A. Background

Energy audit involves a systematic study of energy consuming processes and equipment with a view to identify the flow of energy, efficiency of energy utilization, and areas and amounts of wastage of energy, thereby indicating possibilities for saving energy.

In the Energy Conservation Act, the definition of energy audit has been expanded to mean the verification, monitoring and analysis of use of energy, including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis, and an action plan to reduce energy consumption. Implementation of recommended measures can help consumers to achieve significant reduction in their energy consumption levels.
In India, although there are a large number of energy auditors, their professional competence and equality of outputs varies widely, primarily because there is no uniform or accepted qualification or prerequisite for entry into the profession. Hence, there is also wide variation in the veracity and practicality of energy audits being carried out. This results in limited implementation of energy conservation measures and consequently limited cost savings, apart from reflecting poorly on the profession. Lack of professionally qualified persons also limits the efforts by energy users to improve energy efficiency.

The appointment of a qualified energy manager in an organization, as required in Japan and other countries, provides a focal point as well as leadership for all energy management activities, and plays a key role in successful implementation of energy efficiency projects. The Energy Conservation Act envisages creation of cadre of professionally qualified energy managers and auditors with expertise in energy management, project management, financing and implementation of energy efficiency projects, and policy analysis.

B. Provisions in the Energy Conservation Act

The provisions in the Energy Conservation Act regarding Professional Certification provide for the following:

• Directing designated consumers to designate or appoint certified energy manager in charge of activities for efficient use of energy and its conservation.
• Prescribing minimum qualification for energy mangers.
• Specifying certification procedures for energy managers.
• Directing designated consumers and energy intensive industries specified in the Schedule to get an energy audit conducted by an accredited energy auditor in the specified manner and intervals of times.
• Defining energy audit as the verification, monitoring and analysis of use of energy, including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis, and an action plan to reduce energy consumption.
• Specifying qualifications for accredited energy auditors.
• Maintaining a list of accredited energy auditors.
• Training of personnel and specialists in the techniques for efficient use of energy and its conservation

C. Approach

For certification of Energy Managers and Energy Auditors, a national examination would be held twice a year. Candidates having qualifications satisfying the eligibility criteria approved by BEE would be able to appear in the examination. National Productivity Council (NPC) would be retained as a national Certifying Agency to conduct this examination, initially for a three year period, based on the syllabus/ curriculum approved by BEE. Training material based on the approved syllabus/ curriculum would be prepared by the national certifying agency. BEE would empanel institutions/ franchisees to provide training courses for the certification examination to prospective candidates.

Initially, while regular accreditation process and procedures are developed , temporary accreditation will be awarded for a period of three years or until December 2005 to existing Energy Audit Firms satisfying specified criteria. An Accreditation Committee would be constituted for this purpose. Accreditation would be awarded only to firms and not to individuals. The accredited Energy Audit Firms would be rated by a rating agency once in tow-three years.

The Bureau would develop an elaborate strategy for providing training to Energy Auditors and Energy Managers in performance test codes, best practices, case studies and software which would be developed for this purpose, by

• Training the trainers at NPC, Chennai and Tata Energy research Institute (TERI), which are to be developed as Resource Centres,
• Training the trainers of the empaneled institutions, which would run training courses for the certification examination,
• Incorporating the codes and best practices in the syllabus of certification examination,
• Periodical refresher and sector- specific training to Energy Auditors and Energy Managers at NPC, Chennai and TERI.

D. Action Plan

The initial activities to be undertaken in this thrust area include:

• Finalisation of certification process and procedures for Energy Managers and Energy Auditors.
• Appointment of National Certifying Agency.
• Conduct of Certification Examination.
• Finalisation of empanelment process and procedures for training institutions/ franchisees.
• Empanelment of institutions for running training courses for certification examination.
• Finalisation of temporary accreditation process and procedures for Energy Audit Firms.
• Temporaray Accreditation of at least 30 Energy Audit Firms.
• Finalisation of regular accreditation process and procedures for Energy Audit Firms.

These activities would be completed by March 2003.

E. Role of BEE

The role of BEE would be to:

• Finalise certification process and procedures including syllabus/ curriculum and eligibility criteria for Energy Managers and Energy Auditors.
• Finalise temporary and regular accreditation process and procedures for Energy Audit Firms.
• Select National Certifying Agency.
• Empanel institutions/ franchisees.
• Determine certification examination fee for Energy Managers and Energy Auditors and accreditation fee for Energy Audit Firms.
• Conduct periodic rating of Energy Audit Firms and review performance and accreditation process and procedures.
• Review and update syllabus/ curriculum for Energy Managers and Energy Auditors

F. Benefits

The Benefits of the approach and activities would be the following:

• Development of a cadre of professionally qualified energy managers and auditors
• Higher professional standards in conduct of energy audits
• Bring in credibility for energy audit services.

Thrust Area 6

The Energy Conservation Act, 2001:

14. The Central Government may, by notification, in consultation with the Bureau,

(i) direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get energy audit conducted by an accredited energy auditor.

(l) direct any designated consumer to designate or appoint energy manager in charge of activities for efficient use of energy and its conservation and submit a report, in the form and manner as may be prescribed, on the status of energy consumption at the end of the every financial year to the designated agency.

(m) prescribe minimum qualification for energy managers to be designated or appointed under clause (l).

13 (2). The Bureau may perform such functions and exercise such powers as may be assigned to it by or under this Act and in particular, such function and power include the function and power to

(o) maintain a list of accredited energy auditors as may be specified by regulations.

(p) specify, by regulations, qualifications for the accredited energy auditors.

(r) specify, by regulations, certification procedures for energy managers to be designated or appointed by designated consumers.

Action Plan

Budget Estimate (Rs. Million)