“India’s UJALA Story – Energy Efficient Prosperity” – by Energy Efficiency Services Limited (EESL) and the International Energy Agency (IEA) is a case study of the Indian Government’s domestic efficient lighting programme – the Unnat Jyoti by Affordable LEDs for All (UJALA - meaning light in Hindi).
The programme is implemented by EESL, a super Energy Service Company (ESCO) under the Ministry of Power, Government of India. UJALA, the world’s largest zero-subsidy LED bulb programme for domestic consumers, is an extraordinary example of successful energy efficiency programmes.
UJALA is a market driven initiative, with strong policy support from the government. It is an example of a self-sustaining government initiative that has not only surpassed traditional benefits, like energy savings and reduced carbon emissions, but has also triggered large scale investment in the manufacturing of LED bulbs, generated employment and other macro benefits.
In November 2013, NITI Aayog (at the time, known as the Planning Commission of India) initiated a stakeholder-driven analysis of the opportunities and barriers to rapid deployment of renewable electricity in India, titled ‘India’s Renewable Electricity Roadmap 2030’. This activity was in conjunction with its role of co-leading the 21st Century Power Partnership (21CPP), a multilateral effort of the Clean Energy Ministerial (CEM) that serves as a platform to advance the large-scale deployment of renewable energy
State Renewable Energy Action Plans
Energy is considered as of the key inputs for economic development of the Country. India is poised to play a significant role in the Global energy space, as it is likely to account for 25% of the rise in global energy demand by 20403. Our Country’s energy demand is expected to rise at a compounded annual growth rate (CAGR) of 3.5% till 2040 as it advances on the path of development4. India imported 37% of its total primary energy demand in 2015-16, whereas the import dependence of crude oil and natural gas has increased from 73% and 17% in 2005-06 to 81% and 40% in 2015-16 respectively. However, there has been a dismal growth in domestic oil (CAGR – 1.4%) and natural gas (0.01%) production over the last decade. Methanol and Dimethyl ether (DME) can play an important role in order to contain the rising imports and improve the energy security of India.
Japan’s energy policy has been dominated by efforts to overcome the impact from the 2011 Great East Japan earthquake and the subsequent nuclear accident. At the 15th Conference of the Parties (COP15) in 2009, Japan had pledged to reduce its greenhouse gas (GHG) emissions by 25% from 1990 to 2020. This ambitious pledge largely relied on plans to increase nuclear power’s share in electricity supply from 30% to 50%. After March 2011, however, the country’s entire nuclear power capacity was gradually shut down in the aftermath of the Fukushima Daiichi nuclear accident and came to a complete halt in 2013.
The Institute of Energy Economics, Japan (IEEJ) was established in June 1966 and certied as an incorporated foundation by the Ministry of International Trade and Industry in September that year. The aim of its establishment is to carry on research activities specialized in the area of energy from the viewpoint of the national economy as a whole in a bid to contribute to sound development of the Japanese energy-supplying and energy-consuming industries and to the improvement of people's life in the country by objectively analysing energy problems and providing basic data, information and reports necessary for the formulation of policies.
As per the Statement of Intent (SOI) signed between NITI Aayog and Institute of Energy Economics Japan (IEEJ), one of the important topics was to assess the natural gas demand of India and Japan and analyze the impact of increased penetration of gas on the overall energy scenario of India and Japan.
The Energy Vertical of NITI Aayog has strived to harness the competencies of the best in class energy think tanks in India and overseas, towards devising a sustainable and secure energy pathway for the country. The Prayas Energy Group, Pune was engaged for development of a portal compiling data on various sectors of energy for developing a dashboard with the aim to provide a single window access to energy data in the country. Data plays a critical role in policy formulation, modeling and other analytical work.
Knowledge Initiatives - A Report of Energy Division, is intended to put together in one place, the products of collaborative efforts of NITI Aayog and its national and international partners in the energy space. Over the years, the Energy Division of NITI Aayog has strived to harness the competencies of the best in class energy think-tanks in India and overseas abroad, towards devising a sustainable and secure energy pathway for the country. In the above pursuit, it has provided knowledge inputs to the line energy Ministries/Departments, both on the demand and supply sides.
The report tries to answer the key question of ‘how must the Indian power system evolve if India chooses to put RE at the core of the future system, rather than at the periphery?’ The objective of the document is to capture and synthesis the inputs of stakeholders in the renewables sector at the national and state levels in India as well as internationally.
The paper suggests a framework for an integrated policy strategy for rapid RE implementation that complements both the existing and planned conventional power projects. The framework includes:
For India to capture the benefits of renewables as “the main occupant of the house” will require the rethinking and reengineering of institu¬tions, the redefinition of policies, the re-tuning of power grids and systems, and the replacement of old habits with new ones.
Ministry of Environment and Forests (MoEF), Government of India, requested the Ministry of Power (MoP) to provide inputs for determining India’s Intended Nationally Determined Contributions (INDCs) for submission to COP-21 (Paris). NITI Aayog was requested to provide inputs on determining the INDCs via energy projections till the year 2030. The Report responds to the above request of MoP to NITI to provide the projections sought by MoEF using the IESS, 2047. India Energy Security Scenarios, 2047 (IESS) is essentially a bottom-up model. In the Indian setting, where different energy sources are planned separately, it becomes important to identify sectoral targets and yet subject them to stress tests in an aggregate scenario. Accordingly, it was possible to adopt electricity projections for the year 2030 using IESS. The other forms of energy (solid and liquid) were generated using the same assumptions which were applied for electricity, thereby allowing estimations of energy efficiency and energy mix as well.
Residential and Commercial sectors account for 29% of the total electricity consumption in India and this share is rising at a rate of 8% annually. The Indian commercial sector exhibits a massive savings potential on the demand side, through energy efficiency interventions. There is also an opportunity, which can be leveraged on the supply side by introducing renewable energy generation in buildings. For this, there is a need for tackling various gaps including the problem of information asymmetry through the propagation of project experiences and best practices and the issue of transactional barriers.
The report talks about how NITI Aayog has set a national precedent by initiating two types of energy efficiency interventions:
This paper tries to address information asymmetry and capture the above interventions to showcase NITI Aayog as a demonstration project in energy efficiency interventions and map the way forward in terms of an easier and widespread adoption of energy efficiency measures in buildings.
Energy security is a critical strategic and economic issue for India. The National Action Plan on Climate Change launched by the Hon’ble Prime Minister on June 30, 2008 emphasized the need for a graduated shift from economic activity based on fossil to one based on non-fossil fuels, and from reliance on nonrenewable and depleting sources of energy to renewable sources. The Planning Commission thus constituted a task force in June 2013 and identified various issues. The report brings out the broad suggestions made by the members of the Task Force. Given the severity of the situation, the task force focused on certain key areas and suggested early action measures.
India’s coal generation capacity and installed electricity generation capacity is significantly higher than that of peak demand. Despite this, some parts of the country face acute power shortages. In addition, India’s major advantage is that its renewable energy potential is vast and largely untapped. But to capture the benefits of RE, India would need to make available necessary capital and get comfortable with managing the variability and uncertainty of RE generation in conjunction with the existing and planned fossil fuel-based and large power plants. With these challenges in mind, the NITI Aayog constituted an Expert Group in June 2015 to assess the requirements and utilization of public finance for achieving 175 GW RE by 2022.
Kamakhya Misra is a second semester Freshman pursuing her Bachelor of Science degree at the College of Agriculture and Life Sciences at Cornell University, New York. Her academic interests include an intersection of business, environmental and sustainability sciences. With a strong proclivity for the renewable energy sector, Kamakhya interned under the Energy vertical at the NITI Aayog. During her time at the NITI Aayog, she was responsible for studying the technical, financial and economic aspects of solar rooftops and their viability in India’s domestic, commercial and industrial sectors. She was tasked with identifying key problem areas and proposing solutions to increase solar penetration and improve consumer sustainability habits.Presentation