Yojana May 2019 Harnessing Sustainable Energy (Part-1) (Download PDF)


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Key Topics Included In This Article: Perform Achieve & Trade (PAT), Eco Samhita (Energy Conservation Building Code for Residential Buildings), Labelling Programme for Energy Efficient Homes, Technology, Ocean Energy, World Scenario, Indian Scenario, Going electric for Environment, What about emission from an electric mobility future? , How is India enabling eclectic transition? , What makes India’s current energy, Linking climate mitigation w/sustainable development, India In a Warming World, Forests, Water & People Interconnections, Policy & Legal Framework.

Meeting Future Energy Needs

  • India’s Intended Nationally Determined Contributions centre around promotion of clean energy, especially renewable energy; enhancement of energy efficiency; safe, smart & sustainable green transportation network; abatement of pollution & India’s efforts to enhance carbon sink thru creation of forest & tree cover.
  • Solar energy, bio-gas, geo-thermal energy & ocean energy are some clean energy sources that may help mitigate ill-effects of environmental pollution.
  • Geo-thermal energy seems a more viable renewable energy technology that has potential to provide clean energy for both electric power production & direct heat applications.
  • Bio-gas as an energy source can be a boon to rural India.
  • Bio-gas energy can not ease energy situation in rural areas but also ensure waste recovery both agriculture waste & dairy waste.

Energy Efficiency is Key for Sustainable Development

  • Govt. thru Nationally Determined Contributions has aimed to reduce emission intensity of GDP to 33 - 35 per cent below what it was in 2005 by 2030.
  • There is a need for a concerted move to ensure increased energy efficiency especially in 3 sectors
  1. Industrial sector
  2. Real estate
  3. Consumer appliance

Industrial Sector

  • W/an aim of energy efficiency improvement, Bureau of Energy Efficiency (BEE) is implementing Perform, Achieve & Trade (PAT) scheme under National Mission for Enhanced Energy Efficiency (NMEEE).

Perform Achieve & Trade (PAT)

  • PAT cycle-I had 478 DC’s covering total 8 sectors including Aluminum, Cement, Chlor-Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power plant, Textile, which were mandated to reduce their specific energy consumption (SEC) i. e. energy used per unit of production.
  • Implementation of PAT in designated industries has led to energy saving of 8.67 MTOE in year 2015 which is about 1.25 percent of total primary energy supply to Country in “first cycle”.
  • Energy savings of Designated Consumers (DCs) of PAT Cycle-I have been converted to tradable Energy Saving Certificates (ESCerts).
  • Total volume of ESCerts traded by 2018 was about 12.98 lakhs resulting into a business of about INR 100 Cr.
  • “second cycle” of PAT was notified in March, 2016 covering 621 DCs from 11 sectors which include eight existing sectors & three new sectors, viz. Railways, Refineries & DISCOMs.
  • PAT in its second cycle seeks to achieve an overall energy consumption target of 8.869 MTOE.
  • PAT scheme is currently based on a rolling cycle i. e. inclusion of new sectors/designated consumers every year, ” third cycle” of PAT was notified in March 2017 & it seeks to achieve an overall energy consumption reduction of 1.06 MTOE for which SEC reduction targets have been assigned to 116 DCs from six energy intensive sectors.
  • “fourth cycle” of PAT have been notified in March 2018 under which 109 DCs is notified from existing sectors & two new sectors i. e. Petrochemical & Commercial Buildings (Hotels) w/an million SEC reduction target of 0.6998 million tone of oil equivalent.

Real Estate Sector

  • Real estate sector consumes over 30 per cent of total electricity consumption in India annually & is second only to industrial sector as largest emitter of greenhouse gases;
  • BEE has two programs: (I) Eco Samhita, Energy Conservation Building Code for Residential Buildings, & (II) Labelling for Energy Efficient Homes.

Eco Samhita (Energy Conservation Building Code for Residential Buildings)

  • Eco-Niwas Samhita (Part I: Building Envelope) aims to set minimum building envelope performance standards to limit heat gains (for cooling dominated climates) & to limit heat loss (for heating dominated adequate natural ventilation & daylighting.
  • Code has been developed w/special consideration for its adoption by Urban Local Bodies (ULBs) into building bylaws.
  • Part-I Building Envelope Design is first component of Eco- Niwas Samhita, Building Code for Residential Buildings.
  • Aimed at improving construction & design of new residential building stock, as it is being built currently in near future, to significantly curtail anticipated energy demand for comfort cooling in times to come.
  • Code is designed in a simple to apply format, requiring only arithmetic tabulation Based on architectural design drawings of residential buildings.

