What is the National Mission for Enhanced Energy Efficiency (NMEEE)? What are the other initiatives under NMEEE?
A National Action Plan on Climate Change was unveiled in 2008. The plan contained a total of eight missions and one of them was the National Mission for Enhanced Energy Efficiency (NMEEE).
National Mission for Enhanced Energy Efficiency
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions under the National Action Plan on Climate Change (NAPCC).
The National Mission on Enhanced Energy Efficiency’s (NMEEE) implementation plan was to be prepared by the Ministry of Power (MOP) and the Bureau of Energy Efficiency (BEE).
In addition to the energy efficiency activities being undertaken by MOP and BEE, NMEEE outlined the following four new initiatives to improve energy efficiency. They Are:
- Perform, Achieve, and Trade (PAT)
- Market Transformation for Energy Efficiency (MTEE)
- Energy Efficiency Financing Platform (EEFP)
- Framework for Energy Efficient Economic Development (FEEED)
Aims and Objectives
NMEEE aims to strengthen the market for energy efficiency through the implementation of innovative business models in the energy efficiency sector.
The Mission aims to step up efforts to open the PPP market for energy efficiency, which is thought to be worth approximately Rs. 74,000 crores. These approaches are anticipated to save 19,598 MW in increased capacity overall.
Given that these savings will happen on the demand side, a total of Rs. 1,95,980 crores in investments in the generation, transmission, and distribution sectors will be avoided.
As a result of these initiatives, it is estimated that 98.55 million tonnes of CO2 will be eliminated overall.
Perform, Achieve, and Trade (PAT)
Perform, Achieve and Trade (PAT) is a program that aims to lower Specific Energy Consumption (SEC), or the amount of energy used per unit of production, for Designated Consumers (DCs) in energy-intensive industries.
The program also includes a market mechanism to increase cost-effectiveness by certifying excess energy savings that can be traded.
The components of PAT are:
- Methodology for setting Specific Energy Consumption (SEC) norms for each designated consumer
- Promotion of Trading of ESCerts
- Fungibility of ESCerts
- Made amendments to EC Act, 2001
The PAT mechanism is a completely national program designed to improve energy efficiency in India’s energy-intensive sectors and establishments. It has no connection to the CDM or any other similar international program designed to encourage emission reduction, and the SEC reduction targets set under the PAT mechanism do not impose any responsibilities on other countries and must not be related to them.
Market Transformation for Energy Efficiency (MTEE)
Through incentives and creative business models, Market Transformation for Energy Efficiency (MTEE) aims to accelerate the shift to energy-efficient appliances in designated sectors.
Components of MTEE are:
- Leveraging international financing instruments for promoting energy efficiency
- Promotion of the Programme of Activities (PoA) of CDM in various sectors
- Identification of CDM Potential in Energy Efficiency Projects
- Adopting a National CDM Roadmap to increase the global CER market share by at least 10%
The following programs were launched as part of MTEE to help promote energy-efficient products:
Bachat Lamp Yojna (BLY): The program was developed as a replacement for inefficient bulbs with Compact Fluorescent Lamps (CFLs). As per data, a total of 29 million bulbs were replaced with CFLs which helped save 3.598 Billion Units of energy per year.
Super-Efficient Equipment Program (SEEP): This initiative was designed for the market transformation of super-efficient appliances by providing financial stimulus innovatively at critical point/s of interventions.
Energy Efficiency Financing Platform (EEFP)
To facilitate communication between project developers and financial institutions (FIs) for the implementation of energy efficiency projects, the Energy Efficiency Financing Platform (EEFP) was established.
BEE has signed Memorandums of Understanding (MoUs) as part of its program to promote funding for energy efficiency projects. BEE and the Indian Banks’ Association signed a Memorandum of Understanding for the Training Program on Energy Efficiency Financing to increase the capability of FIs.
