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Standards &Labeling Scheme

The key objective of this programme is to provide the consumer an informed choice about the energy saving and thereby the cost saving potential of the relevant marketed product. The scheme was launched on 18th May 2006 and is invoked for 14 equipment/appliances in 11th Plan, i.e. Room Air Conditioners, Fluorescent Tube Lights, Frost Free Refrigerators, Distribution Transformers, Induction Motors, Direct Cool Refrigerator, electric storage type geyser, Ceiling fans, Colour TVs, Agricultural pump sets, LPG stoves, Washing machine and Laptops, of which the first 4 products have been notified under mandatory labelling from 7th January, 2010. The other appliances are presently under voluntary labelling phase. The energy efficiency labelling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers.

Super Energy Efficient Program (SEEP)

Globally, energy efficiency standards for appliances have been one of the most important ways to achieve energy savings. India has also made significant progress by creating a sustained demand for energy efficient products through its Standards and Labelling program. Consumers are steadily realizing the need for affordable energy efficient products of mass consumption and the benefits associated with them. With the market for star-rated labelled products growing, there is now a move towards making appliances super-efficient i.e. appliances that save as much as 30-50% energy than the most energy-efficient versions available in the market.

To accelerate the shift to energy efficient appliances in designated sectors and to encourage innovation in the manufacturing sector in India so that such appliances become more affordable, the Bureau of Energy Efficiency (BEE) is in process of launching the Super Energy Efficient Program (SEEP). This program would offer manufacturers incentives to produce super-efficient appliances that are 30-50% more efficient than the most efficient ones available in the market such as the five star labelled appliances.

SEEP forms a part of Market Transformation for Energy Efficiency (MTEE) initiative, one of the four initiatives of the National Mission on Enhanced Energy Efficiency (NMEEE). The primary objective of MTEE is to accelerate the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. SEEP seeks to promote domestic manufacturing of energy-efficient appliances by reducing their cost through market incentives.

Super-efficient appliances carry their high first cost which coupled with uncertainty of market demand; manufacturers feel reluctant to make the initial investment to change production lines for such appliances. The program envisions that incremental cost can be compensated by incentives on one hand and cost reduction due to economy of scale on the other.


India faces the challenge of sustaining its rapid economic growth while dealing with the glob¬al threat of climate change. This threat emanates from accumulated emissions of greenhouse gases (GHGs) in the atmosphere, the result of long-term and intensive industrial growth and high-consumption lifestyles in the developed countries. Climate change may alter the distribution and quality of India’s natural resources and adverse¬ly affect the livelihood of its people. With an econo-my closely tied to its natural resource base and cli¬mate-sensitive sectors, India may face a major threat because of the projected changes in climate on account of the impact of the carbon footprint of developed countries. India needs a national strategy to adapt to climate change and to enhance the ecolog¬ical sustainability of India’s development path.

The National Action Plan on Climate Change (NAPCC), released by the Prime Minister on June 30, 2008, recognizes the need to maintain a high growth rate for increasing the living standards of the vast majority of people and reducing their vulnerability to adverse impacts of climate change. The Action Plan enunciates the following principles:

  • Protecting the poor and vulnerable sections of society through an inclusive and sustainable devel¬opment strategy sensitive to climate change
  • Achieving national growth objectives through a qualitative change in direction that enhances eco¬logical sustainability, leading to further reduction in emissions of GHGs
  • Devising efficient, cost-effective strategies for end-use demand-side measures
  • Deploying appropriate technologies for both adaptation to and mitigation of the adverse effects of emissions of GHGs extensively as well as at an accelerated pace
  • Engineering new and innovative forms of market, regulatory, and voluntary mechanisms to promote sustainable development

The NAPCC outlines eight national missions that represent¬ long-term integrated strate¬gies for achieving key goals in the context of climate change. The National Mission on Enhanced Energy Efficiency (NMEEE) is one such mission. The objective of this mission is to promote innovative policy and regulatory regimes, financing mechanisms, and business models which not only create, but also sustain, markets for energy efficiency in a transparent manner with clear deliverables to be achieved in a time bound manner.

It also has inbuilt provisions for monitoring and evaluation so as to ensure transparency, accountability, and responsiveness. The Ministry of Power (MOP) and Bureau of Energy Efficiency (BEE) were tasked to prepare the implementation plan for the NMEEE. NMEEE spelt out the following four new initiatives to enhance energy efficiency, in addition to the programmes on energy efficiency being pursued. They are:

i) Perform Achieve and Trade

It is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries. The trading of energy saving certificates would facilitate this process.

Targets for improvements in energy efficiency will be set under Section 14 of the Energy Conservation Act, 2001 in a manner that reflects fuel usage and the economic effort involved. In March 2007, the government notified units in eight industrial sectors, namely aluminium, cement, chlor-alkali, fertilizers, iron and steel, pulp and paper, textiles and thermal power plants, as Designated Consumers.

