Energy Efficiency Measures

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Standards and labelling (S&L) programme has been identified as one of the key activities for energy efficiency improvements. A key objective of this scheme is to provide the consumer an informed choice about the energy saving and thereby the cost saving potential of the relevant marketed product. The scheme was launched by the Hon’ble Minister of Power on 18th May 2006 and is currently invoked for 12 equipments/appliances, i.e. ACs, Tube lights, Frost Free Refrigerators, Distribution Transformers, Induction Motors, Direct Cool Refrigerator, Geysers, Ceiling fans, Colour TVs, Agricultural pump sets, LPG stoves and Washing machine, of which the first 4 have been notified under mandatory labelling from 7th January, 2010. The other appliances are presently under voluntary labelling phase. The energy efficiency labelling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers. The scheme aims at providing information on energy performance of appliances based on the standards issued by BEE so that the consumers can make informed decisions while purchasing appliances. The STAR rating ranges from 1 to 5 in the increasing order of energy efficiency. In addition to the objective of informed choices to consumers, this program leads to huge energy savings and thereby the cost savings, reduces capital investment in energy supply infrastructure, enhances the product quality, strengthens the competitive markets, builds position for domestic industries to compete in such markets where norms for energy efficiency are mandatory, removes indirect barriers to trade, reduces carbon emission and helps meet climate change goals.


The Demand Side Management and increased electricity end use efficiency can together mitigate power shortages to a certain extent and drastically reduce capital needs for power capacity expansion. The Bureau will be assisting 5 electric utilities to set up DSM Cell and will also assist in capacity building of DSM Cell staff. The preparation of investment grade feasibility reports on agricultural DSM, municipal water pumping and domestic lighting in each of the 5 states will also be undertaken by the Bureau under DSM programme.

    • Agriculture Demand Side Management (Ag DSM)

Bureau of energy efficiency (BEE) initiated Agriculture Demand Side Management (Ag DSM) scheme in the XI five year plan period as a key strategy to address the existing inefficiencies in the end use segments of agriculture sector. The objective of the programme was to create appropriate framework for market based interventions in agricultural pumping sector by facilitating conducive policy environment. Pump set efficiency up gradation through PPP mode was one the key aspects of this scheme. The replacement of existing inefficient pump sets with energy efficient (BEE star labelled) pump sets would unlock the market for large scale investments in this area. A recent study estimates a total saving potential of 27.79 billion Kwh in Indian agricultural pumping sector. This accounts for 37% of the overall energy saving potential and about 40% of the overall energy deficit reported during 2007-08.

BEE has prepared six Detailed Project Reports (DPRs) in 5 states viz. Maharashtra, Gujarat, Punjab, Haryana and Rajasthan. Five more DPRs are in pipeline in the states of Karnataka, Madhya Pradesh and Andhra Pradesh. Implementation of one DPR has begun in Solapur, Maharashtra. Consent has been received from the utilities in Gujarat and Punjab for their willingness to implement the DPR.

    • Municipal demand side management

DSM measures have a key role in eliminating power shortage. There is need to address these issues on priority through integrated and comprehensive approach and by adopting latest techniques and technologies with active participation of all stakeholders. Municipal bodies often lack sufficient institutional capacity to develop practical approach for maximizing efficiency, even after recognizing the potential benefits. Urban Local bodies (ULBs) have to develop proper approach & proper model to identify energy efficiency projects & implementation strategy for the efficiency energy management. The goal of energy management must be on provision of services like drinking water & street lights with the least cost and least environmental effect.

Total population of the ULBs under Municipal Demand Side Management is 1029.47 lakh which cover 12411.18 sq kilometres across 171 cities. Situational analysis survey of current ongoing initiatives on energy efficiency covers 23 states/UTs. It’s high time for ULB of remaining cities to provide exclusive focus to energy efficiency initiatives. Trends for special separate provisions for energy conservation/ efficiency projects/ activity is notably not very positive. As low as only 38 cities out of 171 have separate allocation in their budget for any energy efficiency initiative. Municipal DSM programme is first of its kind and carried out across the country for 171 ULBs. This programme was divided into 5 different phases. Phase 1 covers 24 ULBs, phase 2 covers 55 ULBs, Phase 3 covers 33 ULBs, Phase 4 covers 31 ULBs and remaining ULBs will be covered in the 5th phase. The basic objective of the project is to improve the overall energy efficiency of the ULBs, which could lead to substantial savings in the electricity consumption, thereby resulting in cost reduction/savings for the ULBs.

