NATIONAL ENERGY CONSERVATION DAY

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Picture Courtesy: Jagran Josh

Context:

India observes National Energy Conservation Day on 14 December to promote awareness, recognise best practices, and embed efficiency into national development strategies.

Current Status of Energy Conservation:

• PM Surya Ghar mission has added 7 GWof clean energy and connected nearly 24 lakh households with solar energy by December 2025. (Source: PIB)
• The transition from Perform, Achieve and Trade (PAT) to Carbon Credit Trading Scheme (CCTS)marks a major shift, putting carbon-intensity reduction and tradable credits at the heart of industrial energy policy.
• Digital platforms are modernising energy-efficiency governance by strengthening monitoring, compliance, and transparency.
• India’s clean energy capacity now crosses the 50% non-fossil milestone, reflecting the growing success of renewable expansion, efficiency schemes,and grid stability improvements. (Source: PIB).
• India is among the world’s top three energy consumers,and electricity demand continues to grow every year. The total electricity generation increased from 1,739.09 Billion Units (BU) in 2023–24 to 1,829.69 BU in 2024–25, a growth of 21%.(Source: PIB).

Picture Courtesy: PIB

National Energy Conservation Day:

National Energy Conservation Day is observed every year on 14 December since 1991 to promote awareness about efficient and responsible use of energy across sectors. Its institutional foundation was strengthened after the enactment of the Energy Conservation Act, 2001, which provided a statutory framework for energy-efficiency governance in India. The day and its associated initiatives are spearheaded by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, which coordinates policy implementation, capacity building, and nationwide outreach. Through public awareness campaigns, behavioural-change initiatives, promotion of innovation, and recognition via national energy conservation awards, the observance reinforces efficiency-oriented practices. Over time, energy conservation in India has evolved from being viewed merely as a demand-management tool to becoming a core strategic pillar of the country’s clean-energy transition and sustainable development agenda.

Picture Courtesy: PIB

What are the challenges in Energy conservation in India?

Rising energy demand due to rapid growth: India’s fast economic growth, urbanisation, and rising incomes are driving electricity demand upward, making absolute energy savings difficult despite efficiency gains; for instance, electricity generation increased from 1,739 BU in 2023–24 to 1,829 BU in 2024–25, illustrating how demand growth often offsets conservation benefits.

Industrial Lock-in and Legacy technologies: Many energy-intensive industries such as steel, cement, and textiles continue to operate with older, inefficient technologies because retrofitting involves high upfront costs and production downtime; a BEE review of PAT sectors showed that smaller designated consumers lag behind large firms in adopting best-available technologies despite proven savings.

Limited Access to Credit: Households, MSMEs, and small industries often lack affordable finance for energy-efficient appliances and upgrades, even when lifecycle savings are high; for example, MSMEs remain hesitant to invest in efficient motors or boilers despite payback periods of 2–3 years due to liquidity constraints and risk aversion.

Behavioural Barriers: Energy wastage persists due to limited consumer awareness and habitual behaviour, as seen in continued use of inefficient appliances and poor building design, despite the availability of star-labelling and Eco Niwas Samhita guidelines, especially in smaller towns and rural areas.

Affordability concerns: Energy-efficient technologies often have higher upfront costs, which can exclude poorer households; for example, rooftop solar adoption under PM Surya Ghar has progressed faster in urban and higher-income households, highlighting the need for deeper subsidies and financing support for vulnerable groups.

Climate stress: Rising heatwaves increase cooling demand, eroding efficiency gains, as seen during recent summers when peak electricity demand crossed 240 GW, demonstrating how climate change itself is emerging as a structural challenge to long-term energy conservation.

What are the major energy conservation initiatives in India?

Industrial energy efficiency: Industry is the largest energy consumer, making efficiency central to decarbonisation and cost reduction.

• Carbon Credit Trading Scheme (CCTS): Market-based mechanism with GHG Emission Intensity (GEI) targets; industries exceeding targets earn tradable carbon credits.
• In December 2025, major sectors such as cement, aluminium, refineries, textiles, and pulp & paper were shifted from PAT to CCTS, signalling a move from energy-savings to carbon-outcome-based regulation.
• Perform, Achieve and Trade (PAT): India’s first large-scale industrial efficiency scheme that enabled trading of Energy Saving Certificates (ESCerts) and built the monitoring and compliance framework for CCTS.

Household and consumer energy efficiency:

• Standards & Labelling (S&L) Programme: Covers 28 appliances (17 mandatory), using star labels to guide consumers and promote efficient manufacturing; recently expanded to solar inverters.
• UJALA LED Programme: Over 36 crore LED bulbs distributed, resulting in large electricity savings, reduced peak demand, lower CO₂ emissions, and reduced household electricity bills.
• PM Surya Ghar: Muft Bijli Yojana (2024): Targets one crore households with rooftop solar and up to 300 free units per month; by December 2025, around 24 lakh households were connected, adding nearly 7 GW of clean power.

Power distribution reforms: The Revamped Distribution Sector Scheme (RDSS) seeks to improve DISCOM efficiency through loss reduction, smart metering, and operational reforms, with over 4.7 crore smart meters installed by December 2025, strengthening demand-side management.

Energy-efficient buildings:

• Energy Conservation Building Code (ECBC): Prescribes minimum energy-efficiency standards for commercial buildings.
• Energy Conservation and Sustainable Building Code (ECSBC): Extends ECBC to include sustainability and material efficiency.
• Eco Niwas Samhita (ENS): Residential building code promoting climate-responsive design, insulation, and ventilation to reduce long-term electricity demand.

Digital and behavioural interventions:

• Urja Dakshata Information Tool (UDIT): Enables data-driven monitoring and evaluation of energy-efficiency programmes.
• National Mission on Enhanced Energy Efficiency (NMEEE): Provides the overarching policy and financing framework for market transformation.
• LiFE (Lifestyle for Environment): Encourages behavioural change and mindful energy consumption among citizens.

 Conclusion:

National Energy Conservation Day highlights that saving energy is not just a technical or policy challenge but a shared national responsibility. As India advances towards its climate commitments, clean-energy transition, and the vision of Viksit Bharat, energy conservation remains the most cost-effective and inclusive pathway to ensure energy security, economic resilience, and environmental sustainability. Every unit of energy saved strengthens the nation’s future.

Source: PIB