Energy Efficiency by the Government of India

Energy Efficiency by the Government of India

In India, energy efficiency related programs have been initiated by the Government of India (GoI) through various laws and regulations. These laws and regulations have been gradually introduced in the last 20 years. Following are few indicative laws and regulations observed during this time period that have been instrumental towards encouraging businesses to adopt energy efficient methods in their regular operations:

  • Disclosure of company-level energy efficiency information in the annual report for exploring environmental costs and benefits and relevant contribution in the country.

   Source: “Corporate Environmental Reporting on the Internet – An Insight into Indian Practices”

  • Accelerated depreciation for energy efficiency and pollution control equipment
  • Generation Based Incentive (GBI) that focuses on providing incentives to businesses not availing accelerated depreciation, whose grid connected to wind power projects are set up for sale of electricity to grid at SEC tariff and producers involved in captive wind power projects.

    Source: A Presentation on Generation Based Incentives (GBI)

  • Establishment of the (autonomous) Energy Management Center under the Ministry of Power for  implementing and monitoring energy conservation programs and to provide policy guidance and advise on energy efficiency.

    Source: Ministry of Power, Annual Report 2001-02

  • Removal of price and output controls to promote industrial competitiveness
  • Energy price reforms to guide energy efficiency initiatives and encourage international competitiveness
  • Formation of state energy conservation funds that enable states to encourage energy efficiency in several industries
  • Different schemes to encourage energy audits, through 50% cost sharing
  • Grant funds to encourage preparation of “Detailed Project Reports (DPRs)” for energy efficiency projects
  • Incentives for installation of solar home water heating systems
  • Enabling trading of energy efficiency certifications that encourages productivity and competition among businesses
  • Formation of the Alliance for Energy Efficient Economy (AEEE) industry association established for facilitating collaboration among India’s energy efficiency industries and service providers, enabling them to come together as the policy research and advocacy organization that supports the government’s energy conservation and energy efficiency (EE) policy implementation, market development and implementation of EE improvements in all sectors of India’s economy.


The aforementioned government initiatives broadly indicate initiatives undertaken for introducing energy efficient systems and methods in India. Most of these initiatives have also been examined across various standards, schemes and certifications identified in this note.