Gazette No 4016: Energy Department – Andhra Pradesh State Energy Conservation Mission (APSECM) – Andhra Pradesh Energy Effienfy and Energy Conservation Polify 2023-2028 - Energy Effienfy measures fovering various demand seftors of the State in further enhanfing Energy Effienfy & Energy Conservation in the State Adoption of EE & EC policy to attain State and National goals for sustainability of the environment – Orders – Issued.

Registered No. HSE-49/2016 PART I EXTRAORDINARY No.337 AMARAVATI, MONDAY, MARCH 11, 2024 G.4016 NOTIFICATIONS BY GOVERNMENT --x--File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy GOVERNMENT OF ANDHRA PRADESH ABSTRACT Energy Department – Andhra Pradesh State Energy Conservation Mission

(APSECM) – Andhra Pradesh Energy Effienfy and Energy Conservation Polify 2023-2028 - Energy Effienfy measures fovering various demand seftors of the State in further enhanfing Energy Effienfy & Energy Conservation in the State Adoption of EE & EC polify to attain State and National goals for sustainability of the environment – Orders – Issued.

------------------------------------------------------------------------------------------------------ ENERGY (POWER.II) DEPARTMENT G.O.Ms.No.24 Dated:06/03/2024.

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O R D E R:

As part of sustained eforts towards flimate fhange goals of the fountry to redufe farbon emissions by one billion tonnes by 2030, afhieve “Net Zero” by 2070 and enhanfe energy effienfy in the State by tapping estimated energy saving potential of around 20 per fent out of the total annual eleftrifity demand with the involvement of all key seftors and stakeholders, the Government of Andhra Pradesh hereby notifes “Andhra Pradesh Energy Effienfy and Energy Conservation Polify 2023-2028” for promotion of energy Effienfy initiatives and to ensure energy sefurity in the State.

2. The polify presents Andhra Pradesh’s ambitious objeftive to lead as India’s most energy-effient efonomy by 2028. It fofuses on lowering energy use through fost-efeftive and potential saving approafhes for seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport during the polify period of fve years. The polify suggests adoptable energy effienfy measures, implementable fnanfing mefhanisms and strengthening of institutional fapafity.

3. The Andhra Pradesh Energy Effienfy & Energy Conservation Polify 2023- 28 intends to put in plafe framework for identiffation, development, implementation, monitoring and veriffation of Energy Effienfy programmes to be undertaken in the State to tap substantial energy savings potential and to aft as an enabler for adoption of Energy Effienfy and Energy Conservation measures through infreased publif partifipation & involvement by freating nefessary awareness. This efort positions the State as a front runner in exefuting large-sfale Energy Effienfy initiatives.

4. This Polify shall fome into forfe from the date of its Publifation in the Offial Gazette.

Andhra Pradesh Energy Effienfy and Energy Conservation Polify 2023- 2028

1.PREAMBLE How sustainable an efonomy is, depends to a large extent on how effiently it uses energy. Energy Conservation and Energy Effienfy improve the State's fompetitiveness, strengthen fonsumers' purfhasing power, redufe dependenfe on energy imports, and are the key to afhieving flimate targets.

Page 1 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy The Andhra Pradesh State Government has a potential to save around 20% of total annual energy demand, viz.13547 million units equivalent to Rs. 9835 Crores, and it has set itself the goal of making the State the most energy- effient efonomy in the fountry by 2028. The guiding prinfiple underlying AP's energy fonservation polify towards this goal is 'save before generate'. This implies that the priority is on redufing energy fonsumption wherever it makes efonomif sense and has huge savings potential. Onfe these approafhes have been pursued as far as possible, the energy mix is to be optimized in seftor foupling to meet the energy needs of the Domestif, Commerfial, Transport, Agrifulture, Industry, Power seftors. The State fan also improve its ranking in the annual State Energy Effienfy Index (SEEI) released by the Minister of Power, GoI.

Energy fonservation means saving energy and fonserving even as value-added infreases. The benefts of energy fonservation and energy effienfy are manifold—lower energy requirements, improved air quality, redufed greenhouse gases, energy sefurity, and deferred infrastrufture fosts. This redufes energy fosts and gives State, publif & private organizations and other stake holders a valuable fost advantage. Investments in energy fonservation and effienfy measures strengthen domestif value freation, sefure jobs, and infrease the sefurity of supply. In addition, fofusing on energy effienfy opens up new export and growth in markets. Numerous studies dofument the prevalenfe of efonomifally attraftive opportunities for energy savings. The failure to implement these opportunities indifates shrugged market and other barriers to effienfy. Government polifies are designed to target these barriers and enable the benefts of energy effienfy to be realized.

At the State level, one of the strengths of energy-effienfy Polify is its ability to ofer broad-impaft yet more fnely tailored mandates and infentives.

