The household and commercial lighting even today account for a large share of peak power demand. Nearly 10-12 % peaking shortage in the Indian power system occurs for an hour in the evening hours. This represents the evening peak due to sudden addition of household and commercial lighting loads. These sharp evening peak for a short duration requires construction of extra capacity of generation, transmission, and distribution infrastructure to meet the loads for few hours a day. Since this additional capacity is used only for such a short time, the peak power demand is a costly affair.

It is in such context that the National Electricity Policy recently notified by the Government of India mentions that:

“ Energy efficient lighting technologies should also be adopted in industries, commercial and domestic establishments.” (S 5.9.5)

The widespread use of incandescent (also called GLS) lamps by households and commercial users is a major area of potential efficiency gain in lighting. For example, to get the same light output, one 60W GLS bulb can be replaced by a 15W CFL. This reduces the power demand by nearly 45W or by three fourth of the original. Replacement of just one such GLS lamp that is operational at the peak time by every household in the country can reduce the peak power demand by over 5,000 MW! The potential saving is much larger when we consider that 55% of rural households are yet to be electrified. Under the rural electrification initiative, the government is planning to electrify the remaining households in the coming five years. This increases the potential saving, through use of CFLs, to nearly 10,000 MW! Hence, rapid and extensive penetration of CFLs can help us substantially mitigate the peak power shortage in the country.

II. Use of CFLs make Economic sense for Bulk Consumers and Load Management

a ) Economics of CFLs for Bulk Consumers

The retail price of CFL has a wide range, but most lamps are priced between Rs 70 to Rs 150, depending on rating and manufacturer among other things. Despite this higher cost of CFL, compared to the GLS lamps; their economics is very attractive. Lower consumption of electricity and longer life of CFL make them more economical. A reasonable quality CFL, can pay back the higher initial cost of CFL, in short period of 15% to 25% of its life; depending on the electricity tariff. For the remaining 75% to 85% of CFL’s life, it results in net saving for the consumer.

In other words, when the electricity tariff is Rs 3/kWh, a CFL operating for just two hours a day, saves electricity to pay back the higher initial cost in a period of eight months. For lamps operating for longer duration the payback is proportionately faster.

Table 1: Typical annual saving over the life of the CFL

b) Economics for load management by Utilities

Since the lighting load forms a part of peak load for the utility and that too mostly by domestic users which generally receive subsidised tariffs as compared to other categories, it makes sense to reduce the peak load by use of CFL especially in domestic sector. The economics work out to be very attractive as the reduction in demand provides utility with additional capacity to supply high paying customers. In some developed countries even free distribution of CFLs by the utilities have worked very economic. The utilities in India must exploit this opportunity offered by CFLs.

III) Barriers for Large Scale Usage of CFLs

Several consumers are unwilling to buy a CFL to replace much cheaper GLS, and end up paying much more for the electricity usage of the lamp. The consumers not using CFLs are faced with some barriers, which can largely be divided in three categories.

• Information barrier: A large section of consumers are still unaware of the large benefits of using CFLs. The consumer awareness should be increased through advertisement and other measures to encourage more consumers use CFLs.
• Inappropriate fitting: The consumers having lampshades or luminaries unsuitable for CFLs do not change the luminaries for using CFLs. But as smaller CFLs and decorative luminaries especially designed for CFLs are becoming more common, this barrier would diminish.
• First Cost Barrier:
i) Most of the government tenders are based on lowest price and unless the benefit of CFL on life cycle cost are recognised and approved it becomes difficult for the government agencies to adopt this new technology.
ii) The problem is acute for the very poor consumers. Nearly half of the residential consumers in most states have electricity usage of less than 50 kWh/month. The monthly electricity bill of these consumers is barely Rs 50 to Rs 85. These consumers are too poor to afford CFL at present prices. These would be over 50 million households. Additionally about 100 million un-electrified houses, which would be connected to the grid in the coming five years, would also fall in this category.

IV) Some solutions:

a) Purchase of CFLs on life cycle cost rather than first cost basis by the government agencies. Monitoring the performance of CFLs and sharing of experiences with other departments on regular basis.
b) Considering the very large number of such houses in the country, we have to address this problem. Reduction of cost of CFLs is one method to address this problem. Bulk purchase of one or two standardised lamps, rationalisation of taxes on the CFLs and cost reduction measures by the manufacturers can help substantially help. There is a sizable scope for such cost reduction without affecting rather improving the quality of CFL.
c) If the utility has a CFL leasing program, the first cost barrier faced by consumers can be overcome. A 15-Watt CFL, which is equivalent to a 60 W bulb, would last about 6,000 hours (40 months) and may cost Rs.120. The utility can recover this cost through monthly bills at the rate of Rs.10 per month for 12 months. This is nearly a “no-cost” affair for the utility except for some modifications in the billing and accounting procedure.
d) Poor consumers with low usage are offered low electricity tariff as the lifeline tariff. In many states, the tariff paid by these consumes about Rs 1.5 / kWh. In such a case, even the cost of CFL leasing is more than the electricity saving in the initial year. Hence, it does not make economic sense for these consumers to take CFLs even through the leasing program. But in that case, their consumption remains high and the utility continues giving subsidy on their electricity use.

