Coming, Energy-efficiency norms for industry

NEW DELHI: India is quietly raising its stake in the global green game, even as leaders haggle over global warming in Copenhagen. The government is expected to clear on Thursday a proposal to put in place a market-based mechanism to force industry and commercial establishment to improve energy use, a move that will automatically lower emissions and narrow the power supply gap.

The proposal is to introduce tradebale ‘Energy Savings Certificates’ for energy-intensive industries such as steel plants and other major commercial consumers like hotels, malls and theatres etc.

Before the certificates come about, the government will prescribe how much energy an industry can use for each unit of production — say, a tonne of steel, manufacture a car or refrigerator.

Energy consumption will be measured in ‘units’ in terms of MTOE (per metric tonne of oil equivalent). Those who meet the norm — or consume even less energy than is prescribed — will earn the certificates in proportion to the saving. Those who fail, will have to buy such certificates in proportion to the excess power or energy they consume.

‘‘ This will lead to a revolution and transform the manner in which we use energy, particularly electricity. India wastes 20% of energy, particularly electricity, due to inefficient usage. About half of this can be saved through rightful ways of electricity use in the next few years. That means availability of 10% more power at no extra cost and will automatically lead to an enormous reduction in emissions,’’ said R V Shahi, former power secretary who had drawn the blueprint for star rating for electrical appliances.

The amendments also suggest bringing existing commercial buildings such as office complexes or hotels and malls etc within the ambit of energy efficiency norms. Any existing building with a consumption of 500 kw (kilowatt) or a contract for supply of 600 kva (kilo volt ampere) will be included for energy rating.

So far, the rating norms applied to only new buildings. The amendment will also give the government powers to ban manufacturing or import of equipment and appliances that do not meet energy efficiency norms. The proposals have been suggested by the Bureau of Energy Efficiency under the ministry as part of amendments to the Energy Efficiency Act of 2001.

The amendments have become necessary to start the PAT (Perform, Achieve and Trade) scheme for industry suggested in the National Mission for Enhanced Energy Efficiency.
Coming, energy-efficiency norms for industry