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and energy utilities are entrusted with implementing regulatory conservation measures and promoting energy efficiency programmes.

Established in 2009, Energy Efficiency Services Limited (EESL), a joint venture set up by four government-owned companies,4 implements market-related activities of the National Mission for Enhanced Energy Efficiency.

Figure 4.10 Key institutions involved in energy efficiency policy making and implementation

IEA 2019. All rights reserved.

Policies and programmes

India has a broad portfolio of energy efficiency policies and programmes, including regulation, market transformation, fiscal policies, incentive-based instruments, awarenessraising and awards to recognise achievements. In recent years India has launched a number of innovative programmes with far-reaching impacts. Apart from national and subnational policies and programmes, a large number of energy efficiency projects supported by bilateral and multilateral programmes have facilitated the development of policies and measures.

NITI Aayog’s draft National Energy Policy highlights energy efficiency as one driver to achieve its four key objectives: energy access at affordable prices, improved energy security and independence, greater sustainability and economic growth (NITI Aayog, 2017). In June 2019 the BEE published a draft national strategic plan for energy efficiency

– Unlocking National Energy Efficiency Potential – which is under consultation. The plan covers the period 2017-31 and indicates potential energy savings in the range of 86.9-129 Mtoe by 2031 (BEE, 2019b).

4 NTPC Limited, Power Finance Corporation Limited, Rural Electrification Corporation Limited and Powergrid Corporation of India Limited.

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The central government has policies (missions) that specifically target energy demand growth:

The Smart Cities Mission, launched in 2016, aims to develop 100 cities across the country. Priorities include reducing energy demand of existing buildings and enhancing the efficiency of new construction.

The Atal Mission for Rejuvenation and Urban Transformation aims to establish efficient transport systems in 500 cities.

India is the first country in the world to have a Cooling Action Plan. The Indian Cooling Action Plan (ICAP) was launched in March 2019 by the MoEFCC. The ICAP provides a 20-year perspective and outlines actions needed to provide access to sustainable cooling.

Industry

India has developed an innovative and unique energy efficiency programme for large energy-intensive industry that is successively being expanded to include more subsectors, including large commercial buildings and DISCOMs.

Developed by the BEE, the Perform, Achieve and Trade (PAT) scheme combines improvement targets with market-based incentives for strong performance. It is implemented on a rolling basis and has entered its third and fourth cycle. PAT sets mandatory energy intensity improvement targets per designated consumer (DC) in energyintensive sectors. Every designated consumer has to carry out a mandatory energy audit by an accredited energy auditor within 18 months of first notification. Unlike other mandatory policies, PAT provides an incentive for DCs to exceed targets by allowing them to generate energy-saving certificates (ESCerts) that can be traded with other DCs that were not able to meet their energy intensity target. The first PAT cycle (2012-15) covering 478 designated consumers resulted in:

INR 1 billion (USD 0.01 billion) worth of trading by the end of the period.

Savings of 8.67 Mtoe (1.25% of total primary energy supply), representing about INR 95 billion (USD 1.35 billion) in energy costs per year.

Reductions in CO2 emissions of around 31 Mt (1.9% of total CO2 emissions).

Cumulative investment by the industry in energy-efficient technologies of INR 261 billion (USD 3.67 billion), with fertilisers in the lead followed by iron and steel industry sector (IEA, 2018b; Powerline, 2018; BEE, 2018).

The results of the second cycle of PAT, covering 621 DCs with the aim of saving almost 8.9 Mtoe, are currently being assessed. This also includes 208 thermal power plants, with 87 state-owned power plants that have taken energy efficiency measures to meet performance targets.

Programmes are ongoing to support energy efficiency in MSMEs and industrial clusters. For instance, the government’s Zero Defect and Zero Effect (ZED) initiative, launched in 2016, encourages the exchange of best practices in micro, small and medium-sized enterprises to reduce waste of natural resources, thereby reducing energy waste.

An online knowledge exchange platform has been set up to facilitate peer-to-peer learning and exchange of best practices, and raise awareness about innovative approaches to energy management and new and upcoming technologies (knowledgeplatform.in). Access

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to finance is facilitated through a partial risk guarantee and a venture capital fund for energy efficiency. Financial assistance and low-interest loans are available for energy efficiency measures in MSMEs.

Buildings

India is improving the energy efficiency of buildings through mandatory building energy codes and voluntary rating schemes, as well as through policies and programmes to improve the efficiency of appliances and equipment.

Initiated by the BEE, India has had mandatory energy building codes for commercial buildings since 2007. An update to India’s Energy Conservation Building Code (ECBC) for commercial buildings was announced in June 2017.5 The model building code prescribes energy performance standards and includes requirements for builders, designers and architects to integrate passive design principles and renewable energy sources into building designs. New buildings must demonstrate minimum energy savings of 25% (compared to a typical building) to be code-compliant. Buildings that achieve energy savings of 35% earn “ECBC Plus” status and those that achieve savings of 50% get “Super ECBC” status. There are three compliance pathways: prescriptive, building trade-off and whole-building performance method. The code comes into force upon notification by the states. The sub-national governments have the flexibility to modify the code to suit regional or local needs and are responsible for enforcement and verifying compliance (BEE, 2019c). The BEE is working with a number of states to speed up the uptake of the code.

