Policy Wise: India’s Power Sector

[pib] Data on Energy Savings


From UPSC perspective, the following things are important :

Prelims level : Various schemes mentioned in the newscard

Mains level : Energy saving and its significance in carbon emissions reduction

The Union Ministry of Power has released a Report on “Impact of energy efficiency measures for the year 2018-19”.

Things to note:

1) UJALA Scheme

2) PAT Scheme

3) Standards & Labeling Programme

Possible mains question:

Q. Discuss the role of Bureau of Energy Efficiency (BEE) in “institutionalizing” energy efficiency services in India.

About the report

  • This report was prepared by an Expert agency PWC Ltd, who was engaged by the Bureau of Energy Efficiency (BEE).
  • The objective of this study is to evaluate the performance and impact of all the key energy efficiency programmes in India, in terms of total energy saved and the related reduction in CO2 emissions.

Data on energy savings

  • With our energy efficiency initiatives, we have already reduced the energy intensity of our economy by 20% compared to 2005 levels. This includes both the Supply Side and Demand Side sectors of the economy.
  • The implementation of various energy efficiency schemes has led to total electricity savings to the tune of 113.16 Billion Units in 2018-19, which is 9.39% of the net electricity consumption.
  • Energy savings (electrical + thermal), achieved in the energy-consuming sectors is to the tune of 16.54 Mtoe, which is 2.84% of the net total energy consumption in 2018-19.
  • Overall this has translated into savings worth INR 89,122 crores against last year’s savings of INR 53,627 crore.
  • These efforts have also contributed to reducing 151.74 Million Tonnes of CO2 emissions, whereas last year this number was 108 MTCO2.

(Note: Mtoe= million Tonne of Oil Equivalent)

What led to this significant savings?

  • The study has identified the following major programmes, viz. Perform, Achieve and Trade Scheme, Standards &Labelling Programme, UJALA Programme, Municipal Demand Side Management Programme, etc.
  • There is huge capacity still for bringing efficiencies especially in MSME sector and a Housing sector that has now been taken up.

About the Bureau of Energy Efficiency (BEE)

  • The Bureau of Energy Efficiency is an agency under the Ministry of Power created in March 2002 under the provisions of the nation’s 2001 Energy Conservation Act.
  • Its function is to develop programs which will increase the conservation and efficient use of energy in India.
  • The mission of BEE is to “institutionalize” energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the country.


1) PAT Scheme

  • Perform Achieve and Trade (PAT) scheme is a flagship programme of the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).
  • NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched in the year 2008.
  • The scheme aims to reduce specific energy consumption in energy-intensive industries through certification of excess energy saving which can be traded.
  • It refers to the calculation of Specific Energy Consumption (SEC) in the baseline year and projected SEC in the target year covering different forms of net energy going into the boundary of the designated consumers’ plant and the products leaving it over a particular cycle.
  • Those eight Energy Intensive Sectors included are Chlor-alkali, Pulp & Paper, Textile, Aluminum, and Thermal Power plants, Fertilizer, Iron & Steel and Cement.

2) Standards & Labeling Programme

  • It is one of the major thrust areas of BEE.
  • A key objective of this scheme is to provide the consumer with an informed choice about the energy-saving and thereby the cost-saving potential of the relevant marketed product.
  • The scheme targets display of energy performance labels on high energy end-use equipment & appliances and lay down minimum energy performance standards.

3) UJALA Scheme

  • Launched in 2015, the Unnat Jyoti by Affordable LEDs for All (UJALA), in a short span of time, has emerged as the world’s largest domestic lighting programme.
  • The main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduces electricity bills and helps preserve the environment.
  • The Electricity Distribution Company and Energy Efficiency Services Limited (EESL) a public sector body of the Ministry of Power is implementing the programme.

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