The Bureau of Energy Efficiency (BEE) is a statutory body under the Ministry of Power, Government of India, established to promote the efficient use of energy and its conservation. It was set up on March 1, 2002, under the provisions of the Energy Conservation Act, 2001. The core problem it was created to solve is reducing the energy intensity of the Indian economy.
The BEE works by implementing both regulatory and promotional mechanisms under the Energy Conservation Act, 2001. Its key mechanisms include the Standards & Labeling Programme, which mandates a star rating system for appliances to help consumers make informed choices. It also implements the Perform, Achieve, and Trade (PAT) Scheme, a market-based mechanism for energy-intensive industries, and the Energy Conservation Building Code (ECBC), which sets minimum energy standards for new commercial buildings. The BEE is empowered to recommend norms for processes and energy consumption standards to the Central Government.
The BEE is closely connected to the Energy Conservation Act, 2001, which provides its legal framework. Recently, the BEE has introduced stricter and more transparent energy labeling norms, effective from January 1, 2026, which mandate clear star ratings and QR codes on appliances. Furthermore, the BEE has proposed new Corporate Average Fuel Efficiency (CAFE-III) targets for automakers, which are set to run from April 2027 to March 2032.