Standard Offer Programme for Energy-Efficient Lighting

Undertaken By: Multiple,    Recent Publication: 2015

The Standard Offer Programme is an innovative approach to promote energy efficiency. It treats energy efficiency as a ‘commodity’ similarly to renewable energy or conventional resources. Under this approach, an energy efficiency resource acquirer purchases energy savings from third party energy efficiency implementation agencies (such as ESCOs) at a pre-determined price. While this mechanism has been quite successful abroad, it had not made much headway in India. Recognizing its potential to scale up energy efficiency, Shakti engaged with several stakeholders to develop the design for India’s first ever Standard Offer Programme for LED lights. The programme was implemented in in Puducherry to advance the large-scale replacement of incandescent bulbs with LEDs. Around 735,000 ICLs were replaced with 7 watt LEDs. This is expected to reduce the demand by 48 million units per annum over a period of 10 years in Puducherry. With the model being a success in Puducherry, the programme was implemented in several other states by the Energy Efficiency Services Limited, a national energy services company that agreed to invest in and implement the Puducherry project.