1. ENERGY CONSERVATION
Page 1 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
UNIT – I
ENERGY CONSERVATION
Energy is required for the evolution of life forms on earth. In Physics, it is defined as the capacity
to do work. We know that energy exists in different forms in nature. You have learned about
various forms of energy – heat, electrical, chemical, and nuclear, etc. In this article, we will learn
about the laws and principles that govern energy. This law is known as the law of conservation of
energy.
What is the Law of Conservation of Energy?
The law of conservation of energy states that energy can neither be created nor be destroyed.
Although, it may be transformed from one form to another. If you take all forms of energy into
account, the total energy of an isolated system always remains constant. All the forms of
energy follow the law of conservation of energy.
So in an isolated system such as the universe, if there is a loss of energy in some part of it, there
must be a gain of an equal amount of energy in some other part of the universe. Although this
principle cannot be proved, there is no known example of a violation of the law of conservation of
energy.

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Page 2 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Proof for Law of Conservation of Energy:
Considering the potential energy at the surface of the earth to be zero. Let us see an example of a
fruit falling from a tree.
Consider a point A, which is at some height ‘H’ from the ground on the tree, the velocity of the
fruit is zero hence potential energy is maximum there.
E = mgH ———- (1)
When the fruit is falling, its potential energy is decreasing and kinetic energy is increasing.
At point B, which is near the bottom of the tree, the fruit is falling freely under gravity and is at a
height X from the ground, and it has speed as it reaches point B. So, at this point, it will have both
kinetic and potential energy.
E = K.E + P.E
P.E = mgX ——— (2)
According to third equation of motion,
K.E=mg(H-X)——– (3)
Using (1), (2) and (3)
E = mg(H – X) + mgX
E = mg(H – X + X)
E = mgH

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Page 3 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Similarly if we see the energy at point C which is at the bottom of the tree, it will come out to be
mgH. We can see as the fruit is falling to the bottom and here, potential energy is getting converted
into kinetic energy. So there must be a point where kinetic energy becomes equal to potential
energy. Suppose we need to find that height ‘x’ from the ground. We know that at that point,
K.E = P.E
=> P.E = K.E = E2 ——– (4)
E2 is the new energy
Where, E = mgH2
H2 is the new height.
As the body is at height X from the ground,
P.E = mgX ——— (5)
Using (4) and (5) we get,
mgX=mgH2⇒X=H2
H2 is referred to the new height

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Page 4 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Introduction
Energy is one of the major inputs for the economic development of any country. In the case of the
developing countries, the energy sector assumes a critical importance in view of the everincreasing
energy needs requiring huge investments to meet them. Energy can be classified into several types
based on the following criteria:
• Primary and Secondary energy
• Commercial and Non commercial energy
• Renewable and Non-Renewable energy
Primary and Secondary Energy
Primary energy sources are those that are either found or stored in nature. Common primary energy
sources are coal, oil, natural gas, and biomass (such as wood). Other primary energy sources
available include nuclear energy from radioactive substances, thermal energy stored in earth's
interior, and potential energy due to earth's gravity. The major primary and secondary energy
sources are shown in Figure 1.1 Primary energy sources are mostly converted in industrial utilities
into secondary energy sources; for example coal, oil or gas converted into steam and electricity.
Primary energy can also be used directly. Some energy sources have non-energy uses, for example
coal or natural gas can be used as a feedstock in fertiliser plants.

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Page 5 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Commercial Energy and Non Commercial Energy
Commercial Energy
The energy sources that are available in the market for a definite price are known as commercial
energy. By far the most important forms of commercial energy are electricity, coal and refined
petroleum products. Commercial energy forms the basis of industrial, agricultural, transport and
commercial development in the modern world. In the industrialized countries, commercialized
fuels are predominant source not only for economic production, but also for many household tasks
of general population. Examples: Electricity, lignite, coal, oil, natural gas etc.
Non-Commercial Energy
The energy sources that are not available in the commercial market for a price are classified as
non-commercial energy. Non-commercial energy sources include fuels such as firewood, cattle
dung and agricultural wastes, which are traditionally gathered, and not bought at a price used
especially in rural households. These are also called traditional fuels. Non-commercial energy is
often ignored in energy accounting. Example: Firewood, agro waste in rural areas; solar energy
for water heating, electricity generation, for drying grain, fish and fruits; animal power for
transport, threshing, lifting water for irrigation, crushing sugarcane; wind energy for lifting water
and electricity generation.
Renewable and Non-Renewable
Energy Renewable energy is energy obtained from sources that are essentially inexhaustible.
Examples of renewable resources include wind power, solar power, geothermal energy, tidal
power and hydroelectric power (See Figure 1.2). The most important feature of renewable energy
is that it can be harnessed without the release of harmful pollutants. Non-renewable energy is the
conventional fossil fuels such as coal, oil and gas, which are likely to deplete with time.

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Page 6 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Energy Distribution between Developed and Developing Countries
Although 80 percent of the world's population lies in the developing countries (a fourfold
population increase in the past 25 years), their energy consumption amounts to only 40 percent of
the world total energy consumption. The high standards of living in the developed countries are
attributable to high energy consumption levels. Also, the rapid population growth in the developing
countries has kept the per capita energy consumption low compared with that of highly
industrialized developed countries. The world average energy consumption per person is
equivalent to 2.2 tonnes of coal. In industrialized countries, people use four to five times more than
the world average, and nine times more than the average for the developing countries. An
American uses 32 times more commercial energy than an Indian.
Greenhouse Effect and the Carbon Cycle
Life on earth is made possible by energy from the sun, which arrives mainly in the form of visible
light.

