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Energy Efficiency in India: Challenges and Initiatives - 21 Feb 2011

Ajay Mathur is Director General of the Bureau of Energy Efficiency, and a member of the Prime Minister's Council on Climate Change. As Director General of BEE, Dr. Mathur coordinates the national energy efficiency programme, including the standards and labeling programme for equipment and appliances; the energy conservation building code; the industrial energy efficiency programme, and the DSM programmes in the buildings, lighting, and municipal sectors.

The Energy Conservation Act of 2001, and the National Mission for Enhanced Energy Efficiency in 2008 provide the framework for initiatives to overcome the challenges that limit energy efficiency investments in India. Over the past few years, initiatives have been introduced to promote: adoption of energy efficient consumer appliances through energy labelling; design of energy-efficient commercial buildings based on an Energy Conservation Building Code; energy conservation in buildings and municipalities through performance contracting by ESCOs; market transformation towards energy efficient appliances (such as CFLs) through demand side management programmes; and enhanced focus on energy efficiency investments in industry due to energy data reporting and bench marking practices. However, there continue to be energy efficiency opportunities that remain unexploited because challenges such as higher first costs, coupled with inadequate information on energy performance of appliances and equipment; financial, technical and transactions risks associated with the adoption of new energy efficient technologies; and split incentives, especially in the buildings sector. The unlocking of this potential is essential to meet national goals of access to energy for all, reduced vulnerability to shocks in energy imports; and better urban air quality. Additionally, as a co-benefit, these actions also further mitigate greenhouse gas emissions.

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