Ques. What is energy efficiency?
Ans. When the specific
energy consumption (units of energy consumed per unit of output)
of a device or equipment is improved by changing the technology
deployed, it is termed as improving the energy efficiency. For
example, if we change the incandescent lamp by a Compact
Fluorescent Lamp (CFL), it will result in same illumination
level with less power consumption. Thus, this is a case of
improving energy efficiency.
Ques. What is Energy Conservation?
Ans. In case of energy
conservation, the main technology of the device or equipment
remain unchanged however energy wastage is minimized by plugging
the unproductive use of energy. This will also result in
improving overall energy efficiency of the system. For example,
we take the same case of incandescent lamp but incorporate the
movement sensor or dusk to dawn timer to regulate the use of
light only when it is required, it will result in conservation
Ques. What is Demand Side Management?
Ans. The energy efficiency/
conservation measure can be applied at Supply Side (viz. at the
point of generation of power) as well as at Demand Side (viz. at
the point where the energy is consumed). However, in view of
various transmission/ distribution losses involved till the
energy reaches to end user, it has been found that the Demand
Side Management (DSM) is more effective than the Supply Side
Management. DSM initiatives are also helpful in flatten the
demand curve of utilities and thus reducing the need for peak
Ques. What are Energy Service Companies (ESCOs)?
Ans. A company that offers
to reduce a client's energy costs, often with the cost savings
being split with the client through an energy performance
contract (EPC) or a shared-savings agreement.
Ques. What are the types of energy efficiency measures?
- Active or efficient
in-house management of energy efficiency through maintenance and
housekeeping measures involves no or only very minimal
Replacement/Retrofit of selected equipment, which may require
medium-size investments can be taken up; and
The third and final type may be the Process Revamping or modification
of entire manufacturing processes, which may require large-scale
Ques. What types of Projects JREDA can
Ans. JREDA finances the
end user energy efficiency retrofit projects, DSM Projects taken
up by utilities, projects promoted by Energy Service Companies (ESCOs)
and power plants based on recovery of energy from exhaust
gasses. JREDA also extend line of credits to financial
intermediaries to onlend/ lease the energy saving equipment.
Ques. Has JREDA identified any
specific energy efficiency measures for financing?
Ans. No. Any other equipment/
device/ system, which contributes to energy saving shall be
considered by JREDA for financing.
Ques. Whether energy audit is must for
availing loan from JREDA?
Ans. Yes (Except for the cases
where established energy saving items such as CFL/T5 lamps etc.
are being proposed.)
Ques. Whether JREDA accredit energy
auditors for this purpose?
Ans. No. However, it is always
better to employ the energy auditors accredited by other
agencies such as Bureau of Energy Efficiency, PCRA etc.
Ques. Whether JREDA finances only
renewable energy based energy saving measures?
Ans. No. Energy saving
measures in plants based on both fossil fuels as well as
renewable fuels are eligible for eligible for JREDA financing.
Ques. What other benefit we can
expect from JREDA?
Ans. JREDA also offers grant
schemes linked to the loan availed by it for conducting energy
audits, preparation of DPR etc. (see the financing guidelines
for further details).
Ques. What about interest subsidy?
Answer- Interest subsidy is
currently not offered by Government of India except for
Technology Upgradation Fund scheme for Textile sector, where
JREDA is also a member institution.