Impact Assesment of Energy Efficient Technologies

Energy efficiency is realized to mean the utilization of energy in the most cost-effective manner to accomplish a manufacturing process or provide a service, whereby curb the energy waste and reduce the overall consumption of primary energy resources. In other words, energy efficient systems or practices will look for the use of less energy while conducting any energy-dependent activity: simultaneously, the corresponding (negative) environmental impacts of energy consumption are reduced, and the technologies which are used to regulate energy demand inefficient manner through new inventions or innovations are called energy efficient technologies.

Energy consumption is a crucial element in development while increased energy use has many benefits; we are also becoming aware of the negative impacts of energy use and experiencing its negative consequences in the form of climate change like poor air quality, soil degradation, resource depletion etc. Nevertheless, more efficient use of energy at all level of the demand and supply chain could bring down the negative impacts of energy consumption, while however allowing the same economic development. Also, the inefficient use of energy generally entails higher than necessary operating costs to the customer (the energy end-user).

Technologies for energy efficiency:               

In the era of the 21^st century where there is more consumption of energy with increasing population day-by-day, and the pattern of using energy has also been changed as compared to the beginning of the industrialization, so it is crucial to have energy efficient technologies. There are some energy efficient technologies such as windows and building envelope, lighting, green building and HVAC system and many more. But these technologies are used at a very certain level.

1. Windows and Building Envelope Technology: It a next-generation technology. It has substantial potential to reduce energy consumption in buildings. Both transparent and opaque components of the envelope protect building occupants from unwanted outside environmental conditions. Alternatively, the envelope can be constructed to take advantage of desirable external conditions by providing natural lighting or ventilation. Both strategies may reduce the use of energy consuming machinery in buildings. This is being used in the S.A.
2. Lighting: In India, incandescent lamps are being replaced by CFLs which uses less energy and give more lighting, saves much energy. Bureau of Energy Efficiency has set in motion this scheme as part of their CDM (Clean Development Mechanism) program implementation. The successful implementation of the scheme will result in reducing greenhouse gases (or CO₂) from power plants connected to the grid. But now CFLs is also replaced by LEDs as it consumes 133% lesser electricity than CFLs. PM Narendra Modi on 5^th January 2015, announced theDomestic Efficient Lighting Programme (DELP), urging the people to use LED bulbs in place of tube lights, incandescent bulbs and CFL bulbs as they are more efficient, long-lasting and economical in their life cycle duration. LED bulbs have five times more life span compared to CFL bulbs. From the health point of view, LED bulbs emit lesser ultraviolet and infra-red radiation. This scheme provides LED bulbs at a subsidized rate for replacing CFL or traditional lamps to households.                 
3. HVAC System: Heating, Ventilation and Air Conditioning System. It is a technology in which indoor heating, ventilation and air conditioning facilities are provided in buildings and homes. For its operation, it uses basic principles of thermodynamics, heat transfer and fluid mechanics. There are three main components or modules of an HVAC system: i) Heating Unit ii) Ventilation Unit and iii) Air conditioning. Heating Unit uses some heater to provide sufficient temperature in a room. Ventilation Unit is a system that replaces air in room. The job of an Air conditioning unit is to provide adequate cooling in the room when required or set by the overall HVAC system. The U.S. Department of Energy is implementing this system.
4. Solar Technology: It is the technology used to draw the sun’s energy and make it useable. As of 2011, the technology produced less than one-tenth of 1% of global energy demand. Solar energy can be used effectively if more funding and innovation can be introduced for lowering its price. For this, International Solar Alliance (ISA), India, continuously tried to undertake the joint efforts required to reduce the cost of technology and cost of finance with shared ambition to mobilize more than 1000 billion US dollar of investment needed by 2030 for huge deployment of solar energy and make the way for future technologies adapted to the needs. Also, to scale-up the solar energy sector in the country acknowledging the specific and common hurdles that still becomes a problem to its development and increase.

Measuring the impacts of energy efficiency:

To calculate the impacts of energy efficiency, it is essential to determine a baseline which is to be used for measuring efficiency improvements. The baseline should also consider the “business as usual” type efficiency improvements, i.e., the improvements that are preferable to take place anyway without accepting any specific efficiency measures.