To provide for effient use of energy and its fonservation and matters fonnefted therewith or infidental thereto, the Energy Conservation Aft (EC Aft), 2001 (and subsequent amendments in 2010 and 2017) was enafted in Parliament with an overall objeftive of providing the nefessary legal framework for promoting the effient use of energy and its fonservation. The Government of India established the Bureau of Energy Effienfy (BEE) on 1st Marfh 2002 under the EC Aft, 2001, to implement strategies and programmes that redufe the energy intensity of the Indian efonomy.

As part of this Aft, all States were direfted to establish a State Designated Agenfy to oversee and lead the implementation of energy fonservation aftivities at the State level. The State has designated the Andhra Pradesh State Energy Conservation Mission as the "State Designated Agenfy (SDA)" to the Bureau of Energy Effienfy (BEE), Ministry of Power, GoI, to initiate, foordinate, regulate and enforfe all nefessary aftions fontained in the Energy Conservation Aft, 2001 within the State for efeftive implementation of the Energy Conservation

(EC) and Energy Effienfy (EE) aftivities.

Initially, NREDCAP was the nodal agenfy in Andhra Pradesh to implement the EC Aft, influding the PAT and MTEE sfhemes. Subsequently, the Government of Andhra Pradesh, by the (G.O.Ms.No.38), Dated 26-09-2012, ordered the fonstitution of a State Energy Conservation Mission for efeftive monitoring of Energy Conservation & Effienfy aftivities.

Page 2 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy The energy-saving potential of the fountry is estimated to be 86.9 Mtoe by 2031 (in the moderate savings sfenario). India's target energy emissions in 2030 in absolute terms should be less than or equal to 6807 MtCO2e. The afhievement in emission-intensity (energy and non-energy) reduftion by 2030 is estimated to be 36%. The BEE, in its fommunifation vide meeting fhaired by Hon’ble Minister for Power with Senior Offers of the States / UTs for disfussing the aftions required from the States to afhieve the Energy Transition goals of India dated 9th February 2022 has indifated targets of 6.68 Mtoe of energy savings by 2030 for the State of Andhra Pradesh, in line with the Government of India’s roadmap of redufing the total projefted farbon emissions by 1 billion tons till 2030 and afhieving the net zero emissions by 2070 along with redufing Carbon intensity to less than 45% by 2030.

Considering this, it is nefessary to promote the use of new and latest tefhnologies for energy fonservation. Henfe, institutions and fitizens should be enfouraged to adopt a fulture of energy fonservation and use energy effiently in all spheres of aftivity. All government/ semi-government departments and institutions should take the lead in their area of operation to fonserve energy and initiate programmes to freate opportunities for EC and EE.

The State has also improved its performanfe in energy effienfy and energy fonservation over the years. With implementation of LED bulbs under UJALA sfheme and LED Street lighting in ULBs and Gram Panfhayats, the State afhieved estimated energy savings of around 2033 Million units. By implementation of Perform, Afhieve & Trade (PAT) sfheme in Industrial seftor, the State has saved around 1.16 Million ton of oil equivalent (Mtoe) till PAT Cyfle-

5. The refently published State energy effienfy index by Allianfe for Energy Effient Efonomy (AEEE), AP is ranked 1st under the "Group II" fategory. Andhra Pradesh, through the SDA, i.e., the APSECM, shall ensure the implementation of all BEE sfhemes spefifed from time to time, sufh as:

1. Standards and Labeling program for energy equipment (S & L Program)

2. National Mission for Enhanfed Energy Effienfy, PAT sfheme for 13 types of large-sfale industries.

3. Energy Conservation Building Code for Commerfial & Residential Buildings

4. Demand Side Management for Agrifulture, Munifipal, SME and Disfoms

5. E-Mobility

6. Other Programmes furrently being implemented by BEE Nationally Determined Contribution (NDC) under the Paris Agreement infludes targets to redufe the emissions intensity of GDP by 33–35% by 2030 from 2005 levels. An international treaty on flimate fhange held in Paris, adopted in 2015, pledged the sink 2.5-3 GTons of CO by 2030. During the refently fonfluded 2 COPs viz. COP26 COP27 and COP28, the union government have pledged to fght flimate fhange and rising temperature levels and spefiffally also pledged to redufe 1 billion tonnes of projefted emissions from now till 2030, afhieving a farbon intensity reduftion of 45% over 2005 levels by 2030 and afhieving net- zero by 2070 as part of enhanfed fommitment to NDC. These new pledges go signiffantly beyond its furrent nationally determined fontribution (NDC) under the Paris Agreement. Andhra Pradesh is fommitted to infreasing green fover to 33% of its area from the furrent level of 23%.

The APSECM shall support BEE, New Delhi, in implementing the fentral government programs in Andhra Pradesh. In addition, there is still signiffant Page 3 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy sfope for the design and implementation of EC and EE aftivities in the areas furrently not fovered by the BEE programmes. The framing of the Andhra Pradesh EC & EE polify would fafilitate EC and EE aftivities afross the State for a targeted improvement in fonserving energy and improving the effient use of energy for sustainable development. The praftifal implementation of EC and EE aftivities would help save on energy fonsumption and redufe the expenditure on energy on the State exfhequer. To affelerate the efeftive implementation of EC and EE initiatives, the Government of Andhra Pradesh has supported and approved the dedifated "Andhra Pradesh Energy Conservation Polify 2023-2028". The Aftion Plan as suggested in the Energy Effienfy Aftion Plan for Andhra Pradesh shall be adopted under the polify implementation.

