Mapping Performance: Government launches the first state energy efficiency index

Government launches the first state energy efficiency index

In a first-of-its-kind initiative aimed at tracking the states’ energy footprint, the Ministry of Power (MoP) recently launched the State Energy Efficiency Preparedness Index. The nationwide index is a joint effort of the NITI Aayog and the Bureau of Energy Efficiency (BEE). It examines the states’ policies and regulations, financing mechanisms, institutional capacity, energy efficiency measures and energy savings.

“The efficient use of energy is the fastest, cheapest and cleanest way to meet India’s rising energy demand and power the country’s growth. The State Energy Efficiency Preparedness Index will help in implementing national energy efficiency initiatives in states and meeting both state as well as national goals on energy security, energy access and climate change,” said Ajay Kumar Bhalla, secretary, MoP, at the launch of the index.

The states that have emerged as front runners in the inaugural edition of the index are Andhra Pradesh, Kerala, Maharashtra, Punjab and Rajasthan. A closer look at the key findings of the state energy efficiency index report…


The index has been set up by the Alliance for an Energy Efficient Economy. The index has been developed taking into consideration the energy consumption, energy saving potential and influence of states in implementing energy efficiency in buildings, industry, municipalities, transport, agriculture and discoms.

In total, the index has 63 indicators – 59 across buildings, industries, municipalities, transport, agriculture and discoms; and four cross-cutting indicators. In each sector, energy efficiency indicators have been developed to measure the impact of state initiatives in driving energy efficiency. The indicators are both qualitative and quantitative. The index categorises states as “Front runners”, “Achievers”, “Contenders” and “Aspirants”.

Key findings

In this inaugural edition of the index, the top performing states or the front runner states are Andhra Pradesh, Kerala, Maharashtra, Punjab and Rajasthan. As per the report, while most states have implemented one or more national programmes driven by the BEE and Energy Efficiency Services Limited (EESL), the “Front runner” and “Achiever” states have adopted several state initiatives.

In the building sector, most states have implemented the Unnat Jyoti by Affordable LEDs for All scheme for energy efficient lighting, but less than half have notified the Energy Conservation Building Code (ECBC) and incorporated ECBC in municipal building by-laws. Only a few states mandate energy audits for certain categories of buildings and provide financial incentives for energy efficient building construction and retrofits.

In the industry sector, the BEE’s Perform Achieve and Trade (PAT) scheme is fairly well implemented, with state designated agencies (SDAs) supporting BEE’s efforts. However, programmes for driving energy efficiency in micro, small and medium enterprises (MSMEs) and other non-PAT industries are few and far between.

In the municipal sector, most states have utilised EESL’s Street Lighting National Programme and a fair number have signed up for EESL’s Municipal Energy Efficiency Programme for public water works and sewerage system retrofits.

With regard to energy efficient transportation, most states track the fuel efficiency of their respective state road transport undertakings (SRTUs), what published by the Ministry of Road Transport and Highways in its annual report on SRTU performance. Consumers in most states have utilised the FAME (Faster Adoption and Manufacturing of [Hybrid &] Electric Vehicles [EVs] in India) scheme to purchase hybrid/EVs. However, the transmission and distribution (T&D) losses are still high in most states leading to enormous energy leakages, with only three states having T&D losses below 15 per cent.

Across all sectors, energy intensity and energy savings are not properly tracked, owing primarily to non-existent data reporting frameworks and lack of mandates.

Performance across sectors Buildings

Of the 69 indicators, 21 represent the progress and initiatives in the building sector. These include programmes and incentives for ECBC compliance in construction, institutional capacity for supporting energy efficiency, energy savings and energy intensity. Andhra Pradesh, Haryana, Karnataka, Kerala, Punjab, Rajasthan and Telangana have notified ECBC and have incorporated ECBC in municipal building by-laws.


For the industrial sector, there are 13 indicators covering institutional capacity, and programmes and outcomes for large industries as well as MSMEs. As per the report, energy initiatives and programmes in the sector are not enough when compared to the levels of energy consumption. The industry sector accounts for  as much as 53 per cent of the total primary energy supply in India.

Only two states, Maharashtra and Tamil Nadu, have set energy saving targets till now. Further, only five states have mandated energy audits for specific categories other than PAT-designated consumers and six states provide financial incentives for energy efficiency initiatives. There was no state that could furnish data on energy savings specifically in the MSME sector.


There are nine indicators that capture municipalities’ performance by focusing on the public infrastructure of water pumping and street lighting. The top performing states in the municipality sector are Kerala, Maharashtra, Rajasthan, Punjab and Tamil Nadu. These states have launched their own programmes for energy efficient street lighting and water pumping, in addition to implementing EESL’s programmes. Further, as per the report, 25 out of 30 states have at least one programme for improving energy efficiency in this sector.


The index has five indicators for energy efficiency in the transport sector. Of these, two indicators measure the energy efficiency of EVs and hybrid vehicles and the remaining three of state road transport corporations (SRTCs). Eight states performed well in terms of energy intensity of the SRTC fleet (passenger-km per litre), that more than 200 passenger-km per litre. The states of Andhra Pradesh, Gujarat, Tamil Nadu, Tripura and Uttar Pradesh have the most fuel efficient SRTCs, with Gujarat leading at 0.148 km per MJ.

Only four states (Andhra Pradesh, Gujarat, Karnataka and Maharashtra) provide financial incentives in the EV and hybrid vehicle segment. Meanwhile, Meghalaya has the highest proportion of EVs, followed by Delhi, Gujarat and Haryana.

Agriculture and discoms

Indicators like demand-side management (DSM) regulations, programmes and savings and T&D losses for discoms are included in a total of 11 indicators for evaluating the progress in this sector. For discoms, the index primarily focuses on T&D losses and DSM programmes. States like Andhra Pradesh, Punjab, Rajasthan and Uttar Pradesh have the maximum number of programmes with DSM regulations in place. The lowest T&D losses of less than 15 per cent were observed in Karnataka, Kerala and Tamil Nadu. On the other hand, 12 states experienced T&D losses in the range of 15-25 per cent and the remaining 15 states recorded T&D losses greater than 25 per cent

Cross sector

There are four cross-sector indicators like the State Energy Conservation Fund, aimed at strengthening SDAs. The energy conservation fund has been set up in 27 states, of which 24 have allocated matching funds. Twenty-seven out of 30 states have also organised general awareness programmes from BEE funding, including school awareness programmes in 25 states.


According to the report, the index will be able to identify the sectors or areas that require focused attention in each state. It will also be able to help in setting state-specific energy efficiency targets. The index will assist in tracking successful programmes and the close monitoring of unsuccessful ones. Moreover, India’s commitment to the Paris Agreement will be better followed through this index as this will be updated annually.

As this was the first edition of the index, the states could provide data for only a few indicators, while the others had to be dropped because of lack of availability. The difficulty faced in collecting data as well as the lack of digitalisation posed several problems in reviving data in a short span of time. Over time, data availability will improve in all the indicators across sectors, and the index will, therefore, be able to reflect the energy efficiency performance better. The indicators will be continuously modified in line with the developments in the sector. The report notes that the states falling in the “Contender” and “Aspirant” categories should incorporate sector-wise financial incentives for setting up new initiatives. Meanwhile, the next step for states in the “Front runner” and “Achiever” categories should be to aspire to become leaders in the emerging areas of energy efficiency.