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Page 7 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
About 30 percent of the sunlight is scattered back into space by outer atmosphere and the balance
70 percent reaches the earth's surface, which reflects it in form of infrared radiation. The escape
of slow moving infrared radiation is delayed by the greenhouse gases. A thicker blanket of
greenhouse gases traps more infrared radiation and increase the earth's temperature (Refer Figure
1.11). Greenhouse gases makeup only 1 percent of the atmosphere, but they act as a blanket around
the earth, or like a glass roof of a greenhouse and keep the earth 30 degrees warmer than it would
be otherwise - without greenhouse gases, earth would be too cold to live. Human activities that are
responsible for making the greenhouse layer thicker are emissions of carbon dioxide from the
combustion of coal, oil and natural gas; by additional methane and nitrous oxide from farming
activities and changes in land use; and by several man made gases that have a long life in the
atmosphere. The increase in greenhouse gases is happening at an alarming rate. If greenhouse
gases emissions continue to grow at current rates, it is almost certain that the atmospheric levels
of carbon dioxide will increase twice or thrice from pre-industrial levels during the 21st century.
Even a small increase in earth's temperature will be accompanied by changes in climate such as
cloud cover, precipitation, wind patterns and duration of seasons. In an already highly crowded
and stressed earth, millions of people depend on weather patterns, such as monsoon rains, to
continue as they have in the past. Even minimum changes will be disruptive and difficult. Carbon
dioxide is responsible for 60 percent of the "enhanced greenhouse effect". Humans are burning

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Page 8 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
coal, oil and natural gas at a rate that is much faster than the rate at which these fossil fuels were
created. This is releasing the carbon stored in the fuels into the atmosphere and upsetting the carbon
cycle (a precise balanced system by which carbon is exchanged between the air, the oceans and
land vegetation taking place over millions of years). Currently, carbon dioxide levels in the
atmospheric are rising by over 10 percent every 20 years.
Current Evidence of Climatic Change
Cyclones, storm, hurricanes are occurring more frequently and floods and draughts are more
intense than before. This increase in extreme weather events cannot be explained away as random
events. This trend toward more powerful storms and hotter, longer dry periods is predicted by
computer models. Warmer temperatures mean greater evaporation, and a warmer atmosphere is
able to hold more moisture and hence there is more water aloft that can fall as precipitation.
Similarly, dry regions are prone to lose still more moisture if the weather is hotter and hence this
leads to more severe droughts and desertification.
Future Effects
Even the minimum predicted shifts in climate for the 21st century are likely to be significant and
disruptive. Predictions of future climatic changes are wide-ranging. The global temperature may
climb from 1.4 to 5.8 degrees C; the sea level may rise from 9 to 88 cm. Thus, increases in sea
level this century are expected to range from significant to catastrophic. This uncertainty reflects
the complexity, interrelatedness, and sensitivity of the natural systems that make up the climate.
Severe Storms and Flooding
The minimum warming forecast for the next 100 years is more than twice the 0.6 degree C increase
that has occurred since 1900 and that earlier increase is already having marked consequences.
Extreme weather events, as predicted by computer models, are striking more often and can be
expected to intensify and become still more frequent. Afuture of more severe storms and floods
along the world's increasingly crowded coastlines is likely.
Food Shortages
Although regional and local effects may differ widely, a general reduction is expected in potential
crop yields in most tropical and sub-tropical regions. Mid-continental areas such as the United

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Page 9 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
States' "grain belt" and vast areas of Asia are likely to become dry. Sub-Saharan Africa where dry
land agriculture relies solely on rain, the yields would decrease dramatically even with minimum
increase in temperature. Such changes could cause disruptions in food supply in a world is already
afflicted with food shortages and famines.
Dwindling Freshwater supply
Salt-water intrusion from rising sea levels will reduce the quality and quantity of freshwater
supplies. This is a major concern, since billions of people on earth already lack access to
freshwater. Higher ocean levels already are contaminating underground water sources in many
parts of the world.
Loss of Biodiversity
Most of the world's endangered species (some 25 per cent of mammals and 12 per cent of birds)
may become extinct over the next few decades as warmer conditions alter the forests, wetlands,
and rangelands they depend on, and human development blocks them from migrating elsewhere.
Increased Diseases
Higher temperatures are expected to expand the range of some dangerous "vector-borne" diseases,
such as malaria, which already kills 1 million people annually, most of them children.
A World under Stress
Ongoing environmentally damaging activities such as overgrazing, deforestation, and denuded
agricultural soils means that nature will be more vulnerable than previously to changes in climate.
Similarly, the world's vast human population, much of it poor, is vulnerable to climate stress.
Millions live in dangerous places such as floodplains or in slums around the big cities of the
developing world. Often there is nowhere else for population to move. In the distant past, man and
his ancestors migrated in response to changes in habitat. There will be much less room for
migration in future. Global warming almost certainly will be unfair. The industrialized countries
of North America and Western Europe, and other countries such as Japan, are responsible for the
vast amount of past and current greenhouse-gas emissions. These emissions are incurred for the
high standards of living enjoyed by the people in those countries. Yet those to suffer most from
climate change will be in the developing world. They have fewer resources for coping with storms,

