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EC Act,2001, ERCs and DSM

In Previous Unit of the course BEE-001, you have studied about the Energy Conservation Act, 2001, enacted by the Government of India. The Act empowers the Central Government and, in some instances, the state governments to implement various measures for improving energy efficiency.

These measures are expected to lead to widespread market development through better standards for appliances and equipment, energy efficiency labelling, mandatory energy audits, awareness and training, financial and fiscal incentives.

Under the provisions of the Act, the Bureau of Energy Efficiency (BEE) has been established to institutionalize energy efficiency services and promote energy efficiency delivery mechanisms. The BEE thrust areas are energy conservation in industry, demand side management, energy efficiency in buildings, energy conservation building codes, energy auditor and manager certification, manuals and codes and energy efficiency policy research. The Electricity Regulatory Commissions have a substantial role to play in promoting energy efficiency and DSM measures. We now briefly discuss these aspects.

Role of Electricity Regulatory Commissions

The mandate and authority of ERCs is defined through the state level Electricity Reform Acts or throughThe Electricity Act, 2003. These Acts envisage a significant role for ERCs in efficiency improvement and DSM. The ERCs are quasi-judicial bodies and have the authority to direct utilities to plan and implement DSM schemes.For example, the MPERC order states that “Although the MP Electricity Board has taken up the Demand Side Management and energy audit of agriculture and street light categories, the Board is directed to take up the work of energy audit and Demand Side Management in any industrial pocket on experimental basis and also on the Board’s own power stations and Administrative offices.”

The MPERC also directed the Board to constitute a DSM Cell immediately.The street lighting DSM programme (to replace street lights by efficient lamps) has been implemented in MP, but the agricultural DSM programme has been implemented only on a very small scale.The MERC order mentions, “Commission is of the opinion that there is an urgent need for implementing Demand Side Management measures apart from the ToD tariff”.

MERC directed MSEB to implement DSM schemes on pilot basis for the commercial buildings and the agricultural consumers. MSEB invited suggestions from the researchers and experts on how it should design the DSM scheme. But MSEB lacked the follow-up and did not implement any DSM scheme. MSEB did not take up even the sample ESCO demonstration project. MERC also directed MSEB to create a fund for promoting agricultural energy efficiency improvement, by charging a cess of 2% on all agricultural consumers.

We end this section by describing briefly the designated consumers, energy efficiency standards and labelling requirements as per the EC Act, 2001.

Designated Consumers

Under this provision, the EC Act focuses on energy policy issues of energy efficiency improvement in the organized sectors such as energy intensive industries and commercial sector through establishment of energy management system, capacity building of energy professionals,implementation of energy audits, establishment of specific energy consumption norms and support to consumers on providing information on authentic energy data.Schedule to EC Act provides a list of 15 energy intensive industries and other establishments to be notified as designated consumers (DC) who will

• appoint or designate energy managers;

• get energy audits conducted by accredited energy auditors;

• implement techno-economically viable recommendations;

• comply with norms fixed for specific energy consumption; and

• submit reports on steps taken.Standards and Labelling

There is a wide variation in energy consumption of various equipment and appliances of common use made by different manufacturers. Further,information on energy consumption is often not easily available or easy to understand for a product. These factors lead to continued manufacture and purchase of equipment and appliances that are energy intensive and inefficient.
Energy efficiency labels are informative labels fixed to manufactured products which describe the product's energy performance (usually in the form of energy use, efficiency, or energy cost) and rate the product on a comparative scale, thereby providing consumers with necessary information to enable making informed purchases (Fig.). Energy-efficiency standards are procedures and regulations that prescribe limits on the energy performance(usually maximum energy use or minimum efficiency) of manufactured products.Standards and Labelling (S&L) Programme is the most cost effective programme implemented all over the world. The S&L programme when in place ensures that the use of energy efficient equipment and appliances is
promoted amongst the consumers.

This provision of EC Act focuses on the energy policy issues of energy efficiency improvement in the domestic and agricultural sectors. This is effected through improvement of designed energy efficiencies of energy consuming appliances. The information on comparative energy efficiencies is provided in the form of energy labels on the appliances (Fig).
A Typical Comparative Label
A Typical Comparative Label
The Bureau of Energy Efficiency has formulated energy-labelling regulations to promote energy efficiency at the design stage for refrigerators, air conditioners, motors, distribution transformers, agricultural pump sets and tube lights after detailed interaction with manufacturers and other stakeholders.

The National Energy labelling scheme, launched on May 18, 2006, is being implemented, to begin with, on voluntary basis for refrigerators (no-frost) and tubular fluorescent lamps. The programme is proposed to be extended to cover the following four products in a phased manner:

•direct cool refrigerators;

•general purpose electric motors;

•air conditioners; and

•ceiling fans.

•Energy Conservation Building Codes

The “Energy Conservation Building Codes” (ECBC) are the norms and standards of energy consumption which include considerations for the location and occupancy of the building. ECBC set minimum standards for building energy efficiency through design and construction while enhancing occupant comfort. The objective of the ECBC programme is to reduce the baseline energy use in buildings by supporting the adoption and implementation of building energy codes, which ensure that energy efficiency building is incorporated at the design and construction phase itself.
Different Climatic Zones
Different Climatic Zones

For ECBC, a building is defined as any structure or part of a structure having connected load of 500 kW or contract demand of 600 kVA and above and intended to be used for commercial purposes. ECBC will cover only the energy performance aspects of the building and not other aspects such as health and safety.

A draft Energy Conservation Building Code has been prepared for five climatic zones (hot and dry, warm and humid, composite, temperate and cold). This code would only apply to new commercial buildings with connected load of more than 500 kW. The draft Code is being reviewed with the participation of all stakeholders.

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