Embracing Energy Efficiency

Context: The recently announced Electricity (Rights of Consumers) Rules, 2020 lay down uniform performance standards for Distribution Companies (DISCOMS) and make them liable to compensate consumers in case of violations.

Challenges of Indian DISCOMS:

• Financial stress: Partly due to a drop in the payment rates, as consumers are struggling to pay their bills amid rising consumption and tight finances.
• Meet the demand for affordable and reliable energy: which is expected to at least double by 2030.

Measures taken to reduce DISCOMS’ financial stress:  Embracing Energy Efficiency

• Mandatory labelling programme: resulted in significant adoption of energy-efficient appliances.
  • More than 75% of air-conditioners and 60% of refrigerators used in Indian homes were star-labeled, and nearly 90% of Indian homes used LED lamps or tubes.
  • Areas of improvements: Only 3% of households used energy-efficient fans, and 60% of the televisions used were not energy efficient (like water pumps and induction cookstoves).

Way forward:

• Improve the availability and affordability of energy-efficient appliances:
  • For example, bringing fans under mandatory star labelling as proposed by the Bureau of Energy Efficiency (BEE).
  • Bring the cost down: Energy-efficient fans costs double the price of conventional models.
  • Develop an innovative business model: that can attract manufacturers to produce efficient technology at scale and bring it within purchasing capacity.
• Nationwide consumer awareness campaign on energy efficiency: (Currently, only a fourth of Indian households are currently aware of BEE’s star labels)
  • Need a decentralized and consumer-centric engagement strategy: By putting State governments, Discoms, and retailers at the forefront.
• Monitor supply quality and changing consumption pattern on a real-time basis: Smart meters must be used to measure actual savings and demonstrate the benefits of energy-efficient devices to build consumer confidence and is crucial to enforce consumer rights rules.

Conclusion: The government’s UJALA scheme transformed the market for LED bulbs, while also helping India reduce its annual carbon emissions by nearly 82 million tonnes. A similar focus towards other energy-efficient appliances would allow India to ensure 24x7 power for all.