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Page 10 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
with floods, with droughts, with disease outbreaks, and with disruptions to food and water supplies.
They are eager for economic development themselves, but may find that this already difficult
process has become more difficult because of climate change. The poorer nations of the world
have done almost nothing to cause global warming yet is most exposed to its effects.
Acid Rain
Acid rain is caused by release of SOX and NOX from combustion of fossil fuels, which then mix
with water vapour in atmosphere to form sulphuric and nitric acids respectively (Refer Figure
1.12).
The effects of acid rain are as follows: • Acidification of lakes, streams, and soils • Direct and
indirect effects (release of metals, For example: Aluminum which washes away plant nutrients) •
Killing of wildlife (trees, crops, aquatic plants, and animals) • Decay of building materials and
paints, statues, and sculptures • Health problems (respiratory, burning- skin and eyes)
Energy Security
The basic aim of energy security for a nation is to reduce its dependency on the imported energy
sources for its economic growth. India will continue to experience an energy supply shortfall
throughout the forecast period. This gap has widened since 1985, when the country became a net
importer of coal. India has been unable to raise its oil production substantially in the 1990s. Rising

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Page 11 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
oil demand of close to 10 percent per year has led to sizable oil import bills. In addition, the
government subsidizes refined oil product prices, thus compounding the overall monetary loss to
the government. Imports of oil and coal have been increasing at rates of 7% and 16% per annum
respectively during the period 1991-99. The dependence on energy imports is projected to increase
in the future. Estimates indicate that oil imports will meet 75% of total oil consumption
requirements and coal imports will meet 22% of total coal consumption requirements in 2006. The
imports of gas and LNG (liquefied natural gas) are likely to increase in the coming years. This
energy import dependence implies vulnerability to external price shocks and supply fluctuations,
which threaten the energy security of the country. Increasing dependence on oil imports means
reliance on imports from the Middle East, a region susceptible to disturbances and consequent
disruptions of oil supplies. This calls for diversification of sources of oil imports. The need to deal
with oil price fluctuations also necessitates measures to be taken to reduce the oil dependence of
the economy, possibly through fiscal measures to reduce demand, and by developing alternatives
to oil, such as natural gas and renewable energy.
Some of the strategies that can be used to meet future challenges to their energy security are
• Building stockpiles
• Diversification of energy supply sources
• Increased capacity of fuel switching
• Demand restraint,
• Development of renewable energy sources.
• Energy efficiency
• Sustainable development
Although all these options are feasible, their implementation will take time. Also, for countries
like India, reliance on stockpiles would tend to be slow because of resource constraints. Besides,
the market is not sophisticated enough or the monitoring agencies experienced enough to predict
the supply situation in time to take necessary action. Insufficient storage capacity is another cause
for worry and needs to be augmented, if India has to increase its energy stockpile. However, out
of all these options, the simplest and the most easily attainable is reducing demand through
persistent energy conservation efforts.

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Page 12 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Energy Conservation and its Importance
Coal and other fossil fuels, which have taken three million years to form, are likely to deplete soon.
In the last two hundred years, we have consumed 60% of all resources. For sustainable
development, we need to adopt energy efficiency measures. Today, 85% of primary energy comes
from nonrenewable, and fossil sources (coal, oil, etc.). These reserves are continually diminishing
with increasing consumption and will not exist for future generations (see Figure 1.13).
What is Energy Conservation?
Energy Conservation and Energy Efficiency are separate, but related concepts. Energy
conservation is achieved when growth of energy consumption is reduced, measured in physical
terms. Energy Conservation can, therefore, be the result of several processes or developments,
such as productivity increase or technological progress. On the other hand Energy efficiency is
achieved when energy intensity in a specific product, process or area of production or consumption
is reduced without affecting output, consumption or comfort levels. Promotion of energy
efficiency will contribute to energy conservation and is therefore an integral part of energy
conservation promotional policies. Energy efficiency is often viewed as a resource option like coal,
oil or natural gas. It provides additional economic value by preserving the resource base and
reducing pollution.
For example, replacing traditional light bulbs with Compact Fluorescent Lamps (CFLs) means you
will use only 1/4th of the energy to light a room. Pollution levels also reduce by the same amount

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Page 13 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
(refer Figure 1.14). Nature sets some basic limits on how efficiently energy can be used, but in
most cases our products and manufacturing processes are still a long way from operating at this
theoretical limit. Very simply, energy efficiency means using less energy to perform the same
function. Although, energy efficiency has been in practice ever since the first oil crisis in 1973, it
has today assumed even more importance because of being the most cost-effective and reliable
means of mitigating the global climatic change. Recognition of that potential has led to high
expectations for the control of future CO2 emissions through even more energy efficiency
improvements than have occurred in the past. The industrial sector accounts for some 41 per cent
of global primary energy demand and approximately the same share of CO2 emissions.
The benefits of Energy conservation for various players are given in Figure 1.15.
Energy Strategy for the Future
The energy strategy for the future could be classified into immediate, medium-term and long term
strategy. The various components of these strategies are listed below:
Immediate-term strategy:
• Rationalizing the tariff structure of various energy products.
• Optimum utilization of existing assets
• Efficiency in production systems and reduction in distribution losses, including those in
traditional energy sources.

