MoP proposes amendment to Energy Conservation Act, 2001

The 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 proposal includes defining the 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 a carbon saving certificate.

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. The amendments have been proposed to strengthen the institutions originally envisaged under the Act. The proposed amendments would facilitate the development of the carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through the grid.

India has committed to a 33-35 per cent reduction in emission intensity by 2030 compared to 2005 levels in its Nationally Determined Contributions (NDCs). As per the reports, India is committed to achieving more than 40 per cent cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030.  Furthermore, India has the ability to eliminate 550 MtCO2 by 2030 by implementing energy efficiency measures. Clean technology adoption will be boosted in different sectors of the economy as a result of the proposed revisions to the Energy Conservation Act, 2001.

The proposal also includes expanding the scope of the Act to include larger residential buildings, with an aim to promote sustainable habitat. The MoP also stated that the need for energy is inevitable and with the changing business landscape, it is has become even more imperative to address the nation’s need to become energy-efficient without putting further pressure on the environment. With the amendment to Act the focus is to empower institutions to contribute to the Paris commitments and fully implement NDCs in a timely manner.

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