Overview


India currently ranks sixth in the world in terms of primary energy demand. As per the Planning Commission’s ‘Integrated Energy Policy Report - August 2006’, if India perseveres with sustained economic growth rate of 8 % of GDP per annum through 2031-32, its primary energy supply will need to grow by 3 to 4 times, and electricity generation capacity by 5 to 6 times of the capacity in the year 2003-04. It is estimated that by 2031-32, the country’s power generation capacity would have to be increased to 800,000 MW from a current level of 160,000 MW inclusive of all captive plants. In simpler terms, this implies a capacity addition of about 500 MW per week for the next 25 years. This extraordinary growth in energy demand will place great stress on physical and economic resources of the country, which may create capital and energy shortages as well as environmental problems.

Rapid economic growth has been accompanied by commensurate growth in the demand for energy services that is increasing the country’s vulnerability to energy supply disruptions. The Ministry of Power (MoP) had set a target of adding 100,000 MW of generation capacity between 2002-12. This programme included a target of 41,110 MW capacity addition in the 10th Plan (2002-07) ending 31st March 2007. However the Working Group on Power for 11th Plan (2007-12) constituted by MoP, estimated a capacty addition of 17,995 MW till the end of December 2006, with electricity shortages of about 8.8% of the requirement, while peak power shortage of 14 % of the peak demand. These vulnerabilities need to be addressed by adoptiing appropriate policies and programmes to accelerate capacity addition in all the three sectors (Central, State and Private), enhancement of power generation through cogeneration systems in industries, as well as through renewable energy sources, and reduction of intensity of energy use in all the sectors of Indian economy through energy efficiency.

Ongoing ECO-III Program’s activities are aligned with BEE’s focus areas as proposed in the 11th Five year Plan. The focus is on developing institutional capacity at the state level by working with energy development agencies and continue to work on developing the implementation framework for energy efficiency in the buildings (new and existing) and the municipal sector. Mandatory enforcement of ECBC will require fundamental changes in the way commercial buildings are being designed and constructed vis-a-vis building’s envelope, lighting, and HVAC system.

International Resource Group (IRG) and its partners (IRG Systems South Asia, Alliance to Save Energy, DSCL Energy Services, National Productivity Council, Econoler International, Centre for Environmental Planning and Technology) are implementing ECO-III by working closely with international experts and the other organizations that are part of the ECO-III team.