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Page 14 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• Promoting R&D, transfer and use of technologies and practices for environmentally sound energy
systems, including new and renewable energy sources.
Medium-term strategy:
• Demand management through greater conservation of energy, optimum fuel mix, structural
changes in the economy, an appropriate model mix in the transport sector, i.e. greater dependence
on rail than on road for the movement of goods and passengers and a shift away from private
modes to public modes for passenger transport; changes in design of different products to reduce
the material intensity of those products, recycling, etc.
• There is need to shift to less energy-intensive modes of transport. This would include measures
to improve the transport infrastructure viz. roads, better design of vehicles, use of compressed
natural gas (CNG) and synthetic fuel, etc. Similarly, better urban planning would also reduce the
demand for energy use in the transport sector.
• There is need to move away from non-renewable to renewable energy sources viz. solar, wind,
biomass energy, etc.
Long-term strategy:
 Efficient generation of energy resources
• Efficient production of coal, oil and natural gas
• Reduction of natural gas flaring
 Improving energy infrastructure
• Building new refineries
• Creation of urban gas transmission and distribution network
• Maximizing efficiency of rail transport of coal production.
• Building new coal and gas fired power stations.
 Enhancing energy efficiency
• Improving energy efficiency in accordance with national, socio-economic, and environmental
priorities

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Page 15 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• Promoting of energy efficiency and emission standards
• Labeling programmes for products and adoption of energy efficient technologies in large
industries
 Deregulation and privatization of energy sector
• Reducing cross subsidies on oil products and electricity tariffs
• Decontrolling coal prices and making natural gas prices competitive
• Privatization of oil, coal and power sectors for improved efficiency.
 Investment legislation to attract foreign investments.
• Streamlining approval process for attracting private sector participation in power generation,
transmission and distribution.

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Page 16 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Energy conservation in small scale industries, large scale industries
1. The continuing growth, competitiveness and well-being of MSME units is intricately
related to the health and growth of Indian economy: There are about 44 million MSME
units in India which contribute 45% of the India’s manufacturing output, account for about
35 % of our exports ,and provide employment to more than 59 million people in the
country. In many of the SME sectors energy is often the single largest operating cost and
consequently energy productivity is key to their survival.
2. However, large scale increase in energy conservation and in increased energy efficiency
have been limited in MSME sector. This is because of the number of reasons but field level
interventions indicate that there are three major reasons: the limited time available to the
entrepreneur to identify, contract and finance energy efficiency opportunities in addition
to many other tasks that call for his time limited availability of local service providers who
can support entrepreneurs in project development financing and implementation, and the
almost complete lack of information in the development and deployment of new energy
efficient technologies that are suitable for the MSME and can be adopted in almost
plug and play manner.
3. These suggests that the energy productivity enhancement processes have to be developed,
standardized and demonstrated so that, transaction cost are minimized and profitability for
entrepreneurs, local service providers, technology suppliers and financial institutions
derives large scale replication. Over the years while, there have been many small scale
interventions which have demonstrated the effectiveness of the more energy efficient
technologies and operating practices, the use of finance to enable large scale deployment
of energy efficient technologies in MSME has been extremely limited.
4. I am sure that the experience and insights presented in this web domain would work as a
complete knowledge portal for entrepreneurs, local service providers, technology suppliers
and financial institutions to enable a-step up increase in their understanding of BEE’s way
forward for cleaner greener and efficient MSMEs.

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Page 17 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
BEE-SME SCHEME “National programme on Energy Efficiency and
Technology Up gradation of SMEs”
Indian SME sector consumes energy equivalent to about 50 million tons of oil equivalent annually,
which is about 20 to 25% of the energy consumption by large industries. SMEs in India are exists
in form of clusters which are spread across the length and breadth of the country, and are involved
in producing textiles, bricks , hand tools, metal castings and forging and pumps. The projected
energy consumption in SMEs by 2017 is expected to increase to 68.2 mtoe with a projected annual
growth rate of 6.0 percent. National program on Energy Efficiency and technology up gradation
of SMEs (BEE-SME) scheme: In its endeavor to accelerate uptake of Energy Efficiency in SME
sector, BEE initiated a program specifically to improve the energy performance of this sector in
the year 2009. This program is fully funded by Government of India. In the XI Plan i.e. from FY
2007-2012, BEE conducted a number of activities starting with a Situation analysis in selected 35
SME clusters out of which 25 SMEs clusters (12 Sector Type) were undertaken for further
interventions. Comprehensive energy audit and technology gap assessment was completed in 25
SMEs clusters . A repository of 375 DPRs on energy efficient technologies were prepared and
peer-reviewed. Information Dissemination and awareness creation workshop were held in 51
SMEs clusters. Implementation of Small Group Activities was completed in 9 units of 3 clusters.
Capacity building of Local Service Providers/Technology Providers in 25 SMEs clusters was
completed. By the end of the XI plan energy savings, assessed form 988 units of 26 clusters
quantified to 4934.45 toe / annum with voluntary investment of Rs 28.06 crore made by the units
(988 units). BEE interventions in the XIth plan have shown that there is a vast potential to save
energy in various MSMEs industries in India. These lie both in the thermal energy domain where
the design of furnaces and recovery of waste heat have enormous potential, as also in the electrical
energy domain In order to make this programme more beneficial and attractive for the SME’s unit
owners of the clusters and to ensure widespread replication, BEE in the XII plan, has been focusing
on two activities
 Implementation of 100 energy efficient technology demonstrations in 5 energy intensive
clusters with provisions of back ended subsidy of 50% of the total cost of the technology
per unit subject to a max of Rs 10 Lakhs.

