Establishment of Bureau of Energy Efficiency

Under the provisions of the Act, Bureau of Energy Efficiency has been established with effect from 1 st
March, 2002 by merging the erstwhile Energy Management Centre, a society under the Ministry of
Power. The Bureau would be responsible for spearheading the improvement of energy efficiency of the
economy through various regulatory and promotional instruments.

The mission of the Bureau of Energy Efficiency is to develop policy and strategies with a thrust on self-
regulation and market principles, within the overall framework of the Energy Conservation Act, 2001
with the primary objective of reducing energy intensity of the Indian economy. This will be achieved with
active participation of all stake holders, resulting in accelerated and sustained adoption of energy
efficiency in all sectors of the economy.

The primary objective of BEE is to reduce energy intensity in the Indian economy through adoption of
result oriented approach. The broad objectives of the BEE are:

1
  to assume leadership and provide policy framework and direction to national energy efficiency
and conservation efforts and programmes;
 to coordinate policies and programmes on efficient use of energy and its conservation with the
involvement of stakeholders;
 to establish systems and procedures to measure, monitor and verify energy efficiency results in
individual sectors as well as at national level;
 to leverage multi-lateral, bi-lateral and private sector support in implementation of the Energy
Conservation Act and programmes for efficient use of energy and its conservation;
 to demonstrate energy efficiency delivery mechanisms, through private-public partnership,
 to plan, manage and implement energy conservation programmes as envisaged in the Energy
Conservation Act.

The Director-General is the chief executive officer of the Bureau of Energy Efficiency. The general
superintendence, direction and management of the affairs of BEE is vested in the Governing Council
having up to 26 members. The Governing Council is headed by Union Minister of Power and consists of
Secretaries of various line Ministries, heads of various technical agencies under the Ministries, members
representing industry, equipment and appliance manufacturers, architects, and consumers, and members
from each of the five power regions representing the states of the region. The Director – General of the
Bureau is the ex-officio member-secretary of the Governing Council.

BEE has been given a corpus fund of Rs. 50 Crore for setting up of the Central Energy Conservation
Fund for meeting the expenses relating to the salaries, allowances and other remuneration of the officers
and employees of the Bureau and to meet the expenses of the Bureau in discharge of its functions as well
as on objects and for purposes authorized by the Act. It has also been authorised to collect appropriate
fees in discharge of functions assigned to it and raise funds from other sources. Bee may become self-
sufficient in a period of 5-7 years.

Functions of BEE

The functions of BEE can be classified as regulatory functions being recommendatory body to the Central
Government in implementing the provisions of the Energy Conservation Act and facilitation, market
development and market transformation functions such as:

 arrange and organize training of personnel and specialists in the techniques for efficient use of
energy and its conservation;
 develop testing and certification procedures and promote testing facilities;
 strengthen consultancy services;
 create awareness and disseminate information;
 promote research and development;
 formulate and facilitate implementation of pilot projects and demonstration projects;
 promote use of energy efficient processes, equipment, devices and systems;
 take steps to encourage preferential treatment for use of energy efficient equipment or appliances;
 promote innovative financing of energy efficiency projects;
 give financial assistance to institutions for promoting efficient use of energy and its conservation;
 prepare educational curriculum on efficient use of energy and its conservation and
 implement international co-operation programmes relating to efficient use of energy and its
conservation.

Action plan of BEE

During the three year period 4/2004 – 3/2007 BEE shall primarily focus on 9 thrust areas. In addition, it
shall also attend to ongoing programmes and such other programmes as are considered essential for
promoting the objectives of the Act. In the following sections, the background, legislative mandate,

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approach, role of BEE for 8 thrust areas are described. Furthermore three-year target indicators as well as
monitoring indicators have been set. Monitoring indicators were used in cases where BEE has little
control over compliance or in cases of difficulties to quantify a target.

