National Mission for Enhanced Energy Efficiency approved

The Union Cabinet today approved the implementation plan of the National Mission for Enhanced Energy Efficiency (NMEEE) with a budgetary support of Rs.235.38 crore required for implementation of the Mission with effect from 2010-11. It also approved the creation of two new posts of Deputy Director General (Joint Secretary level) in the Bureau of Energy Efficiency.

The total expenditure involved in the implementation plan of NMEEE is Rs.235.35 crore for the balance period of the XI plan.

These initiatives will avoid capacity addition of about 19,598 MW. It would result in fuel savings of around 23 million tonnes of oil equivalent (MTOE) and reduction in Green House Gasses (GHG) emissions of 98.55 million tonnes.

The National Mission seeks to create and sustain markets for energy efficiency in the entire country which will benefit the country and the consumers.

It is estimated that this will unlock new and innovative forms of market for energy efficiency estimated at Rs.74,000 crore.

Background:

The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions with the objective of promoting innovative policy and regulatory regimes, financing mechanisms, and business models which not only create, but also sustain markets for energy efficiency in a transparent manner with clear deliverables to be achieved in a time bound manner. NMEEE proposes the following four new initiatives to enhance energy efficiency, in addition to the programmes on energy efficiency being currently pursued :

a) A market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries. The trading of energy saving certificates would facilitate this process (Perform Achieve and Trade).

b) Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. (Market Transformation for Energy Efficiency).

c) Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings. {Energy Efficiency Financing Platform (EEP)}.

d) Developing fiscal instruments to promote energy efficiency namely Framework for Energy Efficient Economic Development (FEEED).

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AKT/SH/SKS