4. ENERGY EFFICIENCY

India has achieved impressive results through bulk purchasing programmes. The Unnati Jyoti by Affordable LEDs for ALL (UJALA) programme has radically pushed down the price of LEDs available in the market globally and helped to create local manufacturing jobs to meet the demand for energy-efficient lighting. LEDs now cost less than INR 60 (1 USD). EESL has helped replace over 350 million lamps with LEDs, resulting in 45.5 TWh annual savings. The success of this procurement model is being replicated across different product categories. To date more than 2.2 million efficient fans have been deployed saving 0.2 TWh per year and 6.9 tubelights saving 0.3 TWh per year (MoP and EESL, 2019).

In 2017, in the first procurement round of air conditioners, the lowest-price bidder offered high-efficiency five-star air conditioners that can save 30-40% on a cooling electricity bill at a cost only slightly higher than that of the cheapest air conditioners on the market. Prices are expected to fall further as more air conditioners are procured and product manufacturers exploit the economies of scale that bulk procurement can induce. EESL’s Super-Efficient Air Conditioning programme allows consumers to buy a super-efficient Air conditioners at prices that are comparable to the most energy-efficient ACs in the market, but reduce the cost of cooling by 50%.

In 2018 India had around 36 million air conditioners and by 2050 it is expected to have in the region of 1 billion (or 1 144 million units). Without major improvements in air conditioner energy efficiency, electricity demand for space cooling in buildings in India looks set to increase to nearly 1 350 TWh in 2050 and require an additional 800 GW of power generation capacity just to meet space cooling needs. About 70% of that growth is assumed to come from the residential sector (IEA, 2018c).

Policies to improve the energy efficiency of air conditioners could by 2050:8

Reduce cooling electricity demand by 45%.

Deliver more than 8 000 TWh of cumulative electricity savings.

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By combining efficient air conditioners with building envelope measures, cooling energy demand could be cut by another 35% by 2050 (IEA, 2018c). In India, stronger requirements for air conditioners came into effect in January 2018, which will push the Indian market to greater levels of efficiency.

Municipalities

Launched in 2015, the Street Light National Programme aims to replace 35 million inefficient light bulbs used for street lighting in 100 Indian cities. EESL finances the upfront cost, which is recuperated through financial savings from lower electricity bills under a pay- as-you-save approach. To date more than 8.9 million light bulbs have been replaced, resulting in energy savings of almost 6 TWh/year (MoP and EESL, 2019).

As part of the Municipal Energy Efficient Programme, the Ministry of Housing and Urban Affairs is working with EESL to deploy energy-efficient pumps across 500 cities. There are

8 According to the IEA Efficient Cooling Scenario as compared to the Baseline Scenario in IEA (2018c).

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plans to conduct energy efficiency audits of more than 330 cities as part of the Atal Mission for Rejuvenation and Urban Transformation (EESL, 2019b).

Agriculture

Since the 1970s, agriculture in many Indian states has received subsidised electricity; in some cases electricity is even supplied for free. Much of this supply is unmetered. Generally, pumps used in the sector have low energy performance due to low pump efficiency, incorrect sizing, insufficient maintenance and power quality issues, contributing to water and energy wastage. Feeder separation (separating agriculture feeders from village feeders) to improve the estimation of agriculture consumption is ongoing. Several states plan to shift night-time consumption during the monsoon to the daytime to match it with solar PV generation.

India is implementing the world’s largest agricultural demand-side management programme. Under the programme, inefficient agricultural pump sets are replaced with BEE 5 star-rated energy-efficient pump sets. There are more than 21 million gridconnected pump sets in India and their deployment is on the rise, with estimated annual additions of up to half a million per year (ICF International, 2016). Replacing these with more efficient pumps could enable electricity savings in the region of 4.3 TWh/year, cut subsidy expenditure by more than INR 227 billion (USD 3.2 billion) and avoid almost 35 Mt CO2 (EESL, 2019a). EESL is working on replacing inefficient pump sets with highefficiency models that have smart controls (enabling farmers to remotely monitor and control options to optimise energy and water use) at zero cost for farmers. The replacement also entitles farmers to free repair and maintenance during the first five years. The programme aims to distribute 200 000 BEE star rated pump-sets to the farmers. To date, the programme has achieved the replacement of around 2 000 pump sets, with 2 500 replacements underway (EESL, 2019a).

