- Buildings Guide
- Policy Guide
- Appliances Guide
The primary energy demand in India has grown from about 450 million tons of oil equivalent (mtoe) in 2000 to about 770 million toe in 2012. This is expected to increase to about 1,250 (estimated by International Energy Agency) to 1,500 (estimated in the Integrated Energy Policy Report) million toe in 2030. The Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing energy intensity of Indian economy.
The Bureau of Energy Efficiency (BEE) was set up as the statutory body on 1st March 2002 at the central level to facilitate the implementation of the EC Act. It acts as a nodal central agency to co-ordinate and develop robust energy efficiency strategies and programs to encourage sustainable use of energy in all sectors of the Indian economy. BEE has implemented various programs in the building and appliance sectors, e.g. standards & labeling of equipment and appliances; energy conservation building codes for commercial buildings; and energy consumption norms for energy intensive industries.
In response to rapidly growing energy demand, India enacted the Energy Conservation (EC) Act in 2001 and the Electricity Act in 2003. The Bureau of Energy Efficiency (BEE) was established under the provisions of the EC Act on March 01, 2002.
BEE acts as a statutory body under the Indian Ministry of Power, with a mission to assist in developing policies and strategies based on self-regulation and market principles. Its primary objective is to reduce energy intensity of the Indian economy by regulatory and promotional activities. The mission of BEE is to 'institutionalize' energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the country. The primary objective is to reduce energy intensity in the economy.
The broad objectives of BEE are as below:
The quasi-regulatory role of BEE is to provide support to central and the state governments to develop the following:
For this purpose, the key areas of BEE include (Bureau of Energy Efficiency, 2015):
The BEE has been able to achieve around 10,750 MW of power generation saving during the 11th Five Year Plan (2007-2012) (SEAI, 2012).
Agencies which are comparable to BEE in there design and task structure are:
Nevertheless, in contrast to these mentioned OECD country based agencies, BEE is based in an emerging country and has to be highlighted as a special success story.
The primary energy demand in India is very high. It has grown from about 450 million tons of oil equivalent (toe) in 2000 to about 770 million toe in 2012. This is expected to increase to about 1,250 (estimated by International Energy Agency) to 1,500 (estimated in the Integrated Energy Policy Report) million toe in 2030.
Despite these high numbers and before creation of the BEE, there were no minimum energy performance standards (MEPS) or energy building codes and no energy performance certificates for buildings in India, nor were there MEPS or energy labeling for appliances.
There was not even a sufficient knowledge about the typical energy consumption values of buildings.
Consequently, the Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing energy intensity of Indian economy. The Bureau of Energy Efficiency (BEE) was set up as the statutory body on 1st March 2002 at the central level to facilitate the implementation of the EC Act (Ministry of Power, n.d.).
The mission of Bureau of Energy Efficiency is to 'institutionalize' energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the country.
The prime aim of BEE is to reduce energy intensity in the country’s economy and promote energy efficiency through various strategies and policies. This includes institutional and legal framework development, making legal and regulatory changes to enable organizations, institutions and agencies at all levels and in all sectors to enhance their capacities to promote the efficient use of energy and its conservation.
The Bureau of Energy Efficiency also aims at organizing the energy efficiency services available and to develop mechanisms to offer these services.
BEE has no technological focus, rather it covers all energy efficiency relevant technologies as per the targeted sector(s). For instance in building sector, the ECBC components include:
With the policies and programs it implements, the BEE targets at the construction and sale of energy-efficient buildings (based on a whole-building approach) as well as at the manufacture and sale of energy-efficient appliances and building technologies (Bureau of Energy Efficiency, 2015). For example:
Market penetration of energy efficient products and services is often a huge challenge faced in any economy. This is most influenced by prices, financing, international trade, market structure, institutions, the provision of information and social, cultural and behavioral factors. Indian economy is no exception to these market barriers. Private sector investments and utilization of public funding often require government support and intervention for promotion of EE market.
With the promotional and informational programs, BEE has been able to raise consumer awareness towards EE. This also raises market competition within manufacturers to produce cost-efficient energy efficient appliances and products and also gives them social recognition for their environmentally sound behavior.
Through Public-Private Partnership models, BEE has been able to address energy efficiency program financing problem.