The energy value chain is a pattern of productive activities which begins with Exploration and Production (E&P) of the raw material, i.e. primary energy for the subsequent transportation, processing, distribution and use. The more developed the value chain, the higher the benefits can be achieved via the improvements in energy efficiency.^[[i]]

Impact of policy and new technologies in India:

At the basic level, studies regarding policy blend are concerned with a combination of policies into a composite set and with an analysis of how their interactions shape their effectiveness (Cunningham et al., 2013), although more refined conceptualizations of policy mix also include the dynamic processes through which different instruments emerge and interact (Flanagan et al., 2011; Rogge and Reichardt, 2015).^[[ii]]

India, at present, is the fourth largest consumer of energy in the world. With the present production rate in the country, it is estimated that the current recoverable reserves in oil, natural gas and coal will serve the country for 21 years, 36 years and 114ears respectively. In the current scenario, over 70% of India’s energy needs are being met by imports. The energy demand is expected to increase in the coming years, and it is estimated that India will become the 3rd largest energy consumer by 2020, after the US and China.^[[iii]]

The latest policies and institutions in place that promote Energy Efficiency in India:^[[iv]]

The Energy Conservation Act 2001: (key points)

• Minimum energy consumption standards for appliances and labelling of energy use.
• Prohibit manufacture, sale and import of equipment and appliances not conforming to standards.
• Identification of energy-intensive industries and other establishments to be notified as Designated Consumers (DC).
• Energy Efficiency improvement in unorganized sectors such as domestic and agriculture sectors.
• Energy audits by accredited energy auditors and implementing techno-economic viable recommendations.
• Amending of energy conservation building codes to suit local conditions
• Establishment of Central and State Energy Conservation Fund
• Energy-use inspection of DCs
• Enforcement of energy consumption norms

The Electricity Act 2003: (key points)

• The policy emphasizes higher efficiency levels of generating plants, stringent measures against electricity theft, energy conservation measures and boosting renewable and nonconventional energy sources.
• Demand Side Management was accorded high priority, periodic energy audits were made compulsory for power intensive industries, the emphasis was placed on labelling of appliances and high-efficiency pumps in agriculture, load management and the differential tariff was suggested, and Energy Service Companies (ESCOs) were to be encouraged (BEE has initiated the last three).

National Mission for Enhanced Energy Efficiency (NMEEE): (key points)

NMEEE aims to boost the programmes under the EC Act through four major initiatives:

• Perform, Achieve and Trade (PAT) scheme, designed as a market-based mechanism to enhance efficiency in DCs (energy intensive industries and facilities as specified by BEE) by setting goals, reducing energy intensity and allowing those who exceed goals to receive energy permits that can be traded with other Designated Consumers.
• Market Transformation on Energy Efficiency (MTEE), which considers remarkable variations in energy efficient appliances and machinery in designated sectors through innovative measures.
• Financing mechanisms to help finance Demand Side Management (DSM) programmes.
• We are enhancing of Energy Efficiency in power plants.

The Bureau of Energy Efficiency (BEE):

The BEE was formed, under the Ministry of Power, as a vehicle for deploying the recommendations of the EC Act. The BEE is also the legal entity for executing the initiatives under NMEEE and engages in public-private partnership in implementing various EE programmes under it. The EE policy endorsements through the Electricity Act 2003 and NMEEE, reinforces BEE’s role as the central agency for developing and establishing systems and procedures necessary for achieving India’s overarching energy efficiency goals

Policy framework:

The policy framework is the key to the success of energy efficient technologies in any country. Policies aimed at overall development and promotion of energy efficient technologies and their applications. Policy initiatives encourage the private sector to take part in energy efficient technology business as per the provision of fiscal and financial incentives for a wide range of energy efficient technologies programmes. Policies are mostly fiscal incentives, financial or sometimes special directives aimed to urge utilities to buy energy efficient technologies, promoter companies to set up energy-efficient technology projects, equipment companies to manufacture energy efficient technologies equipment or private and government entities to undertake R&D relating to energy-efficient technologies. In India, policy initiatives promote inland private investments with a provision of financial and fiscal incentives such as duty rebates, accelerated depreciation and tax holidays. And at the central level, policy measures are administered through the Ministry of Power GoI.