ENERGY CONSERVATION ACT 2001 •Enacted on 1st October 2001. •Become effective from 1st
March 2002. •Objective of providing necessary legal framework for promoting energy conservation
measures in the country. •Bureau of Energy Efficiency(BEE) operationalized from 1st March2002.
PURPOSE OF THE EC-ACT 2001 • The purpose of this act is to provide for efficient use of energy
and its conservation. • Provide a policy framework and direction to national energy conservation
activities. • Coordinate policies and programs on efficient use of energy with stakeholders. • Establish
systems and procedures to verify measure and monitor EE improvements. • Leverage multilateral,
bilateral and private sector support to implement the EC Act. • Demonstrate EE delivery systems through
public-private partnerships. • TO PROMOTE ENERGY EFFICIENCY IN THE COUNTRY .

 IMPORTANT FEATURES OF ENERGY CONSERVATION ACT2001 •Energy Conservation

Building Code (ECBC) •Standards & Labeling (S & L) •Demand Side Management (DSM) •Bachat
Lamp Yojana (BLY). •Promoting Energy Efficiency in Small & Medium Enterprise (SMEs). •Designated
Consumers . 4 •Certification of Energy Managers & Energy Auditors.

 . STANDARDS & LABELING Evolve minimum energy consumption and performance standards for
notified equipment & appliances. Prohibit manufacture and sale Of equipment & appliances not
conforming to standards. Introduce mandatory labeling to Enable consumers to make informed choice.
 . DESIGNATED CONSUMER Designated Consumers to : •Get energy audit by Accredited energy
audit firms and energy audit conducted by an accredited energy auditor. •Implement cost effective
recommendations •Appoint or designate energy manager •Comply with energy consumption norms By
regulations BEE to prescribe: •Qualification and certification procedure for Energy Manager & Energy
Auditors. •Accreditation procedure for Energy Audit firms

3. ENERGY CONSERVATION BUILDING CODES BEE to prepare guidelines on ECBC . To provide

minimum requirements for the energy efficient design and construction of buildings. Mandatory for

3
commercial buildings having connected load of >=500KW or contract demand of >=600 KVA. Also
applicable for airconditioned area of >=1000 sq.mt. Including existing bldgs .

. ENERGY COSERVATION FUND To set up Energy Conservation Fund for providing : Promotion of
Energy Service Companies. Research & Development Demonstration. Creation of testing facilities
Awareness Creation.
 . BUREAU OF ENERGY EFFICIENCY Important Roles include: Implementation of provisions of 
Energy Conservation Act. Quick coordination. Policy research. Promotion of Energy Efficiency.
Development of new financial instruments. Development of ESCOs. The primary objective would be
to reduce energy intensity in Indian Economy. Awareness Creation.
 . ROLE OF BUREAU OF ENERGY EFFICIENCY •The Role of BEE WOULD be to prepare
standards and labels of appliances and equipment, develop a list of designated consumer, specify
certification and accreditation procedure, preparing building codes, maintain central EC fund, and
undertake promotional activities in co-ordination with central and state level agency. •The role would
include development of ESCOs. Transforming the market for energy efficiency and create awareness
through measure including clearing house.
 ROLE OF CENTRAL AND STATE GOVERNMENT •CENTRAL – to notify rules and regulation
under various provisions of the ACT , provide initial financial assistance to BEE and EC fund ,
Coordinate with various State Government for notification ,penalties and adjudication. •STATE – to
amend energy conservation building codes to suit the regional and local climatic condition, to designete
state level agency to coordinate , regulate and enforce provisions of the ACT and constitute a state Energy
Conservation Fund for promotion of energy efficiency.

 BACHAT LAMP YOJNA (CDM BASED LIGHTING PROJECT FOR HOUSE HOLD) • First pilot
project registered by UNFCCC in September 2008 . (National Roll out to be take place shortly) •
Targeted 400 Millions incandescent Lamps and its replacement to CFLs at the price of incandescent bulbs
to avoid 4000 MW Capacity Addition. • The difference in cost would be recovered through the carbon
credits CERs that accrue because of their lower energy use. 13
 PENALTIES Non-Compliance by a Person: • Amount Not Exceeding Rs.10,00,000/-For Each
Offence. • On Continuous Non – Compliance An Additional Penalty Up to Rs.10000/- Per Day. • The
initial phase of 5 years would be promotional and creating infrastructure for implementation of ACT. No
penalties would be effective during this phase.

