National Mission for Enhanced Energy Efficiency - UPSC Notes

National Mission for Enhanced Energy Efficiency – UPSC Notes – Environment

The National Mission for Enhanced Energy Efficiency (NMEEE) is a pivotal initiative outlined within the National Action Plan on Climate Change (NAPCC). Its primary aim is to stimulate the energy efficiency market through the establishment of supportive laws and policies. Moreover, it aims to foster innovative and eco-friendly business models within the energy efficiency sector. The Indian government is dedicated to this objective, striving to promote the development of cutting-edge market tools and regulations to propel the energy efficiency market forward. This article elucidates the significance of NMEEE, crucial for understanding the Environment Syllabus for the UPSC Civil Service exam.

National Action Plan on Climate Change (NAPCC)

  • Union Government’s initiative: Developed the National Action Plan on Climate Change (NAPCC) to address and mitigate the impacts of climate change.
  • Establishment: Formed by the Prime Minister’s Council on Climate Change.
  • Purpose: Identifies actions that align with development goals while also effectively combating climate change.
  • Framework: Comprises eight “National Missions” focusing on:
    • Raising awareness of climate change.
    • Strategies for adaptation and mitigation.
    • Enhancing energy efficiency.
    • Conservation of natural resources.

Why focus on Energy Efficiency?

  • Energy Efficiency Ranking: India ranks fifth lowest globally in terms of energy efficiency, indicating an extremely low GDP energy consumption ratio.
  • Primary Energy Demand: Increased from around 450 million tonnes of oil equivalent (toe) in 2000 to approximately 770 million toe in 2012.
  • Projected Demand: Estimates from the International Energy Agency and the Integrated Energy Policy Report suggest a rise to between 1250 million toe and 1500 million toe by 2030.
  • Strategic Imperative: India needs to develop a strategic plan to reduce reliance on fossil fuels while sustaining economic growth and energy efficiency to remain competitive globally.
  • Government Initiatives: Despite challenges, the Indian government has made significant progress in improving access to power and clean cooking for its citizens.
India’s Increasing Energy Consumption

Objectives

  • Targeted Industries: These enhanced energy efficiency measures aim to support energy-intensive industries characterized by high energy consumption in production processes.
  • Reduction in Energy Footprint: The focus is on reducing the energy footprint of these industries while also fostering investment in the energy efficiency sector.
  • Energy Saving Certificates (ESCerts): Major energy-intensive enterprises will be assigned energy reduction targets, with the incentive of receiving ESCerts upon achievement.
  • Promotion of Energy-efficient Machinery and Appliances: Encouraging the adoption of energy-efficient machinery and appliances is a key aspect of the initiative.
  • Boosting Investment Willingness: Efforts are directed towards enhancing the willingness of investors and financial institutions to support energy efficiency programs.

Background

  • Foundation: The mission was established based on the Energy Conservation Act of 2001, laying the groundwork for its implementation.
  • Scope of the Law: The Act aims to address issues related to efficient energy use, conservation, and associated challenges.
  • Mission Authorization: The mission, authorized in 2010, identified India’s potential energy efficiency market valued at Rs 74,000 crores.
  • Projected Benefits: Successful completion of projects under the mission is expected to yield annual fuel savings amounting to 23 million tonnes.
  • Environmental Impact: Furthermore, it is anticipated to result in a reduction of 98.55 million tonnes of greenhouse gas emissions annually.

Initiatives Under NMEEE

  • Perform Achieve and Trade (PAT): A regulatory mechanism aimed at reducing specific energy consumption in energy-intensive industries. It includes a market-based mechanism facilitating the certification and exchange of excess energy savings.
  • Energy Efficiency Financing Platform (EEFP): Establishes a platform, the Energy Efficiency Financing Forum (EEFP), facilitating communication between project developers and financial institutions (FIs) to support the implementation of energy efficiency projects. MoUs have been signed to promote funding for such projects.
  • Market Transformation for Energy Efficiency (MTEE): Encourages the adoption of energy-efficient appliances and equipment through the development of innovative business models.
  • Framework for Energy Efficiency Economic Development (FEEED): Aims to promote energy efficiency initiatives by mitigating investment risks.

Thus, the National Mission for Enhanced Energy Efficiency is a market-based strategy aimed at enhancing energy efficiency in energy-intensive industries.

Initiatives Under NMEEE

Implementing Agencies

Key Information on Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL):

  • Bureau of Energy Efficiency (BEE): A government organization operating under the Ministry of Power in India, established in March 2002 in accordance with the guidelines of the 2001 Energy Conservation Act.
  • Objectives of BEE: The primary aim of BEE is to institutionalize energy efficiency services, establish national delivery systems, and serve as a national resource for energy efficiency across all sectors of the country.
  • Focus on Energy Intensity Reduction: A core objective of BEE is to reduce the energy intensity of the economy.
  • Energy Efficiency Services Limited (EESL): A joint venture of state-run power companies, EESL is responsible for implementing initiatives such as the Domestic Efficient Lighting Programme (DELP), also known as UJALA.
  • DELP/UJALA Program: Implemented by EESL, this program has led to a significant 75% reduction in the prices of LED lights.

