The following is a brief introduction to the topic:
National Mission for Enhanced Energy Efficiency is a national mission under the National Action Plan on Climate Change, instituted by India’s government. Mission aims at fostering innovative energy-efficiency initiatives which can lead India towards a transition to a low carbon economy.
Objectives
- Energy consumption reduction across all sectors.
- Implement energy-saving measures and improve cost-efficiency.
- Encourage the collaboration of public and private sectors in order to optimise energy consumption.
- Promoting market-driven energy efficiency is a great way to increase savings.
Key Components
- The Perform, Achieve and Trade Scheme (PAT).
- Market Transformation for Efficiency in Energy (MTEE).
- Energy Efficiency Financing Platform
- Framework for Energy Efficiency Economic Development
The PAT Scheme is a mechanism built on the market that improves energy efficiency within large industries. The PAT scheme establishes specific targets to reduce energy consumption in industries and encourages the trading of certificates for energy efficiency (ESCerts).
Example: PAT Cycle I saw major industries, such as steel, cement and thermal plants participate, saving an estimated 8.67 million metric tonnes of oil-equivalent.
The MTEE component is responsible for encouraging the adoption of energy efficient products and technologies by launching market-intervention initiatives. Bachat Lamp Yojana is one of the notable programs under MTEE. It promotes Compact Fluorescent Lamps by distributing CFLs at subsidized prices to homes.
Example: BLY led to the production of more than 29 million CFLs. This has contributed to a significant decrease in electricity use and greenhouse gas emission.
The EEFP aims for mainstreaming of energy efficiency finance through the development of relationships between financial institutions, project developers and other stakeholders. This platform encourages development of innovative mechanisms and financial instruments to finance energy efficiency project.
Example: Collaboration with Small Industries Development Bank of India has helped numerous small- and medium-sized enterprises (SMEs), to secure funding for energy efficiency projects.
FEEED supports the research and development within the energy industry and encourages energy efficiency models. This component provides financial support to initiatives that show substantial energy savings as well as economic viability.
Example: This initiative has led to long-term gains in energy efficiency through investments made into smart grid projects, and the development of energy efficient building codes.
Implementation strategies
- Promoting energy-efficient technology through incentives and subsidies.
- Programmes of training and capacity building for all stakeholders involved in the energy industry.
- Enhancing the regulatory framework to encourage energy saving measures.
- Promoting public-private partnerships for the expansion of energy efficiency programmes.
- Auditing your energy usage to find and eliminate energy leakage.
Challenges
- Unawareness and lack of knowledge regarding energy efficient technologies.
- The initial costs of implementing energy saving measures are high.
- There are insufficient mechanisms to support small and mid-sized businesses (SMEs).
- Barriers to energy efficiency are largely a result of regulatory and policy obstacles.
- Existing operational processes can cause resistance to change.
Success Stories
The NMEEE in India has had several successes that demonstrate its impact.
- The PAT programme has resulted in substantial energy savings for key industries. It achieved an energy reduction of 8,67 million metric tonnes of oil-equivalent (Mtoe), in just the first cycle.
- Bachat Lamp Yojana, under the MTEE Component has helped reduce electricity consumption significantly by distributing more than 29 million CFLs.
- Collaborating with financial institutions through the EEFP program has helped unlock capital to improve energy efficiency for many SMEs.
- India is a world leader when it comes to sustainable energy development. Investments made in projects such as smart grids, and development of building codes that are energy-efficient under FEEED.
FAQs
1. What is the purpose of the National Mission for Enhanced Energy Efficiency?
NMEEE aims to increase energy efficiency in India’s various industrial sectors. It also aims to reduce India’s energy consumption and promote a market driven approach to energy saving.
2. What is a Perform, Achieve and Trade (PAT Scheme)?
The PAT Scheme is a mechanism based on the market that establishes specific targets to reduce energy consumption for energy-intensive large industries. Energy Saving Certificates are traded by industries who exceed their goals with other companies that don’t meet theirs.
3. What is the Bachat Lamp Yojana?
Bachat Lamp Yojana was a government program which promoted energy efficient Compact Fluorescent Lamps by providing them to homes at subsidised rates. It helped to reduce the amount of electricity consumed and greenhouse gases emitted.
4. What is the Energy Efficiency Financing Platform?
The EEFP aims facilitate the access to finance for energy-efficiency projects by fostering relations between financial institutions, project developers and other stakeholders. It promotes the development of innovative financial tools to help support energy-saving efforts.
5. What kind of projects will be funded under the Framework for Energy Efficiency Economic Development Framework (FEEED).
FEEED is a program that supports energy-efficient projects such as smart grids and building codes. This program provides funding for energy saving initiatives and projects with a strong economic impact.
6. What is the NMEEE’s role in helping small and mid-sized businesses (SMEs)?
NMEEE collaborates, via the EEFP with financial institutions such as SIDBI, to fund SMEs for energy efficient measures. The EEFP helps SMEs to overcome the financial barrier and implement energy-saving technology.
7. Name some of the key challenges that NMEEE faces.
The main challenges to energy efficiency include a lack of public awareness, the high costs upfront for implementation, the insufficient support provided to SMEs by financial institutions, as well as regulatory and political barriers.
8. What strategies does NMEEE use to promote energy efficient practices?
Energy audits are conducted to determine and eliminate waste.
9. What has been the impact of PAT so far on your business?
PAT has reduced energy consumption by a significant amount in several key industries. As an example, PAT’s first cycle achieved an energy reduction of 8.67 millions tonnes of oil-equivalent, showing its efficiency.
10. What are the climate goals of India?
NMEEE has been identified as one of NAPCC’s key missions. NMEEE’s efforts to promote energy efficiency, reduce energy consumption and mitigate climate change impacts directly support India’s objectives of reducing CO2 emissions and mitigating its effects.
