Prayas Energy Group, Pune

Prayas’ work on Energy Efficiency and Focus Areas for S&L program

Presentation at meeting on “Building network of organizations working on Standards and Labeling in India – a civil society initiative”

CEE, Ahmedabad

20th July, 2012

Prayas Energy Group, Pune 2

Recent Prayas Work in Energy Efficiency: Super Efficient Equipment Program (SEEP)

Prayas Energy Group, Pune 3

Ownership of Appliances in India Growing Rapidly

By 2020, more than 70% of the stock of appliances will have been added just after 2010. Urgent need to improve efficiency to avoid being stuck with inefficient stock.

RAC Refrigerators TVs Ceiling Fans0

100

200

300

400

500

600

700

2010 2020

Sto

ck

in

Mil

lio

ns

Prayas Energy Group, Pune

Super-efficient appliances

4

RACs Refrigerators TVs Ceiling Fans0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Current Stock 5 Star SEA

Un

it e

ne

rgy

co

ns

um

pti

on

Large gap between average current purchase and highest rated model (5-Star), and even larger gap between highest rated and best commercially available world-wide.

Prayas Energy Group, Pune 5

De

cre

asin

g Tr

ansa

ctio

n C

ost

s

Decreasing Transaction Costs

Customer

Utility

Manufacturer

Wholesaler

Retailer

State Multi-state National

Customer RebateProgram

implemented by Utility

Manufacturer Rebate Program implemented by

Coordinating Committee

Manufacturer Rebate Program implemented by

Utility

Geographic Scope

Po

int

of

Inte

rve

nti

on

Manufacturer Rebate Program Implemented by BEE & EESL

Super Efficient Equipment Program (SEEP)

By expanding geographic scope of program and giving incentives upstream, SEEP will rapidly accelerate the shift to more efficient appliances.:

Prayas Energy Group, Pune 6

If 60% of stock for only 4 appliances (RACs, Refrig, Fans, TVs) in 2020 is super-efficient, we can save 60 billion kWh and avoid peak capacity of 20,000 MW over a moderate S&L scenario.

Potential Savings from SEEP Relative to Moderate S&L

Prayas Energy Group, Pune

Status of SEEP

7

• In principle approval from government• BEE will shortly be rolling out program for ceiling

fans with finance from the World Bank– Consultations held with fan manufacturers

and other stakeholders– Details of implementation framework being

worked outPrayas helped BEE conceptualize SEEP and is assisting in the design of the program for fans.

Prayas Energy Group, Pune 8

Related Prayas Papers

1. Strategic Actions for Rapid Implementation of Energy Efficiency, June 2011

2. Potential Savings from Selected Super-Efficient Electric Appliances in India, June 2011

3. Using National Energy Efficiency Programs with Upstream Incentives to Accelerate Market Transformation for Super-Efficient Appliances in India, June 2011

4. Development of Super Efficient Equipment Program for Fans, July 2012

Available at www.prayaspune.org/peg/publications.

Prayas Energy Group, Pune 9

Focus areas for S&L

• Rethinking Strategy • Techno-economic analysis • Process for setting and modifying S&L• Monitoring and Evaluation• Outreach

Prayas Energy Group, Pune 10

Rethinking Strategy

• Focusing only on important appliances: Lighting, Fans, Refrigerators, TVs, ACs contribute about 80% of residential consumption

• Is there a need for stars? How about grade 1 and grade 2 as in China or energy star as in US?

Prayas Energy Group, Pune 11

Techno-economic analysis

• Techno-economic analysis of different energy efficiency options for an appliances is required before deciding the standards.

• It may not be as comprehensive as other countries do owing to lack of data and human resources but it should cover important points

Prayas Energy Group, Pune 12

Process of Setting and Modifying S&L

• Documentation of the process of setting standards and its publication

• Same for the process of tightening standards• Increase in accountability

Prayas Energy Group, Pune 13

Monitoring & Evaluation

• Random testing, Challenge testing should be carried out more regularly

• A transparent, web-based system for tracking of testing

• Evaluation should be more rigorous than the current deemed savings approach.

• Evaluation of awareness program required

Prayas Energy Group, Pune 14

Outreach

• Manufacturer• Intermediate players

– Retailers and others• Customers

Prayas Energy Group, Pune 15

THANK YOU

Prayas Energy Group

www.prayaspune.org/peg

Aditya Chunekaraditya@prayaspune.org