Policy and Programs Supporting Energy Efficient Lighting in India The Transition to Efficient Lighting in South Asia 2013 Ms. P. Samal Asst. Energy Economist Bureau of Energy Efficiency Ministry of Power Govt. of India 1 Lighting – Bachat Lamp Yojana (BLY) 2 Rationale for the programme • Almost a fifth of global electricity is used for lighting, which • • • • accounts for 1.9 billion tons of CO2 every year. Equivalent to the emissions from 70% of the world’s passenger vehicles. In India, Lighting accounts for almost 20% of the total electricity demand, and is a major component of the peak load. The majority of lighting needs in the country are met by incandescent bulbs, particularly in the household sector. Extremely energy inefficient as over 90% of the electricity is converted into heat, and only upto 10% is used for lighting. 3 Objective What • Quality long-life CFLs would be distributed to grid-connected residential households in exchange of a incandescent lamp (ICL) and INR 15 Who • Implementers who possess both finance and project management skills How • The project cost is covered through sale of GHG emission reductions also known as CERs achieved in the respective Project areas. Specifications of CFLs Confirm to IS15111 viz. Life >= 6000 hrs Power factor >= 0.85 Confirm to IS 418:2004 viz. Lumen output >= the ICL replaced. CFLs carry a BLY logo 4 Benefits to Stakeholders STATE – -Reduce load shedding -Improves revenues -Increase in Comfort Level Investor--Profit making business DISCOM – - Reduce peak demand (20 to 30%) - Improves revenues - Customer satisfaction - Reduction in costly peak power COUNTRY – through CDM mechanism - Conservation of fossil fuels End User –Reduction in energy bill & - Accelerates the development improvement in light output - Reduction in GHG emissions - Energy Security 5 BLY Scheme Architecture Communication Buyer in Annex I Country PoA -Manager Monitoring report Allocation of CERs Payment for CERs CERs sold CFL IMPLEMENTER Safe disposal of fused CFL/ replaced ICL Host Approval Coordinating & Managing entity Fused CFLs returned Replaced ICL lamp Contract for implementation DNA CDM EB DOE Issuance of CERs HOUSEHOLD Buying CFL DISCOM CFLs to replace ICLs Provide CPA-DD Consumer database Access to sample groups CFL = Compact Florescent Lamp ICL = Incandescent lamp DOE = Validators BEE = Bureau of Energy Efficiency DISCOM = Distribution Company 6 Project Development process with Private Investors Empanelment of Investor with BEE CPA validation and inclusion by DoE CFL distribution by Investor Investor and DISCOMS identify SSC-CPA Area Investor develops CPAs and submits to BEE Project area monitoring by DoE Investor and BEE sign bilateral agreement Investor secures finance and sources CFLs CPA verification by DoE and CER issuance to POA Investor and DISCOM sign bilateral agreement Signing of Tripartite agreement Allocation of CERs by BEE 7 Implementation Methods Selecting private Investors to implement the projects in some areas • DISCOMs may tender out the areas for BLY implementation with strict conditions to implement the projects • Impose penalty for non compliance of the timelines of distribution in 3 months Create a SPV in the state for Implementation • SPV (Special Purpose Vehicle) May be created in the state for implementation of BLY(e.g Kerala) • SPV may get empanelled with BEE and implement the project • Govt may arrange finance for SPV 8 Major Milestones…… Approval of Ministry of Power- 2007 Registration of BLY PoA(Programme of Activities with UNFCCC- April,2010 Inclusion of CPAs- May,2010-August,2012 CFL Distribution Period- 2010-2013 9 Current Status* * As of September 2013 Coverage Status Registration PoA got registered in UNFCCC in April,2010 Included CPAs 50 Stand alone 5 Empanelled Investors 10 Investment Outlay Per CPA (Approx..) INR 5 Crore; $ 1.13 million CFLs Distributed 29.5 (in millions) M&V MR report submitted to UNFCCC for issuance of CERs 10 CFL Distribution in Lakhs 5 31 8 59 4 5 Andhra Pradesh Delhi Karnataka 37 Kerala Punjab 16 Haryana 126 Chhatisgarh Himachal Pradesh 11 Growth of CFL in India BLY Period Source: ELCOMA Electric Lamp & Component Manufacturers Association 12 Incandescent Bulb Vs CFL market 13 Source: ELCOMA Market Transformation Category 2005 2006 2007 2008 2009 2010 2011 Gr % Incandescent Lamps 711 757 779 734 766 797 757 (-)5% Fluorescent Lamps 180 186 190 186 179 182 194 (+)7% 100 140 199 255 304 340 (+)12% Compact Fluorescent 67 