BEE and the policies and measures it introduces and implements can be seen as the energy efficiency policy package.
The DELP scheme (now known as UJALA) was launched by EESL in collaboration with BEE. The main aim of the scheme was to replace the less efficient light bulbs used by people to LED bulbs and this drastically brought down the manufacturing costs of LED bulbs from INR 500-600 per unit to INR 100 per unit of an LED bulb.
Also the project for the implementation of ECBC the BEE is working in partnership with UNDP for the setting up of ECBC cells in different states and make a separate body in states for the smooth implementation of the ECBC policy.
The policies designed and implemented by the BEE have several innovative elements. For example, with the several lessons learned from the BLY program, BEE is working on defining innovative national policies and programs which resembles the envisaged scope of Nationally Appropriate Mitigation Actions (NAMAs). Furthermore, BEE is also developing Super-Efficient Equipment Program (SEEP) that would incentivize manufactures to produce and sell super-efficient equipment/ appliances for accelerated introduction to bring market transformation. These types of equipment are 30 – 50% more efficient than counterparts in market.
BEE also plans to establish a technical advisory committee, support teams and any other committees when needed for its projects. The team members will include distinguished stakeholders such as Ministry of New and Renewable Energy, donor agencies such as US-AID, British High Commission, Swiss Development Corporation, GIZ, and non-government agencies such as The Energy and Resources Institute (TERI) and developers such as DLF. The technical advisory committee gives advice to the project team on technical issues; review energy audits and data management; advice on approach selection; and suggest policy issues of relevance to energy efficiency and energy conservation approach/technology adoption in the commercial building sector.
The local bodies and State Designated Agencies (SDA) help in the implantation of policies in the local zones or states, as they cannot be directly controlled by BEE. So the work for implementation at the local level is done by ULBs and SDAs, which then report to BEE.
The EC Act of 2001 is the main pre-condition to the institutionalization of the energy agency. BEE commissions third agencies to monitor and verify energy efficiency programs. BEE works with ESCO, Energy Auditors, Energy Managers to implementing EE projects.
Most of BEE programs are internationally funded. E.g. BLY lighting scheme was initiated with the support from GIZ GmbH. Other partnerships were built up with GEF, UNDP, and EESL.
The Energy Conservation Act (see: www.beeindia.in) empowers BEE with certain quasi regulatory and promotional roles as described below:
Quasi Regulatory Role
It involves aiding and advising the central and the state governments in the following subjects of the EC Act:
The course of action mandated under the EC Act as a part of promoting EE activities in India for the BEE are as follows:
BEE implements many international co-operation programs relating to the efficient use of energy in India and most of BEE programs are internationally funded. E.g., BLY lighting scheme was initiated with the support from GIZ Germany. Other partnerships were built up with GEF, UNDP, and EESL.
The Ministry of Power in India is responsible for the design of BEE.
Dynamic market transformation and or innovation
The BEE aims at bringing market transformations and in innovative technologies by setting up ambitious building codes and MEPS.
Minimising snap-back effects
There is no snap back effect observed till date for the policies implemented by BEE as they are not yet closed, only to mention the Bachat Lamp Yojna, which is still active but over taken by the UJALA or DELP scheme.
Present trend of population growth and economic development in India shall lead to higher demand for new technologies. This will lead to higher investment by manufacturers and creation of employment in green business. Also the energy efficient technology introduced in the market would benefit the consumer to reduce the lifetime cost of the products with less harm to the environment.
The following barriers have been experienced during the implementation of the policy:
Creating awareness was one of the major barriers faced by BEE as the people do not want to invest in newer technologies until the older ones are working fine and the initial investment of any new product is higher It became difficult to push the market towards the newer technologies.
At the institutional level the following barriers are faced by the BEE:
Overall, the programs (S&L, BLY, ECBC etc.) of BEE has resulted in 7.68 Billion kWh of energy savings, equivalent to avoided capacity generation of 1196 MW in the year 2012-2013 as compared to the 2011-2012 baseline (Bureau of Energy Efficiency 2013).
Overall savings of 1,196 MW was achieved in the year 2012-2013.
(Bureau of Energy Efficiency 2013)
BEE’s implemented and envisaged policies are expected to be cost-effective.