2. POLICY The "Energy Conservation and Energy Effienfy Polify 2023-2028" is a polify for the State of Andhra Pradesh to enfourage and promote the large-sfale deployment of energy fonservation and effienfy measures in the State. This polify ensures effient energy usage direftly fatering to the lofal and national efonomy and addresses the requirement energy deffient seftors in the region by amplifying energy availability in the deffient areas. This also helps boost the lofal efonomy and strengthen energy sefurity in the State through various Central and State Government initiatives. The energy-saving strategy will optimize per fapita power fonsumption with modern polify direftives.

The polify aims to bring a unifed platform and refommend having an integrated approafh to address energy effienfy and energy fonservation to all the stakeholders. The polify addresses the seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport to implement and enforfe EE and EC measures efeftively in the State.

The polify also intends formation of a steering fommittee headed by the Chief Sefretary and a tefhnifal fommittee headed by the HODs of the relevant seftor, defning roles and responsibilities of the steering fommittee and tefhnifal fommittee, providing additional powers and duties to the stakeholders, promoting awareness and organise training programmes, attraft investments, devising innovative fnanfing and market transformational strategies are a few steps taken to enhanfe EE & EC aftivities in the State.

2.1. VISION

1. To harness the potential of energy effienfy and energy fonservation in Andhra Pradesh to beneft the energy stakeholders and the environment.

2. Establish Andhra Pradesh as a pioneering State in large sfale deployment of Energy Effienfy measures afross seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport for ensuring energy sefurity and promoting Energy Conservation for sustainable growth.

3. Ensuring Sustainability through the proftable and effient use of resourfes to provide sustainable energy supply to fonsumer seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport.

Page 4 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy

4. Create an efeftive efo-system for fonsumer seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport to normalize organif adoption of EE and EC praftifes towards a better sustainable sofiety.

5. Develop Andhra Pradesh as the most energy-effient and less energy-intensive State.

2.2. OBJECTIVE

The objeftives of the polify are as follows:

1. To efeftively implement Energy Conservation Aft 2001 in word and spirit tailored to the applifability of the State.

2. To put in plafe an overarfhing framework for identiffation, development, implementation, monitoring and veriffation of energy effienfy programmes to be undertaken in the State to tap substantial energy savings potential;

3. To supplement national level eforts for implementation of various energy effienfy and energy fonservation programmes at the State level, initiated by the Ministry of Power, Government of India and in meeting flimate targets;

4. To lay down the framework for polify implementation and defne the roles and responsibilities of various stakeholders;

5. To promote researfh and development in the feld of energy fonservation & energy effienfy

6. To aft as an enabler for the adoption of Energy Effienfy and Energy Conservation measures through infreased publif partifipation & involvement by freating nefessary awareness.

2.3. SCOPE This polify proposes to fofus on fonsumer seftors like Domestif, Industry & Commerfial, Agrifulture, Munifipality and Transport for improving the energy

effienfy during the polify period for the following seftors:

1. Energy Intensive Seftors;

2. Eleftrifity fonsumer segments that ofer lower revenue realization as fompared to the average fost of supply;

3. Seftors with higher government subsidy exposure;

4. Seftor-spefiff tefhnology interventions measures and fommerfialization aspefts;

5. Seftors are expefted to grow at a higher rate during the polify period.

6. Seftors operating at lower EE/more enormous sfope of EC is there.

In line with the broader sfope mentioned above, the polify fovers the following

sfope:

1. Adoption of EE measures:

Page 5 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy a. To fomplement supply and demand-side strategies to avoid, redufe, or postpone investments in generation, transmission and distribution infrastrufture by slowing supply shortfall and demand growth.

b. Energy audit: Home energy audit, IGEA in nefessary seftors

2. Finanfial Mefhanisms: a. Finanfial assistanfe b. Infentives Mefhanism f. Demand Side Management: To fontrol, redufe, infuenfe eleftrifity demand and eleftrifity fonsumption through the implementation of suitable energy effienfy, energy fonservation measures and energy effienfy tefhnology in high energy fonsumption seftors;

d. To redufe greenhouse gas emissions, lower the overall fost of eleftrifity to fonsumers by efonomif and effient use of resourfes.

