Opinion | Energy Efficiency Is No Longer a Choice — It’s India’s Urgent Imperative.jpeg)
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India is at an energy crossroads. While the country has made remarkable strides in increasing electricity generation and integrating renewable energy, the gap between supply and peak demand is growing — alarmingly so. From a power deficit of just 0.69% in FY20, India now finds itself grappling with a nearly 5% shortfall as of FY24. That may sound small, but in a nation of over 1.4 billion people and rapidly rising energy needs, this gap represents a fundamental vulnerability — both economic and environmental.
The editorial from The Hindu rightly underscores that India’s best and fastest route to energy stability lies not in building more coal plants or racing to commission new power stations — but in dramatically improving energy efficiency across the board. The numbers back this up. And the urgency could not be clearer.
UJALA: A Bright Start, But Not Enough
A decade ago, the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme helped transform India’s homes by slashing the price of LED bulbs from ₹500 to just ₹70. The result? Over 37 crore LED bulbs distributed and 407 crore more sold commercially. Combined with the Street Lighting National Programme, the initiative saved the country over $10 billion and avoided building the equivalent of 19 new coal-fired power plants. If that’s not proof that efficiency can equal generation, what is?
Yet, this success story cannot be where we stop. Lighting is just the tip of the iceberg. As India urbanises and industrialises, energy demand will increasingly come from air conditioning, industrial processes, digital infrastructure, electric mobility, and smart appliances. Cooling needs alone — especially in increasingly brutal Indian summers — are becoming a major source of peak electricity consumption. If we do not get ahead of this curve, we will soon find ourselves building more dirty power plants just to keep homes and data centers cool.
The Efficiency Mandate Must Now Be Universal
India’s Energy Conservation Act of 2001 laid the groundwork for policy-led efficiency. But we now need a 2.0 version — one that makes energy efficiency non-negotiable across three critical fronts:
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Buildings and Urban Planning: India's construction boom is in full swing, but most buildings still rely on outdated designs and inefficient materials. Passive cooling, better insulation, rooftop solar integration, and mandatory green building codes for both public and private infrastructure must become the norm — not the exception.
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Appliances and Homes: The Bureau of Energy Efficiency’s star rating program is a good start. But it’s time to nudge the market faster. Ban low-rated appliances. Incentivise upgrades to high-efficiency options. Encourage smart homes that regulate energy use automatically. And yes, it’s time for a UJALA-style intervention for air conditioners, refrigerators, and water pumps.
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MSMEs and Industrial Loads: India’s MSMEs — the backbone of our economy — are also some of the most inefficient energy users. With limited access to financing and outdated machinery, their emissions and energy bills are disproportionately high. A national fund or credit guarantee scheme for energy-efficient upgrades in small businesses would yield massive returns in productivity, cost savings, and emissions reductions.
Coal Dependency Must Not Be the Default
Despite being the third-largest power consumer globally, 70% of India’s electricity still comes from coal — and the government plans to add another 90 GW of coal capacity by 2032. That’s not just environmentally dangerous — it’s economically short-sighted.
Coal plants are expensive to build, polluting to operate, and slow to commission. Energy efficiency, on the other hand, is fast, cheap, and far more sustainable. If we truly want to cut emissions without harming growth, efficiency must be treated as a first-class energy resource, not a side project.
Efficiency Is Climate Action — and a Geopolitical Strategy
Energy efficiency isn’t just good economics or environmentalism — it’s geopolitical strategy. India’s growing dependence on coal, oil, and imported gas puts us at the mercy of global commodity markets. Efficient energy use enhances our energy sovereignty and buffers our economy from price shocks and supply chain disruptions.
At the global climate stage, where India has rightly argued for fairness in carbon space, leading with efficiency will strengthen our position. It shows that India is serious about green growth — and is innovating, not just demanding.
Final Thoughts: Mandate, Don’t Recommend
It’s time to stop viewing energy efficiency as an optional or “soft” solution. This is a policy emergency. India must enact mandatory standards, incentivise behavioural change, and deploy capital to make energy efficiency mainstream. We already have the success models — from LEDs to star-rated appliances. Now we need bold leadership to scale those lessons across every watt we consume.
Because the question is no longer whether we can afford to invest in energy efficiency.
The question is: can we afford not to?
