Power Ministry to amend energy conservation law to increase use of renewable energy in industry

admin November 10, 2021
Updated 2021/11/10 at 3:34 PM

The Ministry of Power has proposed changes to the Energy Conservation Act of 2001 that include a need for a minimum amount of renewable energy to be used by establishments and industrial units.

The amendments are intended to encourage the use of renewable energy.

“In the face of rising energy demands and a changing global climate landscape, the Government of India has identified new areas to achieve higher levels of renewable energy penetration by proposing certain amendments to the Energy Conservation Act, 2001,” according to a statement from the Power Ministry.

The goal will be to increase demand for renewable energy in end-use industries such as industry, buildings, and transportation, according to the statement.

After consulting with many stakeholders, the Ministry of Power has submitted changes.

According to the plan, a minimum percentage of renewable energy in total consumption by industrial units or any facility would be defined.

A carbon saving certificate will be used to incentivize efforts to use renewable energy sources.

R.K. Singh, the Minister of Power, recently examined the proposed revisions and requested that comments and ideas be sought from involved line ministries/departments and state governments.

As a result, on October 28, 2021, Alok Kumar, Secretary (Power), met with key Ministries and organisations to finalise the proposed revisions to the EC Act.

Four stakeholder consultation sessions (one national consultation workshop and three regional consultations) were held with different stakeholders to debate and obtain feedback on proposed revisions to the Act in order to thoroughly evaluate it.

The adjustments have been recommended in addition to the debate and stakeholder discussions in order to enhance the institutions originally contemplated by the Act.

The proposed revisions will help India build a carbon market by requiring a minimum amount of renewable energy usage, either directly or indirectly via the grid. This will contribute to a decrease in fossil-fuel-based energy use and carbon emissions into the atmosphere.

India is at the forefront of addressing climate change, has committed to a bold Nationally Determined Contribution (NDC) of reducing emissions intensity by 33-35 percent by 2030, compared to 2005 levels. India is committed to achieving more than 40% cumulative electric power installed capacity from non-fossil fuel energy sources by 2030, according to the Ministry of Power.

Furthermore, India has the ability to save roughly 550 MtCO2 by 2030 by implementing energy efficiency initiatives. The proposed amendments to the EC Act would encourage the use of clean technology in a variety of industries.

The measures would make it easier to promote green hydrogen as an alternative to the industries’ current fossil fuels.

Additional incentives in the form of carbon credits for clean technology adoption will encourage private sector engagement in climate action.

In order to promote sustainable habitat, the plan also involves broadening the scope of the Act to encompass bigger residential structures.

According to the Ministry of Power, the need for energy is unavoidable, and with the changing economic landscape, it is even more critical to address the nation’s need to become more energy-efficient without placing further strain on the environment.

The goal of amending the EC Act of 2001 is to allow institutions to contribute to Paris obligations and fully implement NDCs in a timely way, according to the statement.


Source: The Hindu

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