The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC). NMEEE aims to strengthen the market for energy efficiency by creating conducive regulatory and policy regime and has envisaged fostering innovative and sustainable business models to the energy efficiency sector.
The Cabinet in its meeting held on 24/06/2010 had approved the NMEEE document, and funding for two years of the 11th Plan period (2010-12) with an outlay of Rs.235.50 crore. An amount of Rs. 15.00 crore was earmarked in the approved outlay of Rs. 235.50 crore towards augmentation of Bureau of Energy Efficiency (BEE)’s corpus to meet the additional establishment expenditure during 11th Plan. Continuation of NMEEE for the 12th Plan was approved by Cabinet on 6th August, 2014 with a total outlay of Rs. 775 crore .
The Mission seeks to upscale the efforts to unlock the market for energy efficiency which is estimated to be around Rs. 74,000 crore and help achieve total avoided capacity addition of 19,598 MW, fuel savings of around 23 million tonnes per year and green house gas emissions reductions of 98.55 million tonnes per year at its full implementation stage.
The NMEEE spelt out four initiatives to enhance energy efficiency in energy intensive industries which are as follows:
- Perform Achieve and Trade Scheme (PAT), a market based mechanism to enhance the cost effectiveness in improving the Energy Efficiency in Energy Intensive industries through certification of energy saving which can be traded.
- Market Transformation for Energy Efficiency (MTEE), for accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable.
- Energy Efficiency Financing Platform (EEFP), for creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings.
- Framework for Energy Efficient Economic Development (FEEED), for development of fiscal instruments to promote energy efficiency.