated 05/05/2016, which translates annual saving in INR 53 billion.

As of now i. 5th May,2016 15:43 PM the statistics are as below:

• Total LEDs distributed: 10,24,74,652
• 3,64,60,481 kWh energy saving per day
• INR 14,58,41,925 saving per day
• 2,664 MW avoided peak demand
• 29,533 t CO₂ reduction per day