Designated Consumers
Policy measure

In compliance with the Electricity Act 2003, the central government formulated a National Electricity Policy in 2005 to address various issues relating to electricity, with a special emphasis on energy conservation. One of the relevant policy issues was compulsory periodic energy audits for power intensive industries and other establishments, specified as Designated Consumers (DCs) under the Energy Conservation Act 2001 (Dey, 2007).


The Energy Conservation Act (2001) stipulates that energy audits carried out by an accredited energy audit are mandatory for all designated energy consumers (EnergyManagerTraining, 2011).

Implementation

The annex to the Energy Conservation Act lists 15 energy intensive industries, of which 9 have been identified as DCs (Kumar, 2009).


The criteria for an industry to be categorized as a DC are (Kumar, 2009):

  • Thermal power stations: 30,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Fertilizer: 30,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Cement: 30,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Iron & Steel: 30,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Chlor-Alkali: 12,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Aluminium: 7,500 metric tonnes of oil equivalent (MTOE) per year and above.

  • Railways: One traction substation in each Zonal Railway, production units and workshops of Indian Railways with a total annual energy consumption of 30,000 MTOE or more under the Ministry of Railways.

  • Textiles: 3,000 metric tonnes of oil equivalent (MTOE) per year and above.

  • Pulp & paper: 30,000 metric tonnes of oil equivalent (MTOE) per year and above.

The DCs are required to (Kumar, 2009):

  • Appoint or designate energy managers.

  • Ensure that energy audits are conducted by accredited energy auditors.

  • Implement techno-economic viable recommendations.

  • Comply with norms of specific energy consumption.

  • Submit report on steps taken.

Challenges
No identified challenges.
Outcomes

The following outcomes have been identified by Kumar (2009):

  • “To strengthen the energy management and energy auditing capabilities in the country, 7 National Certification examinations for Energy Managers and Energy Auditors have been successfully conducted in 2004, 2005, 2006, 2007 & May and Nov 2008 respectively in 28 centers all over the country.

  • Accredited Energy Auditors have carried out about 3000 energy audits on voluntary basis in the last 3 financial years (2003-06).

  • Energy saving to the tune of 2041Million kWh, 750960 Tons of Coal, beside savings in oil and gas, equivalent to Rs.6488 Million have been recommended by 21 such agencies during the past 3 years.

  • Preparation of manuals and codes on 7 equipment technologies (Lighting Systems; Dryers; Cogeneration Plants; Electric Motors; Electric Transformers; Fluid piping systems, insulation and Air Conditioners/Chillers (HVAC)) as to help standardizing the process of energy audit to support energy manager and energy auditors.”

References

Dey, D., 2007. Energy Efficiency Initiatives: Indian Experience. Kolkata: ICFAI Business School. Available at: www.helio-international.org/Dey%20Paper.pdf.


Kumar, Ashok (2009). Energy Conservation Act & BEE - An Overview. Bureau of Energy Efficiency. Available at: www.emt-india.net/Presentations2009/3L_2009Aug8_Textile/01-AshokKumar_BEE-ECAct.pdf.


EnergyManagerTraining, 2011. FAQ. Available at: www.energymanagertraining.com/new_faq.php#5.