The case for energy efficiency, Pg8

Key Highlights:

• India's grid emission factor (GEF) has increased from 0.703 tCO₂/MWh in 2020-21 to 0.727 tCO₂/MWh in 2023-24, despite a rise in renewable energy capacity.
• Renewables account for about 50% of India’s total installed capacity as of June 2025.
• In 2023-24, renewables supplied only 22% of total electricity, with the remainder from fossil fuels.
• Energy efficiency measures in India saved approximately 200 Million Tonnes of Oil Equivalent of final energy and close to ₹760,000 crore from FY2017-18 to FY2022-23.

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Detailed Insights:

• The increase in GEF is due to the capacity-generation mismatch, where renewables have high installed capacity but lower actual electricity generation compared to coal.
• Electricity demand peaks during evenings when solar availability decreases, leading to reliance on coal-fired plants to meet demand.
• Energy efficiency can reduce demand, especially during peak hours, decreasing reliance on coal and enhancing the integration of renewable energy sources.
• Measures needed include enabling homes to connect batteries to virtual power plants, accelerating appliance efficiency standards, and supporting SMEs to adopt efficient technologies.
• Flexible pricing and scrappage incentives for old equipment, along with electricity distribution companies procuring "electricity services" like green cooling, are crucial.
• The Central Electricity Authority’s National Electricity Plan projects a fall in India’s GEF to 0.548 by 2026-27 and 0.430 by 2031-32 through a flexible system approach with energy efficiency at its core.

Key Concepts Involved:

• Grid Emission Factor (GEF): A measure of the carbon intensity of electricity generation in a power grid.
• Capacity Utilization: The extent to which an installed power plant is used to generate electricity.
• Energy Efficiency: Using less energy to provide the same level of energy service.