General Studies IIIEnergy

National Mission for Enhanced Energy Efficiency (NMEEE)

Ministry of Power


Government of India released new data related to National Mission for Enhanced Energy Efficiency

About National Mission for Enhanced Energy Efficiency:

  • The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions under the National Action Plan on Climate Change (NAPCC).
  • NMEEE aims to strengthen the market for energy efficiency by creating conducive regulatory and policy regime and has envisaged fostering innovative and sustainable business models to the energy efficiency sector.
  • The Mission is implemented since 2011.
  • Comes under Ministry of Power
  • NMEEE aims to strengthen the market for energy efficiency through implementation of innovative business models in the energy efficiency sector.

Implementation agencies

  1. BEE – Bureau of Energy Efficiency.
  2. EESL – Energy Efficiency Services Limited

National Mission for Enhanced Energy Efficiency (NMEEE) consists of four initiatives to enhance energy efficiency in energy intensive industries which are as follows:

  1. Perform, Achieve and Trade (PAT) scheme aims at reducing Specific Energy Consumption (SEC) i.e. energy use per unit of production for Designated Consumers (DCs) in energy intensive sectors, with an associated market mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded. The    Sector-wise Designated Consumers (DCs) under PAT Scheme (Cycle –I to Cycle –VI) along with energy saving targets are given at Annexure.
  1. Market Transformation for Energy Efficiency (MTEE) aims for accelerating the shift to energy efficient appliances in designated sectors through incentives and innovative business models. Under MTEE the following programmes were introduced for the promotion of energy efficient products in the market:-

Bachat Lamp Yojna (BLY): The programme was developed for replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs). The details of number of bulbs replaced with CFL and energy saved

Super-Efficient Equipment Program (SEEP): This programme was designed for market transformation of super-efficient appliances by providing financial stimulus innovatively at critical point/s of interventions.

  1. Energy Efficiency Financing Platform (EEFP) was launched to provide a platform to interact with Financial Institutions (FIs) and project developers for implementation of energy efficiency projects. Under this programme, Memorandum of Understandings (MoUs) have been signed by BEE to promote financing for energy efficiency projects. For capacity building of FIs, BEE signed MoU with Indian Banks’ Association for the Training Programme on Energy Efficiency Financing.
  1. Framework for Energy Efficient Economic Development (FEEED) was  designed for development of fiscal instruments to promote energy efficiency. The objective was to provide the comfort to concerned stakeholders through implementation of Energy Efficiency schemes such as Partial Risk Sharing Facility (PRSF) to provide partial credit guarantees to cover a share of the default risk that participating financial institutions face in extending loans to eligible Energy Efficiency sub-projects. Each energy saving loan given by Participating Financial Institutions (PFIs) is partially guaranteed for a maximum tenure of 5 years with guarantee coverage ranging from 40-75% of the loan amount or Rs. 15 crore per project.


            PAT Cycle-III commenced with effect from 1st April 2017 and got completed on 31st March, 2020. PAT Cycle -III sought to achieve an overall energy consumption reduction of 1.06 MTOE for which targets had been notified to 116 Designated Consumers (DCs) from six sectors viz. Thermal Power Plant, Cement, Aluminium, Pulp & Paper, Iron & Steel and Textile. Next step is verification of actual energy saving.

PAT Cycle–IV commenced with effect from 1st April 2018. A total of 106 DCs with an estimated energy consumption reduction target of 0.6998 million tonnes of oil equivalent were notified. These DCs were from 8 sectors consisting of 6 existing sectors of PAT Cycle -I and two new sectors namely Petrochemicals and Commercial Buildings (Hotels). The assessment year of these DCs has been affected by the outbreak of the Pandemic due to COVID -19 and thus their assessment of performance has not commenced. 

            PAT Cycle-VI had commenced with effect from 1st April 2020. Under PAT      Cycle-VI, 135 DCs from six sectors, i.e. Cement, Commercial buildings (hotels), Iron and Steel, Petroleum Refinery, Pulp and Paper and Textiles, were notified. With implementation of PAT Cycle–VI, it is targeted to achieve a total energy savings of 1.276 MTOE. These 135 DCs are under process of implementation of various energy efficiency measures to meet their notified targets.

This information was given by Shri R.K. Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.


  • The Prime Minister’s Council on Climate Change, Government of India, launched the National Action Plan on Climate Change (NAPCC) on 30 June 2008.
  • NAPCC is a multi-pronged approach with eight underlined missions focusing on energy efficiency, renewable energy, natural resources and sustainability.
  • NAPCC recognizes energy efficiency as an important lever to address the issue of climate change.
  • The National Mission for Enhanced Energy Efficiency (NMEEE) is aimed to promote the market for energy efficiency by fostering innovative policies and effective market instruments.
  • The mission has its roots in The Energy Conservation Act, which was enacted in 2001 to adopt principles of efficiency and conservation in the use of energy resources.
  • The Energy Conservation Act led to the creation of a statutory body, the Bureau of Energy Efficiency (BEE) with dedicated powers and responsibilities to promote energy efficiency and conservation in different sectors of the economy.
  • NMEEE furthers the objective of The Energy Conservation Act by focusing on enhanced energy efficiency measures with four specific initiatives under its overall ambit. The Ministry of Power, Government of India, through Bureau of Energy Efficiency (BEE), looks over the progress of the NMEEE mission.

Source: PIB

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