Bachat Lamp scheme

Introduction

Incandescent bulbs are energy inefficient. They convert 95% of the electrical energy in heat and only 5 % in the Light energy. Lighting accounts for about 20% of electricity consumption and has a significant potential for reduction of the load without compromising on the lumen output by use of energy efficient lighting in place of incandescent bulbs. Contrary to this , Compact fluorescent lamps (CFLs) provide that energy-efficient alternative to the incandescent lamp by using one-fifth as much electricity as an incandescent lamp to provide the same level of illumination. CFLs use less power, have a longer rated life, but have a higher purchase price. Government of India’s efforts for promotion of CFLs are having the desired impact on the market with the sales of CFLs in India having grown from about 20 million in 2003 to around 200 million in 2008. However, the penetration of Compact Fluorescent Lamps (CFLs) in household sector remains low at about 5% -10% largely due to the high price of the CFLs, which is 8-10 times the cost of incandescent bulbs.

What is Bachat Lamp Yojna?

CFL Lighting Scheme or Bachat Lamp Yojana (BLY) promotes replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs) by leveraging the sale of Certified Emission Rights (CERs) under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Bachat Lamp Yojana has entered validation for the UNFCCC CDM Programme of Activity. Bachat Lamp Yojana” seeks to utilize the Clean Development Mechanism (CDM) of the Kyoto Protocol to bring-down the price of CFLs. This public-private partnership between the Government of India, Private sector CFL Manufactures /Traders (Project Developers) and State level Electricity Distribution Companies would provide the framework to distribute high quality CFLs at about Rs.15 per piece to the households of the country. Under the scheme only 60 Watt and 100 Watt incandescent Lamps have to be replaced with 11to15 Watt and 20 -25 Watt CFLs respectively.

Approach 

The Government would develop a programmatic approach (PoA) within which individual CFL supplier would develop CDM projects. 

The Bureau of Energy Efficiency (BEE), being the statutory body set up under the Energy Conservation Act, 2001 by the Government of India, will coordinate the Small-Scale Programme of Activities (SSC-PoA) and will facilitate implementation of the programme in various States through their respective Electricity Distribution Companies (DISCOMs) with the assistance of the CFL suppliers. 

The development of the SSC-PoA is a voluntary action on the part of BEE and it would not seek any commercial revenues from the SSC-PoA. On the other hand, it will on behalf of the Government of India take the responsibility of monitoring of all project areas after the DISCOMs and the CFL suppliers have entered into a tripartite agreement (TPA) with BEE. 

BEE will undertake monitoring of each project area as required under an approved methodology of CDM. 

For this purpose, BEE has developed smart meters based on GSM technology that are fitted between the socket and the CFL in sample households (around 200 in each project area). 

The GSM based meter collects the data on hours of use and energy consumed by sending SMS to the central server. 

The development of the PoA is a voluntary action on the part of BEE and it would not seek any commercial revenues from the PoA. On the other hand, it will on behalf of the Government of India take the responsibility of monitoring of all project areas after the DISCOMs and the CFL suppliers have entered into a tripartite agreement (TPA) with BEE. 

This will be the largest PoA to be submitted to the CDM Executive Board by anyone in the world. 

Alongwith the PoA, BEE has also prepared model project documentation in accordance with requirements of the CDM to enable states and other private investors to take them up. 

Energy Efficiency Services Limited (EESL) 

Ministry of Power, Government of India is promoting a company named Energy Efficiency Services Limited (EESL) for implementation of energy efficiency in India. 

This company will promote energy efficiency projects like Bachat Lamp Yojana, Agricultural Demand Side Management and Municipal Demand Side Management. 

The company will also act as a Resource center for capacity building of State Development Agencies, Utilities, financial institutions, etc.peaking on the Economic Editors Conference. 

The overall size of energy investment market under Energy Service Companies (ESCO) in India is 74,000 crores and till now, only five per cent of the market has been tapped. 

USE of LED Lamps in India

The Bureau of Energy Efficiency (BEE) in association with the Confederation of Indian Industry (CII) has recently initiated the study on “Facilitating Market Transformation of LED Lamps in India”. The objective of the study is to facilitate market transformation of LED lighting in India by covering the latest trends and technologies, case studies and suppliers of LED lighting. Light Emitting Diode (LED) is a new technology that provides very long life lamps consuming about 2/3rd energy as compared to CFLs at present. However, the cost of LED in the market is about 8 to 10 times more than that of CFLs. 

BEE has initiated demonstration projects in 23 States for providing LEDs in villages. 

Besides projects for use of LEDs in street lighting applications have been approved in 32 States. 

The objective of BEE is to enhance the demand for LED based lights so that their cost are reduced. 

Bachat Lamp Yojna as a PoA

Bachat Lamp Yojana is the largest PoA (Programme of Activities) being implemented in India and was the largest PoA registered with CDM executive Board, when it was registered in May 2010. The scheme was developed by the Bureau of Energy Efficiency (BEE) under the aegis of the Ministry of Power and was launched in February 2009. In May 2010, the scheme was registered under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Developed to promote energy efficient lighting in India, BLY promotes replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs) by leveraging the sale of Certified Emission Rights (CERs) under the CDM.

How does BLY work?

Under the BLY scheme, qualities CFLs are distributed to grid-connected residential households in exchange of an incandescent lamp (ICL) and INR 15. This means that any house hold can give a Bulb + Rupees 15 /- to get a CFL. CFL cost is around 8-10 times of the Bulb so this Yojna basically removes the first cost barrier.

To handle the problem of High Transaction Costs of preparation and registration of CDM projects and for wider reach and faster implementation, BEE developed a Programme of Activities (PoA) which would serve as an umbrella CDM project.

A tripartite agreement works in the background between the BEE, Distribution Companies (DISCOMs) and CFL suppliers.

The implementation of this project turns out to be the largest PoA in terms of carbon dioxide emission reductions, to be ever registered by the CDM Executive Board.

All other individual projects are designed to be in conformance of with the umbrella project and they are added to the umbrella project as and when they are prepared.

The replacement of all the 400m incandescent lamps (ICLs) by CFLs would lead to a potential reduction of over 6,000 MW in electricity demand.

The current penetration of CFL in the household sector remains low at about 5-10 per cent largely due to the high price of the CFLs, which is 8-10 times the cost of incandescent bulbs. The Bachat Lamp Yojana focuses on this first cost barrier to reduce the cost of CFLs to that of incandescent bulbs for consumers. At Rs. 15 a piece for CFLs, the BLY is a win-win situation for all.