New Delhi: Energy is more than just electricity or fuel; it is the force that enables modern life. It lights our homes, powers our industries, drives transportation, supports digital services, and keeps hospitals, schools, and businesses running.
Energy underpins economic growth, social development, and technological advancement. As India’s economy expands, the demand for reliable and affordable energy continues to rise. Addressing this demand requires not only expanding supply but also ensuring efficient and responsible energy use.
Energy efficiency involves achieving the same output with less energy consumption, while conservation focuses on avoiding waste. Together, they form a central pillar of India’s energy strategy. Recognising their importance, India observes National Energy Conservation Day on 14 December each year to promote awareness and acknowledge contributions towards efficient energy use.
India is among the world’s top three energy consumers, and electricity demand continues to grow every year. The total electricity generation increased from 1,739.09 Billion Units (BU) in 2023–24 to 1,829.69 BU in 2024–25, a growth of 5.21%. For 2025–26, the generation target has been set at 2,000.4 BU.
At the same time, the power system has become more reliable. In June 2025, the energy-shortage levels were reported to be as low as 0.1 %. India’s meta peak demand of 241 GW with zero shortage highlights improved system resilience and better demand-supply management.
India’s energy mix is rapidly shifting toward cleaner sources. As of 31 October 2025, the country’s total installed generation capacity stands at 505 GW, of which non-fossil sources account for over 259 GW. This means that more than 50% of installed electricity capacity now comes from non-fossil sources such as solar, wind, hydro, and nuclear power. This evolving landscape shows that India is not only expanding access to energy but also moving toward a cleaner and more sustainable energy future.
To reduce energy wastage and promote the efficient use of resources, the Ministry of Power and the Bureau of Energy Efficiency (BEE) have launched several national programs across industries, encouraging the adoption of efficient technologies, improved design, and smarter energy management.Flagship government programs shaping progress in this area.
Industrial Energy Efficiency: Industry accounts for a major share of India’s total energy consumption, making efficiency improvements central to reducing costs and emissions.
The Carbon Credit Trading Scheme (CCTS) is India’s new market-based framework for industrial decarbonisation. Under CCTS, emission-intensive sectors are assigned Greenhouse Gas Emission Intensity (GEI) targets, and industries that outperform these targets earn Carbon Credit Certificates that can be traded.
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In December 2025, the government transitioned several major energy-intensive sectors, including aluminium, cement, petrochemicals, refineries, pulp & paper, textiles, and chlor-alkali, from the earlier PAT mechanism to the CCTS Compliance Mechanism.
The Perform, Achieve and Trade (PAT) scheme served as India’s foundational programme for industrial energy efficiency. PAT assigned energy-reduction targets to designated consumers, and industries that exceeded these targets earned Energy Saving Certificates (ESCerts) for trading. PAT laid the groundwork for large-scale efficiency improvements, which CCTS now deepens by directly linking performance to carbon-emission outcomes.
Household Energy Efficiency: A major pillar of India’s energy-conservation strategy is improving efficiency at the household and small-business level.
The Standards & Labelling (S&L) Programme, covering 28 appliance categories (17 mandatory), provides consumers with clear information through star labels and encourages manufacturers to adopt higher-efficiency technologies. Recent additions, such as grid-connected solar inverters, reflect the programme’s continued expansion.
UJALA LED programme: Launched in January 2015, the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme aims to provide energy-efficient LED bulbs to domestic consumers at affordable prices. The initiative not only reduces electricity bills but also saves energy and has helped create a large, competitive market for energy-efficient appliances.
Pradhan Mantri Surya Ghar Muft Bijli Yojana (2024): Launched in February 2024 with an outlay of ₹75,021 crore, aims to equip one crore households with rooftop solar systems and provide up to 300 units of free electricity each month. As of December 2025, over 23.9 lakh homes have installed rooftop solar.
RDSS: The Revamped Distribution Sector Scheme (RDSS), launched in 2021, is a flagship programme to strengthen the operational and financial performance of electricity distribution companies (DISCOMs). As of December 2025, India has installed 4.76 crore smart electricity meters under central and DISCOM-driven programmes.
Buildings: India has developed building-energy codes to promote efficient construction and reduce electricity use in new buildings. The Energy Conservation Building Code (ECBC), first introduced in 2007, sets minimum energy-efficiency standards for commercial buildings. It was later strengthened through the Energy Conservation and Sustainable Building Code (ECSBC), which expands requirements to cover sustainability, materials, and overall environmental performance.
Eco Niwas Samhita (ENS)was introduced in 2018 for homes; it focuses on reducing energy use in residential buildings through better design, ventilation, and insulation. Together, these codes improve comfort, lower energy bills, and support India’s long-term energy-efficiency goals.
Digital and Institutional Frameworks: Strengthening institutions and data systems is essential for scaling energy efficiency across sectors. Digital tools such as the Urja Dakshata Information Tool (UDIT) offer nationwide insights into energy consumption patterns, programme performance, and sector-wise savings.
National Mission on Enhanced Energy Efficiency (NMEEE) provides the overarching policy architecture through initiatives like PAT, Market Transformation for Energy Efficiency (MTEE), Energy Efficiency Financing Platform (EEFP), and Framework for Energy Efficient Economic Development (FEEED). Behavioural initiatives under LiFE (Lifestyle for Environment) further strengthen public participation by promoting mindful, responsible consumption.
Public Participation: Public participation is promoted nationwide through awards and painting competitions.
The National Energy Conservation Awards (NECA), held every year since 1991 on 14 December, is among India’s leading recognitions for energy efficiency, celebrating industries, organisations, and individuals for exemplary energy-saving achievements. Since 2021, the National Energy Efficiency Innovation Awards (NEEIA) have also been organised to highlight cutting-edge innovations in energy efficiency.
A nationwide National Painting Competition on Energy Conservation is also organised on 14 December, serving as one of the country’s largest student outreach initiatives. Conducted at the school, state, and national levels, it encourages children to creatively depict energy-saving themes and fosters early awareness of sustainable practices.