This will be usable by architects as well as engineers & will not require any specialized skills or simulation software.

Labelling Programme for Energy Efficient Homes

  • to enable consumers to compare building performances from a sustainable energy point of view, a comprehensive labeling scheme is important.
  • Objective of proposed labelling programme is mentioned below:
  • Expected to save substantial energy thru. Improving energy efficiency to houses nationwide.
  • Programme brings up various ancillary benefits:
  1. It shall act as an embryo to stimulate larger energy efficient materials & technologies market.
  2. Housing value chain would encourage an additional set of professionals to expedite complete process of residential label granting.
  3. It will motivate material manufactures to invest in energy efficient material manufacturing in India.
  4. Labelling mechanism shall cause a reduction in energy bills.
  5. It helps nation in working toward fulfilment of Global Sustainable Development Goals 7 of United Nations: Affordable & Clean Energy.

Consumer Appliances

  • Daily household electronic appliances like AC, Microwave, Washing machine ets. Are included in this sector.
  • According to study of BEE, one degree increase in AC temperature setting results in saving of 6 per cent of electricity consumed.
  • 24 - 26 degree Celsius default setting has been recommended by BEE for energy savings & to reduce green house gas emission.
  • Savings of over 3.0 Billion units of electricity are estimated at consumer end thru adoption of Star Rated Microwave Ovens & Washing machines by 2030.
  • This would be equivalent to Green House Gases (GHG) reduction of 2.4 Million ton CO_2 by year 2030 thru these recent initiatives.

Tapping Sustainable Energy Alternatives

  • According to World Health Organisation, climate change affects social & environmental determinants of health clean air, safe drinking water, food security & shelter.
  • b/w 2030 & 2050, climate change is expected to cause approximately 2,50,000 assitional deaths every year from malnutrition, diseases like malaria, dirrhoea & heat stress.
  • Its cost to health is estimated to be b/w 2 - 4 billion US dollars a year by 2030.
  • India is a signatory to landmark Paris Agreement on Climate Change, which has brought all nations to a common cause to undertake efforts to combat climate change thru Nationally Determined Contributions (NDCs) & to strengthen these efforts in years ahead.
  • Emissions in India were estimated to have grown by 6.3 per cent in 2018, pushed by strong annual economic growth of around 8 per cent, according to recent projections by Global Carbon Project.
  • India was among four major emitters in 2017 (7 per cent) along w/China (27 per cent), US (15 per cent) & European Union (10 per cent) rest of world contributed 41 per cent.
  • National Solar Mission promotes ecologically sustainable growth, while addressing Country’s energy security challenge & contribute to global effort to meet climate change.
  • Crude import is a key factor in India’s current account deficit (CAD), which currently is 49 billion dollars or 1.9 per cent of Gross Domestic Product (GDP).
  • Increasing CAD is a cause of concern for country & if it crosses threshold of 3 per cent of GDP, it would badly affect economic stability.
  • Sewage treatment plant (STP) launched in Delhi would convert 10 lakh liters of sewage into three tonnes of biofuel per day.
  • India has potential to generate green energy from Solar, Wind, Geothermal, Ocean Thermal Energy, which are all non carbon options & can help reduce carbon imports by demand substitution.
  • Hybrids are expected to emerge in energy sector like Wind Solar & Wind Solar Biofuels.
  • Road transport sector accounts for 6.7 per cent of India’s Gross Domestic Product (GDP).
  • Extraction & utilization of coal have created a massive impact on environment w/far reaching consequences.
  • Nearly 65 per cent of India’s electricity is generated from thermal power, for which feedstock is invariably coal mined in India.
  • Power generation thru Boiler- Turbine route results in atmospheric pollution due to release of particulate matter carbon dioxide, Sulphur & nitrous oxides.
  • Other major energy source is oil. Oil pollution is an inescapable fact of life in 21st century,
  • Process of extraction of oil, transportation & storage of oil cause enormous loss to natural & human environment.
  • Indian automotive sector is among fastest growing industries in world. By 2020, it is expected annual demand for passenger vehicles commercial vehicles & two wheelers in country will be 46.7 million, turning India into third largest vehicle market in world.
  • India’s national Mission for Electric Mobility seeks to mitigate adverse impact of economic development by completely switching over to electric vehicles by 2030.
  • Another major source of environmental pollution is nuclear power generation.
  • Nuclear plants create 50 per cent more thermal pollution than fossil fuel plants.
  • Challenge India faces now is to improve energy access to modern energy at affordable price in a sustainable & responsible manner w/o sacrificing economic growth & social development to meet aspirations of its burgeoning population.