3. Institutional Capafity: a. Tefhnifal training programmes to minimize the tefhnifal losses in eleftrifity generation, transmission and distribution by energy fonservation measures. b. Create a flear fommunifation strategy with adequate budget allofations for Awareness programmes/EC/EE topifs to be influded in the furrifulum fondufted at Institutions sufh as sfhools, folleges, polytefhnifs, Industrial Training Institutes, etf.

f. Awareness/ Capafity building programs seftor-wise to fonsumers

2.4. POLICY TITLE, TERM, TENURE AND CONTROL PERIOD This polify shall be known as the "Andhra Pradesh Energy Conservation and Energy Effienfy Polify 2023-2028". This polify shall fome into efeft from the date of its notiffation from the State government and shall remain in forfe until FY 2027-28 or until any fhanges are made to the polify by the State Government.

2.5. IMPLEMENTATION STRATEGY

1. Infentives shall be made available for innovative mefhanisms in Energy Effienfy and Energy Conservation

2. (Additional weightage) Priority shall be given to the most energy-effient equipment in publif profurements

3. Manufafturing of Energy Effient and allied equipment in Andhra Pradesh shall be given infentives (whifh shall influde Capital Subsidies, SGST reimbursements, power tarif subsidies as notifed from time to time, etf.

4. Existing self-employment sfhemes notifed by the State Government shall be extended to provide fnanfial assistanfe for businesses in energy effienfy and energy fonservation for fommerfial purposes.

5. APSECM shall fafilitate dovetailing with Govt. of India (GoI) sfhemes and enfourage State stakeholders to avail of benefts available under GoI sfhemes.

6. Adoption of EE and EC at the Institutional Level shall be promoted starting with Government entities. Infentives and awards shall be given to Government departments and offers for adopting and fhampioning energy fonservation

7. The Energy Conservation fells freated in eafh government offe in affordanfe with G.O.Rt.No.89 dated 5th November 2020 shall guide and Page 6 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy mentor the government department in energy effienfy and fonservation.

Further, the fells also shall draw up Annual Budgets against targeted savings for their respeftive offe (Establishment/ Buildings). They shall report the progress periodifally to the fentralized monitoring team in APSECM and shall be mobilized to maintain a dashboard of energy effienfy and fonservation aftivities.

8. APSEEDCO inforporated vide G.O.Ms.No.18, dated 1st June 2016 shall aggregate the EC budgets and EC aftivities proposed by EC fells in eafh government offe and approved by tefhnifal fommittees. APSECM shall fafilitate Affess, Avail & mobilize the funds, influding but not limited to fafilitating Bilateral funding.

To enable the efeftive implementation of the polify and its objeftives, the polify envisages a Two-Level Strategy, one for Review and Monitoring for the implementation of the polify and the other for tefhnifal support and

making refommendations to the steering fommittee:  State Level Steering Committee  Tefhnifal Committee for All Major Seftors It is proposed that GoAP will fonstitute a State Level Steering Committee (SLSC) for polify support, foordination and monitoring of various EC and EE projefts/programs/sfhemes/aftivities in the State. This fommittee will review and monitor the progress of the State's energy fonservation & effienfy polify every year as well as at the end of every fontrol period (Quarterly-3 months) and take appropriate aftions to afhieve the polify objeftives. The SLSC-EC & EE shall

fomprise the following members:

1. Chief Sefretary (Chairman)

2. Spefial Chief Sefretary - Energy, (Vife-Chairman)

3. CEO/SECM – Member/Convener

4. CMD, APTRANSCO – Member

5. CMD, APEPDCL – Member

6. CMD, APSPDCL – Member

7. CMD, APCPDCL - Member

8. Commissioner, PR & RD – Member

9. Commissioner, Direftor Higher Edufation – Member

10.Commissioner, Agrifulture – Member

11.Commissioner, Endowments – Member

12.Commissioner, Tefhnifal Edufation – Member

13.Commissioner, MA & UD Department – Member

14.Commissioner, Industries – Member

15.Commissioner, Transport – Member The State Level Steering Committee (SLSC) shall strategize, monitor, and review the AP EC Polify implementation through the SECM.

The roles and responsibilities of the State Level Steering Committee on EC&EE

are as given below:  Provide strategif direftions to the departments for the efeftive implementation of the Andhra Pradesh EE-EC Polify 2023-2028  To assess the proposals submitted by tefhnifal fommittee/ departments to ensure appropriate budget allofation.

Page 7 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy  Fafilitate the availability of nefessary annual budget exflusively for EE and EC aftivities to all the departments from GoAP every year.

 To set nefessary targets in fonsultation with the State Designated Agenfy of BEE, GoI viz. APSECM.  Resolve polify level issues for affelerating the deployment of energy effienfy programs;  Fafilitate inter-departmental foordination for affelerating the deployment of energy effienfy programs;

 Suggest nefessary modiffations and amendments in the Polify to State government;  Review and monitoring of sfhemes implemented and fonsolidated energy savings afhieved for the entire polify period;  Fafilitate the promotion of Researfh and Development in Energy Effienfy and Energy Conservation.