Lamps (CFLs) [Source: http://www.elcomaindia.com/ 14 BLY – Results & way forward • Total sales of CFLs have increased to 340 million (in 2011) from 200 million (in 2008) when the Bachat Lamp Yojana (BLY) was conceptualized. • The doubling of CFL market, even though BLY has contributed to only about 15% of the increase, suggests that the market transformation under BLY has occurred. • An avoided generation capacity of 415 MW has been achieved by the BLY scheme during XI Plan. • The BLY scheme was designed to be viable when the price of CERs was Euro 8 or more, whereas current price is Euro 0.6; scheme is no longer viable and no new projects are being submitted. However, the approved projects under BLY scheme will continue. 15 Way forward: LEDs 16 Why LED? Lamp Equivalent LEDs CFL Incandescent Bulbs Life Expectancy 50,000 hrs 8000 hrs 1200 hrs Watt 10 watts 13-15 watts 60 watts kWh of electricity used 300 in 50,000 hrs 700 3000 Hazardous Materials none 5mg mercury/bulb none Color Rendition Wide range of color Restricted color option Restricted color option Dimmability Yes Restricted possibility Yes Robustness Breakable Sensitive Sensitive Start up Time Instant Delay Almost instant Disposal Via landfill As per guidelines Via landfill Light Efficiency 620lum/10=80 Im/wtt 620/15=53 Im/wtt 620/60=13 Im/wtt Energy efficiency 90% 40% 5% 17 BEE’s Initiative – XII Plan LED based lighting is a major step forward in achieving sustainability. BLY 2 – Next Phase Distribute one LED bulb to the BPL consumers who have been provided electricity connection under RGGVY scheme. BEE will Provide technical assistance for implementation and monitoring and verification of individual project. Scheme target is to avoid generation capacity of 556 MW Target energy savings 2920 MU per year Promotion of high energy efficient LED lighting technology Help in reducing peak demand shortage Approximate 20 Million LEDs will be distributed under this scheme. SEEP – LEDs Super-Efficient Equipment Programme (SEEP) programme for LEDs aims to distribute 25 million LED bulbs to grid connected consumers at a subsidized price. This will help to overcome the high first cost barrier of LED bulbs and provide mass penetration of LED bulbs in the domestic and commercial sectors in the coming years. 18 DSM Initiative • 4 LEDs per residential house will be distributed to residential households in exchange of 4 incandescent lamps (ICL). • The reduction in connected load as a result of replacement will be 50W/lamp considering 60W incandescent lamp to be replaced by 10W of LED • Objective is to overcome this first cost barrier to promote LEDs by using the basic architecture of Bachat Lamp Yojana (BLY). • It would leverage DSM for recovering investment, much in the same manner as CDM was used by BLY. • Implementing Agency – ESCOs/EESL (Energy Efficiency Services Ltd.) • Recovery Mechanism • Guaranteed Savings • Suitable Incentives 19 • BEE initiated a Nationwide program “LED Village Campaign” • BEE proposes to convert the existing incandescent bulbs (ILB) in the households and the street lights of one village with LEDs. • The objective is to showcase the new technology for lighting using LED so that a comparison can be demonstrated between LED and ILBs • Facilitate the State Governments in replicating these demonstration projects • A maximum support to the tune of Rs. 15.00 lakhs (≈$25,000) is being provided by BEE • Demo project on energy efficient street lighting implemented at Dimapur (Nagaland), Dibrugarh (Assam), Gandhinagar (Gujarat) and Bangalore (Karnataka), Aurangabad (Maharashtra), Dehradun (Uttarakhand), Gurgaon (Haryana)…. 20 Demonstration : LED Street Light Industry penetration to LED Business • 12 large, 15 Medium and about 600 small manufacturers in LED business • All major chip manufacturers have based offices in India • Binning and Packaging started in India • Tie up with major Global Luminaire manufacturers by most of large companies to start manufacture in India Value Rs. Crores 5000 4435 4500 4000 3500 3058 3000 2265 2500 1666 2000 1500 1000 500 300 500 850 1190 21 0 1 2009 2 2010 3 2011 4 2012 Year 5 2013 6 2014 7 2015 8 2016 Eighth lites.asia meeting – Manila, Philippines, 2-3 October 2013 Contact Information: Bureau of Energy Efficiency (Govt of India, Ministry of Power) 4th Floor, Sewa Bhawan, R. K. Puram New Delhi- 110 066, India. Tel: 011- 26179699 Fax: 011- 26178352 Email: mdeore@beenet.in psamal@beenet.in Website: www.bee.gov.in 22