If you think energy efficiency initiatives are basically fringe play, here is some interesting data. Efficiency measures were responsible for 1,500 Mw of “avoided generation” last year, worth an estimated Rs 6,000 crore of capital investment. This was more than double the avoided generation in the previous year. The avoided generation targeted in the 11th plan is 10,000 Mw — the capacity of two-and-a half ultra mega power plants. There is also a plan to introduce tradeable energy saving certificates under the national action plan on climate change. The country is very serious about energy efficiency, Ajay Mathur, director general at the Bureau of Energy Efficiency (BEE) tells Vandana Gombar in an interview. Excerpts:
Are we really serious about energy efficiency as a country?
We are one of the most energy efficient countries in the world. The energy used per unit of GDP is lower than even that in the US, according to the International Energy Agency.
Low energy intensity could be a reflection of the country’s economic structure, where services dominate, rather than energy-guzzling manufacturing industry.
The country’s economic structure certainly matters – but the fact is that our energy use per dollar of GDP is lower. And our energy intensity has been declining steadily, at about 1.5% per year. This is because India has been serious about the efficient use of energy for a long time. The whole tax structure after the oil price shock of the 1970s was aimed at creating a culture of efficiency and conservation. We have the highest energy prices in the world.
If we are so serious, why were there were no fiscal incentives for promoting it in this year’s budget, though the finance minister remembered to exempt branded jewellery from excise duty?
Presence or absence of fiscal incentive is not a good enough indication of seriousness of energy efficiency. I am a fiscal conservative. I don’t believe in subsidies for energy efficiency. If I am energy efficient, my bills reduce…that is an incentive in itself.
Perhaps the reason buyers are willing to pay more for more energy efficient appliances.
That is true. Our energy efficiency labelling programme has been very successful. 75 per cent of the refrigerators sold last year were labelled, as were 50 per cent of the air-conditioners. The programme doesn’t really need a push. It is moving on its own momentum, as manufacturers realise people are willing to pay more for labelled products. This is clearly demand-driven.
If the labelling programme is demand-riven, why are you now making it mandatory for some products?
We have established that there is a clear demand for product labelling. Regulation is to ensure 100 per cent transformation for products like frost-free refrigerators, room air conditioners and distribution transformers. We also plan to introduce labelling for washing machines, computers, set top boxes, mobile charges, diesel pumpsets, diesel generators, gas-based geysers and even automobiles.
One of the eight national missions under the National Action Plan on Climate Change is on energy efficiency. What is the big idea in the national mission?
There is a market for energy savings and it needs to be developed. There is probably no industrial or commercial venture which does not have the opportunity for investment in energy efficiency. We are proposing the introducing of energy saving certificates, which can be traded.
What is the progress on green buildings? Shouldn't the energy-efficient building code be made mandatory?
Mandating has to be done by the states and municipalities. The states of Gujarat, Delhi, Haryana and Uttarakhand are progressing well on this path and would be among the first to make it mandatory.
The target of the Bureau of Energy Efficiency is to take avoided capacity up to 10,000 mw in the current five-year plan (ending 2012). Which are the new areas you propose to tap these savings from?
We have just taken the first steps. There are huge energy savings possible in various areas, from street lighting at one end, to water pumping on the other.