In addition, the utility can share part of its potential saving (due to reduced subsidy to these consumers), with such consumers to reduce the monthly instalment of CFL. The utility saving is much more than what appears to the eye, in terms of difference between average cost of supply and the tariff by the poor households. The lighting usage is peak time usage, so the saving has to be calculated considering the reduction in peak T&D losses, reduced need for peak power purchase and so on. The required contribution by utility for this is small compared to the scale of its operation.

V) National Workshop

In light of above, with the initiative undertaken by Ministry of Power it was decided to hold a national workshop in collaboration with Bureau of Energy Efficiency (BEE), IEEMA and ELCOMA and PRAYAS an NGO. The workshop will focus on Use of CFLs for energy conservation and load management for benefit of both bulk users and utilities The stake holders invited include senior officials from utilities, manufacturers, government, bulk consumers, central/state PWDs, State Designated Agencies, financing agencies and DSM experts.

I extend a very warm welcome to all of you to this workshop on use of CFLs for energy conservation and better load management. We had invited representatives from various industries, utilities, regulatory authorities, government, bulk users, central and state public works departments, state designated agencies, lighting experts, consultants to attend this important workshop. Such a large audience from the stakeholders and participants indicates the importance attached to this workshop organized by the Ministry of Power and the Bureau of Energy Efficiency together with IEEMA, ELCOMA and Prayas.

It is estimated that an energy conservation potential of 23% exists in the country. At the beginning of the 10th Plan, the installed generation capacity in the country was about 105000 MW. 23% savings of this works out to about 24000 MW. Ministry of Power had fixed a target of 10% of the above energy saving potential to be harnessed in the 10th Plan; which amounts to about 2400 MW.

Our Hon’ble Minister has always been concerned about as to how are we going to achieve this energy saving potential, what has been the saving achieved so far. Sir, it is rather difficult to make a direct measurements of savings made, yet we have made estimates savings effected through the energy conservation which has been achieved so far. This works out to around 1000 MW during the X Plan period so far in various industries, use of CFLs and thermal power sector. We are very confident that the remaining 1400 MW of the target would also be achieved in the remaining period of 10th Plan. As per the present estimate, use of CFLs alone would translate a saving of around 5000 MW of avoidable capacity and an investment of about Rs.20,000 crores. Sir, the lighting alone consumes around 10 to 12% of the power in all sectors an therefore, the use of CFLs and energy efficient lighting would bring down the peak shortages by about 50%.

On the directions of the Ministry of Power due to the concern of the Hon’ble Minister of Power for promoting the use of energy efficient lighting, it was decided to organize this one day workshop on use of CFLs . This gathering is honoured by the presence of the Hon’ble Minister of Power, Government of India, in this workshop to guide and advise us in the further deliberations, in spite of a very tight scheduled today. I, on behalf of Bureau of Energy Efficiency and the Ministry of Power, all industries & stakeholders, IEEMA, ELCOMA and Prayas and all participants extend a very warm and hearty welcome to you. I also extend very warm welcome to Shri R.V. Shahi, Secretary (Power) who has always been a source of inspiration to us and have been always extending Ministry’s support and guiding us from time to time and giving useful directions in carrying forward the activities of the Bureau of Energy Efficiency. In fact, it is Shri Shahi who has always been concerned and emphasizing that the energy conservation activities must be given top priority so that it penetrates through the masses of the country, which would help in mitigating the power mitigate the shortages in the country in cost effective meaner. Sir, this is your prime concern to make available Power to All by 2012 at an affordable price. I also welcome Shri Ramaswamy, President, IEEMA and Shri Shekhar Bajaj, President, ELCOMA and Shri Girish Sant, Prayas, with whose cooperation this workshop is being organized today. Out hearty welcome to the friends from media who are present here and sincerely request them to give a wide coverage to this Important event. I once again welcome all the dignitaries, delegates and participants to this workshop. The deliberations today would focus inter alia on various aspects of design features of CFLs as well as the usage of specific area to promote the energy conservation and efficiency in the country to make the demand side management more effective.

The Minister said that our installed generation capacity and electricity generation after independence, since 1950, have increased to about 69 times and 115 times respectively, but still we are facing about 12% peak demand shortage and 7% energy shortages. Fifty six per cent of our rural house holds do not have access to electricity, which is a matter of great concern, he added.

Shri Sayeed stated that the Ministry of Power has set a goal to provide “Power for All” by 2012 and in this respect, he mentioned enactment of various acts like energy conservation and the electricity act and said these are important initiatives to provide reliable and quality power to all at affordable prices through efficiency and economy in operation. He called for rapid and extensive use of CFL to substantially mitigate peak power shortages in the country. The Secretary, Ministry of Power, Shri R.V. Shahi delivered the key-note address.

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