Call for India's New Government to Adopt Energy Efficiency Policies

INDIA has a new Government, leading The Energy Resources Institute (TERI) to make energy efficiency recommendations, amongst others, for the new administration to consider.

TERI state in their proposals that nergy efficiency measures can be implemented on the energy supply as well as demand side across the energy intensive end-use consuming sectors.

For instance, in the transport sector, key interventions include introduction of energy efficiency standards and encouraging use of public transport. Within the industrial sector, the Micro, Small and Medium Enterprise (MSME) segment is associated with low efficiencies due to several barriers such as use of obsolete technologies, non-availability of readymade technological solutions, low level of awareness/information availability, non-availability of technology providers at local/cluster level, relatively high cost of technologies and poor access to finance.

It is estimated that there is a possibility to reduce energy consumption by up to 25-30% by introducing energy efficiency measures in these sectors.

There is a need for implementing innovative pricing mechanisms that reflect true costs of alternative options and induce efficiency in energy production and consumption. Further institutional changes and regulatory mechanisms geared towards creating a more enabling environment and ensuring constant compliance and progress are warranted.

A co-ordinated approach cutting across various energy sub-sectors (coal, oil, gas, renewable, electricity etc.) would be instrumental in pushing forward a coordinated and integrated energy policy for the country.

TERI propose that a Cabinet of Secretaries is set up with representation from the ministries concerned to define policy and address all issues in an integrated manner. To ensure this, there is a need to gradually move towards a single energy regulator. It is envisaged that the structure for Single Energy Regulatory Commission is such that the existing energy sub-regulators would automatically become a part of the Commission at the member level.

Whether the new government will implement, or take note, of TERI’s recommendations we will have to wait and see - but the importance of a growing economy like India's seriously adopting sustainable policies can not be minimized.

Picture of wind farm in Kayathar, India by Werkbank reproduced under CCL.

Wednesday 21st May 2014

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