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Page 18 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
 Information dissemination and capacity building workshops for SME unit owner across the
country to disseminate the results in terms of energy savings achieved by through these
technology demonstration projects for their wide spread replication.
GEF-UNIDO-BEE Scheme “Promoting Energy Efficiency and Renewable
Energy in selected MSME clusters in India”
UNIDO with support from the Global Environment Facility (GEF) has initiated a project in
September 2011 titled ‘Promoting energy efficiency and renewable energy in selected MSME
clusters in India’ in collaboration with BEE, Ministry of MSME (MoMSME) and Ministry of New
and Renewable Energy (MNRE). The project is focussing on development and promotion of a
market environment for introducing energy efficiency (EE) and enhanced use of renewable energy
(RE) technologies for process applications in 12 selected MSME clusters under five energy
intensive MSME sub-sectors i.e. Brass, Ceramic, Dairy, Foundry and Hand tools.These clusters
have been chosen based on the total energy consumption as well as the energy intensity levels. The
total energy consumption of these 12 clusters is estimated at about 1.44 million tonnes of oil
equivalent (mtoe). The project will address a few important barriers such as lack of technological
solutions and capacities at cluster levels and the paucity of reliable data at policy levels. The broad
goals of this 5-year project include the following:
 Increased capacity of suppliers of EE/RE products/ service providers/financing institutions
 Increasing the levels of end-use demand and implementation of EE and RE technologies
and practices by MSMEs
 Scaling up of the project to national level
 Strengthening policy, institutional and decision making frameworks
A Project Management Unit in UNIDO-GEF-BEE has been setup at New Delhi to channelize the
grant to the targeted beneficiaries and to coordinate activities in the 12 clusters.

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Page 19 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
GEF-WB-BEE Scheme “Financing Energy Efficiency at MSMEs”
In India, the barriers for energy efficiency in SMEs include not just the market barriers typically
seen in energy efficiency projects globally, but additional constraints in SME’s access to finance.
Indian SMEs typically face constraints in accessing adequate and timely financing on competitive
terms. Given the existing market barriers observed in India, the Project Financing Energy
Efficiency at SMEs was conceptualized as a part of the GEF Programmatic Framework for Energy
Efficiency in India. Global Environment Facility (GEF) and the World Bank through SIDBI and
BEE are implementing an initiative on financing Energy Efficiency (EE) in MSME Clusters in
India to improve EE and reduce Green House Gas (GHG) emissions from MSMEs utilizing
increased commercial financing for EE. The Grant agreement was signed on September 13, 2010
and effectuation of this grant took place on October 28, 2010. Total GEF Funding under the project
available to SIDBI is 9.05 Million USD to be utilized over a period of four years. In addition to
the grant to SIDBI, GEF has also provided a grant of USD 2.25 Million to the Bureau of Energy
Efficiency (BEE) for implementation of energy efficiency at MSMEs in India. A Project
Management Unit in SIDBI has been setup at New Delhi to channelize the grant to the targeted
beneficiaries. Under the project, SIDBI will focus largely on five energy intensive clusters viz.
foundry cluster at Kolhapur, Forging at Pune, Limekilns at Tirunelveli, Chemical at Ankleshwar
and mixed at Faridabad) in India through provision of assistance for completion of Energy Audits,
preparation of DPRs and support in mobilization of financing from the Indian local banks to ensure
that the identified EE measures are implemented.
The project focusses on four main activities viz. as
1) Activities to build capacity and awareness for EE in MSMEs,
2) Activities to increase investments in EE in MSMEs,
3) Programme knowledge management, and
4) Project management.
Through the outreach activities carried out under this program, participants from 4000 SMEs units
have been capacity built, about 1120 Financial Institution personnel have been trained through
special programs for FIs, NBFC and CAs, 617 Detailed energy audits have been carried out and a

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Page 20 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
repository of 594 Investment Grade Detailed Project report (IGDPRs) has been created out of
which 504 IGDPRs are in various stages of Implementation.

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Page 21 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
EC in Power generating station:
To generate 1MW power generation cost is Rs 4.5 to 5.25 crores and T& D cost is Rs.2 crores .
But cost of saved power is Rs.1Crores/Mw.The important note is time period to set a power plant
is 5 years; to set up transmission line 1 year and to plan energy conservation is only 1 month. We
have less opportunity for EC in generating area but we can improve the performance efficiency of
generators by optimization of load, optimal distribution of load among different units, periodical
maintenance and also increasing the capacity by adopting advanced technology using renewable
energy sources.
EC in Transmission & Distribution:
In India the power transmission and distribution (T&D) system is a three tire structure comprising
of state grids, regional grids and distribution network. To meet the energy demand power system
networks are interconnected through INTRA-REGIONAL LINK. The inter-regional power
transmission capacity of India at end of 2007 was 14000 MW. T&D system in India is
characterized by heavy losses of about 34.54% according to statistics of 2005-06, as compared to
10-15% in developed countries
Power losses in T&D system can be classified as Technical losses and Commercial losses.
Technical Losses In T&D System:
Power losses occurring in T&D sector due to imperfection in technical aspect which indirectly
cause loss of investment in this sector, are technical losses. These technical losses are due to
inadequate system planning, improper voltage and also due to poor power factor etc.

