India to Set Industrial Energy Efficiency Targets

INDIA will release energy efficiency targets for the first time covering industrial sectors in an effort to save 10 million tonnes of energy by 2013-14.

The Indian Bureau of Energy Efficiency (BEE) has prepared energy efficiency targets for 580 industrial units in eight industrial sectors - thermal power stations, steel, fertiliser, cement, aluminum, chloralkali, paper and textiles. Those who fail to meet the targets will be penalised, a power ministry official said.

BEE Director General Ajay Mathur told the Indo Asian News Service:

'India's total energy use is about 450 million tonnes oil equivalent. These 580 units - public and private - together use about 200 million tonnes of energy. The overall savings we have to achieve is about 10 million tonnes and so every sector has to reduce five percent of consumption,'

Oil equivalent is the amount of oil and gas consumed for producing energy.

The targets will be made public in April this year and affected industries will have to achieve them within a period of three years (2013-14).

The targets will be set by BEE, a statutory body under the power ministry, with Mathur explaining that there will be a buy-out possibilities for those struggling to achieve the target:

'The total sector-wise savings has to be equal to five percent of the current energy use. If any unit finds the target expensive, BEE will allow it to buy an energy saving certificate from those who exceeded their target.'

Non-compliance of the set targets will bring a penalty, which will be equal to the price of the target shortfall, Mathur said. All the penalty collected from the target violators will be deposited in the respective state treasury.

'Each state has a designated agency, which will ensure the compliance of the industrial units. The details of violators will be reported to the electricity regulatory commission,' Mathur said.

Picture by Swaminarayan Sanstha

Tuesday 11th January 2011


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