Financing Renewables in India

  • For India, success of renewable energy sector will be crucial to meet its Nationally Determined Contribution (NDC) under Paris Agreement & its transition towards a sustainable future. India has set an ambitious domestic target of 175 GW of renewable energy by 2022.
  • National Electricity plan 2018 reaffirms further expansion to 275 GW by 2027.
  • Over period, renewable energy has emerged as a true multi benefit system, combining ecological necessities w/domestic priorities & economic opportunities.
  • It addresses complex challenges of energy security, energy access, growing energy demand & domestic job creation. 77 GW renewable energy capacity on ground & 54 GW at diff. stages of fruition, India is well on way to realize ambitious target of 175 GW by 2022.
  • Steps taken by Govt. to support renewable energy sector include: fiscal & promotional incentives, such as capital subsidy, guidelines for transparent competitive bidding process, waiver of Inter State Transmission System (ISTS) charges & losses, Viability gap funding (VGF), standards for deployment of renewables system & devices & permitting Foreign Direct Investment up to 100 per cent under automatic route.
  • Development Banks, like Indian Renewable Energy Development Agency (IREDA), continue to represent key source of funds for renewables, particularly in project Finance. Very liberal foreign investment policy allow foreign investors to enter into joint ventures w/an Indian partner for financial & or technical collaboration & for setting up of renewable energy based power generation projects.
  • % of FDI in renewables has almost doubled from its average value of 1.7 per cent since 2000 to 3 per cent in year 2017 - 18 & this trend is expected to sustain given ambitious Indian renewables target.
  • Concessional fiancé is mainly for strengthening transmission & distribution networks & solar roof top sectors.
  • KFW Germany’s concessional line of credit for Green Energy Corridor Project; World Bank, Asian Development Bank & New Development bank for solar roof top projects; & European Investment Bank (EIB) for financing renewables are on going examples.
  • Notwithstanding, Venture Capital (VC) & Private Equity (PE) investments are growing, albeit slowly.
  • Greenko Energy, an independent power producer based in Hyderabad, have raised US $155 million in PE expansion capital from GIC, sovereign wealth fund of Singapore & Abu Dhabi Investment Authority.
  • Pension or sovereign funds are potent sources for patient capital for renewables. In 2014, Securities & Exchange Board of India (SEBI) introduced infrastructure investment Trusts (InvITs).
  • Rescuing cost of foreign debt by reducing currency hedging cost has potential to mobilize foreign capital & spur investment by reducing cost of capital.
  • This would reduce delivered cost of renewables & make them more competitive.
  • An analysis by Climate policy Initiative suggests that expected cost of providing a 10 year currency hedge facility would be around 3.5 % points per cent that would be broadly 50 per cent below market rate.
  • ROBUST Payment Security Mechanism (PSM) will contribute to de-risking investment. Successive studies have confirmed that one of most important risks to Indian renewable energy sector is counterparty credit risk, associated w/risk of state owned utilities to power producers.
  • National Solar Mission has provisioned PSM for ensuring payment to developers in case distribution company falters in payment.
  • Tariffs discovered in Rewa solar park projects is largely attributed to availability of concessional funds & availability of payment security mechanisms to protect developer’s interests.
  • For Rewa project, four layers of payment security ensure that, in case of any delay or even natural calamities that may lead to a transmission disruption, payment to developers is still guaranteed.
  • First tier of security mechanism is a letter of credit provided by off-takers, DMRC, MPPMCL, that equals a one month bill for energy generated by developers.
  • Second tier is a payment security fund operated by Rewa Ultra Mega Solar Limited (RUMS). It consists of three months of payment assurances in case off-takers delay or make a payment error.
  • This three month payment guarantee comes on top of one month line of credit provided by off takers. Third tier is state guarantee that if there are payment delays by off-takers, then state will step in to pay diff. or pending amount to developers.
  • State Govt. is providing fourth tier of payment security by agreeing to bear cost in cases where a transmission outage lasts beyond 50 hours. These provisions are now widely referred to as a model for de-risking off-takers risk.
  • India has rightly been exploring a combination of short & long term policy solutions. New ways of financing renewables, including thru credit & risk guarantees, innovative currency hedging facilities, Govt. bonds etc. would help in attracting additional capital, lowering cost of debt, & ensuring that India achieves its renewable energy targets.

