THE ENERGY CONSERVATION ACT, 2001

AND ITS FEATURES

ECA2001
1. Policy frame work
2. Provisions of the act
3. Purpose of the act
4. Feature of the ECA
a) Standards & Labeling b) Designated consumer
c) Energy conservation fund d) BEE
e) ECBC f) Role of central and state government
5. The energy conservation (amendment) bill, 2010.
Total Chapter - X
 ECA2001

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.

Total Chapter - X
Under the provisions of the Act,

• Enacted on 1st October 2001 and became effective from 1st March
2002.

• Objective of providing necessary legal framework for promoting

• energy conservation measures in the country.

• Bureau of Energy Efficiency(BEE) operationalized from 1st

March2002.
 PURPOSE OF THE EC-ACT 2001

• The purpose of this act is to provide an efficient use of energy

and its conservation.

• Provide a policy framework and direction to national energy

conservation activities.

• Coordinate policies and programs on efficient use of energy with

stakeholders.

• Establish systems and procedures to verify measure and monitor EE

improvements.
• Leverage multilateral, bilateral and private sector support to
implement the EC Act.

• Demonstrate EE delivery systems through public-private partnerships.

TO PROMOTE ENERGY EFFICIENCY IN THE COUNTRY .

IMPORTANT FEATURES OF ENERGY CONSERVATION
ACT-2001

• Energy Conservation Building Code (ECBC)

• Standards & Labeling (S & L)
• Demand Side Management (DSM)
• Bachat Lamp Yojana (BLY).
• Promoting Energy Efficiency in Small & Medium Enterprise (SMEs).
• Designated Consumers .
• Certification of Energy Managers & Energy Auditors.
 1. STANDARDS & LABELING

 Evolve minimum energy consumption and

performance standards for notified equipment &
appliances.

 Prohibit manufacture and sale of equipment &

appliances not conforming to standards.

 Introduce mandatory labeling to Enable

consumers to make informed choice.
 Key Features:

 Standards and Labelling (S & L) has been identified as a key activity for
improvement in energy efficiency.

 The S & L programme, when in place, would ensure that only energy-
efficient equipment and appliances would be made available to the
consumers.

 The main provisions of the Act on Standards and Labelling are:

 To evolve minimum energy consumption and performance standards for

notified equipment and appliances;
 To prohibit manufacture, sale or purchase or import of such equipment
or appliance, which does not conform to the energy consumption
standards;
 To introduce a mandatory labelling scheme for notified equipment
appliances to enable consumers to make informed choices; and
 To disseminate information on the benefits of energy conservation and
efficient energy use to consumers.
 The equipment to be covered initially under the S&L programme are
household refrigerators, air-conditioners, water heaters, electric motors,
agriculture pump sets, electric lamps and fixtures, industrial fans and
blowers, and air-compressors.
What is Star Rating?

• In India, the star rating is a voluntary energy efficiency certification

program operated by the Bureau of Energy Efficiency (BEE).

• The goal of the program is to reduce power consumption and

greenhouse gas emissions by encouraging the use of energy-efficient
appliances. Star-rated appliances are required to display their energy
rating prominently, so that consumers can make informed choices
when purchasing new products.
The BEE star ratings for air conditioners assume significance because
these appliances consume the maximum power. However, consumers
should understand specific concepts before looking at the star ratings
because the ratings depend on EER and ISEER calculations.

a) Energy Efficiency Ratio (EER)

Generally, the EER is calculated for fixed-speed ACs. It constitutes the ratio
of the amount of heat removed by the air conditioner in an hour to the power
consumption. As the room temperature is not the same throughout, BEE
stipulates calculating the EER at specific temperature settings. It has
stipulated 350C for outdoor and 270C for indoor temperature, with the
humidity set at 50%.
b) Indian Seasonal Energy Efficiency Ratio (ISEER)
ISEER is a complicated calculation depending on multiple variables. This ratio
is generally calculated for inverter ACs, known as variable speed ACs.
It assumes specific values for outdoor and indoor temperatures. Besides, it
considers that the weather is not uniform throughout the year and varies from
place to place.
The ISEER calculation involves calculating two additional variables.
1. Cooling Seasonal Total Load (CSTL): The amount of heat the AC removes when
operating for cooling in the active mode.
2. Cooling Seasonal Energy Consumption (CSEC): The amount of energy the AC
consumes when operating for cooling in the active mode.

