India’s Energy Efficiency Initiatives Help Save Over ₹891 Billion in 2018-19: BEE Report

During the year, electricity savings amounted to 113.16 billion units


The implementation of several energy efficiency programs in India has led to electricity savings to the tune of 113.16 Billion Units (BUs) in 2018-19, which was 9.39% of the net electricity consumption (1,204 BUs), according to the Bureau of Energy Efficiency’s (BEE) recently released report.

BEE conducts an annual study comparing the actual energy consumption in a particular year with the estimated energy consumption in a case where the current energy efficiency measures had not been undertaken. The overall objective of this study is to assess the impact of all the energy programs in India in terms of total energy saved and reduction in the amount of carbon emissions in 2018-19. This assignment has taken energy efficiency estimation based on the impact of the programs implemented since FY 2015-16.

Union Power Minister R.K.Singh released the report through a video conference.

The report states that the total energy savings achieved in 2018-19 stood at 23.73 Mtoe (million tons of oil equivalent), which is 2.69% of the total primary energy supply, which was estimated to be 879.23 Mtoe during 2018-19. This includes both supply and demand-side sectors of the economy.

Summary of Energy Savings

Singh said, “We have pledged in Conference of the Parties (COP-21) that we will bring down energy intensity of the economy by 33% to 35% compared to 2005 levels by 2030. Now, with our energy efficiency initiatives, we have already reduced the energy intensity of our economy by 20% compared to 2005 levels, which is a very good performance indeed.”

The COP refers to those countries that have signed the 1992 United Nations Framework Convention on Climate Change. India was the 62nd country to ratify the Paris Agreement during the COP-21 conference held in Paris in 2016.

The minister also pointed out that energy efficiency has a dual benefit as it not only saves money but also saves the environment. He said that there is a huge capacity for bringing

efficiency, especially in Micro Small and Medium Enterprise (MSME) and housing sectors, that have now been taken up.

Overall, the study concluded that various energy efficiency measures have translated into monetary savings of ₹891.2 billion (~$~$11.9 billion) against the savings in 2017-18, which stood at ₹536.2 billion (~$7.1 billion).

The industrial sector contributed to 49.17% of the total energy savings, while the domestic sector accounted for 33.34% of the total savings achieved during FY 18-19.

“These efforts have also contributed to reducing 151.74 million tons of CO2 emissions, whereas last year this number was 108 MTCO2,” states the report.

Governments across the world, including India, are gradually shifting towards renewable energy integration into the grid and systems approach on engendering energy efficiency practices in various sectors.

The report also mentioned that the United Nations Industrial Development Organization, in collaboration with BEE, is executing a global environment facility funded national project to promote energy efficiency and renewable energy in selected MSME clusters in India.

The BEE report also mentioned that similar programs are spanning across major energy-consuming sectors in India, such as industry, commercial, residential, transport, agriculture, and municipal.

Energy consumption across all the sectors of the economy has increased in the past few years. With the growing economy & rapid urbanization, it is expected to increase further in the coming years.

In January 2020, the Ministry of Power announced the release of its ‘State Energy Efficiency Index 2019’ report, which keeps tabs on the progress made by the Indian states and union territories regarding energy efficiency (EE) initiatives. The report covers energy efficiency initiates in 36 states and union territories (UT) based on 97 indicators. The index was developed by the Bureau of Energy Efficiency (BEE) and the Alliance for an Energy-Efficient Economy (AEEE). The index is created to help states and UTs contribute towards national goals on energy security and climate action by driving energy efficiency policies and program implementation at a state and local level, according to the MoP. The latest report showed that most initiatives taken by states and UTs were policy or regulation based. Read the details of the report here.

In August last year, Mercom had reported that about the State Energy Efficiency Preparedness Index that aimed to assess state policies and programs aimed at improving energy efficiency across various sectors. Based on 63 indicators, the ‘Front Runner’ states in the inaugural edition of the Index were Andhra Pradesh, Kerala, Maharashtra, Punjab, and Rajasthan.