New Delhi: The Ministry of Power has proposed amendments to the Energy Conservation Act, 2001 which includes provisions to determine the minimum quantum of renewable energy in the entire consumption by companies and industrial units.
This amendment aims to promote renewable energy consumption.
“In the midst of growing energy needs and changing the global climate landscape, the Indian government has identified new regions to achieve a higher level of renewable energy penetration by proposing certain amendments to energy conservation laws,” said the ministry of power statement.
The aim is to increase the demand for renewable energy in the final use sector such as industry, building, transportation etc.
The Ministry of Strength has prepared amendments, after consulting various stakeholders.
The proposal includes defining the minimum share of renewable energy in the overall consumption by industrial units or any establishment, which is stated.
There will be provisions to provide incentives to efforts to use clean energy sources through carbon savings certificates.
Power minister RK Singh reviewed the proposed amendments recently and directed to search for comments and suggestions from the relevant ministries / departments and state governments.
Therefore, a meeting was held by Alok Kumar, Secretary (Strength) with ministries and stakeholder organizations on October 28, 2021 to provide a final form on the amendment proposed in the EC Law.
To review the actions in detail, four stakeholder consultation meetings (one national consultation workshop and three regional consultations) are carried out with various stakeholders to discuss and receive input on the possibility of amendments.
Furthermore, for consultation discussions and stakeholders, amendments have been proposed to strengthen institutions that were initially estimated under the law.
The proposed amendment will facilitate the development of carbon markets in India and prescribe the minimum consumption of renewable energy either as direct consumption or indirect use through the grid.
This will help reduce fossil-fueled energy consumption and carbon emissions into the atmosphere.
India stands at the forefront of overcoming climate change and has committed to nationally determined contributions (NDCs) reducing emission intensity of 33-35 percent by 2030 against the 2005 level.
The Ministry of Strength highlights that India is committed to reaching more than 40 percent of cumulative electrical power Installed capacity of non-fossil fuel resources in 2030.
Furthermore, by adopting energy efficiency measures, India holds the potential to reduce around 550 MTCO2 by 2030.
The proposed changes in the EC Law will increase the adoption of net technology in various economic sectors .
This provision will facilitate the promotion of hydrogen green as an alternative to existing fossil fuels used by the industry.
Additional incentives in the form of carbon credits on the spread of clean technology will result in private sector involvement in climate action.
This proposal also includes expanding the scope of actions to include larger housing buildings, with the aim of promoting sustainable habitat.
The Ministry of Power has stated that energy needs cannot be avoided and with changing business landscapes, it has become more important to address the needs of the nation to save energy without providing further pressure on the environment.
With Amendment EC ACT, 2001, the focus is empowering institutions to contribute to Paris’s commitment and fully implement NDC in a timely manner, which is stated.