Central and State regulatory Commissions have
been formed with a view to placing greater emphasis on meeting
future electric needs at least cost. The Commissions would become
involved in conservation also if International experience was
any guide. They might reflect preference for renewable energy
and emphasize ‘integrated’ or non-traditional supply
options like conservation and other Demand
side management (DSM), the development of technology
like ‘waste to watt’ electricity generation.
Under the Electricity Act-03 Regulators have been mandated to
develop energy markets. Energy efficiency initiative is the
proactive approach to Market Transformation
Program (MTP). The MTP focuses on longer-term strategies
for delivering more resource-efficient goods and services, primarily
through policy measures that drive innovation and competition.
For example, policies such as energy labelling, product standards
development and voluntary agreements with industry are especially
powerful in influencing manufacture, design, market and produce
in volume the more efficient products where needed. Indeed,
with increasing globalisation, our ability to deliver more and
more efficient products to the global market will depend on
the ability to meet global expectations. It is necessary to
initiate energy conservation measure subject to regulators oversight.
Regulatory policies determine the level of investment in energy
efficiency. The policies are pushed through regulation, incentives
and specific programs. Such policies are pursued for societal
benefits, minimization of power shortage, reduce environment
degradation and over all economic efficiency. Governments set
the standards for building codes, appliances. Under Integrated
Resource Planning (IRP) the utility will have many options
for meeting future needs. The latest idea of conservation is
an additional option. The idea is that instead of meeting future
demands through building more generation –transmission-distribution,
facilities can be dampened making new facilities unnecessary.
One of the primary means of dampening the future demand is through
energy conservation that would include better energy information
dissemination on consuming equipment like energy labelling.
The strategies emerging are combination of financing energy
efficient technologies and financing market development policy
initiatives and detailed disclosures about energy. The regulatory
strategies can be designed to increase the participation of
various stakeholders, notably credit providers, equipment vendors,
utilities and technological service providers etc.