Energy eficiency schemes by BEE led to savings of Rs 54,770 crore: Parl Panel

Economic Times, March 24, 2020

The Parliamentary Standing Committee on Energy has said the energy efficiency schemes implemented by the Bureau of Energy Efficiency (BEE) over years have led to total savings of around Rs 54,770 crore even as its budgetary allocation was found to be insufficient over years.

The committee, chaired by Janta Dal (United) Member of Parliament Rajiv Ranjan Singh noted that the benefits derived from energy efficiency programmes in the country have been astonishing. “There has been a saving of 109.54 billion units which is 7 per cent of total electricity consumption of the country and has resulted in cost saving worth Rs. 54,770 crores,” the panel said in its report tabled earlier this month.

There was budgetary allocation of Rs 48 crore, Rs 63 crore and Rs 49 crore for 2015-16, 2016-17 and 2017-18, respectively. However, this allocation has been increased to Rs 100 crore since 2018-19 and the committee said there is a need to further enhance the budgetary provisions for BEE to intensify various energy efficiency programmes.

It added that due to energy efficiency programmes there has been a saving of 18.82 million tonnes of oil equivalent which is 2 per cent of total primary energy supply of the country. Also, a reduction in CO2 emissions of around 125.18 million tonnes has been reported, said the panel.

“Considering the benefits already derived and the mammoth potential which is yet to be realized, the committee believe that the budgetary allocation of the organization involved in energy efficiency and conservation has been insufficient,” said the parliamentary committee.

The implementation and enforcement of the provisions of the Energy Conservation Act in the states is to be carried out by State Designated Agencies. The Power Ministry has submitted to the panel that as of March, these agencies have been set up in 36 states and union territories of the country.

The committee said there are about 8 million MSMEs in India and majority of them have not been exposed to energy efficiency and technology up-gradation measures. Since they continue to depend on obsolete, low efficiency technologies that result in wasteful energy consumption, it reduces their profitability and competitiveness in the sector. The MSMEs sector accounts for about 33 per cent of India’s manufacturing output and around 28 per cent contribution to the Gross Domestic Production.

The schemes being implemented by BEE include Standards & labelling, strengthening institutional capacity of states, Demand Side Management and Energy Efficiency in Small and Medium Enterprises.

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