In spite of many efforts and benefits for Investment Grade Energy auditing to achieved energy conservation, the various barriers such as technical, financial, market and policy have constrained the implementation of energy efficiency projects in India. Some of these barriers are discussed below.
Lack of awareness:
The main barrier to energy conservation is the lack of awareness among the industry managers of the potential gains from improved efficiency. Industries as well as government are yet to take into consideration factors such as tax credits, depreciation benefits, and electricity price escalation, life cycle savings of the investment and the timely release of money.
Shortage of widespread education and training:
The widespread educational opportunities in energy management and conservation are not available. In addition, the appropriate training facilities, trainers and auditors are lacking.
Economic and market distortions:
The response to conservation measures is irrational because of inappropriate pricing, other market distortions and socio-economic factors.
Lack of standardization of equipment’s:
The slow rate of progress in achieving higher standards of energy consumption in equipment’s and appliances is also adversely affecting the adoption of energy saving measures.
Lack of financing:
The non-availability of sufficient credit facilities and the difficulties in obtaining required finances for energy saving projects are strong deterrents to investments in energy efficiency in India.
Lack of effective co-ordination:
In India, the lack of effective national-level coordination and promotion of energy conservation activities have BEE major constraint to achieving energy efficiency and environmental benefits.
Policy framework:
With the background of high energy saving potential and its benefits, the Government of India has enacted Energy Conservation Act- 2001 to bridge the gap between demand and supply, reduce environmental emissions throughout in energy saving, and to effectively overcome the barriers’ Act provides, for the first time, the much-needed legal framework and institutional arrangement for embarking or energy efficiency drive.