Page 49 - Energy Efficiency Policies in China and India - A Research Paper
P. 49
Energy efficiency policies in
China and India
National Electricity Policy and National Tariff Policy
The central government released the National Electricity Policy (NEP) in 2005 and the National
Tariff Policy (NTP) in 2006 which gave specific direction to utilities and regulators in the context
of DSM and energy efficiency.
(3) National Mission on Enhanced Energy Efficiency
The National Action Plan on Climate Change (NAPCC) guides India in dealing with the challenge
of climate change and achieving economic objectives at the same time. The NAPCC identifies
8 national missions to advance climate and development goals including a National Mission
for Enhanced Energy Efficiency (NMEEE). The NMEEE was launched with several targets from
2011 to 2015 for an annual fuel savings of at least 23 Mtoe which is a cumulative avoided
electricity capacity addition of 19 GW, and a CO2 emission mitigation of 98 Mt. The NMEEE
aims at strengthening the market for energy efficiency by creating a conducive regulatory and
policy regime and fostering innovative and sustainable business models in the energy efficiency
sector.
Box 1: Energy Conservation Act of India
The Act provides for institutionalizing and strengthening delivery mechanisms for
energy efficiency services in the country and provides much-needed coordination
between various entities. The Act specifies the role of the central government and State
Governments. The EC Act encourages the adoption of several measures by the central
government for promoting energy efficiency. Section 16 of the Energy Conservation Act
advocates the constitution of state energy conservation funds that would enable states
to encourage energy efficiency and meet the expenses incurred.
Key powers granted under the Act to the Bureau of Energy Efficiency and the
Government of India include: specification of energy consumption standards and
energy audits for energy intensive industries; energy conservation building codes for
commercial buildings; and accreditation of energy auditors. In addition, the Act also
enjoins the Government and the Bureau to enhance awareness through labels for
equipment/ appliances; engage in training, education, research and development,
testing and certification; promote pilot and demonstration projects, innovative financing,
energy audits and international co-operation programmes.
The NMEEE has four sub-missions under it viz. Perform, Achieve and Trade (PAT), Market
Transformation for Energy Efficiency (MTEE), Energy Efficiency Financing Platform (EEFP) and
Framework for Energy Efficient Economic Development (FEEED). PAT and MTEE are discussed
in detail in further sections. EEFP aims at the creation of mechanisms that would help finance
energy efficiency projects in all sectors by capturing future energy savings. FEEED aims at
developing fiscal instruments to promote energy efficiency (BEE undated).
34 Research Paper
China and India
National Electricity Policy and National Tariff Policy
The central government released the National Electricity Policy (NEP) in 2005 and the National
Tariff Policy (NTP) in 2006 which gave specific direction to utilities and regulators in the context
of DSM and energy efficiency.
(3) National Mission on Enhanced Energy Efficiency
The National Action Plan on Climate Change (NAPCC) guides India in dealing with the challenge
of climate change and achieving economic objectives at the same time. The NAPCC identifies
8 national missions to advance climate and development goals including a National Mission
for Enhanced Energy Efficiency (NMEEE). The NMEEE was launched with several targets from
2011 to 2015 for an annual fuel savings of at least 23 Mtoe which is a cumulative avoided
electricity capacity addition of 19 GW, and a CO2 emission mitigation of 98 Mt. The NMEEE
aims at strengthening the market for energy efficiency by creating a conducive regulatory and
policy regime and fostering innovative and sustainable business models in the energy efficiency
sector.
Box 1: Energy Conservation Act of India
The Act provides for institutionalizing and strengthening delivery mechanisms for
energy efficiency services in the country and provides much-needed coordination
between various entities. The Act specifies the role of the central government and State
Governments. The EC Act encourages the adoption of several measures by the central
government for promoting energy efficiency. Section 16 of the Energy Conservation Act
advocates the constitution of state energy conservation funds that would enable states
to encourage energy efficiency and meet the expenses incurred.
Key powers granted under the Act to the Bureau of Energy Efficiency and the
Government of India include: specification of energy consumption standards and
energy audits for energy intensive industries; energy conservation building codes for
commercial buildings; and accreditation of energy auditors. In addition, the Act also
enjoins the Government and the Bureau to enhance awareness through labels for
equipment/ appliances; engage in training, education, research and development,
testing and certification; promote pilot and demonstration projects, innovative financing,
energy audits and international co-operation programmes.
The NMEEE has four sub-missions under it viz. Perform, Achieve and Trade (PAT), Market
Transformation for Energy Efficiency (MTEE), Energy Efficiency Financing Platform (EEFP) and
Framework for Energy Efficient Economic Development (FEEED). PAT and MTEE are discussed
in detail in further sections. EEFP aims at the creation of mechanisms that would help finance
energy efficiency projects in all sectors by capturing future energy savings. FEEED aims at
developing fiscal instruments to promote energy efficiency (BEE undated).
34 Research Paper
