UJALA (UNNAT JYOTI BY AFFORDABLE LEDs FOR ALL) YOJNA in Uttar Pradesh insights from rapid impact assessment study

India is leveraging all opportunities to meet its Intended Nationally Determined Contributions (INDCs) submitted to the United Nations Framework Convention on Climate Change (UNFCCC). In this quest, the government is implementing the Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme in the country. The Scheme targeted the lighting load across the country and facilitated the replacement of the traditional incandescent bulbs (ICL) with the modern energy efficient LED bulbs. It has emerged as the world’s largest zero-subsidy based LED bulbs initiative. As a key instrument for introducing energy efficiency into daily lives of its citizens, the Government of Uttar Pradesh (UP) is implementing the UJALA Scheme across all 75 districts. Being the third largest state in terms of the number of domestic electricity consumers, UP has a huge potential to reduce its energy demand through the UJALA Scheme. As per the estimates available on the UJALA dashboard, which is maintained by the Energy Efficiency Services Limited (EESL), UP has already harnessed energy savings of 31,17584MWh per year through the Scheme. With a broader goal of understanding opportunities for further improvising the implementation so as to enhance the benefits to existing and prospective consumers of the UJALA Scheme in UP, the Uttar Pradesh Power Corporation Limited (UPPCL) had commissioned the study entitled “Assessment study of LED bulb distribution under UJALA Scheme in Uttar Pradesh”. As part of the study, a rapid impact assessment of the Scheme was undertaken by The Energy and Resources Institute (TERI), New Delhi during late March and early April in 2018.

The methodology and approach for the study was at the outset, identification of five districts each where highest and least number of LED bulbs were distributed during the financial year 2017- 2018, in the jurisdiction of electricity distributions companies (DISCOMs) namely Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL), Madhyanchal Vidyut Vitran Nigam Limited (MVVNL) Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), Purvanchal Vidyut Vitran Nigam Limited (PVVNL) was undertaken. Next, a random selection of one district in each category and across each DISCOM was undertaken. In case of Kanpur Electricity Supply Company Ltd (KESCO), Kanpur City was directly selected as it is the only region where LED bulbs have been distributed by the company. As this analysis centers on household consumers of the UJALA LED bulbs, within each of the districts, households were identified using snowballing technique due to unavailability of the complete address of consumers of the UJALA bulbs. A total of 480 surveys were administered across 9 districts — Aligarh, Azamgarh, Baghpat, Ghaziabad, Kasganj, Kanpur (Kanpur City only), Lucknow, Sant Ravidas Nagar and Sitapur. Additionally, one focus group discussion (FGD) with users of LED bulbs was organized and retailers were interviewed. The project team also met the Electric Lamp and Component Manufacturers Asociation (ELCOMA) to seek their inputs on the LED bulbs and the role of the industry.

The key finding shows the UJALA LED bulbs are distributed through kiosks and DISCOM offices that have been designated for the purpose. A household consumer can purchase LED bulbs from the kiosk or from the DISCOM office. At the time of purchase, the consumer is informed about the warranty policy and is handed over an invoice wherein the total quantity of bulbs purchased and the amount is clearly mentioned. This bill has to be produced at the time of availing replacement service. For awareness generation about the Scheme, a range of tools are being leveraged — mobile vans, advertisement in newspaper and television (TV).

One of the most successful means has been the “word of mouth” marketing tool, wherein a relative or a friend informed a household about the Scheme and benefits to his/her relative and this triggered decision to purchase and use LED bulbs. Among respondents, 86% reported that they are aware of UJALA Scheme and the remaining referred to it as the LED Scheme. The distribution of only government-approved LED bulbs models and brands have been undertaken as part of the UJALA Scheme— Phase 1( 7W bulb) and Phase 2 (9W bulb), which is currently on-going. During the FGDs, participants mentioned that availing purchase and replacement service is only possible if the stocks for LED bulbs are available at any particular DISCOM office. Also, the replacement is majorly processed on the production of the purchase invoice and if there are stock available for the brand of the bulbs which has to be replaced. A majority(76%) respondents reported “Contact DISCOM office” as their preferred mode for availing replacement service and 70% mentioned that the bulbs are immediately replaced.

All survey respondents were over 18 years of age and 34% were at least a graduate. The respondents included both males (77%) and females (23%). Also, 18%, 36% and 46% respondents reported having purchased UJALA LED bulbs during Phase 1, Phase 2 and both Phases respectively. The survey respondents reported continuity of use of LED bulbs —72% (Phase 1 only: 7W bulb), 75% (Both Phase1 and Phase 2: 7W bulb) and 100% (Phase 2 only; Phase 1 and Phase 2 both: 9W bulb). This is also indicative of the quality of bulbs distributed. A majority of the respondent households reported using LED bulbs during

across bedroom, drawing room, toilet, common space and kitchen between 6 am and 10 pm. In the survey, it was found that the respondents did not mention of the cost of bulb as the most important reason for their preference of LED bulbs, savings on the electricity bill, warranty and brightness and life of LED bulbs were among top answers. Among respondents who had reported damaged bulbs, 47% mentioned disposing of it in waste bins and only 5% mentioned using e-waste bins. Among all districts where the primary survey was administered, the deemed energy savings corresponding to the transition to the LED bulbs was estimated as highest in Lucknow.

The mega transition of households to LED bulbs has been triggered by joint efforts of the government agencies, and the private sector. A strong political will has provided the right push and direction to the overall implementation of UJALA Scheme in the state. The Scheme has been successful in setting LED bulbs a part of everyday lives of consumers in the state of UP. At present, due to the availability of a range of LED bulbs at competitive prices, the cost of UJALA bulb is not anymore the top incentive for end users to purchase only from the Scheme. Nevertheless, a higher warranty period (3 years) is still a strong attraction for a majority of the household consumers.

It is likely that expanding the portfolio of lighting products by introducing higher wattage LED bulbs as part of the UJALA Scheme will enhance the interest of end users. At the same time strengthening the mechanisms for replacement service will give an extra push to the overall scale-up of the Scheme in the state. Also, targeted awareness drives for safe disposal of bulbs (after the end-of-life) and replacements of zero watt bulbs will be beneficial in the long run. Further, a statistically robust experiment (randomized control trials and before-after-experiments) is likely to yield deeper insights about consumer behavior at the household levels.