Niti Aayog bats for cost-benefit structure for energy efficiency programmes

Outreach for energy efficiency needs to be expanded

Niti Aayog, the central government’s think tank has in its 'Three-Year Action Agenda' suggested that promotion of energy efficiency must depend on cost-benefit analysis.

“De-carbonisation alone cannot be the justification for promoting a more energy-efficient technology. The benefit from de-carbonisation must outweigh its cost,” says the report.

The BJP-led central government has been pushing for energy efficiency throughout the supply chain– from low carbon emission power plants to LED bulbs scheme. It has distributed close to Rs 1 crore LED bulbs under its Domestic Efficient Lighting Programme (DELP) installed 21 lakh LED street lights so far.

Niti Aayog, in its action agenda, has suggested that the reach of various energy efficiency programs needs to be expanded. “A nationwide awareness programme to build the confidence in energy efficiency gains must be part of this mission,” it said.

For instance, it wants the Perform Achieve Trade (PAT) scheme to go for a re-run as it over-achieved its targets by 30 per cent.

The Bureau of Energy Efficiency (BEE) had in 2013 launched tradable certificates for industries that achieved energy efficiency standards. Titled as ‘Perform, Achieve and Trade (PAT)’, the scheme was aimed at major sectors such as thermal power, cement, fertilisers, aluminium, iron and steel, and pulp and paper industries. These sectors account for 65 per cent of the total share of electricity consumed for industrial purpose in the country.

It has also asked for efficiency in the coal distribution and thermal power sector. “The efficiency of thermal power plants should be raised through ‘Renovation & Modernisation’. New power projects should be on ultra-super critical technology which uses 20 per cent less coal,” it said.