Nmee ppt

1. National Mission for
Enhanced Energy Efficiency
Submitted To :
Ms. Asha Pandey
Submitted By :
Praveen
M.Tech(AIR)
225/PAI/002
Gautam Buddha University

2. NATIONAL MISSION ON
ENHANCED ENERGY EFFICIENCY (NMEEE)
 The National Action Plan on Climate Change was
released by Honorable Prime Minister of India in
June 2008
 The Action Plan Outlines 8 Missions including
National Mission on Enhanced Energy Efficiency
(NMEEE)

3. Mission Goals
 Market-based approaches to unlock energy
efficiency opportunities, estimated to be
about Rs. 74,000 Crores
 By 2014-15:
• Annual fuel savings in excess of 23 million toe
• Cumulative avoided electricity capacity addition of
19,000 MW
• CO2 emission mitigation of 98 million tons per year

4. NMEEE – Four New Initiatives
Para 4.2 of the National Action Plan on Climate Change mandates:
 A market based mechanism to enhance cost effectiveness of
improvements in energy efficiency in energy-intensive large
industries and facilities, through certification of energy savings
that could be traded. (Perform Achieve and Trade)
 Accelerating the shift to energy efficient appliances in
designated sectors through innovative measures to make the
products more affordable. (Market Transformation for
Energy Efficiency)
 Creation of mechanisms that would help finance demand side
management programmes in all sectors by capturing future
energy savings. (Energy Efficiency Financing Platform)
 Developing fiscal instruments to promote energy efficiency
(Framework for Energy Efficient Economic Development)

5. Mission Document Preparation Process
 Broadbased steering committee, with representation
from various Ministries, CII, FICCI, NGOs, and academia
• Two working groups prepared detailed approach papers
• Consolidated approach paper put on BEE website for comments
• NGO (Prayas Energy) organized public discussion on approach
paper in Mumbai
• Comments taken into account by subcommittees while finalizing
mission document
• Working group reports synthesized into draft Mission Document
 Review by Ministries; discussion in PMO; Document
finalized after incorporating comments

6.  Specific Energy Consumption (SEC)
reduction targets for the 685 energy-
intensive units which are designated
consumers under the Energy Conservation
Act
• Targets would be % reduction of current SEC
• Percentage reduction requirement based on:
- Sectoral targets to achieve the national
goal
- Current SEC as a ratio of the best in the
sector / groups within a sector
- Unit specific diversities (Next Slide)
• Target setting for the power generation and
fertilizer sectors through the existing tariff-
setting processes
• SEC measurement and verification by BEE
through designated verifiers
Sector No. of Identified
DCs
Aluminum 11
Cement 92
Chlor-Alkali 21
Fertilizer 22
Pulp & Paper 70
Power 154
Iron & Steel 110
Textiles 197
Railways 8
Methodology:
(The market based mechanism through cost effectiveness approach
for improving energy efficiency in energy intensive sectors)
Perform, Achieve & Trade (PAT) Mechanism

7. The energy usage pattern varies widely in industries of a
particular sector due to various diversities like
-Scale of Production (Installed Capacities)
-Use of Raw Material
- Process Technology
- Vintage of Technology
- O & M Practices
- Type of Product Output etc.
PAT : Large Energy Usage Bandwidth
Factors of Diversity Most Affected Sectors
a) Raw Material Input Pulp & Paper, Fertilizer, Power Plant, Textile
a) Quality of Raw Material / Fuel All sectors
a) Process & Technology Aluminium, Iron & steel, Chlor-Alkali, Paper
a) Final Product output Textile, Iron & Steel, Aluminium
a) Vintage All Sectors
a) Capacity Utililization All sectors

8. Approach for Setting Targets Depends upon the
Objective of the Scheme
 Total Saving Objective = 10 mMTOE
SN Sector
Energy
Consumption
Share of
Consumption
Apportioned
Energy
reduction
No. of
identified DCs
Reduction Target as a
% of Total Energy
Consumption
(mMTOE) (%) (mMTOE) (%)
1 Power (Thermal) 160.30 66.64% 6.66 154 4.15
2 Iron & Steel 36.08 15.00% 1.50 110 4.16
3 Cement 14.47 6.02% 0.60 92 4.15
4 Fertilizers 11.95 4.97% 0.50 22 4.18
5 Railways (Approximated) 9.00 3.74% 0.37 8 4.11
6 Textile (Approximated) 4.50 1.87% 0.19 197 4.22
7 Aluminium 2.42 1.01% 0.10 11 4.13
8 Paper & pulp 1.38 0.57% 0.06 70 4.13
9 Chlor-Alkali 0.43 0.18% 0.02 21 4.19
Total 240.53 100.00% 10.00 685 4.16
About 60% of total energy consumption of India

9.  Not feasible to define a single norm/standard unless
there is significant homogeneity amongst units in a
sector
 Energy efficiency improvement targets would have to
be almost “unit specific”
 Bands of differential targets to be created within
each sector
 Each DC mandated to reduce its SEC by a fixed
percentage, based on its current SEC within the
sectoral bandwidth
PAT - Setting Energy Consumption
Norms

10. PAT - Energy Savings Certificates will
incentivize actions
 Energy Savings Certificates (ESCerts) issued to units where
energy-efficiency improvements is in excess of targets
 EScerts can be traded and used for compliance purposes
 Trading can be carried out bilaterally or on special platforms
created on the power exchanges
 ESCerts will be maintained in the DEMAT form and each
ESCert will be equivalent to 1 Metric Tonne of Oil Equivalent
(MTOE)

