IN-1:Mandatory energy efficiency standards (pilot phase)
The Energy Conservation Act (ECA) of 2001 is the primary legal framework and regulatory mechanism for the Central and State governmento facilitate the enforcement and efficient use of energy and its conservation. There are five main provisions within this Act – Designated Consumers, Standards and Labeling, Building Codes, Establishment of the Bureau of Energy Efficiency (BEE) and Establishment of Energy Conservation Fund .
The Energy Conservation Act (ECA) of 2001 , amended in 2010  is the primary legal framework and regulatory mechanism for the Central and State governmento facilitate the enforcement and efficient use of energy and its conservation. There are five main provisions within this Act – Designated Consumers, Standards and Labeling, Building Codes, Establishment of the Bureau of Energy Efficiency (BEE) and Establishment of Energy Conservation Fund . In 2010 the Act was amended to create the Perform, Achieve and Trade Scheme, a market-based mechanism (See IN-2).
The ECA authorizes the Government to assign energy intensive industries and other larger consumers as Designated Consumers, for which specific regulation on energy efficiency can be adopted.
Under the ECA, nine energy intensive industrial sectors have been identified as Designated Consumers . Each designated consumer must get an energy audit conducted by an accredited auditor and must have an appointment energy manager with prescribed qualifications. Designated consumers are expected to comply with norms and standards of energy consumption as set by the central government.
The ECA also established the Bureau of Energy Efficiency (BEE) which provides leadership for energy efficiency to all sectors in the country and helps institutionalize energy efficiency services. BEE is authorized by the Government to assign specific sectors as Designated Consumers, develop energy consumption norms and standards for Designated Consumers and specific accreditation and related procedures for energy managers and energy audits. BEE is also responsible for ensuring that Designated Consumers report on their energy consumption and actions taken to reduce their energy consumption. BEE directs Designated Consumers to comply with the norms and standards and implement schemes for energy conservation in the event of non-compliance.
Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.
Policy Instrument Type: Administrative, Standards
Position in the PyramidAbout Us
Start Date: 2007
End Date: 2012
Bureau of Energy Efficiency (BEE)
Primary Objective: Energy
Increase average energy efficiency level within the sector to the level of the best performing with sector
Aluminium; fertilizers; iron and steel; cement; pulp and paper; chloralkali; textile; chemicals.
Driver of energy consumption or emissions affected by policy: specific energy consumption, relative efficiency
Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.
Designated Consumers as specified by the Energy Conservation Act which includes 9 sectors
Quantitative Target? yes
Target: Sector benchmark.
Time Period: 2007-2011
Progress Monitored? yes
Verification Required? yes
Requirements on the Target Group
Each company that is a Designated Consumer must monitor and report progress towards the energy efficiency indicator according to the BEE protocol.
Support by Government
The support provided under policy IN-3 energy management is of benefit to the target group in implementing the policy. BEE has supported the sector task forces on energy efficiency to disseminate best practices in energy efficiency in these sectors.
The Bureau of Energy Efficiency provides a monitoring an reporting information Protocol that participants must comply with.
Complexity of Implementation
Setting and updating standards is difficult considering large differences within sectors. Cluster-specific approach is needed within sector. Monitoring and verification needs to be strict.
In the pilot phase, the standards are voluntary as is verification. In a mandatory phase, once standards are set, only monitoring of energy use and production is required.
Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.
|Impact||Quantitative Estimate||Qualitative Estimate|
|Estimated effect on energy consumption or emissions||Not available||Not available|
|Estimated costs/benefits for industry||Not available||Not available|
|Estimated cost for government||Not available||Not available|
|General Benefits||Reduce GHG emissions and other environmental pollutants, reduce energy costs, improve competitiveness|
|Specific Benefits||Increased resource efficiency other than energy|
References & Footnotes
 Ministry of Law, Justice and Company Affairs (2001). Energy Conservation of India 2001. Available at http://www.powermin.nic.in/acts_notification/pdf/ecact2001.pdf
 Government of India (2010). Energy Conservation (Amendment) Act 2010. Available at http://www.ibecc.in/sites/default/files/EC_amendment_act_2010.pdf
 Ministry of Power (2013). EC Act. Available at http://www.powermin.nic.in/acts_notification/energy_conservation_act/introduction.htm