Indo-German Energy Programme - Energy Efficiency (IGEN-EE)

Project description

Title: Indo-German Energy Programme - Energy Efficiency
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: India
Lead executing agency: Bureau of Energy Efficiency (BEE), Ministry of Power (MoP), Government of India
Overall term: 2015 - 2019

 

Context

The total energy consumption of India has risen significantly during the last years. This development results from a growing economy. A sustainable design of the economy becomes increasingly relevant also in the current global context, as countries are striving to keep the temperature rise below 2o Celsius. India has committed to lowering its energy intensity by 33-35 per cent by 2030, according to its Nationally Determined Contribution (NDC). In-line energy efficiency became the first choice for supporting the development agenda, while addressing climate change issues.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has been supporting India on its energy front since 1995. The Indo-German Energy Programme (IGEN) commits to driving this energy agenda forward, primarily focussing on the PAT scheme and supporting the other initiatives/ schemes towards implementation of the Energy Conservation Act 2001 by the Bureau of Energy Efficiency (BEE).

Objective

General awareness of the potentials of energy efficient technologies has risen in India. Emissions of carbon dioxide in India have been reduced.

Approach

India launched this scheme Perform Achieve and Trade (PAT) scheme: as the first global initiative aimed at reducing specific energy consumption (SEC) instead of overall energy consumption, thus avoiding affecting industry production. This reduction could be achieved through a mandated reduction target assigned to each industrial unit based on their SEC, with a three-year timeframe. The overachievers are awarded an equivalent number of energy savings certificates (ESCerts), which could be traded in the market. On the other hand, the underachievers must pay penalties or purchase equivalent number of ESCerts. Currently 727 industries are covered under this scheme from 11 sectors.

Capacity building and awareness:

  • National Energy Conservation Award: This scheme acknowledges and motivates the energy conservation activities undertaken by industries, commercial establishments, OEM of Energy Efficiency (EE) equipment, etc.
  • Certification examination for Energy Managers and Energy Auditors: since 2016, more than 13,000 professionals have passed the examinations for certification as energy managers and auditors.
  • Energy Efficiency in SME clusters: this relates to capacity development of the clusters for EE technologies, including demonstrational projects, technology transfer, etc.

Results

  • The first cycle of this PAT scheme saw savings of 31 million tonnes of carbon dioxide which was around 30 per cent above the set target.
  • 240 billion Indian Rupees were invested in energy efficiency projects by industries under the PAT cycle-I.
  • Around 200 industry awareness-building workshops have been conducted since the start of the PAT scheme.
  • Exhaustive documentation has been prepared for normalization and monitoring-verification protocol across all eight sectors.