A favourable kind of policy framework for enthusiast players is the energy service companies, and ample incentive structures are the key factors. Policies for energy must be created at a transparency level to stimulate competition between options of energy supply and of demand-side energy efficiency that will give the same level of energy services. It’s not about the direct price, but the whole cost to the overall life cycle of an energy systems solution that is meant for profitable investment decisions. In the beginning, generally the investment costs of leading technologies are higher, the lifecycle cost including the running costs, like its maintenance cost, power generation cost and waste disposal, especially for consumer-friendly technologies are often less costly if compared to traditional technologies when it is used in an integrated manner. Therefore a supportive incentive structure should be created by the regulatory and policy framework, awareness among the people should be raised for lifecycle cost analysis and best practice projects, and innovations should be adopted so it can match the market standard.^[[v]]

The government of India has undertaken a two-pronged approach to cater to the energy demand of its citizens while ensuring minimum growth in CO₂ emissions so that the global emissions do not lead to irreversible damage to the earth system. On the one hand, in the generation side, The Government of India is favouring the use of renewable energies in the energy mix format for current situation needs basically via wind & solar energy and at the same time shifting towards demanding technologies for coal-based power plants. On the other hand, under the overall ambit of Energy Conservation Act 2001 efforts are being made continuously to efficiently use the energy in demand side via different innovative policy measures.^[[vi]]

If we talk about the energy efficient technologies promoted by the Government of India under the National Mission for Enhanced Energy Efficiency (NMEE):

• Bachat Lamp Yojana (BLY): Under the format of this scheme, following the Public-Private Partnership model comprising BEE, Distribution Companies (DISCOMs) and private investors to boost up the market transformation in energy efficient lighting. Under this program, 29 million incandescent bulbs have been replaced by CFLs. For the next phase of BLY, BEE will promote the use of LED bulbs/lights by using the institutional structure of BLY Programme. BEE also support to Rural Electrification Corporation (REC) for constructing technical specification, monitoring and verification of the energy savings by the LED bulbs distributed under RGVVY scheme to BPL households. It will also undertake outreach activities to advocate huge scale adoption of LEDs. (EE-Ministry of Power, GoI.)
• Super-Efficient Equipment Programme (SEEP): The other element under MTEE is a new programme called Super-Efficient Equipment Programme (SEEP). It is a program planned to bring accelerated market transformation for super-efficient appliances by providing financial stimulus innovatively at a critical point(s) of intervention. Under this program, the ceiling fan has been identifying as the first appliance to adopted. This (SEEP) for ceiling fans aims to jump to an efficiency level which will be approx. 50% more efficient than the market average by providing time-bound incentive to fan manufacturers to manufacture super-efficient fans and sell the same at a lower price. The aim is to support the introduction and deployment of super-efficient 35W ceiling fans, as against the current average ceiling fan sold in the Indian market with about 70W rating. (EE-Ministry of Power, GoI.)

Implementation of Energy Efficiency Projects: (key points)

1. The implementation of energy efficiency projects is impeded by the lack of a successful implementing agency that can be a leader for new business models required for energy efficiency projects. To develop a viable Energy Service Company (ESCO) industry, Ministry of Power has set up Energy Efficiency Services Limited (EESL), a Joint Venture of NTPC Limited, PFC, REC and POWERGRID to facilitate implementation of energy efficiency projects. EESL will work as ESCO, as Consultancy Organization for CDM, Energy Efficiency, etc.; as a Resource Centre for capacity building of SDAs, Utilities, financial institutions, etc. Major ongoing projects are undertaken by M/s EESL.
2. Energy Efficiency in Street Lighting.

• Energy Efficiency improvement projects in street lighting are being carried out by M/s EESL in 9 states replacing old inefficient street lights with energy efficient LED based street lights on the ESCO business model.