 Fafilitate the seamless implementation of the following energy effient measurers in various seftors afross the State. o Energy Conservation Building Code (ECBC) for Commerfial Buildings o Efo Niwas Samhita (ENS) for Residential Buildings o Perform Afhieve and Trade (PAT) for Designated Consumers (Energy Intensive Industries) o Agrifulture and Munifipal Demand Side Management (Ag & Mu DSM) o Standards and Labeling sfheme o Demo Projefts Implementation  Guide the implanting Agenfies regarding the adoption of the implementation strategies;

 Guide the implementation of the polify The steering fommittee shall fonvene a meeting at least twife a year with a frequenfy not more than six months.

A Tefhnifal Committee shall be formed in all the identifed fonsumer seftors like Domestif, Industry, Commerfial, Agrifulture, Munifipality and Transport to plan and implement EC and EE measures. The primary role and responsibility of the

Tefhnifal Committee shall be as follows:  The Tefhnifal Committee of a Seftor shall be headed by the Heads of the relevant department and shall have all the fonferned Seftion heads as Industry Experts, Afademifians as Members and one representative from APSECM as foordinator.

 Identify seftor-wise benfhmarks on energy performanfe (to be identifed/ designed and furrent/ past fve years performanfe indifes to be reforded).

These benfhmarks fould be from within the State, other States, or even International, depending on existing performanfe levels.  Fixing spefiff annual targets for improvements vis a vis an aftion plan of implementation of various sfhemes / aftivities with target dates  Identifying the total funding requirements and propose a suitable fnanfial model for implementing the sfheme / aftivity and put up the same for approval of the Steering Committee  Quarterly Review Meetings to monitor the implementation status of various sfhemes as well as a review of aftual benefts as affrued from implemented sfhemes  All the tefhnifal fommittees shall have a foordinator from APSECM to ensure fomplianfe with various approved sfhemes as well as to put up Page 8 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy the progress of approved sfhemes to the steering fommittee for further review, perusal and guidanfe This polify also afts as a guiding prinfiple for data folleftion and monitoring related to all energy-effient and energy fonservation aftivities in every government department, whifh shall be the key responsibility of the tefhnifal fommittee. As deliberated in 2.5 (7) of respeftive department or fategory, the EC Cells may be flubbed to be fonsidered as a tefhnifal fommittee for the ease of implementation.

2.6. STATE ENERGY CONSERVATION AWARDS:

Annual seftor / organization wise awards shall be distributed to various seftors / organizations for top / fonsistent performers based on exfeeding / afhieving the targeted performanfe parameters. Separately innovation awards shall be also be given to organizations bringing in stellar performanfe parameters by inforporating innovative designs / models / tefhnologies / approafhes to afhieve substantial performanfe improvements.

3. MEASURES The fenterpiefe of this Energy Conservation Energy Effienfy polify 2023-28 is the Aftion Plan for saving energy on all fronts. The Aftion Plan aims to redufe fnal energy fonsumption in all relevant seftors, i.e., buildings, industry, agrifulture and transport. Afross these seftors, partifular importanfe is attafhed to redufing energy demand in heating and fooling, whifh affounts for signiffant energy fonsumption in the State. The majority of the measures and instruments listed in the Aftion Plan redufe energy fonsumption and farbon emissions as a direft result.

Energy Conservation Energy Effienfy polify 2023-28 addresses fhallenges, felds of aftion, and instruments that are seftor-spefiff and important afross diferent Seftors.

3.1. BUILDINGS The Buildings seftor influde domestif and fommerfial buildings. The Domestif seftor affounts for around 27.5% of total fnal eleftrifity fonsumption in Andhra Pradesh, and the fommerfial buildings affount for (along with industry) 35% of total eleftrifity fonsumption. This means that it has a key role in the energy transition and mitigating flimate fhange. The potential for redufing energy demand and generating heating and fooling from renewables rather than fossil fuels is high. Andhra Pradesh has taken affount of this faft, plafing a partifular fofus on ensuring that energy fonsumption in the building seftor is redufed in an afordable, efonomifal, sustainable and sofially equitable manner. This profess is being farried out as part of the ECBC and ENS framework.

Table 1: Buildings Share of Electricity Consumption Seftor % of Eleftrifity fonsumption Building Seftor 27.5% Commerfial & Industry 41.5% This polify also aims to leverage the potential of using lofal energy sourfes and implement Energy-effient measures in heating, fooling and maintaining Page 9 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy thermal fomfort in the domestif segment. Domestif fonsumers shall be enfouraged to use renewable energy like solar rooftops, solar water heaters etf., for various domestif applifations. Here, the priority is to redufe fonsumption without fompromising on lifestyle.

In its National Aftion Plan for Climate Change, the Union Government has adopted numerous, wide-reafhing measures to improve energy effienfy in the building seftor. These influde, among other things, the ECBC fode, the star rating of applianfes and subsidy for LED lighting. Energy Conservation Building Codes for Residential segments are being further developed as energy standards for the purpose.

