Energy Efficiency: making economic growth in India sustainable

Project description

Title: Indo-German programme energy efficiency
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: India
Lead executing agency: Ministry of Power (MoP), Bureau of Energy Efficiency (BEE),Government of India
Overall term: 2015 to 2020



The total primary energy consumption of India in 2015 was approximately 659 Million tonnes of oil equivalent (Mtoe) and is expected to reach 1,440 Mtoe by 2030. This acceleration in economic growth needs to be sustainable, as India has committed to lower its emission intensity by 33 to 35 per cent by 2030 as per its Nationally Determined Contribution (NDC). As a consequence, in-line energy efficiency has become the first choice for supporting the development agenda while addressing climate change issues as well.

The Indo-German Energy Programme (IGEN) has committed itself to take forward this energy agenda focusing primarily on the Perform, Achieve, Trade (PAT) scheme while supporting the other initiatives/schemes of the Bureau of Energy Efficiency (BEE).


Energy efficiency has made economic growth in India more sustainable.


The project consists of two sub-components under bilateral technical cooperation:

  1. The foundations have been laid for an expansion of the PAT programme (second cycle)
  2. Energy Efficiency Services Ltd. (EESL) has a broader range of business models at its disposal for demand-side energy-efficiency measures.

IGEN supports initiatives by the Indian Government to identify areas to promote energy efficiency. These measures also include creating awareness about energy efficiency, motivating industry to implement energy-efficient practices, change policy requirements, disseminate knowledge, and so on. The PAT scheme was the first initiative in the world aimed at reducing specific energy consumption (SEC) instead of overall energy consumption, thereby not affecting industrial production. Reductions are achieved through a mandated reduction target assigned to each industrial unit based on their SEC, with a time period of three years to achieve. The overachievements are awarded by an equivalent number of energy savings certificate (ESCerts), which can be traded in the market. Underachievers must pay a penalty or purchase an equivalent number of ESCerts. The successful completion of PAT-I, PAT-II, III, IV and V were announced. The measures cover more than 950 industries from 13 different sectors.

Capacity building and awareness:

  1. Painting competition on energy conservation: under this scheme, all schools in India as well as India-affiliated schools abroad are obliged to conduct a painting competition with an energy conservation theme. The selected paintings are awarded prizes on National Energy Conservation Day. Since its inception, it has seen increased participation.
  2. National Energy Conservation Award: this scheme acknowledges and motivates the energy conservation activities by the industries, commercial establishments, and original equipment manufacturers (OEM) of energy-efficiency (EE) equipment, etc.
  3. Examination to certify energy managers and energy auditors: more than 16,400 professionals passed the examinations for certification as energy managers and auditors by 2018.
  4. Energy Efficiency in clusters of small and medium sized enterprises (SMEs): the project works to further develop EE technologies, including demonstrational projects and technology transfers.


  • The first cycle of this PAT scheme achieved savings of 31 million tonnes of CO2, exceeding the target by around 30 per cent. The expected target CO2 savings at the end of PAT cycle-II (2016-2019) is an additional 30 million tonnes.
  • 3.25 billion Euros have been invested in energy-efficiency projects by the industries under PAT cycle-I.
  • Energy Savings Certificates worth 13.3. Million Euro were traded under PAT cycle-I. More than 90 per cent compliance was achieved.
  • Around 230 workshops have taken place since the start of the PAT scheme to create awareness in industry.
  • A demo project was conducted for the company DSM in small and medium-sized enterprise (SME) clusters for textile, ceramics and foundries
  • Demo projects on innovative technology development in low temperature waste heat recovery device in dairy and automobile sectors.
  • An exhaustive document for the normalisation and monitoring for using EE technologies was prepared for eight sectors of PAT-I and refined during PAT-II.