India to set energy efficiency targets for industries

NEW DELHI (Commodity Online): A move that is expected to save 10 million tonnes of energy by 2013-14, India will for the first time release energy efficiency targets for eight industrial sectors in April.

The Bureau of Energy Efficiency (BEE), a statutory body under the power ministry has set energy efficiency targets for 580 industrial units in the eight sectors - thermal power stations, steel, fertiliser , cement, aluminum, chloralkali, paper and textiles. Violators will be penalised, a power ministry official said.

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

"India's total energy use is about 450 million tonnes oil equivalent (Oil equivalent is the amount of oil and gas consumed for producing energy).

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," BEE Director General Ajay Mathur told IANS.

The targets are set by BEE,. Each unit in a particular sector has to reduce its specific energy consumption and the percentage reduction for most efficient plant is less when compared to that for a less efficient plant, he said

"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," he pointed out.

BEE has prepared operational guidelines after discussions with the industries.

According to Mathur, all the concerns on the part of the industries have been allayed and they are now satisfied about the programme.

Non-compliance of set targets will call for penalty, which will be equal to the price of the target shortfall, he 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.

The penalised company can appeal to the electricity appellate authority, the official noted