Energy Conservation Act,
2001
Energy Conservation Act - Background
• An Act to provide for efficient use of energy and its conservation and for matters connected
therewith or incidental thereto
• It extends to the whole of India except the state of Jammu and Kashmir
• It was enacted by Parliament in the Fifty-second Year of the Republic of India on October 2001
• The Bureau of Energy Efficiency (BEE) came into force from March 2002 onwards
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Energy Conservation Act - Background
Powers of BEE:
• Recommend to the Central Government the norms for processes and energy consumption
standards for equipment and appliances
• Recommend to the Central Government for notifying any user or class of users of energy as a
designated consumer having regard to intensity or quantity of energy used by it
• Recommend to the Central Government the particulars required to be displayed on label of
equipments or on appliances and manner of their display
• Take suitable steps to prescribe guidelines for energy conservation building codes
• Develop testing and certification procedure and promote testing facilities for certification and
testing for energy consumption of equipment and appliances
• Promote use of energy efficient processes, equipment, devices and systems
• Specify qualifications for the accredited energy auditors, the manners and interval of time in
which the energy audit shall be conducted by such auditors
• Specify certification procedures for energy managers to be appointed by designated consumers
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Energy Conservation Act - Background
• Prepare educational curriculum on efficient use of energy and its conservation for educational
institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of
such curriculum in their syllabus
Power of State Government:
• Amend the energy conservation building codes to suit the regional and local climatic conditions
• Direct every owner or occupier of a building or building complex being a designated consumer to
comply with the provisions of the energy conservation building codes
• Direct if considered necessary for efficient use of energy and its conservation, any designated
consumer to get energy audit conducted by an accredited energy auditor in such manner and at
such intervals of time as may be specified by regulations
• Designate any agency as designated agency to coordinate, regulate and enforce provisions of EC
Act 2001 within the State
• Take all measures necessary to create awareness and disseminate information for efficient use of
energy and its conservation
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Energy Conservation Act - Background
Expected Outcome:
• Barriers for EE & DSM to be removed.
• The State Regulatory Commissions and Utilities to be encouraged to implement the Conservation initiatives
• Engagement of Stakeholders
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Energy Conservation Act - Background
• Industrial and Commercial users
• Time of use tariff for industrial and commercial users.
• Incentives to industry to adopt conservation/ efficiency measures
• States
• Encourage implementation of DSM programmes in Agriculture/ Municipalities
• Domestic consumers
• Promoting use of energy efficient equipments
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Energy Conservation Act, 2001
•An Act to provide for efficient use of energy and its
conservation and for matters connected therewith.
• The bureau (government department ) established for
the purpose of this act is called BEE ( bureau of Energy
Efficiency)
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Features of the Energy Conservation
Act 2001
• The Act empowers the Central Government
and, in some instances, State Governments to:
• specify energy consumption standards for notified
equipment and appliances;
• direct mandatory display of label on notified
equipment and appliances;
• prohibit manufacture, sale, purchase and import of
notified equipment and appliances not conforming to
energy consumption standards;
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Features of the Energy Conservation
Act 2001
• notify energy intensive industries, other
establishments, and commercial buildings as
designated consumers;
• establish and prescribe energy consumption norms
and standards for designated consumers;
• prescribe energy conservation building codes for
efficient use of energy and its conservation in new
commercial building(having connected load 500kW)
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LIST OF ENERGY INTENSIVE INDUSTRIES AND
OTHER ESTABLISHMENTS
Aluminum
Fertilizers
Iron and Steel
Cement
Pulp & Paper
Chlor Alkali
Sugar
Textile
Chemicals
Railways
Port Trust
Transport Sector (industries and Services)
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Features of the Energy Conservation
Act 2001
• direct designated consumers to -
• designate or appoint certified energy manager in
charge of activities for efficient use of energy and its
conservation;
• get an energy audit conducted by an accredited
energy auditor in the specified manner and interval of
time;
• furnish information with regard to energy consumed
and action taken on the recommendation of the
accredited energy auditor to the designated agency;
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Features of the Energy Conservation
Act 2001
• direct designated consumers to -
• comply with energy consumption norms and
standards;
• prepare and implement schemes for efficient use of
energy and its conservation if the prescribed energy
consumption norms and standards are not fulfilled;
• get energy audit of the building conducted by an
accredited energy auditor in this specified manner
and intervals of time;
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Features of the Energy Conservation
Act 2001
• State Governments may –
– revise the energy conservation building codes
– direct every owners or occupier of a new
commercial building or building complex being a
designated consumer to comply with the provisions
of energy conservation building codes;
– direct, if considered necessary for efficient use of
energy and its conservation, any designated
consumer to get energy audit conducted by an
accredited energy Fr.CRIT,Vashi
auditor in such manner and 13at
such intervals of time as may be specified
Establishment of BEE
• The mission of the Bureau of Energy Efficiency
is to develop policy and strategies with a
thrust on self-regulation and market
principles, within the overall framework of the
Energy Conservation Act, 2001 with the
primary objective of reducing energy intensity
of the Indian economy.
