India

IN-3:Mandatory Energy Managers and Energy Audits

Policy Description

Under the Energy Conservation Act, it is mandatory for all the designated energy consumers known as Designated Consuemrs (in nine energy-intensive sectors above a certain consumption thresshold) to have energy audits carried out by an accredited energy auditor, to designate or appoint an energy manager and to report annually on energy consumption.

 

Description

The Energy Conservation Act (ECA) of 2001 [1, 2], amended in 2010 [3] empowers the Government of India to regulate energy efficiency and energy conservation. Under the ECA, the Government has assigned energy-intensive industries and other larger consumers as Designated Consumers, for which specific regulations on energy efficiency are adopted. 

Companies in nine energy-intensive sectors have been identified as Designated Consumers, including 7 sectors in industry. Companies in these sectors with an energy use over a certain threshold are subject to ECA regulation. These sectors are fertilizers, iron and steel, cement, pulp and paper with an energy use over 30ktoe; chloralkali > 12 ktoe; aluminium > 7.5 ktoe; and textile > 3 ktoe . The total number of Designated Consumers in industry amounts to about 700 [1].

Under the ECA, it is mandatory for all the designated energy consumers to have energy audits carried out by an accredited energy auditor, to designate or appoint an energy manager and to report annually on energy consumption.

The ECA also provided for the establishment of the Bureau of Energy Efficiency (BEE) in 2002 [4]. BEE is authorized by the Government to implement and monitor  the regulation under the ECA and support the Designated Consumers. The Indian Industry Programme for Energy Conservation (IIPEC), a voluntary initiative, was established to encourage sharing of best practices and undertaking specific energy consumption targets by industries.

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

Position in the Pyramid

About Us

Participation: Mandatory

Policy Linkages

Supports
Supports

Agencies Responsible

Bureau of Energy Efficiency (BEE)

Primary Objective: Energy

Objective

Increase awareness on energy consumption and identify measures for energy efficiency improvements.

Target Group

Aluminium; fertilizers; iron and steel; cement; pulp and paper; chloralkali; textile; chemicals.

Driver of energy consumption or emissions affected by policy: Knowledge levels and institutional capacity.

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Companies in nine energy-intensive sectors have been identified as Designated Consumers, including 7 sectors in industry. Companies in these sectors with an energy use over a certain threshold are subject to ECA regulation. These sectors are fertilizers, iron and steel, cement, pulp and paper with an energy use over 30ktoe; chloralkali > 12 ktoe; aluminium > 7.5 ktoe; and textile > 3 ktoe . The total number of Designated Consumers in industry amounts to about 700 [1].

Quantitative Target? no

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: Financial penalties can be imposed on a company in case it does not implement an energy management system

Requirements on the Target Group

  • Regular monitoring and reporting of energy consumption and  implemented/planned energy efficiency investments
  • Appoint an energy manager in each company
  • Host regular energy audits by accredited energy auditors. The audits are at no cost to companies.

Support by Government

BEE provides support to the companies in implementing energy management systems in the form of technical support and through training and accreditation of energy auditors. Audits are subsidised by the government.

Implementation Toolbox

Technical support provided by BEE is a central tool to assist participants in implementation of mandatory energy managers and in carrying out an energy audit by a certified energy auditor.

Energy auditors must follow trainings and get certified; see criteria for energy auditors on website http://www.bee-india.nic.in/index.php?module=Eact&id=1

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 Energy management can also support efficiency in use of other resources, increased awareness, improved management capability.

References & Footnotes

References

[1] NEERAJ DHINGRA, Bureau of Energy Efficiency, Implementation of Energy Conservation Act and BEE Action Plan, 2010 http://www.emt-india.net/Presentations2010/17-Iron&Steel_22Jun2010/NeerajDhingra.pdf

[2] MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS, THE ENERGY CONSERVATION ACT, 2001 No 52 OF 2001: http://www.powermin.nic.in/acts_notification/pdf/ecact2001.pdf

[3] The Energy conservation Act 2001 (52 of 2001) Amended by the Energy Conservation Amendment Act 2010 (28 of 2010) received the assent of the president on 24th August 2010: http://www.energymanagertraining.com/download/EnergyConservationAmendmentAct2010%2828of2010%29.pdf

[4] Bureau of Energy Efficiency: http://www.bee-india.nic.in/index.php

[5] Shri P M Sayeed, Hon’ble Minister of Power, ENERGY CONSERVATION IN INDIA, 2005: http://www.powermin.nic.in/whats_new/pdf/Ministers_artical.pdf

[6] Bureau of Energy Efficiency, Energy Efficiency Policies in India, 2010: http://eeasia.unescap.org/PDFs/energy-efficiency-in-INDIA.pdf

[7] Soma Bhattacharya and Maureen L. Cropper. Options for Energy Efficiency in India and Barriers to Their Adoption. Resources for the Future, Washington, 2010.

Footnotes

(*1) BEE monitors the reporting and auditing schedule for the designated customers

(*2) BEE verifies the reporting against the protocols

Other Useful Resources

National certification examination scheme for certified energy managers and auditors in India

Presentation by Kishan Chavarvarti at the EMAK workshop (January, 2010).