Components of EEFP are:
- Overcoming barriers to the financing of energy efficiency projects
- Appropriate Government interventions for the creation of an energy-efficiency market
- Expansion of Energy Efficiency Financing Platform – PTC already on board; PFC, REC, IREDA, ICICI, SBI, IDBI, etc, to be encouraged to participate
- Price Transparency in Performance contracts for ESCO projects
- Capacity Building of Banks and Financial Institutions
Framework for Energy Efficient Economic Development (FEEED)
The Framework for Energy Efficient Economic Development (FEEED) was created to facilitate the creation of fiscal instruments to advance energy efficiency.
Through the implementation of Energy Efficiency programs like the Partial Risk Sharing Facility (PRSF), which offers partial credit guarantees to cover a fraction of the default risk that participating financial institutions face when lending to qualified Energy Efficiency sub-projects, the objective was to appease the concerns of concerned stakeholders.
With a guarantee coverage ranging from 40-75% of the loan amount, or Rs. 15 crores per project, each energy-saving loan provided by Participating Financial Institutions (PFIs) is partially guaranteed for a maximum tenure of 5 years.
Components of FEEED are:
- Providing comfort to lenders by the provision of a risk guarantee for performance contracts (Partial Risk Guarantee Fund (PRGF))
- Venture Capital Fund for Energy Efficiency (VCFEE)
- Incentives to Central Public Sector Undertakings (CPSUs) to take up energy efficiency
- Support and Assistance to Electricity Regulatory Commissions in stimulating Utility DSM
- Tax/ Duty Exemptions for Promotion of Energy Efficiency
National Action Plan on Climate Change
In the National Action Plan on Climate Change, which the Prime Minister unveiled on June 30, 2008, it is acknowledged that a high growth rate must be maintained to raise the living standards of the vast majority of people and lessen their vulnerability to the effects of climate change. The following principles are stated in the Action Plan:
- Adopting a development plan that is inclusive, sustainable, and climate change-aware to protect the weaker and poorer segments of society.
- Achieving national growth objectives through a qualitative shift in strategy that improves ecological sustainability and results in greater greenhouse gas emission reduction.
- Coming up with effective and affordable end-user Demand Side Management techniques.
- The widespread and rapid adoption of the right technology for mitigation and adaptation to the emissions of greenhouse gases.
- Developing new and innovative market, governmental, and non-governmental systems to advance sustainable development
The National Action Plan contains eight national missions, or multi-pronged, long-term, integrated strategies, for attaining significant objectives in the context of climate change. These missions are:
- National Solar Mission
- National Mission for Enhanced Energy Efficiency
- National Mission on Sustainable Habitat
- National Water Mission
- National Mission for Sustaining the Himalayan Ecosystem
- National Mission for a Green India
- National Mission for Sustainable Agriculture
- National Mission for Strategic Knowledge for Climate Change
India’s Energy Efficiency: Way Ahead
India is faced with the challenge of sustaining its rapid economic growth while dealing with the global threat of climate change. This threat is caused by the atmosphere’s accumulation of greenhouse gases that humans have caused, intensive industrial growth, and high-consumption lifestyles in developed nations. The quality and distribution of India’s natural resources may vary due to climate change, which would hurt the standard of living of the country.
India needs a national strategy to first adapt to climate change and second, further improve the ecological sustainability of India’s growth path, while also cooperating with the international community to collectively and cooperatively address this challenge.
India’s development goal is centered on the need for rapid economic growth as a necessary prerequisite to ending poverty and raising standards of living. To achieve this objective, which will also lessen the climate-related risk, significant resources must be invested in infrastructure, technology, and energy access.
To combat the effects of climate change, the mission aims to find policies that advance our development goals. In this context, cost-effective energy efficiency and conservation measures are particularly important.
The main concept of the mission is to achieve sustainable growth by balancing the four E’s of energy, efficiency, equity, and the environment.
Article Written By: Priti Raj