Background Note

BACKGROUND NOTE ON SDAs Bureau of Energy Efficiency had commissioned the National Productivity Council to assess the capacity and capabilities of the SDAs with respect to implementation of the Act. The NPC had in its report inter-alia recommended that infrastructure of most of the SDAs needed to be strengthened to enable them to coordinate, regulate and enforce the provisions of the Energy Conservation Act. The basic objective of the scheme is to kick start the energy conservation activities at the state level with an emphasis on building institutional capacities. To implement the scheme a comprehensive Five year action plan consisting of 19 deliverables was prepared by SDAs with the help of NPC and is placed at Annex - I. The activities have been designed so that the SDAs who have no background of energy efficiency may initiate the same to promote the efficient use of energy and its conservation. The action plan primarily focuses on the creation of website on energy efficiency, database creation for Designated Consumers / Energy Auditors / Energy Managers, focused workshops related to energy efficiency and a few demonstration projects to showcase the benefits of energy efficiency. The SDAs have been set up in 30 states by designating one of the existing organizations as required under section 15 (d) of the Energy Conservation Act 2001. These agencies are different in State to State with the Renewable Energy Development Agency comprising 50%, Electrical Inspectorate comprising 33% and Distribution Companies making up of 17%. Further, most of these organizations have had experience in energy efficiency / conservation. This resulted in the need for building capacity, enhancing understanding and knowledge about energy efficiency, having a common action plan to implement measures to reduce energy intensity of the State. The approved scheme of the Ministry of Power therefore enables SDAs to: (a) Prepare a 5 year Energy Conservation Action Plan (ECAP) (b) Implementation of ECAP with yearly deliverables (c) Enhance capacity to undertake regulatory duties that they are required to perform under the Act. During the last two years several regional meetings were conducted by the Bureau of Energy Efficiency and the Ministry of Power under the Chairmanship of Secretary (Power) involving the State Governments and State Designated Agencies. The meetings resulted in the following major outcomes:

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SDAs with a few notable exceptions lack physical and fiscal resources, share key facilities/ staff/ budget with the parent department. Only a few State Governments have budgetary provision to promote the efficient use of energy and its conservation and it will be difficult for the SDA to carry forward the movement of energy conservation once the existing scheme terminates. Most of the SDAs do not present a good foresight in conceiving, strategic decisions and problem solving. This dampens the pace and direction of the EC program, limiting novelty of approach in expanding outreach of activities. To develop the zeal towards the successful implementation of the EC Act, there is a need to change in the Management style. Lack of exclusive staff, job assessment, HRD plan to augment, restructure, retain and upgrade skills is adversely affecting most SDAs.

Out of the 30 State Designated Agencies, the comprehensive five year action plan based on the 19 deliverables is prepared by 29 SDAs, while the preparation of action plan of U.T. of Lakshadweep is under progress. It is also expected that the remaining 5 States / U.T.’s of Sikkim, Goa, Jammu & Kashmir, Dadra & Nagar Havelli and Daman & Diu will designate an agency to promote the efficient use of energy and its conservation and it is expected that their action plans will be prepared soon. The major activities of the Action Plan under which financial support provided are: 9 Creation of IT infrastructure 9 Creation of database for Energy Managers / Energy Auditors and Designated Consumers 9 Organizing workshops / training programmes 9 Creating awareness through electronic media / print media The major achievements indicating the successful implementation are: a)

Out of the 30 SDAs a total of 25 SDAs have established a separate website highlighting energy efficiency measures undertaken in the State. All these SDAs have linked their websites with that of the Bureau of Energy Efficiency and with other SDAs to facilitate ease of information exchange.

b)

As per Gazette Notification the industries falling under the category of Thermal Power station, Fertilizer, Cement, Iron and Steel, Chlor Alkali, Aluminium, Railways, Textile, Pulp and Paper and consuming energy beyond a certain threshold limit are classified as Designated

