Energy Conservation Act 2001 & Indian Industries

1. Energy Conservation Act 2001 &Indian Industries RAJIV GARG Energy Economist Bureau of Energy Efficiency

2. India – Total Primary Energy Supply • Total primary energy supply has increased from about 350 million toe in 1990 to about 580 Mtoe in 2004; an increase of about 2.2% per year

3. Energy Intensity is fifth lowest in the world • Japan, Denmark, UK and Brazil have lower energy intensity • Energy intensity is declining at about 1.5% per year

4. Energy Efficiency is essential !

5. BEE - Scope of Activities • The Bureau of Energy Efficiency (BEE) was established on 1st March 2002, under the Energy Conservation (EC) Act, 2001. • BEE is responsible for spearheading the improvement of energy efficiency in the economy through various regulatory and promotional instruments • Plan, manage and implement provisions the EC Act • Appliance standards and labeling • Industrial energy benchmarks • Energy Conservation Building Codes • Monitor energy use in high energy-consumption units • Certify and accredit energy auditors and energy managers • Provide a policy framework and direction to national energy conservation activities • Disseminate information and knowledge, and facilitate pilot and demonstration projects • Establish EE delivery systems through Public-Private Partnerships (PPP).

6. Notification of Designated Consumers Among 15 Energy Intensive Industries,9 industries have been notified as Energy Intensive Industries as specified in the Schedule to the Energy Conservation Act, 2001 (52 of 2001), having annual energy consumption as indicated against each industry, as Designated consumers for the purposes of the EC Act:-

8. Total Energy Consumption in MTOE Aluminum , 1.396 Cement, 14.47 Paper, 3.04 Chlor Alkali, 0.43 Fertilizer , 28.8 SpongeIron, 12.6 ThermalPower Integrated Steel Stations Plant, 35.5 151.7 The energy consumption share of each sector in MTOE is depicted in the chart below:

9. Energy saving potential in designated industrial sector

10. Sectoral Efficiency Potential (1) Energy Saving Potential of Indian Industry (CII) Iron & Steel 10% (15% improvement in WEO 2007) Fertilizers 15% Textile 25% Cement 15% (IEA estimates 18% CO2 emissions reduction by dissemination of BAT technologies) Pulp & Paper 25% Aluminium 10% Petrochemical 15% (IEA estimates 16% energy saving potential) Glass & Ceramics 20% Refineries 10% Total 20-30% Source: Building a Low-Carbon Indian Economy (CII)

11. Industrial Energy Norms • Bandwidth of energy efficiencies in all sectors is large; old, low energy-efficiency units coexist with newer, state-of-the-art units • 7 Sector-specific task forces constituted: • Aluminium, • Cement, • Chlor alkali, • Fertiliser, • Pulp & paper, • Steel • Textile • Draft Specific energy efficiency norms for Cement and Paper & Pulp sectors have been developed, which are now under discussion with the concerned sub sectors • Energy efficiency norms based on current relative efficiency of units within a sector; • Highly energy-efficient units have lower improvement targets • Units with lower energy efficiency have more stringent improvement targets

12. Diversity within Sectors in India • Large variation in scale of production capacities • Diversity in raw material used • Large bandwidth in specific energy consumption in cement sector

13. Variations in Specific Energy Consumption

14. Energy Intensity is decreasing, but tail persists !

15. Designated Consumers - Industries • EC Act, 2001 requires high energy consuming industries under section 14 to • a) File energy consumption returns before the designated authority. • b) Appoint or arrange Energy Manager for their Industry. • c) Conduct mandatory audit • The central government, in consultation with the BEE, having regard to energy consumed, has specified industries in 9 sectors consuming energy above a certain threshold designated consumers

16. THANK YOU