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Page 22 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Commercial Losses:
Commercial losses are those, which are directly responsible for wastage of money invested in
transmission and distribution system. These losses are effects of inefficient management, improper
maintenance etc. Corruption is also the main reason contributing to the Commercial losses.
Metering losses includes loss due to inadequate billings, faulty metering, overuse, because of
meters not working properly and outright theft. Many of the domestic energy meters fail because
of poor quality of the equipment.

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Page 23 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
EERE Energy Conservation Plan
The purpose of this Energy Conservation Plan is to establish procedures throughout the Office of
Energy Efficiency and Renewable Energy (EERE) that will reduce energy consumption,
demonstrate EERE leadership, and save money.
The EERE Energy Conservation plan contains four areas of action for EERE
• Institutionalizing Individual Energy Saving Behavior
• Institutionalizing Supervisor Energy Saving Behavior
• Implementing an Energy Ideas Contest
• Green IT Awareness
Additionally, in 2007, FEMP facilitated an energy assessment of the Forrestal Building. Low and
no cost strategies in this report such as delamping strategies, which remove lights from over
illuminated areas, involve only staff time to implement and could result in dramatic savings for all
Forrestal occupants. We propose a FEMP facilitated meeting between Forrestal staff and the
auditors which would increase understanding of the options available to improve energy efficiency
in the Forrestal Building.
Institutionalizing Individual Energy Saving Behavior
Actions of individuals are the basis of an energy savings culture. Every member of the EERE is
expected to exhibit energy aware behavior in all of their actions and to conserve energy and reduce
waste in the execution of daily activities.
Specifically, everyone in EERE is expected to:
• Use task lighting if possible, turn off overhead lights when not needed.
• Identify the light switches for overhead lights that are not needed due to sufficient task lighting.
• After receiving a power strip from EERE as discussed in the Green IT section, plug in all devices
except the computer into the strip. Each night, turn off power to the strip which will power down
all electronic devices except your computer.
• Power down computer upon departure. If you plan to access your computer remotely, it may be
left powered on.

24. ENERGY CONSERVATION
Page 24 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• If you leave your desk for more than one hour, turn off your monitor.
• When possible, remove individual printers and use communal printers.
• Save paper. Photocopy only what you need. Always use the second side of paper, either by
printing on both sides or using the blank side as scrap paper.
• Report any obvious energy waste or material deficiencies such as broken heaters or air leaks to
supervisor chain.
• Close or tilt window blinds to block direct sunlight to reduce cooling needs during warm months.
• Use of individual space heaters is prohibited as are individual coffee makers, refrigerators or
microwave ovens. Work elements may establish communal space where these items can be shared.
• Before all travel, first consider using virtual meeting technology.
• When traveling consider the most energy efficient means of transport, share rental cars, actively
seek out hotels with “sustainable” policies, and use public transportation at travel destinations if
possible.
Institutionalizing Supervisor Energy Saving Behavior
Active supervisor participation and support of the energy saving measures listed above will
encourage participation by all staff and increase overall staff interest. Sustained behavior change
requires active participation by all in the supervisory chain.
Individuals in a supervisory position will:
• Walk through subordinate works spaces at least once per week to ensure EERE energy
conservation policies are being followed.
• Include energy conservation behavior and actions in performance plans and appraisals.
• Allow staff to utilize existing policies for alternative work schedule and flexi-place schedules.
Program Managers will:
• Put in place a system for evening workspace shut down, that includes a signed log and checklist
so that the last person to leave the workspace each night verifies that all lights, printers, copiers,
monitors and other electrical appliances are turned off.
• Perform two walk through checks per month (beginning and middle of the month) after hours to
determine if the energy savings practices listed above are being followed.

25. ENERGY CONSERVATION
Page 25 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• Discuss the results of the energy status checklists at staff meetings once per month.
• Develop travel policies to encourage the use of virtual meetings, or if this is not possible enforce
the most energy efficient travel options for staff members.
• Include energy conservation behavior and actions in performance plans and appraisals.
Deputy Assistant Secretaries will:
• Walk through at least one sub-ordinate element each month to review energy conservation
behavior practices.
• Include energy conservation behavior and actions in performance plans and appraisals.
Implementing an Energy Savings Contest
In phase one, the energy savings contest will engage the collective brain power of EERE
employees to think beyond the current lists of energy saving tips developed by the “experts.” Phase
two will key energy saving measures. These phases are outlined below.
Phase 1. Top the Experts Challenge
All EERE employees will be able to submit ideas in two categories:
• Innovative ways to save energy at home, at work, and on the road
• Innovative ways to implement energy saving ideas already identified.
Entrants will compete for EERE recognition as part of the “You Have the Power Campaign” and
a chance to have their idea featured on the FEMP website. EERE will share results of this campaign
throughout DOE.
DOE needs a wide range of ideas to truly lead by example in saving energy. It is not enough to
identify ways to save energy; in order to have an impact, these ideas must be implemented agency-
wide. Therefore the “Top the Experts” program is a challenge to increase awareness, generate
active participation, and discover innovative energy saving ideas and ways to implement these
ideas at DOE.
Call for Entries
An email will be sent from Assistant Secretary Zoi to all EERE employees encouraging them to
participate in the challenge. The email blast will describe the challenge and will include an

