Energy Conservation and Commercialization (ECO) III (ECO III)

ECO III is the third phase of the Energy Conservation and Commercialization (ECO) project. The Energy Conservation and Commercialization Bilateral Project Agreement was signed between the Government of India and the United States of America (USA) in January 2000 with the objective to enhance commercial viability and performance of the Indian energy sector as well as to promote utilization of clean and energy-efficient technologies. 

ECO phase I (ECO-I) helped India set up the Bureau of Energy Efficiency (BEE) and to enforce the country’s Energy Conservation Act of 2001. 

ECO-II helped agencies in a few targeted states to develop energy conservation strategies and test new approaches through pilot projects. It also contributed to the establishment of India’s first energy efficiency codes for buildings. The third phase, 

ECO-III which started in October 2006 and which is the focus of this description, is helping BEE to implement the Energy Conservation Building Codes (ECBC) in Gujarat and Punjab, with an overall focus on improving energy efficiency in the building sector, developing capacity of states to implement energy efficiency programs, and establishing local energy efficiency centers and institutions.

The overall aim of ECO III is to develop the capacity and essential resources to implement energy efficiency programs. Training and events were planned and conducted with focus on buildings, municipal energy efficiency, and Small and Medium Enterprises (SMEs). Benchmarks, guidelines and tools were developed with the help of the International Research Group (IRG) and stakeholders for capacity building and implementation of energy efficiency programs, including the Energy Conservation Building Code (ECBC).

Regional

Following actions are targeted:

• Targeted technologies are integrated building design, and net zero energy buildings
• Inclusion of sustainable building design in architectural education
• Municipal energy efficiency programs (for street lighting and municipal water supply), and energy conservation action plans for municipalities of Punjab and Gujrat
• Energy efficiency in Small and Medium enterprises (SMEs): Capacity building was done to ensure widespread adoption of energy efficient practices 
• Institutional development through “Regional Energy Efficiency Centers,” and supporting the development of a newly formed institution – “Alliance for an Energy Efficient Economy” (AEEE). 
• Development of measurement and verification capabilities and the development of training programs for Energy Conservation Building Codes

Relevant target groups

• Architect Architects play a pivotal role in design and construction of buildings and choices of building systems. The ECO III project targets the architects by equipping them with the knowledge base for design of energy efficient buildings and adoption of ECBC codes through training programs and tools like ECO Nirman, energy conservation building code user guide, tip sheets for building envelope, lighting, HVAC etc.
• Construction company Construction companies are responsible for implementation of Energy Conservation Measures (ECMs) in the building. Therefore they play a major role in the development of capacity for implementation of Energy Conservation Building Codes (ECBC).
• Installation contractor Various measures of Energy Conservation Codes requires the installation of systems to perform at expected performance level e.g. air leakages. Therefore installation contractors are a target group for the ECO III Project.
• Manufacturer Manufacturers of the systems need to ensure the availability of efficient systems in the market hence the manufactures are the target group for the project.
• Property development company The responsibility of ensuring compliance of building systems with the ECBC rests with the property development companies and builders, in terms of meeting the budget requirements of energy efficient measures and hiring relevant expertise. Hence, understanding the code is important for these companies and building owners too.
• System supplier A greater availability and affordability of code compliant standardised systems depend upon the suppliers of these systems. This can encourage building owners to adopt greener practices.
• Investor The Implementation of energy efficiency measures in new buildings require cost related decision. Therefore, investors are important to be convinced for the benefit of energy efficiency measures. The prime objective of the investors is to sell the property at a premium price if energy efficiency measures are adopted.
• Investor-occupier The investor - occupier decision are related to the first cost of energy efficiency measures as well as operation and maintenance cost the project.
• Tenant Tenants take benefit of reduced operation cost of buildings designed with energy efficiency measures. It’s important to make informed choice for selection of properties which have less operational cost.
• Building permission authorities The mode of implementation of ECBC involves various agencies like municipal building permission authorities, which have to amend the Code according to state-specific requirements and notify it.
• Energy consultant In India, energy consultants play an important role in the implementation of EE measures in the buildings sector. These consultant are better equipped with the knowledge of integrated design process and provides inputs to clients on supporting the decision towards the implications on project cost and expected operational savings for various energy efficiency measures.
• Engineering consultant Engineering Consultants provide the engineering solutions for building and systems design. Their know-how of improved systems and processes are key to implement new technologies of energy efficiency in the buildings.
• Governmental actor Government bodies such as the Urban Local Bodies, which includes municipalities, the Legislative assembly etc. have a major role in implementing the ECBC’s provisions and are major influencing actors.

Direct beneficiaries

• Architect

  Architect capabilities of designing enhanced energy efficiency buildings has been developed with ECO III project, an increasing number of projects in government and private sector are going for ECBC compliant buildings thus benefitting the architects directly.

• Manufacturer

  Energy efficiency adoption in Small and Medium Sized Enterprises has improved the operational efficiency, by improving the profit margins of the manufacturers.