Steps to Achieve India’s Solar Potential

  • India must honour its global commitments on curbing greenhouse gas emissions, as per Paris Agreement, implying we need to move away from a fossil fuel driven growth path.
  • Clearly we can address at alternate solutions so we can address our energy security in a sustainable fashion, w/a progressive reduction in carbon levels.
  • Evidence from several developed countries points towards renewable energy adoption as only way forward.
  • Indian Govt. has set renewables capacity target at 175 GW, to be achieved by year 2022, w/highest %, 100 GW, to be contributed by solar power.
  • Launch of International Solar Alliance, was a significant step to strengthen sector.
  • By setting up solar parks, providing viability gap funding support & introducing schemes like KUSUM (aiming to harness solar power for agriculture) & SRISTI (catalyzing adoption of rooftop solar solutions), Govt. has shown its keenness to fast track growth of solar industry.
  • Five areas that need more attention & focus, to take Indian solar power industry to next level.


  1. Newer advancements in field like floating solar (solar panels mounted on Structures that float on water bodies), & BIPV (wherein conventional materials used for facades & roofs of buildings are replaced by photovoltaics systems) can play a vital role in increasing capacity.

Policy Push

  1. Considering that tariffs are now significantly lower than other sources of energy, we need to move towards healthier tariffs to help private players work w/sustainable business models, & attract a higher capital inflow.
  2. This will eventually lead to augmented supply & further lowering of prices for common people. Respective state Govt. should accentuate rate of solar power generation w/regular capacity addition.

Discom Health

  1. Steps should be taken to strengthen dis-come such that they are able to support higher tariffs, honour RPOs & settle power providers dues on time.

Financial Reforms

  1. Reforms in banking systems will go a long way in assisting renewable energy sector.

Enabling Ease of Doing Business

  1. Govt. pursuit of reforms has created a more conducive environment for investments in India, reflected in our steady rise in Ease of Doing Business rankings over past couple of years.
  2. Achieving ambitious target of 100 GW solar power capacity by 2022 needs a collaborative effort from all stakeholders, including central & state Govt. financers, dis-come & private players.
  3. Govt. has a key role to play not only by providing required policy support but acting as a central coordinator guiding & synchronizing effort from various stakeholders, to Catalyze solar industry’s growth.

Geo-Thermal & Ocean Energy Technologies

Ocean Energy

  • Ocean energy is energy harnessed from ocean waves, tidal range (rise & fall) & tidal streams, temperature gradients & salinity temperature gradients & salinity gradients.
  • Around 536 MW of installed ocean energy capacity is in operation at end of 2016, w/major share of two large scale tidal barrage plants i. e. 254 MW Sihwa plant in South Korea (completed in 2011) & 240 MW La Rance tidal power station in France (completed in 166).

World Scenario

  • Leading countries in Ocean Energy technology are UK, USA, Sweden, Canada, France, South Korea.
  • Examples of few large scale Tidal (Barrage) Plants are 254 MW at France (1966), 20 Mw at Canada, etc. ocean Technology, such as Tidal (Current), Wave, Ocean, Thermal Energy Conversion (OTEC) are still at pre R& d stage/kilo Watt level.

Indian Scenario

  • As per study conducted by IIT Madras, Theoretical Potential for tidal Energy in India is 12500 MW, Promising locations are Gulf of Khambhat & Gulf of Kutch (GJ), Sunderbans (WB), Western Ghats (MH), etc. theoretical Potential for Wave Energy In India is 41,000 MW, Promising locations are Western Coast of Maharashtra, Goa, Karnataka, Kerala, Kanyakumari, Southern tip of India, etc.


Tidal Energy

  • Similar to hydropower generated from dams, tidal water is captured in a barrage across an estuary during high tide & forced thru a turbine during low tide.
  • Capital cost for tidal energy power plants is very high due to high civil construction that results in high power tariff
Image of Tridal Energy

Image of Tridal Energy

Image of Tridal Energy

Wave Energy

  • Wave energy is generated by movement of a device either floating on surface of ocean or moored to ocean floor by force generated by ocean waves.
Image of Wave Energy

Image of Wave Energy

Image of Wave Energy

- Published/Last Modified on: May 16, 2019


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