Ec Act 2001& Role of Stakeholders_npti-21!01!2013 Final

8/19/2019 Ec Act 2001& Role of Stakeholders_npti-21!01!2013 Final

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Energy Conservation Act 2001

&

ROLE OF STAKEHOLDERS

Learning & development Program On regulatory

framework in Power Sector, NPTI , Faridabad


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Presentation Outine

Preamble!Introduction" Need!Ob#ective"

$road provi%ion% of te '( )ct"

I%%ue% in implementation of '( )ct"

*ariou% Sceme% initiated by +overnment of India!$''" National i%%ion for 'nanced 'nergy 'fficiency -N'''. &

Perform, )cieve & Trade -P)T., wit reference to Power %ector"

/&)


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INTRODUCTIONINTRODUCTION

• Progress in the fields of industry, agriculture, communication,

transport and other sectors• Energy - an important element for developmental and economic

activities

• Availability - on sustainable basis

• Demand for energy growing manifold

•Energy sources are becoming scarce and costlier

•Efficient use of energy and its conservation is least cost options

• Options being environmental friendly


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Commercial energy oil, gas and electricity! re"uired for targetedCommercial energy oil, gas and electricity! re"uired for targeted

#DP growth$#DP growth$%ossil fuel reserves are limited%ossil fuel reserves are limited

Per capita consumption in &ndia is too lowPer capita consumption in &ndia is too low as compared to developedas compared to developedcountries 'ust () of *+A and ) of the world average!$ .he percountries 'ust () of *+A and ) of the world average!$ .he per

capita consumption is targeted to grow to about / 0wh per year bycapita consumption is targeted to grow to about / 0wh per year by//

.he country faces.he country faces shortage of electric powershortage of electric power

Pea0 shortage /1$2 )Pea0 shortage /1$2 )

Energy +hortage 3$1 )Energy +hortage 3$1 )

!H" !AS EC Act 2001 E#ACTED$


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0

!i%e variation in energy consu'tion!i%e variation in energy consu'tion co(e))icient aongco(e))icient aong

%i))erent units in t*e sae in%ustry using co'ara+e tec*noogies%i))erent units in t*e sae in%ustry using co'ara+e tec*noogies

AsoAso energy intensity o) ,n%ian econoy is very *ig*energy intensity o) ,n%ian econoy is very *ig* in co'arisonin co'arison

-it* %eveo'e% countries an% Asian an% -or% averages-it* %eveo'e% countries an% Asian an% -or% averages./ ties o) a'an./ ties o) a'an

1/ ties Asia1/ ties Asia

1/3 ties o) 4SA1/3 ties o) 4SA

!H" !AS EC Act 2001 E#ACTED$


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1

C*ina

Energy Conservation La- o) C*ina 51667

a'an

•La- Concerning t*e Rationa 4se o) Energy 51667•En)orceent Or%inance )or t*e La- Concerning t*e Rationa 4se o) Energy 51667 an%

Aen%ents 5168 an% 166.7

Re'u+ic o) Korea

Rationa Energy 4tii9ation Act 5166: -*oy aen%e% +y Act #o/ 861 o) 16637

Russian Fe%eration

T*e Fe%era La- on Energy Saving 5166;7

T*aian%

Energy Conservation Prootion Act 5istan

La- on t*e Rationa 4se o) Energy 51667

E?isting Legisations in ot*er countries


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2

'N'3+4 (ONS'3*)TION )(T45667

T*e Energy Conservation


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8

'N'3+4 (ONS'3*)TION )(T,5667

• T*e definition o) T*e Energy Conservation Ac

20015ECA:20017 as 'u+is*e% in O))icia Ba9ette o) ,n%ia is

• A5 AC. .O P6O7&DE %O6 E%%&C&E5. *+E OE5E6#8 A5D &.+ CO5+E67A.&O5 A5D %O6 9A..E6

CO55EC.ED .:E6E;&.: O6 &5C&DE5.A< .:E6E.O


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ENERGY CONSERVATION ACT 2001ENERGY CONSERVATION ACT 2001

• Provides for institutionali=ing > strengthening delivery

mechanism for energy efficiency services in the country• Provides needed coordination between various entities• Enacted by Parliament in %ifty +econd 8ear of the 6epublic of

