The residential electricity consumption (REC) has increased by 50 times since 1971 and now forms about a quarter of India’s total electricity consumption, up from about 4% in 1971. It is expected to grow further due to rapid electrification, increasing household incomes, and technology development. A better understanding of REC patterns and the factors affecting it is essential for designing effective and credible energy efficiency programs, optimized planning of capacity addition, and better adapting to the rapidly changing business models and technologies in the Power sector. In this report, we provide an overview of the current understanding of REC in India by analysing data from various sources like census, surveys, and distribution companies (DISCOM) and reviewing the available literature on the topic.
The electricity sector is undergoing a transformation as it transitions from a static sector that is planned and operated by central authorities—regulators, utilities, system operators, and planners—to one that is increasingly driven by a mix of technologies, decentralized operators, and new market mechanisms and reforms.
These changes are creating an environment of genuine uncertainty in which many challenges arise, along with new opportunities for electricity sector planners and regulators to meet the goal of reliable, sustainable and universal electricity access. This report looks at experiences from four developing countries - Brazil, China, India, and Kyrgyzstan, and two developed countries - Germany and the United States to help electricity planners and utilities gain from the international experience. The way in which the sector stakeholders respond and engage with these emerging trends globally will ultimately determine the development pathway of the future grid.
India needs a broad, coherent strategy for energy efficiency to reduce its carbon emission intensity and enhance its energy security. This article breifly describes four key points that can shape this strategy. It appeared in the Hindu Business Line on 2nd Decemeber, 2015.
Improving end-use energy efficiency to meet the ever increasing electricity demand in India is the most economical option available to us today. Part of the end use demand could be met without having the need to increase the supply, thereby reducing the costly power procurement for DISCOMs. These benefits have led to some Demand Side Management (DSM) activities in the state as well as at the national level. State governments, DISCOMs, state designated agencies, BEE, electricity regulators have undertaken several activities to promote DSM. This report presents an overview of DSM activities in eight states (Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Tamil Nadu and West Bengal). The objective of the report is to increase awareness of civil society organizations, facilitate interstate learning and recommend a strategy to scale up DSM activities based on the review.
Energy efficiency levels for the Standards and Labeling (S&L) program in India for frost free (FF) refrigerators are compared with similar programs in China, United States of America (USA), and European Union (EU). A normalization method developed by International Energy Agency (IEA) is adopted with India as a benchmark for comparison. It is observed that the energy consumption level corresponding to minimum energy performance standard (MEPS) is very high in India. India also lags behind other countries on the consumption level corresponding to highest efficiency rating. Also, the range of consumption levels corresponding to a label is wide which dilutes the efficacy of label. India has aggressively proposed to tighten the ratings for FF refrigerators in 2014 by 36% across all the bands. This measure will make its highest efficiency rating comparable to other countries. However, due to the wide gap in the consumption levels across the ratings, the revised MEPS will still lag behind other countries. One possible outcome of high MEPS is that as the ratings are tightened, the market may move to lower star rated models significantly undermining the tightening effect.
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Despite keen interest shown by Indian policymakers and significant efforts to enhance energy efficiency of the Indian economy, progress has been limited. Initial efforts laudably sought to be comprehensive and cover all sectors and sub-sectors. However, it resulted in the limited human and financial resources being spread too thin resulting in sluggish progress in improving energy efficiency. In addition, several of the approaches tried have not been directly applicable in India because of the challenges of limited institutional capacity and human resources. India should reorganize its efforts, and develop a targeted and tailored strategy based on three principles: (1) Target efforts at areas where they will bring about the biggest reductions in energy use (“maximum bang for the buck”); (2) Design EE policies and plans to achieve a radically higher level of implementation; and (3) Design programs creatively to succeed under the challenging policy and implementation environment. An approximate estimation of the potential savings in existing and new additions in various consumer categories highlights the importance of new additions particularly in the commercial buildings sector, and the relative importance of the different categories. As an example of a tailored and targeted strategy, the paper describes the development of a program for super-efficient appliances that is expected to be appropriate for the Indian environment. The paper is intended to add to the discourse on rapid improvement in energy efficiency not only in India, but also in other developing countries that face similar challenges of limited human and financial resources.
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Prayas has developed a guidebook for policy-makers in different countries to conceptualize, design and implement innovative programs to accelerate market transformation to super-efficient equipment and appliances (SEE). This guidebook is based on Prayas' experience in developing Super-Efficient Equipment Program (SEEP) in India. In this webinar hosted by Clean Energy Solutions Center, we presented this guidebook to energy efficiency experts from different countries. The Solutions Center is an initiative of the Clean Energy Ministerial (CEM), a global forum to share best practices and promote policies and programs that encourage and facilitate the transition to a global clean energy economy.
The audio of the webinar is available on:
The guidebook provides a framework for policy-makers in different countries to conceptualize, design and implement innovative programs to accelerate market transformation to super-efficient equipment and appliances (SEE). SEE are commercially feasible equipment and appliances significantly more efficient than those available in local markets. The framework is based on the experience of developing a program called Super-Efficient Equipment Program (SEEP) in India. Bureau of Energy Efficiency (BEE) has initiated SEEP for ceiling fans in India. The core idea of SEEP is to provide financial incentives to manufacturers so that they can develop, produce and sell super-efficient equipment and appliances (SEE) at prices comparable to an average appliance. The guidebook is not meant to be a strict rule-book but more of a template to develop a SEEP like program in different countries, particularly, developing countries with similar political and institutional mechanisms as in India. The actual development of the program in a specific country will be influenced by a number of local factors.
An advanced draft version of this guidebook was released at Clean Energy Ministerial (CEM4) at New Delhi on 18th April 2013.
In this paper we analyze ownership patterns and distribution of three major appliances-fans, televisions and refrigerators in Indian households using two quinquennial rounds of all India National Sample Survey Organization (NSSO) household expenditure surveys. In particular, we seek answers to three main questions: a) which households acquired appliances for the first time during the period between the two surveys; b) what was the pattern of appliance acquisition across various states in India and (c) what are the major factors that might be influencing appliance acquisition?
Discount rate is a useful economic concept that can be used to analyze decisions involving inter-temporal choices such as buying an energy efficient appliance where you have to pay now to reap benefits in future. It is the magnitude of consumer’s preference for present over future value. Discount rates have important policy implications as they can be used to predict consumers’ decisions under a policy and thereby help to evaluate its impact. In energy efficiency policy domain, discount rates have been used to forecast market penetration of energy efficient appliances and evaluate the potential of energy efficiency programs. In this paper, we have reviewed the fundamental concepts of discount rates and their implications for energy efficiency policies. We have also described a specific approach based on discount rates to effectively design financial incentives for energy efficient appliances in India. Further, we have also discussed the limitations of using discount rates based approach and the data challenges that it faces in India before making our conclusions on the same.