Salient features of the Energy Conservation Act 2001

The Act empowers the Central Government and, in some instances, State Governments to:

 specify energy consumption standards for notified equipment and appliances;

 direct mandatory display of label on notified equipment and appliances;
 prohibit manufacture, sale, purchase and import of notified equipment and appliances not
conforming to energy consumption standards;
 notify energy intensive industries, other establishments, and commercial buildings as designated
consumers;
 establish and prescribe energy consumption norms and standards for designated consumers;
 prescribe energy conservation building codes for efficient use of energy and its conservation in
new commercial buildings having a connected load of 500 kW or a contract demand of 600 kVA
and above;
 direct designated consumers to:-

1. designate or appoint certified energy manager in charge of activities for efficient use of energy
and its conservation;

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 2. get an energy audit conducted by an accredited energy auditor in the specified manner and
interval of time;
3. furnish information with regard to energy consumed and action taken on the recommendation of
the accredited energy auditor to the designed agency;
4. comply with energy consumption norms and standards;
5. prepare and implement schemes for efficient use of energy and its conservation if the prescribed
energy consumption norms and standards are not fulfilled;

 get energy audit of the building conducted by an accredited energy auditor in this specified
manner and intervals of time;

State Governments may –

1. amend the energy conservation building codes prepared by the Central Government to suit
regional and local climatic conditions;
2. direct every owners or occupier of a new commercial building or building complex being a
designated consumer to comply with the provisions of energy conservation building codes;
3. direct, if considered necessary for efficient use of energy and its conservation, any designated
consumer to get energy audit conducted by an accredited energy auditor in such manner and at
such intervals of time as may be specified;

The Rio Declaration on Environment and Development

The 1992 Rio Declaration on Environment and Development defines the rights of the people to be
involved in the development of their economies, and the responsibilities of human beings to safeguard the
common environment. The declaration builds upon the basic ideas concerning the attitudes of individuals
and nations towards the environment and development, first identified at the United Nations Conference
on the Human Environment (1972).

The Rio Declaration states that long term economic progress is only ensured if it is linked with the
protection of the environment. If this is to be achieved, then nations must establish a new global
partnership involving governments, their people and the key sectors of society. Together human society
must assemble international agreements that protect the global environment with responsible
development.

There are a number of principles to the Rio Declaration.

 People are entitled to a healthy and productive life in harmony with nature.
 Development today must not threaten the needs of present and future generations.
 Nations have the right to exploit their own resources, but without causing environmental damage
beyond their borders.
 Environmental protection shall constitute an integral part of the development process.
 Eradicating poverty and reducing disparities in living standards in different parts of the world are
essential if we are to achieve sustainable development whilst meeting the needs of the majority of
the people.
 Environmental issues are best handled with the participation of all concerned citizens.
 The polluter should, in principle, bear the cost of pollution.
 Sustainable development requires better scientific understanding of the problems. Nations should
share knowledge and technologies to achieve the goal of sustainability.

5
The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and
per capita income indicators, which are used to rank countries into four tiers of human development. A
country scores a higher HDI when the lifespan is higher, the education level is higher, and the GDP per
capita is higher. It was developed by Indian Nobel prize winner Amartya Sen and Pakistani economist
Mahbub ul Haq, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London
School of Economics, and was further used to measure the country's development by the United Nations
Development Program (UNDP).

