India is the third-largest energy consumer in the world after the USA and China. It also ranks highest in terms of the growth rate of energy consumption worldwide which is expected to grow the fastest among all global economies and account for 11% of global energy demand by 2040. This is where the role of energy efficiency is crucial in ensuring that the country reduces the emission intensity of its Gross Domestic Product (GDP).
This report by the Bureau of Energy Efficiency (BEE) aims to highlight and assess the impact of various energy efficiency measures taken in the year 2018-2019 in the country. India’s work in energy efficiency and reducing carbon dioxide emissions is being appreciated internationally. The Energy Intensity of India decreased from 65.5 toe (tonne of oil equivalent) per crore rupees in 2011-12 to 55.8 toe/Cr rupees in 2017-18. This decline is attributed to the service sector having a growing share of the economy and deploying energy-efficient programmes.
These energy-efficient programmes initiated by the BEE have led to a declining trend in the energy intensity of the country’s economy. The BEE also hired an expert agency to conduct a survey on the estimated energy consumption had the current energy efficiency measures not been undertaken. The objective of the survey was to assess the impact of all the energy efficiency schemes and programmes in India in terms of total energy saved and reduction in the amount of CO2 emissions in 2018-19.
The survey yielded the following results:
- The adoption of all the energy efficiency schemes/programmes in the country has led to the overall energy savings of 23.728 Mtoe for the 2018-19 fiscal year.
- It has also led to the overall thermal energy savings in the order of 12 Mtoe, with overall electricity savings of 136.374 BU (billion units).
- Since most of the schemes/programmes are essentially cross-sectoral in nature, they have collectively saved energy across all the demand sectors.
- The implementation of energy efficiency interventions has led to the reduction of 16.540 Mtoe in the demand side energy consumption, amounting to 2.84% of the energy demand (581.6 Mtoe).
- Similarly, energy savings at the supply side has been achieved in the order of 23.728 Mtoe. These energy savings amount to 2.69% of the total primary energy supply (879.23 Mtoe) during 2018-19.
- The Industrial sector has the highest contribution (49.7%) in total energy savings while the domestic sector contributed to 33.34% of the total savings. These savings translated into monetary savings of INR 89,122 crores and contributed to reducing 151.741 Million Tonnes of CO2 emissions.
The Way Forward
The energy demand in India is continuously increasing with its economic growth, rapid urbanisation, and rising income levels. But with this rise comes the threat of increased emissions. How the country initiates new and innovative policies to curb these emissions is the key to sustainable development. With this understanding, the BEE has developed a National Strategy Plan Titled Unlocking National Energy Efficiency Potential (UNNATEE). It states that the country’s saving potential is estimated to be 86.9 Mtoe in case of “moderate” implementation and 129 Mtoe in case of “ambitious” implementation of energy efficiency programs by 2031.
In the future, activities to operationalise the National Strategic Plan on Energy Efficiency will not only focus on available technology but will also include relatively new technologies like E-mobility, fuel cell vehicles (FCVs), integration of renewable energy and storage, net-zero buildings, district cooling, smart meters, blockchain technologies, etc.
Summarised from the report by BEE.