Energy Conservation Amendment Act Emphasizes Alternative Energy and Carbon Trading



The Indian parliament recently approved the Energy Conservation Amendment Act 2022, which provides for the regulation of energy consumption by equipment, appliances, buildings, and industries.

This bill modifies the Energy Conservation Act of 2001 by emphasizing more on renewable energy generation and energy conservation.

The amended act empowers the central government to specify energy consumption standards for various designated power consumers and government may require them to meet a minimum share of energy consumption from non-fossil sources.

The bill prioritizes the use of non-fossil energy sources, the creation of a national carbon market, the implementation of carbon trading, compliance with energy codes in buildings, and the use of renewable energy sources in order to reduce carbon emissions and achieve the UN Sustainable Development Goals.

The earlier Energy Conservation Act of 2001 provided the legal, administrative, and legislative structure for energy conservation and energy efficiency in India at the state and national levels. However, the legislation’s focus was mainly on energy management in a limited number of enterprises and equipment.

The updated regulation aims to include conservation factors in all buildings, industries, automobiles, and equipment. This revised law emphasizes the necessity of carbon trading, a method for exchanging credits for the reduction of carbon emissions. In addition, it requires the proactive application of the Energy Conservation Building Code (ECBC) for any building structure constructed after its passing and with a minimum connected load of 100kW.

The new energy conservation and sustainable building code will also apply to office and residential structures matching the aforementioned standards. This amendment builds a regulatory framework by asking the State Electricity Regulatory Commissions to regulate penalties for any violations.

In order to hasten the implementation of renewable energy, the number of representatives serving on the Council of the Bureau of Energy Efficiency was increased from 26 to 37 to aid the nation’s eventual goal of emitting net zero carbon emissions.


Date: 22.08.2022 | Source: ET Energy World


Please enter your comment!
Please enter your name here