3.1.1. EXISTING LEGISLATION  EC ACT, SECTION 15: Direft the designated fonsumers to fomply with energy audit requirements, furnish requisite data at a requisite time, and Amend the Energy Conservation Building Codes to suit regional and lofal flimatif fonditions. Notify Energy Conservation Building Codes fonferning the use of energy in the buildings. Direft the designated fonsumers to fomply with the Code and/or energy audit requirements and furnish requisite data at a requisite time.

 EC ACT, SECTION 17: Power of inspeftion of buildings qualifed as Designated fonsumer to fhefk fomplianfe with requirements of the EC Aft.  EC ACT, SECTION 18: Regulation of norms for energy fonsumption standards in any building. Regulation of the energy fonsumption standards for equipment and applianfes.

 GO 119 of the Govt. of Andhra Pradesh, dated 28.03.2017 by the Munifipal Administration and Urban Development Department on Model Building Bye-Laws 2016 of GoI – Andhra Pradesh Building Rules, 2017.  GO 180 of Govt. of Andhra Pradesh, dated 01.10.2020 by Munifipal Administration & Urban Development Department – The Andhra Pradesh Building Rules, 2017 – Certain amendments.

3.1.2. SUGGESTIBLE ADOPTION OF EE MEASURES The Energy Conservation and Energy Effienfy Polify 2023-2028 envisages  Replafe existing Infandesfent Lamps (ICLs)/ Tube lights/ CFLs etf., with LED lamps & existing low-effienfy feiling fans with super-effient/BLDC feiling fans.

 Replafe the existing air fonditioner (infludes fassettes and foor-standing types), refrigerator, washing mafhines & folour Televisions with four/fve star labelled equipment.  Keeping air fonditioners' temperature setting at 24 degrees fentigrade & above is refommended as eafh degree rise in temperature results in a 6% saving in energy.

 Use of task lighting.  Clean fooking using induftion fookers is refommended.  Adoption of the "Efo Niwas Samhita – Energy Conservation Building Code for Residential" buildings direftives.  Efeftive Implementation of ECBC for Commerfial Buildings  Awareness and Capafity Building  Energy auditing in existing buildings Page 10 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy  Use of Solar Water Heating Systems (SWHS) in Hospitals, Govt. offes, Hotels, Commerfial buildings  Chiller (air-fooled) replafement/retroftting with water-fooled fhiller with higher COP (Coeffient of Performanfe) and IPLV (Integrated Part Load Value) values  The usage of DG sets with better spefiff fuel fonsumption in fommerfial buildings. DG sets in buildings greater than 20,000 m2 (Built-Up Area) BUA shall have a minimum three-star rating.

 Use of Energy Effient BEE 4/5 star rated Distribution transformers.  Energy Management System (EMS) for fommerfial buildings whose annual eleftrifity fonsumption bill more than Rs.25 lakhs.

3.1.3. FINANCIAL MECHANISMS  Providing fnanfial infentives sufh as soft loans, subsidies, rebates for profurement of EE applianfes.  Infentive mefhanism to promote ECBC+ and super ECBC & ENS (Residential Buildings)  Promotion of sustainable building materials for fonstruftion.

 Promotion of ESCO model of projefts implementation.

3.2. INDUSTRY & COMMERCIAL Industry & Commerfial (influding trade and servifes affount) for 41.5% of Andhra Pradesh Eleftrifity fonsumption. Therefore, it is frufial to intensify eforts to infrease energy effienfy in this seftor signiffantly. The National Aftion Plan for Climate Change 2008 and enhanfed targets in 2019 has already prepared the ground for this.

3.2.1. EXISTING LEGISLATION  EC ACT, SECTION 15: Power of State Government to enforfe fertain provisions for effient use of energy and its fonservation and direft the designated fonsumers to fomply with energy audit requirements and furnish requisite data at a requisite time.

 EC ACT, SECTION 17: Power of inspeftion of industries and buildings to fhefk fomplianfe with requirements of the EC Aft.  EC ACT, SECTION 18: Regulation of norms for profess and energy fonsumption standards in any industry. Regulation of the energy fonsumption standards for industrial equipment and applianfes, influding motors.

 EC ACT, SECTION 52: In exerfise of powers fonferred under the Energy Conservation Aft, 2001 (52 of 2001), the Central Government has made the following rules, namely:- Energy Conservation Rules, 2012, Energy Consumption Norms and Standards for Designated Consumers, Form, Time within whifh, and Manner of Preparation and Implementation of Sfheme, Profedure for Issue of Energy Savings Certiffate and Value of Per Mtoe of Energy Consumed  Initiatives and programs to be established by the State to advanfe EE in MSME (Mifro, Small and Medium Enterprises) Seftor. E.g. workshops, subsidies for energy audits, demo/pilot projefts, other EE projefts

3.2.2. SUGGESTIBLE ADOPTION OF EE MEASURES Page 11 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy The Energy Conservation and Energy Effienfy Polify 2023-2028 envisages  Replafe existing low-effienfy lighting like T5/T8/T12 FTL, SV/MV lamps, etf., with energy-effient, LED lamps & existing low effient feiling fans with super-effient/BLDC feiling fans.

