Energy Consumption Amendment Bill was introduced in parliament on dated 29th July, 2022 to further amend the Energy Conservation Act, 2001
1. The Energy Conservation Act, 2001 was enacted to for efficient use of energy and its conservation.Under this Act Bureau of energy efficiency was established and this act provides certain powers to the Central Government, the State Government and the Bureau of Energy Efficiency to enforce measures for efficient use of energy and its conservation.
2. The Energy Conservation Act, 2001 was amended in the year 2010 to address various new factors which emerged with the development of the energy market .
3. With the passage of time,for promotion of new and renewable energy and National Green Hydrogen Mission, this act was to be further amended to
(i) facilitate the achievement of “Panchamrit”— as five nectar elements presented by India in COP-26 (Conference of Parties -26) in Glasgow 2021;
(ii) promote renewable energy and development of domestic Carbon market ;
(iii) introduce new concepts such as Carbon trading and mandate use of non-fossil sources for faster decarbonization and help in achieving sustainable development goals in line with the Paris Agreement .
4. It was felt necessary to have legal provisions to prescribe minimum consumption of non-fossil energy sources as energy or feed stock by the designated consumers.Similarly,it was necessary to provide legal framework for a carbon market to facilitate incentivizing actions for emission reduction and for increased investments in clean energy and energy efficiency areas, by the private sectors.
5. Key points of The Energy Conservation (Amendment) Bill, 2022,are—
(a) mandate use of non-fossil sources, including Green Hydrogen, Green Ammonia, Biomass and Ethanol for energy and feed stock;
(b) establish Carbon Markets;
(c) bring large residential buildings within the fold of Energy Conservation;
(d) enhance the scope of Energy Conservation Building Code;
(e) amend penalty provisions;
(f) increase members of Bureau of Energy Efficiency;
(g) empower the State Electricity Regulatory Commissions to make regulations
for smooth discharge of its functions.