3. Energy Conservation Building Code (ECBC)

The Energy Conservation Building Code (ECBC) was launched by the Government of India on 27th May, 2007. The ECBC sets minimum energy standards for new commercial buildings having a connected load of 100kW or contract demand of 120kVA in terms of Energy Conservation (Amendment) Act, 2010.

Harmonization of ECBC with National Building Code (NBC) is also under progress by including a chapter on “Approach to Sustainability” in NBC-2005. BEE has developed ECO-nirman conformance check tool with an objective of helping architects and design professionals to assess the conformance of their designs with code requirements.

Labelling programme for 3 categories of buildings (day use office buildings/BPOs/Shopping malls) has been developed and put in public domain. Till now 136 buildings have been found eligible for issue of label while ESCO model is being promoted for carrying out energy efficiency measures in existing buildings through performance contracting.

4. Bachat Lamp Yojana (BLY)

Bachat Lamp Yojana (BLY) promotes energy efficient and high quality CFLs as a replacement for incandescent bulbs in households at the rate of an incandescent bulb, i.e. Rs 15. This would remove barrier of high CFL price (which is currently Rs 80 – Rs 100 per CFL) which is constraining its penetration into households. It targets replacement of about 400 million incandescent bulbs in use in the country, leading to a possible reduction of 4000 MW of electricity demand, and a reduction of about 24 million tonnes of CO2 emissions every year. The price differential would be made up by project implementer through carbon credits earned which could be traded in the international market under Clean Development Mechanism (CDM) under the UNFCCC Kyoto protocol. BEE has developed the umbrella framework BLY-Programme of Activities (PoA) which has been registered under UNFCCC-EB on 29th April, 2010. The PoA would define key CDM requirements, including the project baseline, additionality, methodology, monitoring protocols through which CO2 emission reductions would be assessed. The PoA approach reduces time and transaction costs for registering the projects since the key CDM requirements will not need to be addressed by area-specific projects within the PoA. BEE plays a role of a coordinating and managing entity (CME) in the BLY – PoA. Kerala State has distributed the CFLs in the entire state. Karnataka State has also launched the scheme and CFL distribution has started. BLY is at different stages of implementation in many other states like Punjab, Haryana, Andhra Pradesh, Orissa, Chhattisgarh , Madhya Pradesh, Uttar Pradesh, Uttarakhand , Rajasthan, Goa, West Bengal, Tamilnadu and Delhi .These projects can be added to the registered umbrella framework as and when they are developed during the lifetime of the PoA.

5. Strengthening Institutional Capacity of State Designated Agencies (SDAs)

State Designated Agencies (SDAs) are statutory bodies set up by states to implement energy conservation measures at state level. The main emphasis of the scheme is to build capacity of the SDAs to enable them to discharge regulatory, facilitative and enforcement functions under the EC Act 2001. The scheme seeks to develop and implement Energy Conservation Action Plan (ECAP) based on a uniform template evolved for taking measures necessary to build institutional and human capacity, enabling the SDAs to implement energy efficiency programmes and undertake evaluation and monitoring of the Energy conservation activities implemented in the state.

Till date, 32 States/UTs have designated their SDAs to coordinate, regulate and enforce the provisions of Energy Conservation Act, 2001.

Most of these organizations have limited experience in energy efficiency / conservation. This resulted in the need for building capacity, enhancing their understanding and knowledge about energy efficiency, having a common action plan to implement measures to reduce energy intensity of the State etc. The approved scheme of the Ministry of Power therefore enables SDAs to:
a) Prepare a 5 year Energy Conservation Action Plan (ECAP)
b) Implementation of ECAP with yearly deliverables
c) Enhance capacity to undertake regulatory duties that they are required to perform under the Act.