Status of Implementation

  • Perform, Achieve & Trade (PAT) Scheme:
    • First cycle (2012-2015): Over 400 industries reduced emissions by 31 MT of CO2.
    • Second cycle (April 1, 2016 – March 2019): Targeted 8.869 MTOE reduction across 621 units spanning 11 sectors.
    • Third cycle (April 1, 2017 onwards): Aims for a reduction of 1.06 MTOE over 3 years.
    • Scheme operates on a rolling cycle basis, with new units added annually.
  • Unnat Jyoti by Affordable LEDs for All (UJALA):
    • EESL’s flagship program.
    • Led to significant reduction in carbon emissions, estimated at 27 million tonnes annually.
    • Experienced 140X growth within two years.
  • Energy Efficiency and Conservation (EE&C):
    • Large-scale implementations across energy-intensive industries and other major economic sectors.
    • Offers investment potential of INR 74,000 crore.
Results of Implementation of NMEEE’s Second PAT Cycle

Challenges

  • Difficulty in Prediction:
    • Predicting program outcomes is practically difficult.
  • Technological Hurdle:
    • Lack of recent technological advancements and research and development facilities poses a significant challenge.
  • Constant Monitoring Requirement:
    • Ongoing monitoring and feedback mechanisms are essential for making modifications as needed.
  • Multi-level Governance Complexity:
    • Human and institutional capability limitations impede measurement, analysis, and integration into mainstream industries.
    • Complicated by multi-level governance systems.
  • High Initial Cost:
    • Initial investment cost is high.
    • Despite this, informed investments can yield paybacks within 2 to 5 years.
  • Necessity for Incentives:
    • Longer payback times necessitate the provision of incentives.

Conclusion

  • Cost and Speed of Transition: Implementation of energy efficiency measures can expedite and lower the cost of transitioning to clean energy.
  • India’s Commitment under the Paris Agreement:
    • Agreed to reduce energy intensity by 33 to 35% from 2005 levels by 2030.
    • Notably, India has already achieved a 20% reduction in energy intensity from 2005 levels.
  • Impact of Energy Efficiency:
    • Lowered energy intensity resulted in a 23.73 MTOE reduction in energy use in 2018-19, saving INR 891.22 billion.
  • Untapped Opportunities:
    • Significant potential exists to expand energy efficiency measures across households, micro, small, and medium businesses, and transportation sectors.

FAQs on National Mission for Enhanced Energy Efficiency

Question: What is NMEEE?

Answer: NMEEE stands for the National Mission for Enhanced Energy Efficiency. It is an initiative under the National Action Plan on Climate Change (NAPCC) aimed at boosting the energy efficiency market in India through supportive policies and regulations. NMEEE aims to promote energy efficiency in various sectors and encourage the adoption of environmentally friendly practices.

Question: What is the Green India mission?

Answer: The Green India mission is a government initiative aimed at enhancing forest and tree cover, improving ecosystem services, and increasing carbon sequestration in India. It focuses on afforestation, reforestation, and conservation of biodiversity, aiming to increase forest and tree cover to combat climate change, maintain ecological balance, and promote sustainable development.

Question: What is a PAT scheme?

Answer: PAT stands for Perform, Achieve, and Trade scheme. It is a regulatory mechanism implemented by the government of India to improve energy efficiency in energy-intensive industries. Under the PAT scheme, specific energy consumption targets are set for industries, and they are required to achieve these targets within a stipulated timeframe. Industries that exceed their targets can earn energy saving certificates, which can be traded in the market. This scheme aims to incentivize energy efficiency improvements and reduce greenhouse gas emissions.

UPSC PYQ Mains

  1. Access to affordable, reliable, sustainable, and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard. [UPSC 2018]
  2. Evaluate India’s approach toward meeting the country’s growing energy demands. Compare the success of this approach with that of another Asian giant which has perhaps the fastest-growing energy demand. [UPSC 2010]
  3. What is energy Independence? Discuss how India can be transformed into an ‘Energy-independent Nation.’ [UPSC 2005]
  4. What is the global energy crisis and what is its impact on India? Having regarding our situation, environment, resources, and problems, what would be the profile of an appropriate energy policy for India? Examine critically the available alternative options. [UPSC 1982]

UPSC PYQ Prelims

Question: On which of the following can you find the Bureau of Energy Efficiency Star Label? [UPSC 2018]

  1. Ceiling fans
  2. Electric geysers
  3. Tubular fluorescent lamps

Select the correct answer using the code given below.

  • (a) 1 and 2 only
  • (b) 3 only
  • (c) 2 and 3 only
  • (d) 1, 2 and 3

Answer: (d)

Question: Which of the following is not an initiative under the National Mission For Enhanced Energy Efficiency?

  1. Perform Achieve and Trade
  2. Energy Efficiency Financing Platform
  3. Framework for Energy Efficiency Economic Development

Which of the statement(s) given above is/are correct?

  • (a) 1 only
  • (b) 2 only
  • (c) 1 and 3 Only
  • (d) None of the above

Answer: (d)

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