Energy Efficiency Services Ltd is a Central public sector unit promoted by five government entities. The role of EESL has become very critical in India’s quest for energy savings and energy efficiency. We have S.P. Garnaik discussing how energy efficiency can be realized in buildings, which account for a significant proportion of India’s total energy consumption. Garnaik also explains how EESL’s work in the field of buildings effectively complement its other activities, resulting in overall energy efficiency to the nation.
It is encouraging to see that buildings have been brought under the noble ambit of energy efficiency and conservation. Tell us in general terms how important the role of buildings in the overall goal of energy efficiency is?
About 90 per cent of a person’s time is spent inside buildings, be it commercial or residential. Therefore, if we begin to look at the pattern of energy consumption in India, the building sector accounts for over one-third of India’s total energy consumption. Within the buildings sector itself, the commercial buildings space consumes about 8 per cent of the total electricity generated in India, which is growing at a rate of about 11–12 per cent annually. Energy used in buildings (residential and commercial) thus accounts for a significant percentage of our total energy consumption.
The building sector encompasses a diverse set of end use activities, which have different energy use implications. Space heating, space cooling, and lighting, which together account for most of building energy use in industrialized countries, depend not only on the energy efficiency of temperature control and lighting systems, but also on the efficiency of the buildings in which they operate.
The potential of reducing energy consumption hovers between 20-30 per cent by using energy efficient technologies in existing commercial buildings. In general, building energy consumption is higher in industrialized countries. Thus, development has an important effect on energy demand from the building sector, implying that building efficiency becomes more significant as countries become more prosperous. The importance of energy efficiency in the building sector is quite significant in developing countries, due to opportunities to employ efficient materials and best practices.
The recently-launched National Buildings Energy Efficiency Programme is perhaps the biggest step towards buildings-related energy efficiency in India. Tell us about the programme’s overall objectives.
Under the Buildings Energy Efficiency programme, EESL intends to bring in investment of around Rs.1,000 crore covering more than 10,000 large government/private buildings by 2020. It is estimated that about one crore LED lights, 15 lakh energy efficient ceiling fans, and 1.5 lakh energy efficient ACs will be retrofitted by EESL in these buildings. Apart from retrofitting, EESL also aims to widen its services in areas like centralized AC system, energy audits, and New Generation Energy Management System in buildings.
The Buildings Energy Efficiency Programme has two business models:
- The ESCO (Energy Servicing Company) model, where the entire upfront investment is made by EESL, which is paid back by the building owner out of the resulting energy savings from the intervention.
- The PMC (Project Management Consultancy) model, where EESL is the project management consultant for implementing the project for the client. The client invests the entire project cost and bears one-time PMC charges of EESL.
As the implementing agency, what would be EESL’s principal role? Please tell us about the key aspects of buildings that this programme would be looking into. Also, what type of buildings would EESL be looking at?
EESL would first undertake walk-through energy audits of building complexes to develop techno-commercially feasible energy efficiency measures (EEMs) on a lump-sum fee basis. Once the energy audits are completed, EESL can provide technical and/or financial support to building owners for project implementation through the following models –
- ESCO model: Wherein the upfront capital cost shall be borne by EESL and the resultant savings from projects used to repay for EESL investments on deemed basis. The ESCO agreements shall be finalized wherein modalities, if implemented, sharing of energy savings between, scope of services, etc., shall be worked out subsequent to results of the energy audits. The audit fee could be capitalized as part of the project capital cost. The complete investment for the project would be borne by EESL. The project financing would be done using debt and equity in the ratio of 80:20. This model is preferable generally for large investment projects or cluster of buildings.
- Project Management Consultancy (PMC): Wherein investment is borne by the organization directly and EESL provides technical advisory services, comprising of project designing, bid management, supervision of implementation, and impact assessment at a mutually agreed cost (roughly 14 per cent of the capital investment). This model is preferred for relatively smaller sized projects or stand-alone buildings.
The buildings in Rajasthan include St. Xavier’s, Secretariat Building, and the Vidyut Bhawan building. The BCC&I building in Kolkata is also a part of the initiative. In total, 2,773 buildings have already been identified under the Energy Efficient Buildings Programme. While EESL has completed work in 28 buildings, work in 2,745 buildings is ongoing.
EESL has also signed a Memorandum of Understanding (MoU) with the Indian Railways for retrofitting energy efficient appliances in 900 railway stations across the country, which includes installation of LED lighting, fans and air conditioners in the station premises. Under this MoU, retrofitting has already been completed at the Vasai Railway station in Mumbai.
How does this buildings programme complement the existing work that EESL has been doing in the domain of energy efficiency?
Presently, India has an installed capacity of approximately 319 GW, which shall only grow in the years to come. However, around 300 million people in the country still lack access to electricity. The need of the hour is to have an inverse relationship between growth and energy consumption, wherein the energy consumption declines as the population grows.
The construction sector is set to reach 104 billion square feet in India by 2030, thereby providing tremendous opportunities to make interventions towards reducing energy consumption and subsequently tackling climate change. The programme shall compliment and supplement the efforts that EESL is making on the demand side, such as the UJALA Scheme and the Street Lighting National Programme.
Under the UJALA scheme, EESL has successfully distributed over 25.31 crore LED bulbs, 29.98 lakh tubelights, and over 11.36 lakh energy efficient fans all over India. It has further retrofitted over 28.17 lakh street lights with LED lights.
All these interventions have led to a cumulative annual energy savings of over 3,350 crore kWh, which is sufficient to light up approximately 63 lakh homes across the country. With the Buildings Programme, EESL aims to enhance the savings portfolio and ensure energy security for each citizen. At present, the savings through 28 completed building projects across seven states are estimated to be over 11.03 MU, which is bound to increase with each completed project.
