Explained National

On a Mission to Enhance Energy Efficiency


Domestic electricity consumption grew by 8.55% and the total energy consumed grew by 6.50% in 2016-17 as compared to 2015-16. With numerous growth activities being undertaken by the Narendra Modi Government, this number is expected to grow in the near future. 18.5% of India’s total energy is consumed by agriculture and this is expected to increase by 54% between 2015 and 2022. Thus, a need to introduce measures which would inculcate efficiency in the consumption of energy was felt. As a result, the National Mission for Enhanced Energy Efficiency (NMEEE) was launched as a part of eight missions under the National Action Plan on Climate Change (NAPCC). The overarching objective of this mission was to produce, transmit, and consume energy in a cost-efficient and environmentally sustainable manner. This would eventually create a market for energy efficient products through innovation and change in consumer behaviour.

“I urge you all to use LED bulbs, save money, save energy and take part in helping our nation.”
~Shri Narendra Modi, Hon’ble Prime Minister

Initiatives under NMEE:
  • Perform, Achieve, and Trade: A regulatory mechanism to reduce energy consumption in energy-intensive sectors
  • Energy Efficiency Financing Platform: Provide project developers access to financing institutions
  • Transformation of Markets for Energy Efficiency: Create a market for energy efficient products
  • Framework for Energy Efficient Economic Development: Develop financial instruments that would finance green projects
How does it work?
  • EESL is a joint venture of four Public Sector Undertakings – NTPC Limited, Power Finance Corporation Limited, Rural Electrification Corporation Limited and POWERGRID Corporation of India Limited.
  • Energy Efficiency Services Limited (EESL) is responsible for spearheading programs and deployment of initiatives related to energy efficiency along with providing consulting for greenfield and brownfield projects.

NMEE is in sync with the Sustainable Development Goals, right from the commitment of the mission towards providing clean and affordable energy, to developing sustainable energy solutions.

UJALA Scheme:
  • It is estimated that around 20% of electricity is consumed for lighting. With an aim to replace 770 Mn incandescent bulbs, Unnat Jyoti by Affordable LEDs for All (UJALA) was launched in the year 2015.

*For distribution of fans

Source: http://ledtubes.ujala.gov.in/ (accessed on December 20, 2018)

  • In view of the increasing demand, EESL now mandates LED bulbs for UJALA be made in India. Not only will this boost the domestic manufacturing, but it will also encourage small and medium enterprises to leverage the kindred benefits of the scheme. Around 97 crore LEDs were sold till August
  • UJALA will reduce dependence on the non-renewable sources of lighting like kerosene lamps.

UJALA is a step towards sustainable, affordable healthy and environmental-friendly lighting solutions.

Street Lighting National Programme (SLNP):
  • SLNP is the world’s largest street light replacement programme also being implemented by EESL.
  • More than 50,000 km of road has been illuminated, and around 15,000 conventional street lights are being replaced daily by retrofitting those with LEDs.
  • Bulk procurement of LED street lights has reduced the unit cost from Rs. 135/watt to Rs. 80/watt.

Source: https://slnp.eeslindia.org/ (accessed on December 20, 2018)

Agriculture Demand Side Management (AgDSM)
  • World’s largest agricultural demand-side management programme focuses on bringing efficiency, awareness, and technological shifts in energy consumption patterns in the realm of agriculture.
  • AgDSM aims to replace pump sets with BEE 5-star rated pumps. This will reduce wastage of water, reduce power consumption and increase cost savings over the life of the pump set.
  • First AgDSM project for 590 pump sets in Byadgi and Nippani circles in Karnataka has been completed.
  • 1,337 pump sets in Mandya district have been replaced.
  • Replacement of 2,496 pump sets at Rajanagaram Mandal in the East Godavari district Andhra Pradesh is in progress.
  • Energy savings to the tune of 30% have already been achieved.
  • Once all 2.1 lakh pump sets are replaced with BEE 5-star pumps, we espouse:
    • (i). Total energy saved: 430 crore kWh
    • (ii). Potential saving of subsidy (INR crore): 22,750
    • (iii). Potential GHG reduction (crore tonnes CO2): 3.48

Once again, with an increase in demand for pump sets, AgDSM will give a boost to Make in India program and open new opportunities for investment and job creation.


Prime Minister’s vision to enhance energy efficiency is tied to an expected increase in energy consumption, Make in India, and saving costs incurred on account of the inefficiency of energy devices. Moreover, it is believed that it is not enough to provide electricity for all if it is not affordable. To bring about a behavioural change, and ensure people choose efficiency over short-term cost benefits, push through NMEE programs like UJALA, SLNP, and AgDSM will have a long-lasting impact.