11. PAT – Stakeholders for Energy Savings
Certificates
 The regulator in consultation with all the participants, agencies
and central government is the body responsible for promotion
of the ESCerts market mechanism
 The key agencies/ stakeholders in the trading mechanism for
ESCerts will include
• Scheme regulator and administrator
• Central Registry
• Designated Energy Auditors
• State Designated Agencies
• Designated Consumers
• Power Exchanges
 PAT mechanism would require amendments to the Energy
Conservation Act
• Designated consumers to be able to show compliance through
procurement of ESCerts
• Financial penalty for non compliance to be linked to quantum of non
compliance

12. PAT – current status
 Historical data of last five years on production and
energy consumption by various energy sources are
being collected from 685 DCs
 Baseline SEC of each DC will be established by December
2010
 The studies for fixing of targets in all 9 industrial sectors
are underway and will be completed by March 2011
 Baseline Energy Audit of each DC initiated
 The protocols for trading, monitoring and verification will
be set up by March 2011
 Amendments to EC Act passed by both houses of
Parliment

13. Market Transformation for Energy
Efficiency (MTEE)
 Leveraging international funds for promoting energy
efficiency
• Project preparation to utilise bi-lateral/multilateral funds for
energy efficiency
 Implementing a National Energy-Efficiency CDM Roadmap
• Public sector leadership and involvement for aggregation of
projects
• Programmes of Activity for Household lighting, Municipal DSM
(Mu DSM), Agriculture DSM (Ag DSM), SME sector,
Commercial Buildings sector and Distribution Transformers.
• Preparation of new CDM Methodologies

14. MTEEE – current status
 The Programme of Activities (PoA) to leverage CDM for
agriculture and municipal sectors under development
 The Bachat Lamp Yojana registered at UNFCCC on the 29th
April 2010. Two Crore CFL’s have already been distributed
and 13 TPA’s have been signed between BEE investors and
DISCOMs
 CDM Road map is under development and to be issued
shortly
 New Program – Super efficient equipment programme

15. Energy Efficiency Financing Platform
(EEFP)
 Ensuring availability of finance at reasonable rates for
energy efficiency project implementation- Expansion of EEFP
to include other FIs and public and private sector banks
 Create demand for energy efficiency products, goods and
services- awareness, public policy, facilitation/ stimulation by
preparation of bankable projects and markets
 Promotion of ESCOs – accreditation by CRISIL/ ICRA
 Credible monitoring and verification protocols to capture
energy savings
 Capacity building of banks and FIs

16. EEFP – current status
 Energy Efficiency Services Ltd. (EESL) has been created as
a corporate entity to provide market leadership
 70 ESCOs have been rated
 Investment-grade energy audits being prepared for
government buildings, municipalities, and SMEs
 PTC India Ltd has commenced financing of ESCO based
projects at Rashtrapati Bhavan, ESIC hospitals, AIIMS, and
municipalities
 SIDBI has initiated exercise for financing projects in SMEs

17. Framework for Energy-Efficient Economic
Development (FEED)
 Providing comfort to lenders by provision of
• Risk guarantee for performance contract Partial Risk Guarantee
Fund (PRGF)
• Venture Capital Fund for Energy Efficiency (VCFEE)
• Initial seed capital from Government budget-can be expanded
by contributions from other agencies as well.
• Fund can be managed by the financial intermediaries
 Incentives to Central Public Sector Undertakings (CPSUs) to
take up energy efficiency
• Policy guidance to CPSUs to take up energy efficiency project-
special parameter (to be called Energy Efficiency Performance
Index (EEPI) on the line of KPI) may be added to the MoU
guidelines from 2010-11
• Promoting Energy Efficient Public Procurement

18. Framework for Energy-Efficient Economic
Development (FEED) (2)
 Support and Assistance to Electricity Regulatory Commissions
for stimulating Utility driven Demand Side Management (DSM)
• Develop a mechanism to incentivise utilities for DSM including
Time of Day tariffs, load management directives, etc.
• Develop guidelines for evaluating DSM options and integrating
DSM options with supply side options.
• DSM plan, design, preparation, period, load research, consumer
surveys, cost-benefit assessment, technology assessments, etc.
• Evolve suitable monitoring and verification protocols for DSM
programmes.
 Tax/ Duty Exemptions for Promotion of Energy Efficiency
• Graded excise duty for STAR labelled equipments in favour of
higher efficiencies
• Income and Corporate tax incentives for ESCOs/ Venture Capital
funds, etc. in energy efficiency
• Providing infrastructure status to ESCO business

19. FEED – current status
 Guidelines for procurement of energy efficient
appliances and services by public authorities under
consideration of Government
 To enhance energy efficiency measures at utility level,
BEE is working with the DSM Working Group of the
Forum of Regulators (FOR) to overcome regulatory
barriers and enable utilities to undertake DSM. Draft
report has been prepared and is to be discussed by
FOR

20. Overall investment in NMEEE and the
Expected Impact
S.No Initiative Investment
Estimated
(Rs. crores)
Fuel Saving
(Million tons
of oil
equivalent)
GHG
Emissions
saving
(million
tons)
Avoided
Capacity
(MW)
1 PAT 30,603 9.78 26.21 5623
2 DSM 44,000 13.22 72.75 14335
Total 74,603 23.00 98.96 19,958

21. Thankyou