ISEER = CSTL / CSEC

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2.  DESIGNATED CONSUMER

Who are designated customers?

• The Energy Conservation Act provides the list of designated

consumers, which includes the energy-intensive industries,
Railways, Port Trust, Transport Sector, Power Stations,
Transmission & Distribution Companies and Commercial buildings
or establishments.
• The government notifies the designated consumers.

Contd...
 Get energy audit by Accredited energy audit firms and energy audit
conducted by an accredited energy auditor.
 Implement cost effective recommendations.
 Appoint or designate energy manager.
 Comply with energy consumption norms.

By regulations BEE to prescribe:

 Qualification and certification procedure for Energy
Manager & Energy Auditors.
 Accreditation procedure for Energy Audit firms.
Contd...
The Energy Conservation
Building Code (ECBC),
was launched by Ministry
of Power, Government of
India in May 2007, as a
first step towards
promoting energy
efficiency in the building
sector.

Contd...
3. ENERGY COSERVATION FUND ‐‐‐‐‐ ?

To set up Energy Conservation Fund for providing : 

 Promotion of Energy Service Companies.

 Research & Development Demonstration.

 Creation of testing facilities Awareness Creation.

Contd...
4. BUREAU OF ENERGY EFFICIENCY, ‐ BEE label

Powers and functions of BEE

 To recommend to the Central Government the norms for processes

and energy consumption standards required to be notified.
 To recommend to the Central Government for issuing of the energy
savings certificate.
 To prepare standards and labels of appliances and equipment.
 To develop a list of designated consumers.
 To undertake promotional activities in coordination with centre and
state-level agencies.
 To develop Energy Service Companies (ESCOs).
 To transform the market for energy efficiency.
 To create awareness through a variety of measures including
clearing house.
 To promote innovative financing of energy efficiency projects.

Contd...
 It is a Star Rating program for buildings which is based on the actual
performance of a building in terms of its specific energy usage in kwh/sq
m/year.

 BEE has developed the Energy Conservation Building Code (ECBC), which
provides minimum energy performance standards for energy efficient
commercial buildings.

Contd...
5. ENERGY CONSERVATION BUILDING CODES:

BEE to prepare guidelines on ECBC.

To provide minimum requirements for the energy efficient design and

construction of buildings.

Mandatory for commercial buildings having connected load of >=500KW or

contract demand of >=600 KVA.

Also applicable for air-conditioned area of >=1000 sq.mtrs. Including

existing buildings .

Contd...
ECBC has provisions for;

 Building envelopes, except for unconditioned storage spaces or warehouses,

 Mechanical systems and equipment, including heating, ventilating, and air

conditioning.

 Service hot water heating,

 Interior and exterior lighting, and

 Electrical power and motors.

Contd...
6. ROLE OF CENTRAL AND STATE GOVERNMENT

 CENTRAL – to notify rules and regulation under various provisions of the

ACT , provide initial financial assistance to BEE and EC fund , Coordinate
with various State Government for notification ,penalties and adjudication.

 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.

Contd...
8. PENALTIES

Non-Compliance by a Person:

 Amount Not Exceeding Rs.10,00,000/-For Each Offence.

 On Continuous Non – Compliance An Additional Penalty Up to

Rs.10000/- Per Day.

 The initial phase of 5 years would be promotional and creating

infrastructure for implementation of ACT. No penalties would be
effective during this phase.