&ndia on October /

• E?tends to whole of &ndia e?cept for the +tate of @ammu andashmir • .he Bureau of Energy Efficiency BEE! came into force from

9arch


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ENERGY CONSERVATION ACT 2001ENERGY CONSERVATION ACT 2001

• Chapter / +hort title, e?tent and commencement

• Chapter Establishment and incorporation of Bureau of Energy

Efficiency

• Chapter 1 .ransfer of assets, liabilities > employees of Energy

9anagement Centre

• Chapter ( Powers and functions of Bureau

• Chapter Power of Central #overnment to enforce efficient use of

energy > its conservation

• Chapter Power of +tate #overnment to enforce certain

provisions for efficient use of energy and its conservation

• Chapter 2 #rants and loans by Central #overnment• Chapter Penalty

• Chapter 3 Establishment of Appellate .ribunal

• Chapter / Power of Central #overnment to issue directions to Bureau


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77

Energy Conservation Act 2001Central Govt. State Govt.power power

Bureau of Energy Efficiency

interacts interacts

Designated Consumer

nominates

Designated Agency

nominates

Governing Council

Accredited Energy Auditor Energy manager

auditsappoints

ENERGY CONSERVATION ACT,2001ENERGY CONSERVATION ACT,2001

as esta!lis"ed

Proce%% 9iagram:in '()

domain:link between

imp" 3ole player%


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75

'N'3+4 (ONS'3*)TION )(T,5667

&mportant descriptions in ECA,/

/$ ACC6ED&.ED E5E6#8 A*D&.O6 F "ualifications as specified byBureau

$ B*&


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7;

'N'3+4 (ONS'3*)TION )(T,5667


$ E5E6#8 F derived from fossil fuels, nuclear substances or materialsG hydro

electricity and includes electrical energy or electricity generated frorenewable sources of energy or bio-mass connected to the grid$

2$ E5E6#8 A*D&. - 7erification,monitoring, and analysis of use of energ

including submission of technical reports containing recommendations fo

improving energy efficiency with cost benefit analysis and an action plan treduce energy consumption$

$ E5E6#8 CO5+E67A.&O5 B*&


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7<

'N'3+4 (ONS'3*)TION )(T,5667


3$ E5E6#8 CO5+*9P.&O5 +.A5DA6D+ F norms for procesand energy consumption standards specified by Central #ovt$,in

consultation with Bureau, for any e"uipment, appliances o

&ndustry as a whole, which consume,generate,transmit or supply

energy$ .arget has been already fi?ed for Baseline 8ear and to beachieved by /(-/$

/$ E5E6#8 9A5A#E6 F individual possessing "ualifications a

specified by Central #ovt$, in consultation with Bureau


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ROLES of CENTRALROLES of CENTRAL

GOVERNMENT/BEEGOVERNMENT/BEE

+pecify the energy consumption standards for anye"uipment, appliances

+pecify e"uipment or appliance for the purposes of this Act

Prohibit manufacture H sale H purchase H import of

e"uipment H appliances unless they confirm to energyconsumption standards

Direct display of such particulars on label on e"uipment or

on appliance

+pecify Designated Consumer for the purposes of the

legislation


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ROLES of CENTRALROLES of CENTRAL

GOVERNMENT/BEEGOVERNMENT/BEE Direct any Designated Consumer to get energy audit

conducted by an accredited energy auditor

Direct Designated Consumer to appoint energy manager in

charge of Energy Conservation activities

Direct every Designated Consumer to comply with energy

consumption norms > standards Direct any Designated Consumer to prepare a scheme for

efficient use of energy > its conservation > implement such

schemes as may be prescribed

Prescribe minimum "ualifications for appointment ofenergy managers


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MISSION OF BUREAU OF ENERGY EFFICIENCYMISSION OF BUREAU OF ENERGY EFFICIENCY