The System of Environmental-Economic Accounting (SEEA) is a framework that integrates economic

and environmental data to provide a more comprehensive and multipurpose view of the interrelationships
between the economy and the environment and the stocks and changes in stocks of environmental assets,
as they bring benefits to humanity. It contains the internationally agreed standard concepts, definitions,
classifications, accounting rules and tables for producing internationally comparable statistics and
accounts. The SEEA framework follows a similar accounting structure as the System of National
Accounts (SNA). The framework uses concepts, definitions and classifications consistent with the SNA in
order to facilitate the integration of environmental and economic statistics. The SEEA is a multi-purpose
system that generates a wide range of statistics, accounts and indicators with many different potential
analytical applications. It is a flexible system that can be adapted to countries' priorities and policy needs
while at the same time providing a common framework, concepts, terms and definitions.

What is 'Environmental, Social and Governance (ESG) Criteria'

Environmental, Social and Governance (ESG) Criteria is a set of standards for a company’s operations
that socially conscious investors use to screen potential investments. Environmental criteria look at how a
company performs as a steward of the natural environment. Social criteria examine how a company
manages relationships with its employees, suppliers, customers and the communities where it operates.
Governance deals with a company’s leadership, executive pay, audits, internal controls and shareholder
rights. Environmental, social and corporate governance (ESG) criteria refer to three main factors investors
consider with regards to a firm's ethical impact and sustainable practices. The criteria are used in ESG
investing, also sometimes referred to as sustainable, responsible and impact investing or socially
responsible investing. Examples of ESG criteria used by investors include determining a company's
impact on climate change or carbon emissions, water use or conservation efforts, anti-corruption policies,
board diversity, human rights efforts and community development.

Investors who want to purchase securities that have been screened for ESG criteria can do so through
socially responsible mutual funds and exchange-traded funds. According to the US SIF Foundation, the
value of ESG funds totaled more than $2.5 trillion by the end of 2016, while U.S. investments in
companies that actively pursue responsible, sustainable growth accounted for about $8.7 trillion in assets
under management (AUM) at the end of 2015. 

Environmental Impact Assessment

Environmental Impact Assessment (EIA) is a process of evaluating the likely environmental impacts of a
proposed project or development, taking into account inter-related socio-economic, cultural and human-
health impacts, both beneficial and adverse.

UNEP defines Environmental Impact Assessment (EIA) as a tool used to identify the environmental,
social and economic impacts of a project prior to decision-making. It aims to predict environmental
impacts at an early stage in project planning and design, find ways and means to reduce adverse impacts,
shape projects to suit the local environment and present the predictions and options to decision-makers.
By using EIA both environmental and economic benefits can be achieved, such as reduced cost and time
of project implementation and design, avoided treatment/clean-up costs and impacts of laws and
regulations.

6
Although legislation and practice vary around the world, the fundamental components of an EIA would
necessarily involve the following stages:

1. Screening to determine which projects or developments require a full or partial impact

assessment study;
2. Scoping to identify which potential impacts are relevant to assess (based on legislative
requirements, international conventions, expert knowledge and public involvement), to identify
alternative solutions that avoid, mitigate or compensate adverse impacts on biodiversity
(including the option of not proceeding with the development, finding alternative designs or sites
which avoid the impacts, incorporating safeguards in the design of the project, or providing
compensation for adverse impacts), and finally to derive terms of reference for the impact
assessment;
3. Assessment and evaluation of impacts and development of alternatives, to predict and
identify the likely environmental impacts of a proposed project or development, including the
detailed elaboration of alternatives;
4. Reporting the Environmental Impact Statement (EIS) or EIA report, including an
environmental management plan (EMP), and a non-technical summary for the general audience.
5. Review of the Environmental Impact Statement (EIS), based on the terms of reference
(scoping) and public (including authority) participation.
6. Decision-making on whether to approve the project or not, and under what conditions; and
7. Monitoring, compliance, enforcement and environmental auditing. Monitor whether the
predicted impacts and proposed mitigation measures occur as defined in the EMP. Verify the
compliance of proponent with the EMP, to ensure that unpredicted impacts or failed mitigation
measures are identified and addressed in a timely fashion.

