The Ministry of Power on 30th October 2021 has proposed certain Amendments to Energy Conservation Act, 2001 with an objective to enhance demand for renewable energy at the end- use sectors such as Industry, buildings, transport etc.
The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate.
The proposed amendments would facilitate the development of Carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid. This will help in reduction of fossil fuel based energy consumption and carbon emission to the atmosphere.
The additional incentives in the form of Carbon credits against the deployment of clean technologies will result in private sector involvement in climate actions. The proposal also includes expanding the scope of Act to include larger Residential buildings, with an aim to promote Sustainable Habitat.
