The mantra is efficiency

The integrated policy report drafted by Planning Commission committee was approved last week by the Union government. The report addresses various challenges in the way of energy security and availability. It gives recommendations on issues like open access, power tariff, renewable energy, etc.

But one of the notable points in it is the importance it gives to energy efficiency. The report advocates merging of PCRA and BEE into one body which should ‘force the pace of improvisation in energy efficiency’ and the use of ‘golden carrot incentives’ for the same.

‘Lowering the energy intensity of GDP growth through higher energy efficiency is important for meeting India’s energy challenge and ensuring its energy security.

It may be noted that a unit of energy saved by a user is greater than a unit produced, as it saves on production losses as well as transport, transmission and distribution losses. Thus a “Negawatt”, produced by a reduction of energy need has more value than a Megawatt generated. The Committee feels that with an aggressive pursuit of energy efficiency and conservation, it is possible to reduce India’s energy intensity by up to 25% from current levels.’

It goes on to cite areas where efficiency can play a big role. It also calls upon the need to reduce energy requirements to increase energy security.

On renewables while calling upon a 40 percent increase by 2030, it recommends incentives to outcomes and not just outlays.

The report also acknowledges the lack of energy related R&D in the country and noting that it has not been allotted the resources that it needs, it advocates a National Energy Fund (NEF) be set-up to finance energy R&D.

For a detailed look at the report, download from http://planningcommission.nic.in/reports/genrep/rep_intengy.pdf

Meanwhile, the Union government has finally empowered the Bureau of Energy Efficiency (BEE) to set fuel efficiency standards for the country’s automobile industry. Voluntary labels on vehicles will give mileage details. Mandatory standards are expected to be imposed by 2010. However not much is known whether this will impact costs.

There had been confusion over who should implement this, the BEE or the transport ministry. The latter had plans to base the standards on emissions and not mileage. But BEE felt emissions was something the common man would not be able to relate to.

That’s good news on the eve of a New Year. The nation is turning in the right direction. How soon the speed will pick up, let us see.

DO let us have your suggestions on what we need to do to become energy secure.