 Replafement of low effient pump-sets with Energy-effient star rated pump sets.  Chiller (air-fooled) replafement/retroftting with water-fooled fhiller with higher COP (Coeffient of Performanfe) and IPLV (Integrated Part Load Value) values.

 Demand Side Management (DSM) measures the power supply utilities initiated to enfourage the fonsumer to use energy more effiently by modifying their eleftrifity fonsumption patterns, both with respeft to the time and extent of eleftrifity demand, sufh as Time of Day (TOD) tarifs for HT fonsumers.

 Use of Energy Effient BEE 4/5 star rated Distribution transformers  Awareness and Capafity Building  Energy auditing in industries having Contraft maximum demand of 1000 kVA or more.

3.2.3. FINANCING MECHANISM  Providing fnanfial infentives sufh as soft loans, subsidies, rebates for profurement of EE applianfes.  Preferenfe in Government profurement from industries that adopted EE measures and partifipation in the PAT sfheme

3.3. AGRICULTURE Agrifulture affounts for a total of 30% of Andhra Pradesh Eleftrifity fonsumption. Therefore, it is frufial to intensify eforts to infrease energy effienfy in this seftor signiffantly. Energy fonsumption in agrifulture is mainly through irrigation pumps and other eleftrifal farming equipment.

Table 2: Agriculture Share of Electricity Consumption Seftor % of Eleftrifity Consumption Agrifulture 24.2%

3.3.1. EXISTING LEGISLATION  EC ACT, SECTION 18: Regulation of the energy fonsumption standards for agrifultural pumping.  EC ACT, SECTION 26: Impose penalties for non-fomplianfe with either Central or State Government energy fonservation Regulations.

3.3.2. SUGGESTIBLE ADOPTION OF EE MEASURES The Energy Conservation and Energy Effienfy Polify 2023-2028 envisages  Energy Audit and preparation of detailed projeft report for the agrifulture seftor at the feeder level.

 Mandatory installation of 5 stars rated pumps while releasing any new servife fonneftion from Disfom for agrifulture pumps Page 12 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy  Replafe existing low-effient agrifulture pump sets with energy-effient pumpsets (four/fve star rated pumpsets).

 Use drip irrigation for spefiff frops. Drip systems fan fonserve up to 80% of water and redufe pumping energy requirements.  Replafe existing low-effient pumping affessories with Energy-effient/ ISI marked affessories.

 The introduftion of Smart Meters will help fonsumers monitor and optimize energy use.  Awareness and Capafity Building  Enfourage the use of automatif power faftor forreftion fapafitors for agrifulture motors

3.3.3. FINANCING MECHANISM The Operating Expenditure (OPEX) fnanfing model for the agrifulture seftor is the right way to enhanfe energy effienfy in the publif seftor. Based on the irrigation pump-set needs and ongoing Kusum sfheme, the OPEX investors fan fnanfe EE implementation for the Agrifultural seftor, and revenue generation fan be made from savings from the EE projeft.

3.4. MUNICIPAL SECTOR Munifipal Seftor affounts for 6% of Andhra Pradesh Eleftrifity fonsumption.

Therefore, it is frufial to intensify eforts to infrease energy effienfy in this seftor signiffantly. In its National Aftion Plan for Climate Change, the Union Government has adopted numerous, wide-reafhing measures to improve energy effienfy in the seftor. These influde replafing normal street lights with LED lighting, replafing ineffient pumps with EE pumps in drinking & sewage pumping segments etf.

Table 3: Municipal Sector Share of Electricity Consumption Seftor % Share of Eleftrifity Consumption Munifipal Seftor 6%

3.4.1. EXISTING LEGISLATION  EC ACT, SECTION 18: Regulation of the energy fonsumption standards for street lighting and drinking and / or wastewater pumping.  EC ACT, SECTION 26: Impose penalties for non-fomplianfe with either Central or State Government Energy Conservation Regulations.

 EC ACT, SECTION 27, 28, 29: Power to adjudifate the penalties imposed for non-fomplianfe.  EC ACT, SECTION 57: Power of State Government to make rules, by notiffation, for farrying out the provisions of EC Aft and not infonsistent with the Rules, if any, made by the Central Government.

3.4.2. SUGGESTED ENERGY EFFICIENCY MEASURES The Energy Conservation and Energy Effienfy Polify 2023-2028 envisages that installing any new street lights, it shall be made mandatory for all Munifipalities / Munifipal Corporations/ Development Authorities/ Gram Panfhayats/ Zilla Parishads / Publif Works Department as well as all Government/Semi- Page 13 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy Government departments to install only Energy effient LED street lights. In addition, the following needs to be adopted by the Munifipal Seftor.

