Despite a notable increase in electricity generation, including contributions from renewable sources, India continues to experience a significant power deficit. This gap between power supply and peak demand has widened from 0.69% in FY20 to approximately 5% in FY24. The primary reasons for this issue include delays in the addition of new power capacity and a surge in electricity needs, particularly during the summer months.
Improving energy efficiency is crucial as it allows for a reduction in power demand without necessitating increased electricity production. This approach serves as a more rapid and cost-effective means to meet energy requirements, mitigate emissions, and address the challenges posed by climate change.
The Unnat Jyoti by Affordable LEDs for All (UJALA) scheme represents a significant stride in energy efficiency. Over a decade, it has reduced the price of LED bulbs from ₹500 to ₹70. By January 2025, the government aims to have distributed 37 crore LED bulbs and sold an additional 407 crore, ultimately easing energy bills and reducing peak demand by more than 1,500 MW.
Another noteworthy initiative is the Street Lighting National Programme (SLNP), which has installed over 1.34 crore LED streetlights across urban and rural areas. This program has not only lowered power demand for public lighting but has also enhanced safety and visibility during nighttime.
LED bulbs offer substantial energy savings compared to traditional lighting solutions. They consume nearly half the energy of compact fluorescent lamps (CFLs) and can be up to nine times more efficient than conventional incandescent bulbs, leading to significant cost and energy savings.
The Perform, Achieve and Trade (PAT) scheme is a market-based initiative under the Bureau of Energy Efficiency. It establishes energy-saving targets for industries and facilitates the trading of surplus energy savings. This mechanism incentivizes large industries to invest in energy efficiency while maintaining cost-effectiveness.
Since the enactment of the Energy Conservation Act in 2001, India has implemented numerous programs and regulations aimed at promoting energy efficiency. The establishment of energy-efficient standards for appliances, buildings, and vehicles has also played a significant role in reducing electricity consumption and emissions.
According to the International Energy Agency, India successfully avoided an additional 15% of energy demand and 300 million tonnes of CO₂ emissions due to energy efficiency improvements between 2000 and 2018.
With urbanization, increasing income levels, and a rise in air conditioner usage, energy consumption has intensified. By 2024, India's peak demand reached 250 GW, with coal still supplying 70% of its energy needs. Therefore, enhancing efficiency is essential to reduce reliance on coal and manage emissions effectively.
To achieve greater energy efficiency, specific sectors warrant increased focus. These include buildings, household appliances, air conditioning, and Micro, Small and Medium Enterprises (MSMEs). These sectors constitute a significant portion of India's energy consumption, yet they often lack the resources necessary for upgrading their energy efficiency.
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