(BEE)(BEE)

E?ert leadership and provide policy framewor0 > direction to 5ational

Energy Conservation > Efficiency efforts

Co-ordinate energy efficiency > conservation policies and programs

Establish systems > procedures to measure, monitor > verify energyefficiency results

private sector support for

implementation of EC Act


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MISSION OF BUREAU OF ENERGY EFFICIENCY

(BEE)

Demonstrate delivery of energy efficiency services mandated in EC bill

through public-private partnership

&nterpret, plan > manage energy conservation programs as envisaged in

EC Act

Achieved with active participation of all sta0eholders, resulting in

accelerated and sustained adoption of energy efficiency in all sectors

Primary ob'ective of reducing energy intensity of the &ndian economy


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ROLES of BEEROLES of BEE

6ecommend to the Central #overnment norms for processesand energy consumption standards

6ecommend to the Central #overnment Designated

Consumer

6ecommend to the Central #overnment particulars to bedisplayed on e"uipments labels > manner of their display

Provide steps to prescribe guidelines for Energy Conservation

Building Codes


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Create awareness and disseminate information forefficient use of energy and its conservation

Develop testing and certification procedure

Promote testing facilities for certification > testing

for energy consumption of e"uipment > appliances +trengthen consultancy services in the field of

energy conservation

Promote use of energy efficient processes,

e"uipment, devices and systems


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Promote innovative financing of energy efficiency pro'ects

+pecify "ualifications and certification procedures for

Energy 9anagers and Energy Auditors

Prepare educational curriculum on efficient use of

energy and its conservation


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ROLES of STATE GOVERNMENTROLES of STATE GOVERNMENT

✓ Amend Energy Conservation Building Codes ECBC! tosuit the regional > local climatic conditions✓ Direct every owner H occupier of building or buildingcomple?, being a Designated Consumer, to comply with

ECBC

✓ Direct any Designated Consumer to get energy auditconducted by accredited Energy Auditor ✓ Designate any agency as +tate Designated Agency tocoordinate, regulate > enforce EC Act in the +tate


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STATE DESIGNATED AGENCY (SDA)STATE DESIGNATED AGENCY (SDA)

+et up by respective +tates in consultation with BEE Authori=ed by +tate #ovt$ to coordinate, regulate and

enforce provisions of EC Act *nderta0e voluntary initiatives to promote EnergyConservation Co-ordinate with BEE and +tate #overnment

Departments dealing with Energy, &ndustry, etc


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STATE DESIGNATED AGENCY (SDA)STATE DESIGNATED AGENCY (SDA)

commercial sectors,educational institutions, etc +pread awareness about EC Act


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ROLES of STATE DESIGNATEDROLES of STATE DESIGNATED

AGENCY AGENCY

Co-Ordinate

Co-Ordin!" #i!$ BEE, C"n!r%Go&"rn'"n!, S!!" Go&"rn'"n! nd

S!" o%d"r* R"+"*! S!!" Go&"rn'"n! !oon*!i!!" S!!" En"r. Con*"r&!ionnd


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AGENCY AGENCY

= Development

= Facilitator

= Regulate / Enforce= Co-Ordinate


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AGENCY AGENCY

Development

D!*" Cr"!ion 34d!in.S!!" S4"i5 6"*i!"

Ann% R"4or!*

A#r"n"** Cr"!ion

C4i! Bi%din.

f


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AGENCY AGENCY

Facilitator

D"&"%o4 D"'o 7ro8"!*

Or.ni9" Trinin.*,6or*$o4*, S"'inr*, "!

In!"r!i&" M""!in.* ofEn"r. Mn."r*, En"r.