478 Designated Consumers (DCs) in 8 industrial sectors have been identified and notified for the mandatory participation in the 1st cycle of PAT scheme which will be implemented during 2012-13 to 2014-15. It is estimated that the total energy consumption by about 478 DCs in 8 energy intensive sectors is about 164 million tons of oil equivalent (MTOE) and about 4.1% reduction, and estimated at 6.66 MTOE, has been targeted in 3 years from these energy intensive industries.

ii ) Market Transformation for Energy Efficiency (MTEE)

Government is also going to launch Super-Efficient equipment program in 12th five year plan. Ceiling fans have been identified as the first appliance to be adopted. The program proposes to incentivize fan manufacturers to produce and sell super- efficient fans that are 30-50% more efficient than the most efficient available in the market at discounted price to consumers. Several rounds of consultation meetings were held with all stakeholders such as fan manufactures, R&D institutions, technology innovators, academia and policy bodies to deliberate upon specification, incentive structure and measurement & verification strategy and to work-out a road map of the program. Performance specification of a super- efficient ceiling fan has been finalized and program development is at advance stage of finalization.

iii) Energy Efficiency Financing Platform(EEFP)

Government is also expanding the different Energy Efficiency Financing Platforms though MOUs with public sector, banks, and training of bank officials for appraisal of energy efficiency projects. MoU has been signed by BEE with M/s. PTC India Ltd, M/s. SIDBI, HSBC Bank, Tata Capital and IFCI Ltd to promote financing for Energy Efficiency projects.

iv) Framework for Energy Efficient Economic Development (FEEED)

Government is also making efforts to create a market for energy efficiency with fiscal instruments by providing reassurance to lenders by providing a guarantee for performance contracts, providing a venture capital fund, promoting leadership in the public sector on energy efficiency and promoting energy efficiency in public procurement based on life cycle cost analysis. Two types of fund for energy efficiency are being established. One is the Partial Risk Guarantee Fund (PRGF) and the other is the Venture Capital Fund for Energy Efficiency (VCFEE).

Schemes Pertaining to State Designated Agencies

State Designated Agencies (SDAs) are statutory bodies set up under section 15 of the Energy Conservation Act (EC Act), 2001 at the state level to implement the Act. They are the nodal agencies at state level to coordinate with BEE to ensure implementation of the Act in the country. SDAs have an important role to play particularly to create public awareness and understanding about the values of energy conservation, enforcement of the Energy Conservation Act, 2001 at the grass root level, stimulating market transformation at the local level, collection, collation and analysis of data regarding energy use and dissemination of information to the masses regarding end use of efficient energy. They are the fulcrums for implementation of various initiatives at the central government level like publicity and awareness campaigns, directing Designated Consumers to get energy audit conducted by an accredited energy auditor, Investment Grade Energy Audit of Govt. Buildings and subsequent implementation through ESCO route, efficiency improvement in Municipal functions etc.

The SDAs have been set up in 32 states by designating one of the existing organizations as required under section 15 (d) of the Energy Conservation Act 2001. These agencies differ from State to State with the Renewable Energy Development Agency (44%), Electrical Inspectorate (25%), Distribution Companies (12%), Power Departments (16%) and others (3%).

In order to kick start the energy conservation activities at the state level with an emphasis on building institutional capacities of the SDAs, Ministry of Power had approved the scheme of Providing financial assistance to the State Designated Agencies for strengthening their institutional capacities and capabilities during the XI plan. The major activities under which financial support was provided were:

  • Annual Action Plan which includes creation of database for Energy Managers / Energy Auditors / Designated Consumers, organizing training programmes / workshops, awareness campaigns etc.
  • Demonstration Projects on energy efficient street lighting, revamping of drinking water pumping system and energy efficiency in SME cluster
  • Investment Grade Energy Audit of Govt. Buildings
  • LED Village Campaign

SME Programme

To encourage the energy efficient technologies and operational practices in SME sectors in India, BEE in consultation with State Designated Agencies, Ministry of Micro, Small and Medium Enterprises, and other governmental agencies, has initiated the energy efficiency interventions in selected 25 SMEs clusters in the 11th plan. The study conducted comprised of activities like the energy use and technology gap assessment at unit level, development of the cluster specific energy efficiency manuals, preparation of Detailed Project Reports (DPRs) on energy efficient technologies and capacity building and knowledge enhancement of man-force involved in SMEs.

The 18 product/manufacturing Sectors were selected, covering 25 clusters; these are Textile, Brick, Foundry, Brass & Utensils, Paper, Rice Milling, Chemical, Dairy, Food Processing, Machine Tools, Ceramic, Refractories, Galvanizing, Lime Stone, Tea, Sponge Iron, Oil Milling, Ice Making. Energy use and technology gap assessment study has been conducted to understand the energy intensity and need of technologies, and cluster specific manual on energy conservation opportunities have been prepared to disseminate the technologies and Best Operating Practices (BoPs) within the clusters and other similar clusters in the country.