Ministry of Power on Saturday proposed amendments to the Energy Conservation Act, 2001 which include defining the minimum share of renewable energy in the overall consumption by industrial units or any related establishment. Additionally, the ministry proposed a provision to incentivise efforts on using clean energy sources by means of carbon saving certificates.
As per the ministry's statement, Power Minister R.K. Singh has reviewed the proposed amendment and has asked to seek comments from concerned line ministries, departments and state governments.
The additional incentives in the form of carbon credits against the deployment of clean technologies would facilitate the involvement of the private sector in climate actions, the ministry stated. Further, it said that the proposed changes to the Energy Conservation Act, 2001 would further promotion of green hydrogen as an alternative to the existing fossil fuels used by industries.
The ministry informed that the proposal takes into account the growing needs and changing global climate landscape. The objective, it says, is to enhance demand for renewable energy at the end-use sectors such as industry, buildings, transportation etc. "The proposed amendments would facilitate the development of the carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid. This will help in the reduction of fossil fuel-based energy consumption and carbon emission to the atmosphere," the ministry's statement read.
It added that the country has committed to the ambitious Nationally Determined Contributions (NDCs) that mandates reducing emission intensity by 33 to 35 per cent in 2030, compared to the levels in 2005. Additionally, India is committed to achieving more than 40 per cent cumulative electric power capacity from non-fossil fuels by 2030. "Furthermore, by adopting energy efficiency measures, India holds the potential to reduce about 550 MtCO2 by 2030," the ministry informed.