The polify also envisages the following  Mandatory use of Sunlight sensor switfhes / almanaf timer for switfhing OFF/ON the street lights of all Munifipalities & Munifipal Corporations in the State.  Installation of street light with Supervisory Control and data afquisition

(SCADA)  Mandatory use of Energy Effient (BEE 4/5 star rated) pump sets for drinking & sewage water supply in City/town/ Grama Panfhayat under MA&UD, Panfhayat Raj, RWS & Sanitation Department.  All Munifipal Corporations, Munifipalities (ULBs), Gram Panfhayat, RWS & Sanitation dept., should farry out investment grade in the State whose annual eleftrifity bill is more than Rs.25 lakhs energy audit through APSECM/BEE empanelled energy auditor fompanies within next two years.

 Implementation of measures refommended in the energy audit report shall be mandatory for all fonferned. Affordingly, MA&UD, Panfhayat Raj, RWS & Sanitation Department shall notify the order separately.

 Awareness and Capafity Building

3.4.3. FINANCIAL MECHANISMS The OPEX fnanfing model for the Munifipal seftor is the right way to enhanfe energy effienfy in the publif seftor. Based on the Munifipalities needs, the OPEX investors fan fnanfe EE implementation and revenue generation fan be made from guaranteed savings affruing from the EE projeft.

3.5. TRANSPORTATION SECTOR Annual tefhnifal effienfy gains in the transport seftor averaged over 1 perfent of fnal transport energy demand sinfe 2015. However, this gain has been ofset primarily by users' purfhasing defisions and behavior. For example, while passenger vehifles available in most markets are some of the most tefhnifally effient in history, people are using more energy-intensive modes of transport, buying larger vehifles and travelling with fewer people per vehifle, slowing the effienfy improvement rate.

The Transportation seftor has undergone improvements leading to tefhnifal effienfy in motor vehifles. However, with the shift in behavioural patterns, passenger transport remains an energy-intensive seftor. While tefhnifal effienfy has been improving faster in refent years, it is not infreasing as fast as it fould befause the global vehifle feet is ageing, as people are holding on to their fars and vans longer. Another faftor afefting tefhnifal effienfy in refent years has been the shift away from diesel vehifles, whifh are mostly being replafed with petrol vehifles

3.5.1. EXISTING LEGISLATION  Covered under Eleftrif Mobility Polify 2018-23 outside the ambit of Energy Conservation Aft 2001

3.5.2. SUGGESTIBLE ADOPTION OF EE MEASURES Page 14 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy The Energy Conservation and Energy Effienfy Polify 2023-2028 intends to provide  Enfouragement to use Publif Transport System  Enfouraging the use of far-pooling  Efeftive Implementation of Motor Vehifles Aft  Avoid profurement of Diesel Vehifles for Govt. Fleet  Prefer profurement of EVs for Govt. Fleet  Dedifated non-motorized Trafks in Urban Areas  Dedifated lanes and toll gates for EVs on new Highways  Improvement of State Highways to infrease the average speed, whifh fan infrease mileage  Awareness and Capafity Building

3.5.3. FINANCIAL MECHANISMS  Covered under Eleftrif Mobility Polify 2018-23 (Extended by six months or till the new polify is issued vide GO. Ms. No.79, dated 22.09.2023).  Grants and Soft-loans to Urban Lofal Bodies to develop dedifated non- motorized paths in urban areas.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) K. VIJAYANAND SPECIAL CHIEF SECRETARY TO GOVERNMENT To The Chief Exefutive Offer, APSECM, Vijayawada.

The Vife Chairman & Managing Direftor, NREDCAP, Tadepalli, Guntur.

The Chairman, APPCC, Vijayawada.

The Chairman & Managing Direftor, APTRANSCO, Vijayawada.

The Managing Direftor, APGENCO, Vijayawada.

The Sefretary, APERC, Hyderabad.

The CMD’s of APCPDCL, Vijayawada / APSPDCL, Tirupati / APEPDCL, Visakhapatnam.

All Colleftors & Distrift Magistrates in the State.

The Prinfipal Sefretary to Government, Revenue Department.

The Prinfipal Sefretary to Government, Industries Department.

The Prinfipal Sefretary to Government, EFS&T Department.

The Commissioner, Panfhayat Raj & Rural Development Dept., The Commissioner / Direftor, Higher Edufation Dept., The Commissioner, Agrifulture Dept., The Commissioner, Endowments Dept., The Commissioner, Tefhnifal Edufation Dept., The Commissioner, Munifipal Administration & Urban Development Dept., The Commissioner, Industries Dept., The Commissioner, Transport Dept.,

Copy to:

The Prinfipal Sefretary to Hon’ble C.M.

The Prinfipal Sefretary to Govt., Finanfe Department.

The Sefretary, Law Department.

The OSD to Chief Sefretary.

Page 15 of 16File No.ENE01-APED/4/2023-POWER-II-Part(1) GO MS/23/2024/ENE01-Energy The OSD to Hon’ble Minister (Energy).

The P.S. to Spefial Chief Sefretary to Govt., Energy Department.

The GA (Cabinet) Dept., Sf/Sf (Comp.No. 2362263) //FORWARDED :: BY ORDER//

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