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Establishment of BEE
• Under the provisions of the Act, BEE has been
established w.e.f. 1st March, 2002 by merging the
previous Energy Management Centre, a society
under the Ministry of Power.
• The Bureau would be responsible to lead the
improvement of energy efficiency of the economy
through various regulatory and promotional
instruments.
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Establishment of BEE
• The primary objective of BEE is to reduce energy
intensity in the Indian economy through adoption of
result oriented approach. The broad objectives of the
BEE are:
– to assume leadership and provide policy framework and
direction to national energy efficiency and conservation
efforts and programmes;
– to coordinate policies and programmes on efficient use of
energy and its conservation with the involvement of
stakeholders;
– to establish systems and procedures to measure, monitor
and verify energy efficiency results in individual sectors as
well as at national level;
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Establishment of BEE
• To leverage multi-lateral, bi-lateral and private sector
support in implementation of the EC Act and
programmes for efficient use of energy and its
conservation
• To demonstrate energy efficiency delivery
mechanisms, through private-public partnership
• To plan, manage and implement energy conservation
programmes as envisaged in the EC Act.
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Functions of BEE
• arrange and organize training of personnel
and specialists in the techniques for efficient
use of energy and its conservation;
• develop testing and certification procedures
and promote testing facilities;
• strengthen consultancy services;
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Functions of BEE
• create awareness and spread information;
• promote research and development;
• formulate and facilitate implementation of
pilot projects and demonstration projects;
• promote use of energy efficient processes,
equipment, devices and systems;
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Functions of BEE
• take steps to encourage preferential treatment for
use of energy efficient equipment or appliances;
• promote innovative financing of energy efficiency
projects;
• give financial assistance to institutions for promoting
efficient use of energy and its conservation;
• prepare educational curriculum on efficient use of
energy and its conservation and
• implement international co-operation programmes
relating to efficientFr.CRIT,Vashi
use of energy and its
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conservation.
Functions of BEE
• Take all measures necessary to create
awareness and distribute information for efficient
use of energy and its conservation;
• Arrange and organize training of personnel and
specialists in the techniques for efficient use of
energy and its conservation;
• Strengthen consultancy services in the field of
energy conservation;
• Promote research and development in the field
of energy conservation;
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BEE star rating Labeling
programme
• Central Government to, in consultation with BEE,
– Specify equipment and appliances for labeling
– Specify the energy consumption norms and
standards
– Direct display of labels on specified appliances
– Enforce minimum efficiency standards by
prohibiting manufacture, sale, and import of
products not meeting the minimum standards
• BEE to
– Recommend to the Central Government on labeling
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What are Energy Efficiency label
Informative labels affixed to manufactured products
describing the product’s energy performance (energy
consumption, energy efficiency, energy cost, or
combinations thereof) enabling consumers to make
informed purchases
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Types of Labels
• Endorsement labels*
– Offer a “seal of
approval” that a
product meets certain
pre-specified criteria Energy Star Endorsement Label
• Comparative labels
– Allow consumers to
compare energy use
among all available
models in order to
make an informed
choice.
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Source: BEE
Indian Comparative Label Features
Stars (1-5) display the relative
efficiency of the product
Daily/annual Power consumption
is used for comparing the actual
energy use between different
models*
Important product specifications
like brand, model, type, capacity,
efficiency (EER), etc
BEE logo?
* Note: Nationwide market research underway to
fine-tune the label design
• The label will highlight energy consumption and
annual operating cost
• Annual national average electricity cost is required
• AS(P) had agreed to research and publish such a
number
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Top Candidates for Energy-Efficiency Labels
1. Domestic refrigerators
2. Air conditioners
3. Fluorescent lamp ballasts
4. Fluorescent tube lamps
5. Electric motors
6. Washing machines
7. Boilers
8. Furnaces
9. Storage water heaters
10.Heat pumps
11.Pumps
12.Fans
13.Television sets Fr.CRIT,Vashi 26
Energy Service Company-
Performance Contracting
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Introduction to ESCOs
In the Indian context, Energy Service Companies
(ESCOs) identify and evaluate the energy savings
potential in industrial units, commercial complexes,
hospitals, municipalities and utilities, among others, by
using energy audit tools. On completing a detailed audit
they recommend a set of energy conservation measures
which on implementation can pay for the investment
through the resultant savings.
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Introduction to ESCOs
Performanc
Constructio
e
Energy Engineering Equipment n & Project
Monitoring
Audit Design Design Manageme
&
nt
Verification
Energy
Commissio
Savings Financing Integrators
ning
Guarantees
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