Government set to save 250 MW power through procurement of only efficient appliances

In its endeavour to ensure energy security of the nation, with the initiatives of the Hon’ble Minister of State for Power (Independent Charge) and the Secretary (Power), Bureau of Energy Efficiency (BEE), Ministry of Power has been undertaking several measures to cope up with the ever increasing energy demand of the country. One of such effort is to procure efficient appliances in public sector establishments which is estimated to save up to 15-20% of its energy use(heat and electricity). Public procurement of energy efficient appliances would not only ensure adequate energy savings but will also contribute to monetary savings of 1700 million (Rs.170 crore) every year through energy cost reduction and 12500 million (Rs 1250 crore) expected avoided installation of a 250 MW capacity thermal power plant, which would have been required to feed extra energy required by inefficient appliances.

 In the Initial stage, the appliances which have been considered for public procurement includes Split air conditioners, frost free refrigerator, ceiling fans and water heaters. The cumulative effects of this will not only work to India’s national action plan for Climate change but will also catalyze the market transformation for energy efficient appliances.

Government is keen to demonstrate its commitment by leading the initiative through self-adoption of this concept. All government departments, ministries, attached and subordinate offices are being directed to ensure that all the procurement of the specified product categories must carry the threshold BEE star rating indicated against them, or higher, in an office memorandum no. 26/6/12-PPD dated 21^st January 2013 issued by Ministry of Finance.

Bureau of Energy Efficiency, which is a statutory body under Ministry of Power has worked out life cycle cost analysis of the above mentioned product categories, based on which the threshold ratings have been awarded to understand the cost base economy of the product. The increased incremental investment made on the purchase of the higher star rated efficient appliances is paid back by the money saved in the energy bill during its operation. The threshold star rating of these appliances are as given below:

With this policy initiative, the government is giving special emphasis on energy efficiency in the public procurement.  In future, energy consuming appliances will no longer be guided only on the basis of lower initial cost, which is presently the main trend. Energy efficiency will now also be a major consideration and will play a significant role in procurement policy. BEE star rating labeling programme of equipment /appliances is thus set to lead the market transformation. Benefits fromPublic procurement of energy efficient appliances in government facilities and operations will not only generate lower energy bills but will also reduce greenhouse gas emissions, demand on electric utility systems, and dependence on imported oil.