The Montreal Protocol, finalized in 1987, is a global agreement to protect the stratospheric
ozone layer by phasing out the production and consumption of ozone-depleting substances
(ODS). The stratospheric ozone layer filters out harmful ultraviolet radiation, which is associated
with an increased prevalence of skin cancer and cataracts, reduced agricultural productivity, and
disruption of marine ecosystems. The United States ratified the Montreal Protocol in 1988 and
has joined four subsequent amendments. The United States has been a leader within the Protocol
throughout its existence, and has taken strong domestic action to phase out the production and
consumption of ODS such as chlorofluorocarbons (CFCs) and halons. The Montreal Protocol has
proven to be innovative and successful, and is the first treaty to achieve universal ratification by
all countries in the world. Leveraging worldwide participation, the Montreal Protocol has sent
clear signals to the global market and placed the ozone layer, which was in peril, on a path to
repair. Full implementation of the Montreal Protocol is expected to result in avoidance of more
than 280 million cases of skin cancer, approximately 1.6 million skin cancer deaths, and more
than 45 million cases of cataracts in the United States alone by the end of the century, with even
greater benefits worldwide. The Montreal Protocol’s Scientific Assessment Panel estimates that
with implementation of the Montreal Protocol we can expect near complete recovery of the ozone
layer by the middle of the 21st century.

The Intergovernmental Panel on Climate Change (IPCC) is an intergovernmental body of the United
Nations,[1][2] dedicated to providing the world with an objective, scientific view of climate change and its
political and economic impacts.[3]

7
It was established in 1988 by the World Meteorological Organization (WMO) and the United Nations
Environment Programme (UNEP), and later endorsed by the United Nations General Assembly.
Membership is open to all members of the WMO and UN. [4] The IPCC produces reports that support the
United Nations Framework Convention on Climate Change (UNFCCC), the main international treaty on
climate change.[5][6] The objective of the UNFCCC is to "stabilize greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic (human-induced) interference with the
climate system".[5]

IPCC reports cover the "scientific, technical and socio-economic information relevant to understanding
the scientific basis of risk of human-induced climate change, its potential impacts and options for
adaptation and mitigation."[6] The IPCC does not carry out original research, nor does it monitor climate
or related phenomena itself. Rather, it assesses published literature including peer-reviewed and non-peer-
reviewed sources

 The Energy and Resources Institute (TERI) is a research institute based in New Delhi that conducts
research work in the fields of energy, environment and sustainable development. Established in 1974, it
was formerly known as Tata Energy and Research Institute. As the scope of its activities widened, it was
renamed The Energy and Resources Institute in 2003. The origins of TERI lie in Mithapur, a remote town
in Gujarat, where a TATA engineer, Darbari Seth, was concerned about the enormous quantities of
energy his factory spent on desalination.[4] He proposed the idea of a research institute to tackle the
depletion of natural resources and energy scarcity. J. R. D. Tata, chairman of the TATA Group, liked the
idea and accepted the proposal. TERI was set up with a modest corpus of 35 million rupees. [5] On the
invitation of the then Prime Minister Indira Gandhi, TERI was registered in Delhi in 1974 as the Tata
Energy Research Institute. The scope of the organisation's activities includes climate change, energy
efficiency, renewable energy, biotechnology, and social transformation.

 World Sustainable Development Summit (WSDS) - An annual summit which facilitates the
exchange of knowledge on diverse aspects of global sustainable development.
 LaBL (Lighting a Billion Lives) - An initiative to provide clean lighting access to bottom of the
pyramid communities.
 Green Olympiad[12] - Conducted in association with MoEF, it is an international environment
examination that is annually organized for middle and high-school students.

