Indian Cabinet Agree Energy Efficiency Measures

THE Indian Cabinet have approved the implementation framework of the National Mission for Enhanced Energy Efficiency (NMEEE), one of the eight Missions of India’s National Action Plan on Climate Change.

The Mission’s goal is to save 23 million tonne of oil equivalent fuel and to avoid the need to build additional power capacity of over 19,000MW, resulting in green house gas emissions reductions of 98.55 million tonnes per year.

Sushil Kumar Shinde, Indian Power minister, stated:

“Enhancing energy efficiency is one of the most important means to secure India’s energy requirements. Nod for NMEEE is an important milestone in our quest to promote energy efficiency and a major step towards energy security.”


The total expenditure involved in the implementation plan is Rs.235.35 crore.

In addition to the programmes on energy efficiency being pursued the mission has four new initiatives to enhance energy efficiency,.

First will see the start of India's first market-based trading in energy efficiency savings. Like the international carbon trade, a domestic trade in energy saving certificates would promote and accelerate CO2 reduction and energy efficiency.

The second initiative is Market Transformation for Energy Efficiency (MTEE), including accelerating the move to energy efficient appliances in designated sectors.

NMEEE’s third initiative is the Energy Efficiency Financing Platform (EEFP), which allows for the creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings.

The final initiative is the Framework for Energy Efficient Economic Development (FEEED), to develop two fiscal instruments to promote energy efficiency — the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE).

Ajay Mathur, Mission Director and Director General of the Bureau of Energy Efficiency, said:

“The mission seeks to upscale the efforts to unlock the market for energy efficiency on a public private partnership (PPP) basis, which is estimated to be around Rs 74,000 crore. The NMEEE seeks to create and sustain markets for energy efficiency in the entire country which will benefit the country and the consumers” .


The larger industrial units, one of the heaviest users of energy, are going to be set targets to increase their energy efficiency levels.

These companies will be able to offset such targets, at least in part, using the certificates they can buy from businesses that have achieved energy efficiencies beyond their set targets. This measure is expected to reduce the economy-wide costs of moving to a more energy efficient path.

Picture by williewonker

Friday 25th June 2010


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