The Intended Nationally Determined Contributions (INDCs), as committed by India as part of the Paris Climate Change accord also list the need to recognize energy efficient buildings. India has developed its own building-energy rating system GRIHA (Green Rating for Integrated Habitat Assessment). It is an indigenous rating system originally developed by TERI and adapted, adopted and endorsed by MNRE (Ministry of New and Renewable Energy), G.O.I, as the National Rating System for Green Buildings and Habitats in India. EESL plays its role in supplementing the vision of India’s INDCs.
We understand that energy conservation (or efficiency) in a building can be addressed through the physical structure of the building and the energy systems of the building. Please tell us more.
Architectural innovation plays a pivotal role in managing energy. However, retrofitting conventional appliances with energy efficient ones is by far the easiest way to increase the efficiency, save energy, and money on electricity bills. Interventions such as space heating, space cooling, and lighting are some of the minimalistic measures that can help reduce carbon emissions immensely.
Further, smart sensors provide real time data of the building equipment. These can be controlled, thus 20-30 per cent more energy saving can be achieved over next phase of energy conservation, management, and monitoring in buildings. It complements today’s hi-tech buildings by enhancing energy efficiency, data center reliability, comfort, and analytics.
We have learned that EESL has signed an MoU with the Maharashtra Public Works Department to retrofit existing electric appliances with energy-efficient ones. Please discuss.
As per this agreement, EESL will invest nearly Rs.200 crore to upgrade the lighting system in the 1,500 PWD buildings apart from replacing the existing air-conditioners and fans with more power-saving products. Additionally, EESL intends to replace 11 lakh LED lights, 3 lakh energy efficient fans, and 25,000 energy efficient air conditioners in these buildings. EESL will also bear the maintenance cost of these appliances for the entire project period of 3-5 years. Once operational, PWD Maharashtra will be able to save nearly Rs.175 crore annually. And, from this saving, pay EESL Rs.109 crore against the investment. Over the next few years, Maharashtra will be able to save nearly Rs.600-700 crore per year with the implementation of the project.
Are there similar plans with other state governments?
As far as partnerships with other state governments are concerned, EESL is in the process of exploring similar interventions in Odisha, Himachal Pradesh, Gujarat, and Andhra Pradesh to retrofit energy efficient appliances covering 2000 buildings. Moreover, EESL is also widening its activities in corporate buildings, government/private establishments, as well as PSUs, to name a few. Apart from projects in government buildings in about 10 states, work has been initiated in nearly 868 railway stations by EESL to replace existing inefficient lighting, ACs, and ceiling fans. For instance, work has already commenced in Vasai Railway Station in Mumbai. Through the replacement, the station has achieved over 25 per cent energy savings. EESL has retrofitted 1,051 LED Lights, 14 BEE 5-Star air conditioners, and 135 BEE 5-Star ceiling fans. Consequently, Vasai station has witnessed a monthly saving of Rs.1 lakh in electricity bills, 10,000 kWh in energy savings, and a 30 per cent reduction in station’s connected load. In terms of CO2 emissions, Vasai station has also saved 8 tonnes of CO2 every month.
EESL has already retrofitted energy efficient appliances in prominent buildings such as NITI Aayog, Nirman Bhawan, Sardar Patel Bhawan, Shastri Bhawan, J&K Assembly, Jammu Secretariat, Vidyut Bhawan, and Rajiv Chowk Metro station where energy efficient LED lights, energy efficient ceiling fans, and energy efficient air conditioners have been retrofitted. EESL has so far installed about 94,000 LED lights, 3,000 energy efficient air conditioners, and over 400 energy efficient ceiling fans in these buildings.
Moreover, even corporates are expressing their interest in partnering with us to assist them in assessing their buildings’ energy efficiency needs as well as in retrofitting energy efficient appliances in those premises. As part of this, Mahindra & Mahindra is the first private sector company to tie up with EESL under the Buildings programme.
It is believed that lighting in government offices (both Central and state) account for a sizeable proportion of the nation’s electricity consumption. How do you see the scope for energy-efficiency here?
It is interesting to note that under the Buildings Energy Efficiency Programme, a majority of government buildings have come forward and collaborated with EESL to retrofit their buildings.
In Maharashtra, the buildings include the High Court in Nagpur, Bhiwandi Municipal Office, Pune Municipal Office, CPR Kohlapuri Hospital, Saint George Hospital, Family Court Mumbai, Acharya Atre Rang Mandir, DENA Bank, and YASHDA Pune.
The buildings in Rajasthan include St. Xaviers, Secretariat Building, and the Vidyut Bhawan building and the BCC&I building in Kolkata.
In total 2,773 government buildings have already been identified under the energy efficient buildings programme. While EESL has completed work in 28 building and work is ongoing in 2,745 buildings. It is significant to note that the annual energy savings from the completed buildings is 11.03 MU (million units) and it is also expected that the annual energy savings from the buildings where retrofitting is ongoing is estimated at 346.96 MU.
BEE has recently come out with the Energy Conservation Building Code (ECBC) 2017 for new commercial buildings. Can we expect that some elements National Buildings Energy Efficiency Programme would become a norm for new buildings under ECBC?
ECBC 2017 sets parameters for builders, designers, and architects to integrate renewable energy sources in building design with the inclusion of passive design strategies for new buildings. However, EESL under the Buildings Energy Efficiency Programme, enables existing and new building infrastructure to be energy efficient through retrofitting. ECBC 2017 also promotes energy efficiency in buildings therefore it is an additional push from the government to bring buildings under the ambit to reduce carbon emission. This intervention will only help EESL to achieve its goal of an energy efficient nation.
(Note: All photographs relate to the Central government-owned building “Nirman Bhavan” in New Delhi where EESL retrofitted all appliances with energy-efficient ones.)
