India

IN-1:Mandatory energy efficiency standards (pilot phase)

Policy Description

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 . 

 

Description

The Energy Conservation Act (ECA) of 2001 [1], amended in 2010 [2] 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 [3]. 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 [3]. 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 Categorisation

Policy Instrument Type: Administrative, Standards

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2007

End Date: 2012

Policy Linkages

Supported By
Supported By

Agencies Responsible

Bureau of Energy Efficiency (BEE)

Primary Objective: Energy

Objective

Increase average energy efficiency level within the sector to the level of the best performing with sector

Target Group

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.

Coverage

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

Enforced? no

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.

Implementation Toolbox

The Bureau of Energy Efficiency provides a monitoring an reporting information Protocol that participants must comply with.

Complexity of Implementation

Government

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.

Target Group

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
Other Benefits
General Benefits Reduce GHG emissions and other environmental pollutants, reduce energy costs, improve competitiveness
Specific Benefits Increased resource efficiency other than energy

References & Footnotes

References

[1] 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

[2] Government of India (2010). Energy Conservation (Amendment) Act 2010. Available at http://www.ibecc.in/sites/default/files/EC_amendment_act_2010.pdf

[3] Ministry of Power (2013). EC Act. Available at http://www.powermin.nic.in/acts_notification/energy_conservation_act/introduction.htm