Energy Efficiency in India

Energy Efficiency in Emerging Economies (E4) programme findings and work

India’s energy use is expected to more than double by 2040, adding the equivalent of half the United States' current energy use. The largest energy efficiency opportunities are in the less energy intensive industry sectors where energy intensity could more than halve.


Overview


Energy efficiency improvements in India since 2000 prevented 6% of additional energy use in 2017. Movement of economic activity from energy-intensive industry sectors to less-intensive manufacturing and service sectors was almost entirely offset by increased energy use driven by factors such as changes in transport modes and occupancy levels as well as increased appliance ownership and building floor area. 


Efficiency gains were mainly achieved in the industry sector. As a result 145 Mt CO2 equivalent emissions were prevented as were 5% additional fossil fuel imports.

	Energy savings due to energy efficiency
Industry and services	1.25
Residential Buildings	0.164
Passenger transport	0.142
Freight transport		-0.050

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Energy efficiency opportunities


From 2000 to 2017 energy demand doubled in India. However under the Efficient World Scenario, the increase could be limited to just 82% between now and 2040. This would save 10 EJ of additional energy use compared to the NPS. Savings would mainly come from industry (45%) and buildings (30%), followed by the transport sector.

Emissions saved under the EWS compared to the NPS would amount to 985 Mt CO2-eq, more than the emissions of Australia and Canada combined.

 	Historical	NPS	EWS

2012	1.79
2013	1.85
2014	2.02
2015	2.07
2016	2.21	2.21	2.21
2025		3.1	2.82
2030		3.72	3.17
2035		4.3	3.52
2040		4.83	3.84

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India's mandatory energy efficiency policies cover 23% of its energy use. The highest coverage in industry is due mainly to the Perform, Achieve, and Trade (PAT) scheme. The transport coverage is expected to increase with the enforcement of fuel economy standards for heavy duty vehicles - where India is just the fifth country in the world to implement such standards.

	Mandatory policy coverage 
Industry	38
Transport	2
Residential buildings	7
Non-residential buildings	19
Total	23


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The largest energy efficiency opportunities are in the less energy intensive industry sectors where energy intensity could more than halve.

The Perform, Achieve and Trade scheme is currently the key policy driving efficiency gains in the industry sector however, in parallel, improving electric motor-driven system efficiency could make an important contribution to overall efficiency gains.

In the buildings sector, space cooling demand could quadruple by 2040 and appliance ownership rates keep rising with living standards. This will make the impact of Minimum Energy Performance Standards even more important.

Our Work in India


The IEA and Energy Efficiency Services Ltd. (EESL) co-produced a case study on the Indian Government's domestic efficient lighting programme - UJALA - to showcase the multiple benefits of energy efficient lighting. IEA also published a special Energy Efficiency Outlook for India to inform policymakers, businesses and other stakeholders about the potentials of energy efficiency in the Indian energy sector.

The E4 Programme is working to deliver a training week at the state and municipal level as well as undertaking a global industrial benchmarking exercise to support the expansion of the PAT scheme.

Related resources


IEA publications on India

Other resources