Adi!or* O!$"r E:4"r!* Trinin.* In T"$ni+"* orE;i"n! En"r. 3*"

fO S f S S G


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AGENCY AGENCY

Regulate / Enforce

No!if Mnd!orR"+ir"'"n!*

I'4%"'"n! S$"'"* of Mini*!rof 7o#"r / BEE

7o#"r of In*4"!ion


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;6

'N'3+4 (ONS'3*)TION )(T,5667

LIST OF 'N'3+4 INT'NSI*' IN9>ST3I'S-%cedule.

7" )luminium 1" (lor )lkali5" Fertili%er% 2" Sugar

;" (ement 8" Te?tile


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Notifcation o DesignatedConsumers

9 industries have been notifed9 industries have been notifed

as Energy Intensive Industriesas Energy Intensive Industriesas specifed in the Schedule toas specifed in the Schedule to

the Energy Conservation Act,the Energy Conservation Act,

!!" #$ o !!"%, having!!" #$ o !!"%, having

annual energy consumption asannual energy consumption as

indicated against each industry,indicated against each industry,

as Designated consumers oras Designated consumers or

the purposes o the EC Act&'the purposes o the EC Act&'

(h l ) St ti +! !!! t i t il(h l ) St ti +! !!! t i t il


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(hermal )o*er Stations' +!,!!! metric tonne o oil(hermal )o*er Stations' +!,!!! metric tonne o oileuivalent #-(.E% per year and aboveeuivalent #-(.E% per year and above

/ertili0er' +!,!!! metric tonne o oil euivalent/ertili0er' +!,!!! metric tonne o oil euivalent#-(.E% per year and above#-(.E% per year and above

Cement' +!,!!! metric tonne o oil euivalentCement' +!,!!! metric tonne o oil euivalent#-(.E% per year and above#-(.E% per year and above

Iron 1 Steel' +!,!!! metric tonne o oil euivalentIron 1 Steel' +!,!!! metric tonne o oil euivalent#-(.E% per year and above#-(.E% per year and above

Chlor'Al2ali' ",!!!metric tonne o oil euivalentChlor'Al2ali' ",!!!metric tonne o oil euivalent

#-(.E% per year and above#-(.E% per year and above Aluminium' 3,$!! metric tonne o oil euivalent Aluminium' 3,$!! metric tonne o oil euivalent#-(.E% per year and above#-(.E% per year and above

4ail*ays'As per the details given in the subseuent4ail*ays'As per the details given in the subseuentslidesslides

(e5tile'+,!!! metric tonne o oil euivalent #-(.E%(e5tile'+,!!! metric tonne o oil euivalent #-(.E%per year and aboveper year and above

)ulp 1 )aper'+!,!!! metric tonne o oil euivalent)ulp 1 )aper'+!,!!! metric tonne o oil euivalent#-(.E% per year and above#-(.E% per year and above

C i # t t ! d f i t" l


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;;

Conversion #actors to !e used for assessing t"e annual energy

consumption in terms of $etric %onne of &il e'uivalent ($%&E)

1 *+" , -0 *ilocalories (*Cal)

1 *ilowatt,"our (*+") / -0 *cal / 00 * / 12 Btu

1 *g. Co*e 3 1 *g. C"arcoal , 4500 *Cal or as per supplier6s latest certificate

1 *g. #urnace &il7 8#&79SS7:A;%A , 1040s latest certificate

1 *g. ;etrol , 114200 *Cal (density / 0.=0-= *g7litre) or as per supplier>s lates

certificate1 *g. ?erosene , , 114110 *Cal (density of S?& / 0.==-2 *g7litre) or as per supplier>s

@ *g. 9;G , 124


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8oles and 8esponsi!ility of Designated Consumers

EC Act4 2001 re'uires "ig" energy consuming industries undersection 1 to 'very 9e%ignated (on%umer to furni% energy con%umption return% to

9e%ignated )gencie% and $''" (apture of information related to energy con%umption acro%% variou%

proce%%e% )doption of be%t practice% in different indu%trie%"

)ppoint or arrange 'nergy anager for teir Indu%try" 'nergy )udit% on a regular ! periodic ba%i% Implement tecno:economically viable recommendation% Submit report on %tep% taken (omply wit %pecific energy con%umption norm% and %tandard% for te

indu%trial %ector%

(ontinuou% improvement in te %pecific energy con%umption ofindu%trie% tereby reducing te bandwidt -gap between te be%tperformer% and te low performer% among te %pecific energycon%umption.

