- The National Mission for Enhanced Energy Efficiency (NMEEE), one of the eight national missions delineated in the National Action Plan on Climate Change (NAPCC), aims primarily to invigorate the energy efficiency market through the establishment of conducive legal frameworks and policies.
- Additionally, it aims to foster innovative, eco-friendly business models within the energy efficiency sector.
- The Indian government initiated this endeavor with the goal of promoting the creation of sophisticated market mechanisms and regulatory frameworks to propel advancements in the energy efficiency market.
OBJECTIVES
- Support Energy-Intensive Industries: The primary objective of NMEEE is to assist energy-intensive industries, which consume significant energy during production processes.
- Reduce Energy Footprint: NMEEE aims to decrease the energy footprint of industries and promote investments in energy efficiency initiatives.
- Energy Saving Certificates: NMEEE intends to assign energy reduction targets to major energy-intensive enterprises and incentivize them through the issuance of Energy Saving Certificates (ESCerts) upon achievement of these targets.
- Promote Energy-Efficient Machinery and Appliances: NMEEE seeks to promote the adoption of energy-efficient machinery and appliances across various sectors.
- Enhance Investment Willingness: NMEEE endeavors to increase the willingness of investors and financial institutions to support energy efficiency programs and projects.
INITIATIVES UNDER NMEEE
- Perform Achieve and Trade (PAT): This initiative implements a regulatory mechanism aimed at reducing specific energy consumption within energy-intensive industries. It incorporates a market-based approach to enhance cost-effectiveness by certifying surplus energy savings that can be traded.
- Energy Efficiency Financing Platform (EEFP): The establishment of the Energy Efficiency Financing Platform (EEFP) facilitates communication between project developers and financial institutions (FIs) to facilitate the execution of energy efficiency projects. Memorandums of Understanding (MoUs) have been enacted under this initiative to encourage funding for such projects.
- Market Transformation for Energy Efficiency (MTEE): MTEE focuses on promoting the adoption of energy-efficient appliances and equipment by fostering the development of innovative business models.
- Framework for Energy Efficiency Economic Development (FEEED): FEEED aims to advance energy efficiency initiatives by mitigating investment risks, thereby promoting a conducive environment for investment in energy efficiency.
IMPLEMENTING AGENCIES – NMEEE
- Bureau of Energy Efficiency (BEE): Established under the guidelines of the Energy Conservation Act of 2001, the Bureau of Energy Efficiency operates as an organization within the Indian government under the Ministry of Power. It was founded in March 2002 with the aim of institutionalizing energy efficiency services, facilitating national delivery systems, and serving as a central resource for energy efficiency across various sectors. Its primary objective is to reduce the economy’s energy intensity.
- Energy Efficiency Services Limited (EESL): EESL is responsible for implementing the Domestic Efficient Lighting Programme (DELP), now known as the UJALA scheme. As a joint venture of state-run power firms, EESL has successfully executed the Domestic Efficient Lighting Programme, resulting in a significant 75% reduction in the price of LED lights.
STATUS OF NMEEE IMPLEMENTATION
- Perform, Achieve & Trade (PAT) Scheme:
- During the first cycle (2012-2015), over 400 industries successfully reduced their emissions by 31 million tonnes (MT) of CO2.
- The second PAT cycle commenced on April 1, 2016, and lasted for three years until March 2019. It aimed at an aggregate reduction of 8.869 million tonnes of Oil Equivalent (MTOE) across 621 units spanning 11 sectors.
- A third cycle of PAT, targeting a reduction of 1.06 MTOE over three years, began on April 1, 2017.
- The PAT Scheme operates on a rolling cycle of implementation, with new units being included annually for a period of three years.
- Unnat Jyoti by Affordable LEDs for All (UJALA) Program:
- EESL’s flagship program, UJALA, has significantly transformed India’s access to energy-efficient LED bulbs.
- It has led to a substantial reduction in carbon emissions, estimated at up to 27 million tonnes annually.
- The program has experienced remarkable growth, achieving a 140-fold increase within just two years.
- Energy Efficiency and Conservation (EE&C) Initiatives:
- Large-scale implementations of EE&C initiatives across India’s energy-intensive industries and other significant demand-side economic sectors present substantial investment potential, estimated at INR 74,000 crore.
CHALLENGES TO ENERGY EFFICIENCY
- Difficulty in Prediction: Forecasting program outcomes proves to be a practical challenge, leading to uncertainty in planning and implementation.
- Technological Hurdles: The absence of recent technological advancements and inadequate research and development facilities present significant obstacles in energy-efficient sectors, hindering progress.
- Constant Monitoring Requirement: Continuous monitoring and adaptive decision-making processes are essential for effective implementation, necessitating robust feedback mechanisms.
- Multi-level Governance Complexity: Limited human and institutional capabilities, compounded by multi-level governance systems, impede the measurement, analysis, and integration of energy efficiency measures into mainstream industries.
- High Initial Costs: The initial high costs associated with energy-efficient technologies pose a barrier to adoption. However, informed investments with payback periods ranging from 2 to 5 years can mitigate this challenge.
- Incentive Necessity: Longer payback periods necessitate incentives to incentivize individuals and businesses to invest in energy efficiency initiatives, thereby overcoming financial barriers.
FAQs Regarding the National Mission for Enhanced Energy Efficiency (NMEEE)
1-What is NMEEE and its significance within India’s climate change framework?
A: NMEEE, a component of the National Action Plan on Climate Change (NAPCC), aims to bolster the energy efficiency market in India through regulatory frameworks and innovative business models. Its significance lies in promoting energy efficiency to mitigate climate change and enhance sustainable development.
2-What are the primary objectives of NMEEE?
A: NMEEE primarily aims to support energy-intensive industries, reduce energy footprints, promote energy-efficient machinery, and enhance investment willingness in energy efficiency initiatives.
3-What initiatives fall under NMEEE, and how do they contribute to its objectives?
A: PAT, EEFP, MTEE, and FEEED are key initiatives under NMEEE. They facilitate energy efficiency improvements through regulatory mechanisms, financing platforms, market transformations, and economic development frameworks.
4-Which agencies are responsible for implementing NMEEE, and what roles do they play?
A: The Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL) are instrumental in implementing NMEEE. BEE focuses on institutionalizing energy efficiency services, while EESL implements programs like DELP (UJALA) to promote energy-efficient lighting.
5-What is the current status of NMEEE implementation, particularly regarding the PAT scheme and UJALA program?
A: The PAT scheme has seen successful reductions in emissions and energy consumption across multiple cycles. Similarly, the UJALA program has achieved significant reductions in carbon emissions and widespread adoption of energy-efficient LED bulbs.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