Full adoption and enforcement of ECBC 2017 for new commercial buildings could achieve an estimated 50% reduction in non-residential building energy use by 2030. This corresponds to an annual reduction of 300 TWh and peak demand reduction of over 15 GW, leading to expenditure savings of INR 350 billion (or USD 4.93 billion) and CO2 reduction of 250 Mt (PIB, 2017).

The BEE has developed a voluntary Star Rating Programme for buildings, which is based on the actual performance of a building expressed in kWh per square metre (m2) per year. Currently, labelling is available for four categories of buildings (day use office buildings, business process outsourcing buildings, shopping malls and hospitals). Around 230 buildings as of June 2019 are star rated (BEE, 2019c).

In 2018 India took a significant step forward with its first ECBC for residential buildings, which has been developed to enable simple enforcement while improving occupant thermal comfort and enabling the use of passive systems. The BEE is working with a number of states to accelerate the uptake of the code. A residential labelling scheme was announced in February 2019.

The 2017 National Energy Efficient Buildings programme aims to retrofit 20 000 large public and private buildings with more efficient appliances and equipment by 2020. As part of the programme, buildings are equipped with advanced building management systems to track power consumption in real time and identify options to reduce energy waste. The system also provides data-driven insights to optimise energy management strategies and minimise operational costs. It can give facility managers a comparative snapshot of energy

5 The code applies to buildings with connected load of 100 kilowatts or contract demand of 120 kilovolt amperes and above. It also covers alterations if the altered part of the building or system exceeds 100 kilowatts or 120 kilovolt amperes of load demand.

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use and energy cost, and provide an overall energy sustainability report (EESL, 2019a). A National Energy-Efficient Building Dashboard provides information on results (www.eeslbeep.com). To date almost 10 000 buildings have been retrofitted. The programme has enabled annual savings of 85.6 gigawatt hours (GWh) and reduced buildings’ operating costs by USD 11.3 million.

Guidance, tools, capacity building and peer-to-peer learning are delivered by the Building Energy Efficiency Project set up by the MoP and the Swiss Federal Department of Foreign Affairs (www.beepindia.org). The Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE), which is a risk-sharing mechanism, has been used for projects in government buildings and private buildings (commercial and multi-storey residential buildings).

India is also progressing energy efficiency through green building rating schemes. These are voluntary schemes promoting sustainable new projects and retrofits. Rated projects comply with national building codes and standards including the ECBC. Rated buildings typically use 30-40% less energy than those that are non-rated. With a green building rated floor space of around 600 million m2, India has the second-largest green building footprint in the world (IGBC, 2019a). The MoEFCC and several state governments provide incentives for green building projects (IGBC, 2019b).

Appliances and equipment

India is improving the efficiency of its equipment and appliances through energy efficiency standards and labels, market-based programmes including bulk procurement models, and incentives for the manufacture of efficient appliances. Efficient use is promoted through regular awareness-raising campaigns, such as the recent campaign on setting airconditioners at 24°C.

The BEE initiated an energy efficiency standards and labelling programme for equipment and appliances in 2006. The scheme covers 23 types of appliances and equipment, of which 10 are mandatory 6 and 13 are voluntary 7 . The requirements are periodically updated. The labels consist of 1-5 stars where 5 stars is the most efficient and 1 star corresponds to the mandatory energy performance requirement. The BEE has developed a mobile application to help consumers make energy-efficient purchasing decisions (www.beestarlabel.com/Home/MobileApp) and an online platform including an online product registry (www.beestarlabel.com). The BEE regularly conducts training for retailers and other stakeholders. Companies that produce non-compliant products are publicly named. According to a recent study conducted by the BEE, the programme resulted in savings of 40.46 TWh (excluding LEDs) in 2017 and in 18.7 TWh in the year 2018/19 (BEE, 2019d).

The Super-Efficient Equipment Programme (SEEP) was initiated by the BEE in 2013 with the aim of leapfrogging to an efficiency level of about 50% higher than market average. It provided a time-bound incentive to manufacturers to produce super-efficient equipment and sell it at a discounted price. The programme initially focused on ceiling fans.

6Frost-free refrigerators, direct cool refrigerators, tubular fluorescent lamps, fixed-speed room air conditioners, variablecapacity inverter air conditioners, room air conditioners (cassettes, floor-standing), electric geysers, colour televisions, distribution transformers, light-emitting diode (LED) lamps.

7Induction motors, agricultural pump sets, ceiling fans, domestic LPG stoves, washing machines, computers (notebooks, laptops), electric and magnetic ballast, office equipment (printer, copier, scanner, multi-function device), diesel engine-driven mono-set pumps for agriculture, solid-state inverters, diesel generators, chillers, microwave ovens.

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