3 ibiliti f '


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3e%pon%ibilitie% of 'nergy anager% Prepare an annual activity plan and pre%ent to management

concerning financially attractive inve%tment% to reduce energy

co%t% '%tabli% an energy con%ervation cell witin te firm witmanagementA% con%ent about te mandate and ta%k of te cell

Initiate activitie% to improve monitoring and proce%% control toreduce energy co%t%

)nalyBe eCuipment performance wit re%pect to energy

efficiency 'n%ure proper functioning and calibration of in%trumentation

reCuired to a%%e%% level of energy con%umption directly orindirectly

Prepare information material and conduct internal work%op%

about te topic for oter %taff Improve di%aggregating of energy con%umption data down to%op level or profit center of a firm

3e%pon%ibilitie% of 'nergy anager%


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3e%pon%ibilitie% of 'nergy anager%

'%tabli% a metodology ow to accurately calculatete %pecific energy con%umption of variou%

product%!%ervice% or activity of te firm 9evelop and manage training programme for energy efficiency at

operating level% (o:ordinate nomination of management per%onnel to e?ternal

program%

(reate knowledge bank on %ectoral, national and internationaldevelopment on energy efficiency tecnology and management%y%tem and information denomination

9evelop integrated %y%tem of energy efficiency andenvironmental upgradation

Dide internal & e?ternal networking

(o:ordinate implementation of energy audit!efficiencyimprovement pro#ect% troug e?ternal agencie%

'%tabli% and!or participate in information e?cange wit oterenergy manager% of te %ame %ector troug a%%ociation


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9utie% of 'nergy anager

3eport to $'' and State level 9e%ignated )gency once a year" Teinformation wit regard to te energy con%umed and action taken inte recommendation of te accredited energy auditor, a% per $''Format"

'%tabli% an improved data recording, collection and analy%i%%y%tem to keep track of energy con%umption"

Provide %upport to )ccredited 'nergy )udit Firm retained by tecompany for te conduct of energy audit" Provide information to $'' a% demanded in te )ct, and wit

re%pect to te ta%k% given by a mandate, and te #ob de%cription" Prepare a %ceme for efficient u%e of energy and it% con%ervation

and implement %uc %ceme keeping in view of te economic

%tability of te inve%tment in %uc firm and manner a% may beprovided in te regulation% of te 'nergy (on%ervation )ct"


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'N'3+4 )>9ITO3S

8ES;&:S@B@9@%@ES (onduct internal audit of individual eCuipment!%y%tem once a year 8&9ES Su!mit copy of reports to Energy $anager wit" recommendation on

action ?eep record of cali!ration status of all energy measurement

instruments7devices $aintain porta!le tools7instruments re'uired for audit ?eep a!reast of all Codes of practices for energy efficiency testing %raining of measurement staff on use of instruments and Codes Be a team mem!er of t"e eternal audit team #or ESC& performance contract proects !e verifier for $F system

and !aseline and savings.

INITIATIVES BY BEEINITIATIVES BY BEE


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9ITO3S


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INITIATIVES BY BEE


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gy y p

(S$Es) Sc"eme

$'' in con%ultation wit State 9e%ignated )gencie%, will

initiate diagno%tic %tudie% in 50 S' clu%ter% in tecountry, including


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Situation analy%i% of ;0 clu%ter% to determine te pre%ent %tatu%

of energy con%umption, tecnology penetration etc"

Inve%tment grade energy audit% -bankable 9P3%. for about 76unit% in eac of te 50 clu%ter%