The Ministry of Power had approved the scheme to provide financial support to the SDAs for strengthening their institutional capacity. Under the SDA scheme financial support was provided to the SDAs to carry out the following activities:

  • Creation of IT infrastructure
  • Creation of database for Energy Managers / Energy Auditors and Designated Consumers and other stakeholders.
  • Organizing workshops / training programmes
  • Creating awareness through electronic media / print media
  • Preparation of Detailed Project Reports of Govt. Buildings under IGEA.
  • Implementation of Energy Efficiency Demonstration Projects in the area of energy efficient street lighting, revamping of drinking water pumping system and energy efficiency in SMEs clusters
  • To convert the existing incandescent bulbs (ILBs) in the households and the street lights of one village with LEDs.


6. State Energy Conservation Fund (SECF)

SECF is a statutory requirement under section 16 of the Energy Conservation Act 2001 and is one of the key elements of the ECAP. The scheme is for support of Rs. 70 Crores as contribution by BEE to SECF to invest in Energy Efficiency projects. The effort will be to create a pool of financially sustainable activities for SDAs (like training programmes, fee for services, etc) which can augment the fund. The Ministry of Power has approved the scheme “Contribution to SECF by the Bureau of Energy Efficiency” for which Rs 70 Crores was sanctioned and to be disbursed during the last three financial years of the XI five year plan, i.e. 2009-10, 2010-11 and 2011-12. The funds were disbursed to those states who have constituted their state energy conservation fund and finalized the rules and regulations to operationalize the same.

7. Energy Efficiency in Small and Medium Enterprises (SMEs) and Designated Sonsumers

Energy use and technology gap study has been completed in 20 SMEs cluster and is in progress in other 5 clusters. Cluster specific manual on energy conservation opportunities have been prepared in 20 clusters and information dissemination workshop for various stakeholders have been completed in 34 clusters. Preparation of DPRs on energy efficient technologies in under progress and peer review of the prepared DPRs is being done by SIDBI/ISTSL. Capacity building workshop for Local Service Providers (LSPs) has been organized in 4 clusters. BEE also initiated the small group activities (SGA) and Total Energy Management (TEM) programme to inculcate the energy efficiency practices in SMEs with support of experts from Japan. The pilot activities of SGA/TEM have been implemented in three SMEs clusters (9 units) so far.


As per the Energy Conservation Act, it is mandatory for all the designated energy consumers to get energy audit conducted by an Accredited Energy Auditor and to designate or appoint an Energy Manager . The Government of India has specified the passing of the National level certification examination as the qualification for a Certified Energy Manager & Certified Energy Auditor. BEE has taken up the challenge of creating a cadre of professionally qualified energy managers with expertise in energy management, project management, financing and implementation of energy efficiency projects, and policy analysis.

The Bureau has successfully conducted Ten National Certification Examinations since 2004. After 10th Examination, 8026 persons have been qualified as energy managers out of which 5731 have been qualified as energy auditors.

The Guide Books for the Energy Managers and Energy Auditors have been revised. The 11th Examination for the fresh candidates has been held on 5th & 6th February, 2011 based on the revised syllabus. The capacity building of energy managers and energy auditors through National Certification Examination route will have a long-term impact on the Indian economy by making it less energy intensive.

The Central Government, vide Notification of 12th March, 2007, has notified 9 energy intensive industries s designated consumers. The Bureau of Energy Efficiency (Qualification of Accredited Energy Auditors and Maintenance of their List) Regulations, 2010 has also been notified on 31st March 2010. The above Regulation lays down the procedures for constitution of Accreditation Advisory Committee and qualifications for accredited energy auditor. The accreditation process is proposed to be completed twice in a year by the Accreditation Advisory Committee, constituted by the Bureau.


Energy audits have been conducted in past with little or no standard test procedures and inadequate instrumentation. When Manuals of standardized test procedures are available and uniform codes are adopted, there would be increased awareness and clarity among users regarding the output from an energy audit.

Manuals and codes on 7 Technologies (Equipment) Lighting Systems; Dryers; Cogeneration Plants; Electric Motors; Electric Transformers; Fluid piping systems (network), insulation and Air Conditioners/Chillers (HVAC) have been prepared. The manuals and code would help in standardizing the process of energy audit to support energy manager and energy auditors.