• System supplier

  Increased awareness of higher efficiency products have benefited the systems suppliers, which supply products of higher efficiencies.

• Investor-occupier

  Improved energy efficiency of the buildings and systems reduce the operational costs of the investor occupier.

• Building permission authorities

  Building permission authorities are made aware about the energy conservation building codes and their compliance evaluation.

• Research institution and university

  Through ECO III project partnerships are developed for exchange of knowledge, and measures are proposed for inclusion of sustainable building design and energy efficiency in architectural education.

Indirect beneficiaries

• Energy company

  By incorporation of energy efficient design in buildings and Small and Medium Enterprises the demand of electricity can be reduced. The saved capacity can be used to provide energy to a larger number of consumers. The aim of energy companies is to provide better service to as many customers as possible.

Relevant barriers

• The investor-user barrier: In the construction industry developers don’t want to invest in better infrastructure (e.g. energy-efficient buildings) if they are not confident of commanding a higher price on such buildings.
• Knowledge and information barriers: : New standards are required in the implementation of the energy efficiency strategies but the stakeholders have a limited knowledge. Sensitization and capability enhancement are essential for the implementation of energy efficiency measures. Lack of availability of appropriate building materials, newer equipment and technologies also poses as the key barrier for the implementation of energy efficiency projects.
• Economic and financial barriers: The energy efficiency measures require higher capital investments. This posses as a barrier in the implementation of energy efficiency measures.
• Organisational barriers: The existing institutional set up and administrative mechanism in each state is ill-equipped to enforce ECBC compliance. There is also a need to mobilize stronger coordination between Central Government and the State Government, and proper delegation of responsibilities to the ULBs to enforce ECBC compliance.

Relevant incentives

• Saved energy costs: Energy is one of the main operational costs of buildings. By implementation of energy efficiency measures this cost is reduced.
• Directly increasing earnings or profits for actors on the supply side: Design of buildings with Energy Efficiency measures requires a specialised knowledge. Most of the professionals who design such buildings charge premium fee on the services.
• Unique selling proposition for suppliers: With the increased awareness about efficiency of systems, buyers ask for more efficient systems. If a product meets the efficiency standard of Energy Conservation Building Codes it becomes a Unique Selling Proposition for supplier, as currently limited number of products are available which meet the prescribed efficiencies.

The ECO III Project closely interacts with the BEE and Energy Conservation Building Codes.

ECO III project has developed innovative tools for self-evaluation of ECBC compliance of buildings, and benchmarking for energy consumption through regression based analysis of building energy usage data available at BEE. These are available on the website of ECO III project (www.eco3.org) (see reference: “Whole Building Performance”, “Prescriptive Measures”, “ECO benchmark” (ECO III, n.d.).

The following pre-conditions are necessary to implement ECO-III:

Agencies or other actors responsible for implementation

• Bureau of Energy Efficiency (BEE), New Delhi
• International Resource Group (IRG)

Funding

• Funding came from the United States Agency for International Development (USAID).

International co-operations
There is cooperation between USAID and India. It facilitates the sharing of energy and environment best practices between the U.S. and India. Under the program of ‘Energy and Environment’, it works with Indian partners to increase viability in the power sector, conserve resources, and promote clean technologies and renewable energy.

Actors responsible for design
United States Agency for International Development (USAID/ India) USAID is funding the ECO-III Project, and is closely monitoring execution of the Project being implemented by International Resource Group (IRG).

Actors responsible for implementation
IRG provides worldwide services in energy policy, power sector reform, regulation, utility management, renewable energy and energy efficiency. They develop and implement effective strategies to address energy access, improve sector governance, support economic solutions and build the capacity of critical institutions. IRG and its partners are implementing ECO-III by working closely with international experts and other organizations that are part of the ECO-III team.

Monitoring
The Ministry of Power is the nodal ministry for energy conservation activities and bilateral programs. It is responsible for monitoring USAID ECO-III Project. A project compendium is available without impact data on costs or savings.

BEE, on behalf of Government of India, Ministry of Power, has been partnering with the ECO-III Project on a day-to-day basis. ECO-III project, being implemented by IRG, is closely interacting with BEE on project activities such as implementation of energy conservation action plan (ECAP), curriculum enhancement at architecture and engineering colleges, improving energy efficiency in existing buildings and municipalities, and promoting energy efficiency in small and medium enterprises.

Furthermore, USAID is closely monitoring execution of the project.

Dynamic market transformation and or innovation
The program aims at the development of energy efficiency technology market , and building capacity of the supply side actors like architects , developers and manufacturers. It also improves the government officials understanding codes and standards for energy efficiency and builds up the capacity for compliance evaluation.

Creating spill-over effects
The program has components for buildings and SMEs. The actors in these sectors will implement the principles of energy efficiency in design and operation and maintenance where ever there is an opportunity creating a spill-over effect.