Explained: Why Energy Conservation Bill is crucial for India? 4 key points
PremiumThe Energy Conservation Bill seeks to mandate the use of non-fossil sources and bring large residential buildings within the ambit of energy conservation regime.
The Centre on Wednesday introduced the Energy Conservation Bill at the Lok Sabha that intends to put in place provisions to make the use of clean energy, including green hydrogen, mandatory and to establish carbon markets. Union power minister Raj Kumar Singh, while introducing the bill, pointed out the bill seeks to mandate use of non-fossil sources and bring large residential buildings within the ambit of energy conservation regime. A legal framework “will help in the reduction of fossil fuel-based energy consumption and resultant carbon emissions to the atmosphere," the minister said.
What are the key suggestions of the Energy Conservation Bill?
Promote usage of renewable energy: One of the biggest measures the amendments seek to promote is the usage of renewable energy and the development of a domestic carbon market to battle climate change. It is also looking at introducing new concepts such as carbon trading and mandate the use of non-fossil sources. “It is considered necessary to have legal provisions to prescribe minimum consumption of non-fossil energy sources as energy or feedstock by the designated consumers," minister asserted.
Incentivise actions for emission reduction: Explaining the concept of carbon market, the minister said, a person embracing renewable energy will earn credits that can be purchased by others. This will make financing renewable energy projects easier. “A need was felt to provide a legal framework for a carbon market to incentivise actions for emission reduction leading to increased investments in clean energy and energy efficiency areas by the private sectors, he added."
Bringing residential buildings within ambit of energy conservation regime: Another key aspect of the bill is it proposes to enhance the scope of Energy Conservation Building Code and bring large residential buildings within the ambit of energy conservation regime. “Singh said big residential buildings consume 24 per cent of electricity and the bill has provisions to make such buildings more energy efficient and sustainable."
The bill says that the additional cost of 3-5 percent for buildings will be recovered within 4-5 years through savings on energy costs, even as the initiative aims to save 300 billion units of electricity by 2030 by implementing the building code.
The new law seeks to impose penalties of as much as 1 million rupees ($12,660) on individuals or organizations that don’t comply with the new energy consumption standards. It will also allow local state electricity regulatory commissions to make regulations to implement the policies.
Under the changes, the federal government will issue energy savings certificates to consumers using less than the prescribed levels, while those consuming more than the mandated standards would be able to buy the certificates to ensure their compliance.
(With inputs for agencies)
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