26. ENERGY CONSERVATION
Page 26 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
embedded link to the “Top the Experts” button on the FEMP website. The link on FEMP website
will explain the two categories for submission and include links to current energy saving ideas
from the DOE experts on how to save energy at home, at work, and on the road. This page will
also have space for employees to submit their energy saving ideas or implementation practices.
Collection of Entries
Submitted ideas will be collected in a standardized and searchable database. Following the
deadline for submissions, the electronic versions of the submissions will be organized and
presented to a judging panel.
Judging Panel and Notification of Winners
The panel will select ideas based upon innovation, potential energy savings, potential to reach a
large audience, potential for implementation and related criteria. Upon selection, the winners will
be notified and have an opportunity to provide an extended write up of their ideas. The written
narratives and visuals will be assembled by FEMP into a “Top the Experts” media collection.
Outreach and Publicity of Results
The “Top the Experts” collection will be developed into electronic outreach materials for use in
the FEMP “You Have the Power” campaign in the Spring of 2010 and shared through web and
other means.
Timing
The campaign will begin in February and run for 6 weeks; “Top the Experts” winners will be
announced by mid-April.
Phase 2: Implementation of Key Energy Saving Measures Based on existing energy saving
measures and new ideas generated through the campaign, EERE will:
• Identify a “measure of the month” to highlight activities for EERE staff to implement; the first
set of measures – for the first three months -- include
o ensuring computers and monitors have power management enabled
o tuning off computer monitors and printers at the end of the day
o turning off lights at the end of the day

27. ENERGY CONSERVATION
Page 27 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• Assist staff in implementing these measures by providing Information Technology (IT) assistance
explained below.
Green IT Awareness
EERE IT has created a green IT Action Plan. While IT staff will carry out many of the
recommendations from this plan EERE wide, individuals must actively use these technologies in
order to realize all possible energy savings.
• PC and monitor fleet management
o Replace older PCs with EPEAT-rated PCs. Complete migration from CRT to LCD
monitors.
• Power strip turn off for all electronic devices except computer
o EERE will purchase a power strip for each of the approximately 600 EERE employees at
an estimated cost of $5 per strip for a total estimate cost of $3000. Each EERE employee
will be required to plug in all electronic devices, except their computer, into this power
strip. Each night, employees will turn off the powerstrip, thus turning off all electronic
devices in their office except for the computer.
• PC and monitor power management
o Pre-activate power management settings when PC/monitor issued to new users. Request
users to power down PCs and disable screen-savers when not in use.
o Activate auto Shutdown Policy for Non Remote users.
o Remote users should shutdown their PC’s when anticipating not needing the service.
o EERE power management settings for Monitors are sleep mode after 15 minutes. Users
should still turn off their monitors if they will be away from their desks more than one hour
since sleep mode still uses power.
• Wireless device management
o Publish best practices to minimize energy consumption of wireless devices; encourage
users to reuse existing chargers with new devices.

28. ENERGY CONSERVATION
Page 28 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
o Pre-activate power save settings on wireless devices on behalf of user when device
activated; create a pool of used chargers and offer them to users with new devices. Ensure
on-site take-back and recycling of devices at end of life.
o Remote power stripes are being piloted that allow multiple clusters of equipment in
different areas (fax, Printer, Digital Sender, multifunctional machines ) to be powered
down at once.
• Printer and peripheral resource management
o Enforce duplex, black and white printing as the default print setting; 50% of paper
purchases include 30% post-consumer fiber content; 50% of ink/toner purchases are eco-
friendly; reuse/refill cartridges before being recycled.
o Request users to give up personal printers in favor of shared printers; new users required
to use shared printers or after printer reaches end-of-life.
o Implement a shared printer policy for 90% of users to promote the broad use of shared
printers. Get printer to employee ratio to 1:15 or better.
• Virtual meetings
o Hold training sessions on how to use virtual meeting technology; develop travel policies to
encourage the use of virtual meetings.
o Ensure that virtual meeting technology is widely available and widely used; when practical,
restrict travel in favor of virtual meetings.
• Paperless business processes
o Work with business processes owners to identify the key sources of paper use; evaluate
technologies to measure and minimize paper consumption; develop goals to minimize
paper consumption.
o Implement technologies to measure and minimize key sources of paper consumption;
develop a plan to minimize other less significant sources of paper consumption; report
savings from these initiatives.
o Wide-scale adoption of paperless business processes; encourage suppliers and customers
to opt for more digital forms of interaction.

29. ENERGY CONSERVATION
Page 29 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
The Energy Conservation Act, 2001 and its Features
Policy Framework - Energy Conservation Act - 2001
With the background of high energy saving potential and its benefits, bridging the gap between
demand and supply, reducing environmental emissions through energy saving, and to effectively
overcome the barrier, the Government of India has enacted the Energy Conservation Act - 2001.
The Act provides the much-needed legal framework and institutional arrangement for embarking
on an energy efficiency drive. Under the provisions of the Act, Bureau of Energy Efficiency has
been established with effect from 1st March 2002 by merging erstwhile Energy Management
Centre of Ministry of Power. The Bureau would be responsible for implementation of policy
programmes and coordination of implementation of energy conservation activities. Important
features of the Energy Conservation Act are:
Standards and Labeling
Standards and Labeling (S & L) has been identified as a key activity for energy efficiency
improvement. The S & L program, when in place would ensure that only energy efficient
equipment and appliance would be made available to the consumers.
The main provision of EC act on Standards and Labeling are:
• Evolve minimum energy consumption and performance standards for notified equipment and
appliances. • Prohibit manufacture, sale and import of such equipment, which does not conform to
the standards. • Introduce a mandatory labeling scheme for notified equipment appliances to enable
consumers to make informed choices • Disseminate information on the benefits to consumers
Designated Consumers
The main provisions of the EC Act on designated consumers are:
• The government would notify energy intensive industries and other establishments as designated
consumers;
• Schedule to the Act provides list of designated consumers which covered basically energy
intensive industries, Railways, Port Trust, Transport Sector, Power Stations, Transmission &
Distribution Companies and Commercial buildings or establishments;