1. Energy Efficiency in water pumping.
2. Projects are being undertaken in 5 States (Maharashtra, Gujarat, Rajasthan, Punjab & Madhya Pradesh) and 9 States (Orissa, Madhya Pradesh, Maharashtra, Himachal Pradesh, Bihar, Chattisgarh, Punjab, Uttar Pradesh and Uttarakhand) or energy efficiency improvement of water pumps in Agriculture and Municipal sector respectively.
3. Promotion of Energy Efficient LED Bulbs.

• Domestic Efficient Lighting Scheme (DELP) proposes to overcome this first cost barrier to promote LEDs by using the basic architecture and best practices of BLY. DELP is designed to monetize the energy consumption reduction in the households’ sector and attract investments therein. It also evolves a robust business model that secures commercial investment. The scheme has already launched in UT Puducherry and is under consideration for other States.

Conclusion:

Energy efficient technologies are sometimes considered to be an easy solution for achieving immediate energy savings, but it is necessary that how much it will cost and how many people are going to adopt this energy saving mode because energy saving solutions are available today for most applications and users. Technological developments are offering and will offer in the future a range of technical solutions for improving energy efficiency, but there are hurdles: financial, organizational and behavioural which need to be approached in a holistic way including environmental concerns.

Though the technological developments, of course, deliver better opportunities in future the thing is that technology innovation also considers the low emission of carbon. The CO₂ emission in the environment is the biggest problem with an alarming intensity as decided in the Paris Agreement 2015 under UNFCCC  which aimed to reduce the emission of greenhouse gases that contribute to global warming. Therefore, the cost of technology developed through Transfer of Technologies (ToT), is dependent on its investment and manufacturing charges while the developing countries are the emerging market so all these factors will decide the rate of that equipment and acceptance of the technology by countrymen.

The aspirational goals for energy efficiency are heading beyond purely technical solutions and go much further in terms of financing, cost-effectiveness, innovation, acceptance, environmental impact assessment and social cost of impact, could be analyzed through long-run implications including low carbon footprint, decreased cost of energy on residential level and getting clean energy compared to conventional energy. So, improved city-wide respiratory healthy air could be obtained as a result of a decrease in pollution and increased understanding of energy efficient technologies & practices.

 Endnotes:

[i] (2013) World Energy Perspective Energy Efficiency Technologies: Overview Report  (London: World Energy Council) Retrieved from https://www.worldenergy.org/wp-content/uploads/2014/03/World-Energy-Perspectives-Energy-Efficiency-Technologies-Overview-report.pdf

[ii] (2016) Costantini, V. Crespi, Francesco, C. and Palma, A.. Characterizing the Policy Mix and Its Impact on Eco-Innovation in Energy Efficient Technologies. Working Paper. ISI Growth. Retrieved from http://www.isigrowth.eu/wp-content/uploads/2016/06/working_paper_2016_21.pdf

[iii] (2011) Vasudevan, R. Cherail, Dr K. Bhatia, Cdr. R. and Jayaram, N. Energy efficiency in India: History and Overview (New Delhi: Alliance For An Energy-Efficient Economy) Retrieved from  http://www.aeee.in/wp-content/uploads/2016/03/AEEE-EE-Book-Online-Version-.pdf

[iv] (2016) India’s State-Level Energy Efficiency Implementation Readiness,Retrieved from http://documents.worldbank.org/curated/en/949051488954519741/pdf/113212-WP-P147807-State-level-Energy-Efficiency-PUBLIC.pdf

[v] (2015) Kumar, V. Kumar, R. and Maithani, A. Energy Policy in India, IOSR Journal of Electrical and Electronics Engineering (IOSR-JEEE), 10 (1 Ver. III) 67-72. doi: 10.9790/1676-10136772 Retrieved from http://iosrjournals.org/iosr-jeee/Papers/Vol10-issue1/Version-3/I010136772.pdf

[vi] Ministry of Power, GoI. (Accessed on 18/03/19). Energy Efficiency. Retrieved from https://powermin.nic.in/en/content/energy-efficiency