Consumers. The notification is enclosed at Annex – II. A tentative list of Designated Consumers was sent to all SDAs located in the respective States for verification. Till date 23 SDAs and the State Govt. of Goa have identified 714 Designated Consumers in 8 sectors, excluding Railways. Similarly, the list of Energy Managers / Energy Auditors residing in each State was verified by each SDAs. 12 SDAs have organized workshops / training programmes involving the Energy Managers / Energy Auditors and Designated Consumers appraising about their roles as per the mandate of the Energy Conservation Act 2001. c)

Media / awareness campaign in 24 States has been undertaken after hiring a media consultant / professional agency. Most of the SDAs undertook rigorous awareness campaigns through a media consultant. The major focus area were promotion through electronic and print media, translation of BEE materials to local languages, awareness campaign in schools / colleges, and through brochures, banners etc.

d)

In 10 states Energy Conservation Day was celebrated with due recognition given to those who have taken the lead in promoting the cause of energy efficiency in the State.

e)

Each SDA was asked to identify 20 Govt. buildings for Investment Grade Energy Audit. A total of 24 SDAs identified 409 Government Buildings for IGEA. The IGEA of Govt. Buildings was conducted by the empanelled ESCOs and Audit Firms of the Bureau of Energy Efficiency, which was shared with the SDAs. The findings of the IGEA of Govt. Buildings will be implemented through the ECSO mode and few SDAs have already finalized the agreement terms for implementing the same through ESCO route.

f)

The SDAs have identified 40 demonstration project in the area of energy efficient street lighting, revamping of drinking water pumping system and energy efficiency in SMEs clusters. The main objectives of these demonstration projects are: 9 To showcase the effectiveness of the most energy efficient device / technology through a practical demonstration 9 To furnish the SDAs with relevant documents including technical specification of the energy efficient device, techno-economic viability of the project, bidding document, monitoring protocol etc. 9 To facilitate the State Governments in replicating these demonstration projects through various Departments / Agencies.

Detail Project Report for 40 demonstration projects has been prepared financial support for 24 such projects is provided to the SDAs for their implementation.

Annex - I 19 DELIVERABLES ACTION PLAN

Deliverable 1: Establishment of Internet Platform for communication with SDA

Deliverable 2: Preparation of list of certified energy managers and accredited energy auditors which work or reside in the State (ESCOs).

Deliverable 3: Preparation of list of Designated Consumers and their energy consumption

Deliverable 4: Preparation of set of forms concerning communication of data and other information with BEE

Deliverable 5: Half yearly State level meeting with certified energy managers and Accredited energy auditors to discuss duties and responsibilities as well as joint progress

Deliverable 6: Annual State level conference of energy intensive industry, as well as certified energy managers and accre4dited energy auditors:

Deliverable 7: Half yearly meeting for exchange of information about lessons learned on State level implementation of EC Act

Deliverable 8: Annual meeting of all SDAs to discuss progress and next year’s action plan with BEE

Deliverable 9: Design and printing of promotional material to be distributed to all four stakeholders: Certified energy managers, accredited energy auditors, designated consumers and general public

Deliverable 10: Conduct mandatory refresher course for certified energy auditors and energy managers

Deliverable 11: Implementation and conduct of Life long learning (3L) Program of BEE for certified energy auditors and accredited energy managers and interested parties

Deliverable 12: Training of designated consumers for annual reporting of energy data

Deliverable 13: Collection of data concerning manufacturing as well as sales of household appliances and other equipment at State level falling under the Energy Conservation Act

Deliverable 14: Annual report about State wise sales of labeled household appliances and other energy intensive equipments

Deliverable 15: Annual survey and analysis of impact of Energy Conservation Act, based on reports of accredited energy auditors as well as energy managers and other sources of information in the State

Deliverable 16: Preparation and publishing of annual year book of energy conservation measures at State level

Deliverable 17: Survey of buildings at State level which fall under the Energy Conservation Act

Deliverable 18: Preparation of report and analysis of State level incentive as well as disincentive policies concerning energy conservation measures in energy intensive industries including power sector

Deliverable 19: Preparation of recommendation for streamlining State level policies concerning energy conservation