GS Paper III

News Excerpt: 

Fifth edition of State Energy Efficiency Index (SEEI) was launched by Bureau of Energy Efficiency (BEE).

About SEEI: 

• The index was launched by the Bureau of Energy Efficiency (BEE), in association with Alliance for an Energy Efficient Economy (AEEE), to evaluate the annual progress of energy efficiency implementation in the states. 
• In SEEI 2023, states and union territories are categorized into four groups based on their total scores: 'Front runner' (>=60), 'Achiever' (50-59.75), 'Contender' (30-49.75), and 'Aspirant' (<30). 
• Additionally, they are classified into four groups based on their total final energy consumption (TFEC): Group 1 (>15 million tonnes of oil equivalent (MTOE)), Group 2 (5-15 MTOE), Group 3 (1-5 MTOE), and Group 4 (<1 MTOE).

Key Outcomes of SEEI: 

• Top Performer: The top-performing states in each group are Karnataka (Group 1), Andhra Pradesh (Group 2), Assam (Group 3), and Chandigarh (Group 4). 
• Front Runners: In SEEI 2023, seven states—Andhra Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Punjab, and Telangana—are in the 'Front runner' category, compared to five states in SEEI 2021-22. 
• Achiever: Two states, Assam and Uttar Pradesh, are in the 'Achiever' category, 
• Contender: Three states—Goa, Jharkhand, and Tamil Nadu—are in the 'Contender' category.
• Overall: With an overall score of 86.5 out of 100, Karnataka emerges as the top-performing state in SEEI 2023. 
• The second-highest performer, Andhra Pradesh, with a score of 83.25 out of 100. 
• Key Improvements: Fifteen states have improved their scores compared to SEEI 2021-22, with Goa, Uttar Pradesh, Maharashtra, and Haryana demonstrating significant progress, improving by over 10 points relative to the previous assessment. 
• Maharashtra and Haryana have witnessed the most substantial improvements, with score increases of 18.5 and 17 points, respectively. 
• Conversely, Rajasthan has experienced the most significant decline in score in SEEI 2023, attributed primarily to a lack of reported data.

India's Energy Landscape and Growth: 

• The foundation of India's energy efficiency framework lies in the Energy Conservation (EC) Act of 2001, with the BEE at the central level and SDAs at the state level to enforce and implement the EC Act. 
  • The EC Act 2022 amendment empowers state governments to actively participate in India's energy transition, allowing them to amend building codes, manage funds, and set consumption standards.
• India's robust economic growth, fueled by a burgeoning middle class and rapid urbanization, has propelled it to become the third-largest global energy consumer. 
  • Between 2000 and 2020, the nation's primary energy demand more than doubled, reaching 937 Mtoe. 
• With an anticipated 3.5-fold increase to 1,788 Mtoe by 2047 across sectors, there is a pressing need for sustainable energy consumption in line with India's low-carbon goals. 

• • Updated NDCs to the UNFCCC target a net-zero economy by 2070 and a 45% reduction in GDP emission intensity by 2030. 
• Acknowledged at the G20 summit and COP 28, energy efficiency is recognized as the most cost-effective and rapid means to complement renewable energy, aligning with India's commitment to translate national objectives into actionable energy-saving measures at the state level.

Along with the Index the SEEI has also made some recommendations to states for better energy efficiency.

Key recommendations include: 

• Advancing Comprehensive Energy Data Management: States should prioritize data collection, measurement, and monitoring at both the state and local levels. 
• By systematically analyzing energy usage patterns, states can identify areas of high consumption, inefficiencies, and potential energy savings. 
• This data-driven approach allows for tailored energy conservation strategies and effective implementation of energy efficiency programs.
• Effective Implementation of State Energy Efficiency Action Plans (SEEAPs): While formulating SEEAPs is crucial, their actual benefits will be realized only through effective implementation. 
• This requires strategic policies, impact-oriented programs, SMART goals, investment analysis, comprehensive metrics, and a robust monitoring and evaluation framework. 
• Forming working groups, transparent reporting, and stakeholder engagement are vital for success.
• Synergize Efforts for State Energy Transition: Coordination among state departments, State Designated Agencies (SDAs), and State Nodal Agencies (SNAs) for renewable energy is essential to leverage knowledge, data, and resources. 
• Regular stakeholder engagement, transparent reporting, and sharing best practices will enhance the viability of each component, contributing to a more efficient, clean energy-driven future.
• Leveraging State Energy Conservation Fund (SECF) in Revolving Investment Fund (RIF) Mode: By allocating a portion of SECF funds to a revolving pool, states can create a sustainable engine for energy efficiency project implementation. 
• This approach ensures fund sustainability by reinvesting repayments from financed projects into new energy efficiency initiatives, boosting commercial lending for energy efficiency.
• Enabling Adoption of Energy Efficiency through Energy Service Companies (ESCOs): ESCOs offer comprehensive energy management services but face challenges like limited credit access and lack of awareness. 
• States should create a supportive environment by protecting ESCO interests, standardizing contracts, and fostering a favorable financial landscape, thus boosting energy efficiency and supporting job creation.
• Integrating Gender Equality and Social Inclusion (GESI) in EE Policies: Inclusive strategies considering diverse needs and challenges faced by different genders and social groups are crucial. 
• Implementing the GESI framework helps in designing more effective targeted interventions, such as providing incentives for energy audits in women-led enterprises and integrating energy efficiency measures in affordable housing projects.
• Leveraging Carbon Market for Energy Efficiency: States should leverage the proposed Carbon Credit Trading Scheme (CCTS) to benefit from market mechanisms by promoting energy-efficient technologies. 
• Training initiatives, financial incentives, and supportive policies are essential for growth within the carbon market, resulting in reduced emissions and promoting sustainability.