Energy efficiency needs ₹1 lakh crore investment, say experts at FEED 2025, ET EnergyWorld

New Delhi: Energy efficiency must be treated as a strategic resource akin to oil or coal, experts said at the Forum for Energy Efficiency Dialogue (FEED) 2025, hosted by the Alliance for an Energy Efficient Economy (AEEE). Discussions focused on institutional reforms, investment models, and scaling up efficiency efforts across multiple sectors.

“Energy efficiency should be repositioned as a strategic resource, akin to oil or coal,” said Padu S Padmanabhan, International expert on energy and water productivity. “More energy has been saved through efficiency than generated from traditional sources, yet it lacks a dedicated ministry. To truly advance, it needs a ministry that prioritises it as a core energy resource.”

Experts called for ₹1 lakh crore ($12 billion) in investments to unlock India’s energy efficiency potential and accelerate adoption.

“A 5% energy efficiency target should be pursued, with a focus on strengthening both central and state institutions,” said Saurabh Kumar, Vice-President, India, GEAPP. “A national demand-side management (DSM) policy is critical to drive investment and real change in energy efficiency.”

Discussions also focused on expanding efficiency measures beyond steel and cement industries, with MSMEs, residential buildings, and transportation identified as high-potential sectors. Experts noted that urbanization provides an opportunity to integrate efficiency standards in construction and transport sectors.

“While India has made progress, there’s still much to do,” said Alok Kumar, Director, The Lantau Group (Former Secretary, Government of India). “MSMEs, light industries, and residential buildings hold huge potential, but slow adoption of fuel efficiency standards and non-compliance with energy codes in buildings need urgent attention.”

Experts emphasized clear regulations, incentives, and electricity pricing reforms at the state level to drive sustained demand for efficiency solutions. The event highlighted the need for stronger policies, deeper investments, and institutional frameworks to make energy efficiency a key pillar of India’s energy transition.

• Published On Jan 31, 2025 at 08:14 AM IST

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