The Center proposes amendments to the Energy Conservation Act to encourage the use of green energy in industries


New Delhi: The Department of Energy has proposed amendments to the Energy Conservation Act 2001, which include a provision specifying the minimum amount of renewable energy in the aggregate consumption of establishments and industrial units.

The changes aim to promote the consumption of renewable energy.

Amid increasing energy needs and the changing global climate landscape, the Indian government has identified new areas to achieve higher levels of renewable energy penetration by proposing certain amendments to the Conservation Law of 2001. ‘energy,’ a statement from the Energy Ministry said.

The objective will be to increase the demand for renewable energies in end-use sectors such as industry, buildings, transport, etc.

The Ministry of Energy has prepared amendments, after consultation with various stakeholders.

The proposal includes defining a minimum share of renewable energy in the overall consumption of industrial units or any establishment, he said.

There will be a provision to encourage efforts on the use of clean energy sources by means of a carbon saving certificate.

Energy Minister RK Singh recently reviewed the proposed changes and asked to seek comments and suggestions from relevant ministries / departments and state governments.

As a result, a meeting was organized by Alok Kumar, Secretary (Power) with the ministries and stakeholder organizations on October 28, 2021 to finalize the proposed changes in the EC law.

To review the law in detail, four stakeholder consultation meetings (one national consultation workshop and three regional consultations) were held with various stakeholders to discuss and receive input on possible changes.

In addition to the discussion and consultations with stakeholders, the changes were proposed to strengthen the institutions initially envisioned under the Act.

The proposed changes would facilitate the development of the carbon market in India and prescribe a minimum consumption of renewable energy, either as direct consumption or as indirect use via the grid. This will help reduce fossil fuel-based energy consumption and carbon emissions into the atmosphere.

India is at the forefront of the fight against climate change and has committed to an ambitious Nationally Determined Contribution (CDN) program to reduce emissions intensity from 33% to 35% by 2030 compared to 2005 levels. The Ministry of Energy highlighted that India is committed to reaching over 40% of cumulative installed power capacity from non-fossil energy resources by 2030.

In addition, by adopting energy efficiency measures, India has a reduction potential of around 550 MtCO2 by 2030. The proposed changes to the EC law will boost the adoption of clean technologies in various sectors of the economy. economy.

The provisions would facilitate the promotion of green hydrogen as an alternative to existing fossil fuels used by industries.

Additional incentives in the form of carbon credits against the deployment of clean technologies will lead to the involvement of the private sector in climate actions.

The proposal also includes expanding the scope of the law to include large residential buildings, with the aim of promoting sustainable housing.

The Energy Department said the need for energy is inevitable and with the changing business landscape it has become even more imperative to meet the nation’s need to become energy efficient without putting additional pressure on it. on the environment.

With the amendment to the 2001 EC law, the objective is to give the institutions the means to contribute to the Paris commitments and to fully implement the NDCs in a timely manner, he said.

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