National Mission on Enhanced Energy Efficiency (NMEEE)

1. New Government Policy on Energy EfficiencyBySubodh KumarScientist Email: subodh.crri@nic.inCentral Road Research InstituteNew Delhi-110020, India National Mission on Enhanced Energy Efficiency (NMEEE) Govt. constituted NMEEE is one of the eight country’s National Action Plan on Climate Change aims for reducing • Green House Gas Emissions • Low Carbon Development • Energy Efficiency and Energy Security Govt. allocated a sum of Rs. 235.35 Crores as expenditure for energy mission.

2. Purpose of NMEEE To establish policies & regulations to strengthen energy efficiency for smart grids, industries, buildings and appliances. Mission will help in • Total avoided capacity addition of 19598 MW (Predicted) • Attain Fuel saving of 23 million tons per year (Predicted) • Reduce Green House Gases by 98.55 million tons per year (Predicted) Dr. Ajay Mathur, DG, BEE is also the Director of NMEEE. According to him, the mission will help unlock the market for energy efficiency on a public private partnership basis, which is estimated as ~ Rs. 74,000 Crores. BEE is working with the industry on this for making guidelines for the scheme.

3. The four new programs under the Mission are a. “Perform Achieve and Trade Scheme” (PAT) –creates a market-based mechanism for large industries to stimulate efficiency investments. This program is one of the first of its kind and involves trading energy saving certificates in India. b. “Market Transformation for Energy Efficiency” (MTEE) –focuses on shifting the appliance market (air-conditioners, televisions, ceiling fans, refrigerators, lights) to energy efficient products through incentives to make the products more affordable. c. “Energy Efficiency Financing Platform” (EEFP) –creates financing mechanisms for demand side management programs in sectors by capturing future energy savings. d. “Framework for Energy Efficient Economic Development” (FEEED) –develops two funds to promote energy efficiency – the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE).

4. One of the Major objective of NMEEE is to accelerate the market shift to energy efficient products and appliances in India’s rapidly growing market. For Appliances – BEE is working with DOE’s program on Super Efficient Equipment and Appliance Deployment (SEAD), which seeks to promote highly efficient products through market mechanisms on globally including INDIA. SEAD Program will save significantly energy and Carbon emissions as highlighted in the recent report for Berkelay Lab, “Eliminating Electricity Deficit through Energy Efficiency in India – An Evaluation of Aggregate Economic and Carbon Benefits”. According to this report, India’s electricity deficit can be overcome by 2013 by implementing energy efficiency measures such as Energy Efficient Ceiling Fans can offer more than 27% energy savings. As per Berkelay Report, By implementing these energy efficiency measures will save 505$ billion to India’s GDP between 2009 and 2017. This report also concludes that full implementation of energy efficient measures would prevent 65 million tons of CO2 emission by 2017.

5. CFL CDM project under Energy Efficient Lighting One of the example of energy efficiency is replacement of GLS Lamps by CFL. e.g. by replacing 100 W – GLS lamp by 18 W - CFL, we saves almost 80 % energy at the same time we can avoid 80 % of GHG emissions. Now BEE is also initiating Bhachat Lamp Yojana (BLY) program covering 1 million households and 4 million CFL’s. In fact AP Eastern Distribution Company Ltd. (APEPDCL) already started distribution of CFL’s at a cost of Rs. 15/- by Osram the manufacturers. CDM (Clean Development Mechanism) project for Agricultural Pump Sets Since the power for agricultural is free in many states, the farmer may not be interested for the replacement of inefficient pump with energy efficient pumps. Similar to CFL CDM program, the ISI marked or star labeled energy efficient pump sets can be given at 10 % of the cost and the balance could be compensated through CDM revenues. The simple payback period for the pump supplier would be 1.7 years without considering the energy savings.

6. Grid Emission Factor for Generation & Energy Efficiency CDM projects We save power or generate power by non-renewable energy sources, we will be avoiding 847 Tons of CO2 / MU i.e. we get 847 Certified Emission reductions (CER’s) for every 1 Million units. In the case of Wind and Solar Power Project, We get 932 CER’s for every 1 MU due to Build Margin, Operating Margin and Combined Margin Weightage given for these low PLF energy sources.

7. In future, Demand for electricity will increase with increasing population and will need addition of huge capacity. It will create an opportunity to create low carbon and electricity efficient system. India has some of the most efficient industrial plants in the world in addition to large percentage of small scale and inefficient plants. It will be a significant challenge to improve the overall industrial efficiency. Rising income and increased industrial production will demand increased efficient public transport and thus low carbon vehicle technologies. The building sector will also utilize ECBC and will demand energy efficient cooling system and domestic appliances for reduced energy consumptions and emissions

8. Thank You