Energy Conservation Act 2001

Energy Conservation Act 2001

Energy Conservation Act, 2001

#GS 03 Climate Change

For Prelims

Energy Conservation Act, 2001

  • The act empowers the Centre to specify norms and standards of energy efficiency for appliances, industrial equipment and buildings with a connected load over 100 kiloWatts (kW) or a contractual demand of more than 15 kilovolt-amperes (kVA).
  • The Act established the Bureau of Energy Efficiency (BEE).
  • The Government can issue energy savings certificates to those industries which consume less than their maximum allotted energy.
  • Consumers who utilise excess energy will be penalized according to their excess consumption.

For Mains:

The Energy Conservation (Amendment) Bill:

  • The bill seeks to mandate the use of non-fossil sources, including Green hydrogen, green ammonia, biomass, and Ethanol for energy and feedstock.

The other provisions:

  • Establish Carbon Markets.
  • Bring large residential buildings within the fold of the Energy Conservation regime.
  • Enhance the scope of the Energy Conservation Building Code.
  • Amend penalty provisions.
  • Increase members in the governing council of the Bureau of Energy Efficiency (BEE).
  • Empower the State Electricity Regulatory Commissions to make regulations for smooth discharge of its functions
  • To put in place enabling provisions to make the use of clean energy, including green hydrogen, mandatory and to establish carbon markets.
  • Defining the minimum share of renewable energy to be consumed by industrial units or any establishment.
  • This consumption may be done directly from a renewable energy source or indirectly via the power grid.

The objective of the Act:

  • To reduce India’s power consumption via fossil fuels and thereby minimize the nation’s carbon footprint.
  • To develop India’s Carbon market and boost the adoption of clean technology.
  • To meet its Nationally Determined Contributions (NDCs), as mentioned in the Paris Climate Agreement, before its 2030 target date.

Source “Bill to amend energy conservation Act introduced in RS