Template for 9P3 preparation for te balance unit% in clu%ter%,

given teir %imilaritie%

)deCuate provi%ion of e?perti%e for te local %ervice provider% to

elp reac out to te unit%

)vailability of financing by capacity building of banking per%onnel

in matter% like pro#ect apprai%al of performance contracting

%argeted Avoided Capacity during @ plan


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Agricultural (Ag DS$) and $unicipal ($u DS$) Demand Side

$anagement (DS$) Sc"eme

Ag DS$ promi%e% immen%e opportunity in reducing te overallpower con%umption, improving efficiencie% of ground watere?traction and reducing te %ub%idy burden of te %tate%

In term% of electricity %aved, potential %aving% of


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$u%ine%% model linked to %ub%idy reduction being evolved

Self of bankable 9P3% to be prepared: 76 in eac %tate% -total ;06. to

%timulate te market $a%eline development, conducive regulatory regime and payment %ecurity

mecani%m being worked out"

)warene%% and outreac to local and municipal bodie%

anual for u 9S being developed wit %tandard contract document% to

enable ea%ier implementation

3i%k mitigation mea%ure% for encouraging PPP being evolved

(9 benefit% for te %ceme being put in"

%argeted Avoided Capacity during @ plan 2000 $+


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National i%%ion for

'nanced 'nergy 'fficiency

N)TION)L ISSION ON


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'NE)N('9 'N'3+4 'FFI(I'N(4 -N'''.

' he ational *ction Plan on #limate #hange +asreleased by onorable Prime Minister o India in

-une .//0

' he *ction Plan 1utlines > Mi**ion* includingational Mission on Enhanced Energy Efciency(NMEEE)

' he Mission has outlined speci2c goals


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#iscal

@nstrument for EE;8G#

C#

;u!lic ;rocurement

Stimulate #undingfor ESC&s

Energy Efficient

AppliancesB9H

SEE;

DS$

Energy @ntensive @ndustries

%argets for $andatory

Energy Saving

N''' J Four New Initiative%

N'''


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PAT Sc*ee

.he mar0et based mechanism to enhance the cost effectiveness in improving the EnergyEfficiency in Energy &ntensive industries through certification of energy saving which can be

traded

' 3 years data rom 4#s collected though the noti2ed ormat

' 4ata compilation completed & *nalysis or baseline Speci2c Energy #onservation (SE#) is completd5

' 6aseline Energy *udit +as "ic"ed7o8 rom 9eb ./:: by #E*s

' P* #onsultation 4ocument has been prepared and uploaded on +ebsite or comments rom public

(http;


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'nergy (on%ervation & anagement

$'' coordinate ti% voluntary activity on bealf of oP"

Te Sceme i% very popular among Indu%trie% & oter Sector%

including Termal Power Station%"

It reveal% variou% innovative energy management tecniCue%

being applied & adopted by all Stakeolder%"

Te electrical energy %aving% in term% of eCuivalent avoidedcapacity in D during 5675 i% about 171 D" In addition to

electrical energy %aving% of "

'Cuivalent money %aved by te participating unit -22;. i%

eCuivalent to 3%" 5881 crore%"


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Inve%tment +rade 'nergy )udit -I+'). of Large+overnment $uilding%

S9)% a% carried out %mall energy efficiency

demon%tration pro#ect% wit ig impact value in big

citie% It a% al%o carried out in te %mall ! medium enterpri%e%

indu%try clu%ter ba%ed energy efficiency improvement

programme aving ig replicability

9emo pro#ect ave been identified by te S9) and

%ared wit $'' for preparation of 9P3 troug a

con%ultant financed by te $ureau

E?7ECTED O3TCOMESE?7ECTED O3TCOMES


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Barriers for Energy Efficiency to be removed

+tate 6egulatory Commissions > *tilities to encourage ECactivities &ncentives to &ndustries to adopt Energy Conservation H Energy

Efficiency 9easures

+tates to encourage implementation of D+9 programmes

Ensuring availability > promoting use of low cost C%


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Documents

Ec Act 2001& Role of Stakeholders_npti-21!01!2013 Final