Transport

The government is focusing on decarbonising the transport sector through increased efficiency, cleaner fuels, electric mobility and modal shift.

In January 2014 the government set CO2 emission targets for LDVs at the equivalent of 130 grammes of CO2 per kilometre (gCO2/km) in 2017 and 113 gCO2/km in 2022. In 2016 it then published Bharat Stage (BS) VI emission standards for motor vehicles, effective April 2020, on a par with EURO VI standards. They address all major vehicle types and include provisions that will ensure clean fuels are available alongside the introduction of new low-emitting vehicles.

ln August 2017, as one of the first countries in the world, India published fuel efficiency standards for commercial heavy-duty vehicles. Phase 1 came in effect in April 2018, while Phase 2 will become effective in April 2021.

India is actively promoting the uptake of electric and hybrid vehicles. The efficiency of an electric vehicle (EV) is typically around 60% (increasing up to about 77% if regenerative braking is included), compared to around 20% efficiency for combustion engines.

The National Electric Mobility Mission Plan (NEMMP) 2020 was launched in 2012. In May 2017 NITI Aayog outlined a vision for the transformation of mobility, proposing a set of solutions to accelerate India’s leadership in advanced mobility. With a 2030 horizon the

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government is aiming for 30% of new sales of cars and two-wheelers to be EVs (today they make up less than 1%). In 2018 the government launched a National E-Mobility Programme to be implemented by EESL, which will focus on public procurement to facilitate demand creation for EVs. In line with the government’s aim to promote the electrification of public transport, 10 Indian cities have launched tenders for electric buses.

In December 2018 the MoP issued new guidelines for building charging infrastructure for EVs and the BEE has been mandated to be the “nodal” agency. The guidelines include technical standards and rules for permitting. The government adopted the Faster Adoption and Manufacturing of (Hybrid and) EVs (FAME) scheme in 2015, with a budget of INR 8.95 billion (USD 130 million) to provide subsidies for electric twoand three-wheelers, hybrid cars, electric cars and buses. The scaled up FAME II, effective from April 2019, has a budget of over INR 100 billion (USD 1.4 billion) to be used for upfront incentives for the purchase of EVs (INR 95.96 billion or USD 1.35 billion) and for supporting the deployment of charging infrastructure (INR 10 billion or USD 0.14 billion).

Rail is the most energy-efficient mode of passenger transport and the second most energyefficient for freight transport after shipping. Indian Railways is spearheading a wide range of ambitious undertakings. Construction has started on the first high-speed rail line. The total length of metro lines is planned to more than triple in the coming decade. Two dedicated freight corridors are planned for 2020. The GoI has also approved the ambitious target of completely electrifying its broad-gauge network9 by 2022 (IEA, 2019d). Based on recent IEA analysis of enhancing the role of rail in the transport sector, by 2050 India could: reduce oil demand by 3.1 million barrels per day (mb/d), save around USD 60 billion on fuel expenditure and reduce GHG emissions by 585 Mt CO2-eq and PM 2.5 emissions by 14 thousand tonnes (kt) per year (see Figure 4.11).10 India can achieve these benefits by:

Mobilising investment to modernise the railway network and overcome infrastructure bottlenecks on the most utilised routes.

Maintaining the affordability of passenger rail while modernising and improving passenger rail services and safety. Revenues for the required improvements should be generated from sources beyond ticket pricing, such as land value capturing.

Ensuring completion of the envisaged construction of high-speed rail infrastructure between the largest cities (Golden Quadrilateral) to provide a competitive low-carbon alternative to transport by air.

Phasing out the cross-subsidisation scheme (from freight rail to passenger rail) to boost the competitiveness of freight rail.

9India has three rail networks: broad gauge, metre gauge and narrow gauge.

10Benefits of IEA Base Scenario plus IEA High Rail Scenario in IEA (2019d).

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