Ministry of Power proposes amendment to Energy Conservation Act, 2001

Ministry of Power proposes amendment to Energy Conservation Act, 2001The government of India has identified new areas to achieve higher levels of penetration of renewable energy by proposing certain amendments to the Energy Conservation Act, 2001.

The objective will be to enhance demand for renewable energy at the end-use sectors such as industry, buildings, transport, etc.

The Ministry of Power has prepared amendments, after consultations with stakeholders. The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment.

There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate. A meeting was held by Alok Kumar, Secretary (Power), with the stakeholders,ministries and organisations to give a final shape to the proposed amendments in the EC Act.

To review the Act in detail, four stakeholder consultation meetings (one national consultation workshop and three regional consultations) were conducted with various stakeholders to discuss and receive inputs on the possible amendments. Further to the discussion and stakeholder consultations, the amendments have been proposed to strengthen the institutions originally envisaged under the Act.

The proposed amendments will facilitate development of carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid.

This will help in reduction of fossil fuel-based energy consumption and carbon emission into the atmosphere.

India has committed to an ambitious Nationally Determined Contributions (NDCs) of reducing emission intensity by 33-35 percent in 2030 against the levels of 2005. Furthermore, by adopting energy efficiency measures, India holds a potential to reduce about 550 MtCO2 by 2030.

The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of economy. The provisions will facilitate promotion of green hydrogen as an alternate to the existing fossil fuels used by the industries.

The additional incentives in the form of carbon credits against deployment of clean technologies will result in private sector involvement in climate actions.

The proposal also includes expanding the scope of Act to include larger residential buildings, with an aim to promote sustainable habitat.

With the amendment to EC Act, 2001, the focus is to empower institutions to contribute for Paris commitments and fully implement NDCs in a timely manner.

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