The United Nations Environment Programme (UNEP) is an agency of United Nations and coordinates
its environmental activities, assisting developing countries in implementing environmentally sound
policies and practices. It was founded by Maurice Strong, its first director, as a result of the United
Nations Conference on the Human Environment (Stockholm Conference) in June 1972 and has overall
responsibility for environmental problems among United Nations agencies but international talks on
specialized issues, such as addressing climate change or combating desertification, are overseen by other
UN organizations, like the Bonn-based Secretariat of the United Nations Framework Convention on
Climate Change and the United Nations Convention to Combat Desertification. UN Environment
activities cover a wide range of issues regarding the atmosphere, marine and terrestrial ecosystems,
environmental governance and green economy. It has played a significant role in developing international
environmental conventions, promoting environmental science and information and illustrating the way
those can be implemented in conjunction with policy, working on the development and implementation of
policy with national governments, regional institutions in conjunction with environmental non-
governmental organizations (NGOs).

UN Environment has also been active in funding and implementing environment related development
projects. UNEP's main activities are related to: [5]

8
  climate change
o including the Territorial Approach to Climate Change (TACC)
 disasters and conflicts
 ecosystem management
 environmental governance
 environment under review
 harmful substances
 resource efficiency

National Action Plan on Climate Change (NAPCC)

The Action Plan was released on 30th June 2008. It effectively pulls together a number of the
government’s existing national plans on water, renewable energy, energy efficiency agriculture and others
– bundled with additional ones – into a set of eight missions. The Prime Minister’s Council on Climate
Change is in charge of the overall implementation of the plan. The plan document elaborates on a unique
approach to reduce the stress of climate change and uses the poverty-growth linkage to make its point.
Emphasizing the overriding priority of maintaining high economic growth rates to raise living standards,
the plan “identifies measures that promote development objectives while also yielding co-benefits for
addressing climate change effectively.” It says these national measures would be more successful with
assistance from developed countries, and pledges that India’s per capita greenhouse gas emissions “will at
no point exceed that of developed countries even as we pursue our development objectives.”

The guiding principles of the plan are:

 Inclusive and sustainable development strategy to protect the poor

 Qualitative change in the method through which the national growth objectives will be
achieved i.e. by enhancing ecological sustainability leading to further mitigation
 Cost effective strategies for end use demand side management
 Deployment of appropriate technologies for extensive and accelerated adaptation, and
mitigation of green house gases
 Innovative market, regulatory and voluntary mechanisms to promote Sustainable
Development
 Implementation through linkages with civil society, local governments and public-private
partnerships
 International cooperation, transfer of technology and funding

The Agency for Non-Conventional Energy and Rural Technology (ANERT) is a government agency
in the Kerala, India. Its mission is gathering and disseminating knowledge about non-conventional
energy, energy conservation, and rural technology. The agency was established in 1986 with its
headquarters at Thiruvananthapuram. Major programmes being implemented by ANERT are: [3][4]

9
Solar Photovoltaic Programme (SPV)
Under this programme, ANERT distributes devices which use solar energy. These include solar lanterns,
home lighting systems, street light systems, TV power packs, and vaccine refrigerators. These devices are
distributed in accordance with MNRE and other programmes using ANERT funds.[5]

Solar Thermal Energy Programme

The Solar Thermal Energy Programme aims to supplement thermal energy requirements at various
temperatures for different applications; they include cooking, water heating, heating for industrial
processes, crop drying, space heating, and water desalination. Programme processes include harnessing
solar energy from the Sun and converting it into heat energy using various solar thermal devices and
systems.

Wind Energy Programme

ANERT is in the process of increasing wind power usage at different locations within the state. In
association with MNRE, the agency has conducted a detailed study of the wind potential in Kerala. Its
largest capacity wind farm is located at Kanjikode, in Palakkad District; it has a capacity of 22 MW[6]

Bio-Energy Programme
This program aims to recover energy from waste; study the scientific disposal of waste; convert waste
into fertilizer after energy extraction; improve sanitation; protect the environment; and generate relevant
employment opportunities. Domestic and industrial biowaste is of major import to the agency, as it can be
converted into producer gas via gasification. This gas can be used for heating and generating electricity.
National Programme on Improved Chulha
In 2001, as part of its declared "Women's Empowerment Year", MNRE decided to make 10,000 villages
throughout India "smoke free" by the promotion of improved chulhas, or cooking stoves.[9]

10