Programme description

Title: Indo-German Energy Programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: India
Lead executing agency: Bureau of Energy Efficiency (BEE) and Central Partners Electricity Authority (CEA), Ministry of Power (MoP), Government of India
Overall term: 2003 to 2013

Context

India's annual per capita energy consumption of 0.65 Tons of Oil Equivalent (TOE) and electricity consumption of 660 kWh is relatively low compared to 5 TOE and 7,000 kWh respectively in highly industrialised and urbanised countries. There is a strong relation between the Human Development Index (HDI) and per capita electricity consumption. Assuming a stabilised population of 1.65 billion in the future, India may reach the plateau of about 4,000 kWh in a best-case scenario in 2050.

The enactment of the Energy Conservation Act 2001 is seen as a major step towards regulating the growth of energy demand in order to maintain the pace of industrialisation, urbanisation and rural electrification and improve the quality of life for all.

The broad focus of IGEN is to support the implementation of the Energy Conservation Act. The Act intervenes positively at all levels of society, such as energy-intensive large industries, manufacturers of household appliances and industrial equipment, residential households, as well as engineering  consultancy enterprises  and  power stations. GIZ and KfW jointly implement the Indo-German Energy Programme (IGEN).

Objective

Achieve greater energy efficiency in the generation and use of electricity, oil, gas, coal, and renewable energy in all sectors of society, contributing to sustainable energy management and climate protection.

Approach

The bilateral cooperation involves local and international professional expertise and support who undertake the following activities:

• Labeling of household appliances and energy intensive industrial equipment with respect to energy efficiency
• Certification of energy managers and energy auditors
• Setting of norms and standards for energy intensive industries
• Transfering and promoting cutting-edge technology to reduce energy consumption
• Promoting public-private partnerships to advance  awareness of the need to save energy
• Operating one of the largest web portals (www.energymanagertraining.com) on this subject in India.

About 3,000 large energy-intensive industries falling under the provisions of the Energy Conservation Act are under obligation to reduce energy consumption. Over 23,000 manufacturers of household appliances (of which only about 110 are in the organised sector) and a workforce of one million are affected by the Act. Over 600 industrial equipment manufacturers (of which 120 are from the organised sector) with a workforce of 500,000 are required to improve their technology to reduce energy consumption. An estimated 50 million power grid connected households will reduce electricity costs through more efficient appliances.

The CDM-India component of the programme supports high quality Clean Development Mechanism (CDM) projects in India. These projects are widely replicable and provide experience through “learning by doing”. The primary aim is developing capacity and providing support to public and private sector institutions for preparing and implementing internationally acceptable projects under the Clean Development Mechanism. CDM India cooperates actively with the National CDM Authority (NCDMA) of India for the institutionalisation of CDM projects in India.

Results achieved so far

• Over €400 million are invested annually in energy efficiency measures
• Annual energy cost savings of about  €300 million are reported for these investments
• Indian certified emission reductions of more than €70 million are sold
• About 8,000 energy managers and energy auditors have taken the examination for certification over the past three years
• Relevant rules and regulations have been developed and implemented
• About 700 energy intensive and large industries have been asked to reduce energy consumption in a financially attractive and technically viable manner
• 28 state designated agencies (SDA), and seven from the Union Territories  have been formed and are supported in the implementation of the Energy Conservation Act
• Regulations on labeling energy efficiency for various household appliances and energy-intensive equipment are at an advanced stage of implementation
• Over 500 Clean Development Mechanism (CDM) projects have received host country approval and are in various stages of certification and registration
• The world's first baseline of carbon burning in the Indian power sector has been prepared and institutionalised
• Mapping and performance verification of all Indian thermal power plants in the public sector has begun

Further information

• Website for Energy Efficiency in India
  www.energymanagertraining.com
• Website for Clean Development Mechanism (CDM) in India
  www.cdmindia.com