30. ENERGY CONSERVATION
Page 30 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• The designated consumer to get an energy audit conducted by an accredited energy auditor;
• Energy managers with prescribed qualification are required to be appointed or designated by the
designated consumers;
• Designated consumers would comply with norms and standards of energy consumption as
prescribed by the central government.
Certification of Energy Managers and Accreditation of Energy Auditing Firms
The main activities in this regard as envisaged in the Act are: A cadre of professionally qualified
energy managers and auditors with expertise in policy analysis, project management, financing
and implementation of energy efficiency projects would be developed through Certification and
Accreditation programme. BEE to design training modules, and conduct a National level
examination for certification of energy managers and energy auditors.
Energy Conservation Building Codes:
The main provisions of the EC Act on Energy Conservation Building Codes are:
• The BEE would prepare guidelines for Energy Conservation Building Codes (ECBC);
• These would be notified to suit local climate conditions or other compelling factors by the
respective states for commercial buildings erected after the rules relating to energy conservation
building codes have been notified. In addition, these buildings should have a connected load of
500 kW or contract demand of 600 kVA and above and are intended to be used for commercial
purposes;
• Energy audit of specific designated commercial building consumers would also be prescribed.
Central Energy Conservation Fund:
The EC Act provisions in this case are:
The fund would be set up at the centre to develop the delivery mechanism for large-scale adoption
of energy efficiency services such as performance contracting and promotion of energy service
companies. The fund is expected to give a thrust to R & D and demonstration in order to boost
market penetration of efficient equipment and appliances. It would support the creation of
facilities for testing and development and to promote consumer awareness.

31. ENERGY CONSERVATION
Page 31 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
Bureau of Energy Efficiency (BEE):
• The mission of Bureau of Energy Efficiency is to institutionalize energy efficiency services,
enable delivery mechanisms in the country and provide leadership to energy efficiency in all
sectors of economy. The primary objective would be to reduce energy intensity in the Indian
Economy.
• The general superintendence, directions and management of the affairs of the Bureau is vested
in the Governing Council with 26 members. The Council is headed by Union Minister of Power
and consists of members represented by Secretaries of various line Ministries, the CEOs of
technical agencies under the Ministries, members representing equipment and appliance
manufacturers, industry, architects, consumers and five power regions representing the states. The
Director General of the Bureau shall be the ex-officio member-secretary of the Council.
• The BEE will be initially supported by the Central Government by way of grants through budget,
it will, however, in a period of 5-7 years become self-sufficient. It would be authorized to collect
appropriate fee in discharge of its functions assigned to it. The BEE will also use the Central
Energy Conservation Fund and other funds raised from various sources for innovative financing
of energy efficiency projects in order to promote energy efficient investment.
Role of Bureau of Energy Efficiency
• The role of BEE would be to prepare standards and labels of appliances and equipment, develop
a list of designated consumers, specify certification and accreditation procedure, prepare building
codes, maintain Central EC fund and undertake promotional activities in co-ordination with center
and state level agencies. The role would include development of Energy service companies
(ESCOs), transforming the market for energy efficiency and create awareness through measures
including clearing house.
Role of Central and State Governments:
The following role of Central and State Government is envisaged in the Act
• Central - to notify rules and regulations under various provisions of the Act, provide initial
financial assistance to BEE and EC fund, Coordinate with various State Governments for
notification, enforcement, penalties and adjudication.

32. ENERGY CONSERVATION
Page 32 Mr. Amar Preet Singh (Assistant Professor EN), NIET, Greater Noida
• State - to amend energy conservation building codes to suit the regional and local climatic
condition, to designate state level agency to coordinate, regulate and enforce provisions of the Act
and constitute a State Energy Conservation Fund for promotion of energy efficiency.
Enforcement through Self-Regulation:
E.C. Act would require inspection of only two items. The following procedure of self-regulation
is proposed to be adopted for verifying areas that require inspection of only two items that require
inspection.
• The certification of energy consumption norms and standards of production process by the
Accredited Energy Auditors is a way to enforce effective energy efficiency in Designated
Consumers.
• For energy performance and standards, manufacturer's declared values would be checked in
Accredited Laboratories by drawing sample from market. Any manufacturer or consumer or
consumer association can challenge the values of the other manufacturer and bring to the notice of
BEE. BEE can recognize for challenge testing in disputed cases as a measure for self-regulation.
Penalties and Adjudication:
• Penalty for each offence under the Act would be in monetary terms i.e. Rs.10,000 for each
offence and Rs.1,000 for each day for continued non Compliance.
• The initial phase of 5 years would be promotional and creating infrastructure for implementation
of Act. No penalties would be effective during this phase. • The power to adjudicate has been
vested with state Electricity Regulatory Commission which shall appoint any one of its member
to be an adjudicating officer for holding an enquiry in connection with the penalty imposed.
Features Extracted from The Energy Conservation Act, 2001.