The Energy Conservation (Amendment) Bill 2022

Why in news?

• To meet India’s commitment to exceeding its Paris Agreement climate targets, the Government of India plans to table the Energy Conservation (Amendment) Bill 2022 in the ongoing Monsoon session of Parliament.
• The Bill proposes to amend the Energy Conservation Act 2001 last amended in 2010.

Key Provisions of the Energy Conservation Act:

• Norms for energy efficiency:
  • 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).
• BEE:
  • The Act established the Bureau of Energy Efficiency (BEE). The 2010 amendment extended the tenure of the Director General of the Bureau of Energy Efficiency from three to five years.
  • This Bureau can specify qualifications required for energy auditors who monitor and review the power consumption of various industries.
• Energy Saving Certificates:
  • The Centre can issue energy savings certificates to those industries which consume less than their maximum allotted energy. However, this certificate can be sold to customers who consume higher than their maximum allowed energy threshold – providing for a framework for energy trading.
  • The Act allows the Centre to prohibit the manufacture, sale, purchase or import of any particular equipment unless it conforms to specified norms issued six months/ one year before.
• Penalty:
  • In case of any violations under this Act, each offence shall attract a penalty of 10 lakh.
• Appeals:
  • Any appeals against any such order passed by the Central or state government will be heard by the appellate tribunal already established under the Electricity Act, 2003.

Proposed changes to the act:

• 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.
• Incentivising efforts to use clean energy by issuing carbon saving certificates.
• Strengthening institutions set up originally under the Act, such as the Bureau of Energy Efficiency.
• Facilitating the promotion of green Hydrogen as an alternative to the fossil fuels used by industries.
• Considering additional incentives like carbon credits for the use of clean energy to lure the private sector to climate action.
• Including larger residential buildings under energy conservation standards to promote sustainable habitats. Currently, only large industries and their buildings come under the ambit of the Act.

PRACTICE QUESTION:

Consider the following statements regarding  Energy Conservation Act:

1. The Act empowers the Centre Government to specify norms and standards of energy efficiency for appliances, industrial equipment and buildings

2. Centre can issue energy savings certificates to those industries which consume less than their maximum allotted energy

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer