With the global debate on climate change heating up and nations working out strategies to cut their carbon footprints, energy efficiency has gained a renewed focus in economies across the world. The bilateral co-operation between India and the US in the field of energy-saving technologies, thus, would go a long way in securing energy needs of both the countries, says Tom Cutler, acting director in the Office of European and Asian Affairs, US Department of Energy, in an exclusive interview with Sudheer Pal Singh. Edited excerpts
What is the overall strategy of the co-operation in the energy efficiency sector under the Indo-US Energy Dialogue?
The US Department of Energy (DoE) and the US Agency for International Development (USAID) in particular have been working very closely with various Indian entities, including the power ministry’s Bureau of Energy Efficiency (BEE) and business organisations, such as the Confederation of Indian Industries (CII). The co-operation includes improving the efficiency in Indian buildings and industrial processes, including the adoption of new technologies, energy efficiency assessment and performance evaluation techniques and codes and standards. To achieve maximum effectiveness, these standards and codes have to be implemented and enforced.
Also, the US government, under the India-US Energy Dialogue, is providing a lot of technical assistance in capacity building, including improving the efficiency of coal-fired power generation through our work with NTPC. In fact, under the joint DoE-USAID Greenhouse Gas Pollution Prevention, more than 90 million tonnes of CO2 emissions have been avoided through improved coal combustion techniques. So, when we are talking about efficiency, it is not only in the production of energy but in its delivery and consumption as well. And all these forms of efficiency can improve India’s energy security, economic competitiveness and improve the environment by reducing greenhouse gas emissions for a cleaner energy future.
Do you think the current policy structure in India is conducive for the growth of bilateral trade in the energy efficiency sector?
I applaud the Indian government for the initiatives it has taken and we encourage its continued efforts. We know that, under the climate action plan, there is a mission on energy efficiency. We are trying to build partnerships between the US and India in terms of business opportunities and in terms of joint research and development. I am very optimistic that we will produce breakthroughs that will help India build a more efficient energy economy.
How does this compare with the regulatory regime in the US for energy efficient products and services?
The Obama administration has made energy efficiency an important part of its clean energy agenda and we see the Indian government doing the same. We also see synergies between the entrepreneurial spirit and the technological expertise in the two countries. We feel that if we can partner together, a lot more can be achieved. I believe the large attendance at the energy efficiency conference under our US-India Energy Dialogue and the presence of 16 US energy efficiency firms from the Department of Commerce’s Energy Efficiency Trade Mission demonstrates the interest in American energy efficiency products and services.
What are the major areas of co-operation that emerge for the consideration of the trade mission under the bilateral energy dialogue?
Right now, we are focusing on energy efficiency of buildings, industrial energy efficiency and smart grids. But there are other areas too. We have other programmes under our energy dialogue, like clean coal technology that help improve the efficiency of coal-fired power generation. Another key area that USAID is working on is improving efficiencies in the distribution of electricity in India’s power grid.
What is the driving force for US companies to seek business opportunities in the Indian market in this area?
I think they see that there is a vast market in India for energy efficiency and energy service companies (Escos). But you have to have a proper policy framework and an enabling environment for these companies to flourish. We have 16 companies here and they would not be here if they did not see opportunities to do good business. Many more US firms are seeking business opportunities in India. We feel that by combining the trade mission with this energy efficiency conference, we can reach a critical mass and promote more Indo-US business ventures together. That may improve commercial opportunities for energy efficiency not only in India, but in the US too.
In how much time do you see overall environment of the energy efficiency market in India becoming as flexible as what the US has currently?
That is a difficult question to answer... I must say that I understand the social priorities for Indian policy. But the adoption of market pricing as much as possible will also be an important factor in improving the efficiency in Indian energy consumption.
