In this monsoon session, the central government has proposed the “Energy Conservation Amendment Bill 2021” with the view that this bill will enhance the demand for renewable Energy. The main objective is to enhance the demand for renewable energy. So we need to understand what renewable energy is, why it is essential and how this bill will affect it.
What is renewable energy?
Renewable energy is energy which is obtained by nature and natural resources that are highly replenished. These types of energy can be renewed with time. Examples of renewable energy are solar, Biomass, hydroelectricity and wind.
Why is renewable energy so important?
Renewable energy provides reliable power supplies and fuel diversification, which has enhanced energy security. It also reduces the need to import fuels from foreign countries. Renewable energy conserves the nation’s resources.
In India, renewable energy has become the most eminent source of domestic power production and has been overtaken by gas and oil. This bill was enacted in 2001 and was amended after nine years of enactment in 2010. Since times have changed and looking towards demands, the central government has taken a view on it. To understand the Energy Conservation Amendment Bill 2021, we must go through the act of 2021 and its history.
History of Energy Conservation Amendment Bill 2021
The Energy Conservation Act 2001 was launched with the purpose of productive utilization of energy and preserving it for the future. It was enacted on September 29, 2001, but came into practice on March 1, 2002.
This act gave rise to the Bureau of energy efficiency (BEE), established in 2002. This act empowered the centre to set norms and standards of energy efficiency for appliances, Industrial equipment, and industrial buildings.
The central government can also issue energy savings certificates as per the act. Those industries which emitted carbon under the limit were eligible for the certificates. Through this act, the government has tried to promote industries which have proved to be an “energy-friendly industry”. Later, this act was amended in 2010 and held several provisions.
Following are the main amendments:
1. The central government has the power to issue energy savings certificates to consumers whose consumption is less than the norm.
2. Those consumers whose consumption exceeds the prescribed limit will have to purchase an energy savings certificate according to the norms.
3. After consultation with the Bureau, the central government may also prescribe the value per metric ton of oil and energy consumption.
4. Those commercial buildings connected with a load of 100 kW have to come under the Energy Conservation Act.
These were the amendments proposed in 2010, but with time, the Indian government saw many flaws and wanted to bring changes through amendments.
Amendments proposed by the central government during the monsoon session:
- Setting a minimum limit for renewable energy
By doing it, it will be consumed by established industries. This will limit the emission of carbon as well as other poisonous gases, and it will also try to reduce the wastage of renewable energy.
- Clean energy-based incentives
Any established industry which will try to be based on clean and green energy will be promised the provision of more incentives than others.
This move by the government will help promote industries toward a clean environment in the name of incentives.
- Strengthening of Institutions
Under the amendments proposed by the central government, there are ideas and ways of strengthening these established institutions which have been set up under the act.
In this idea, the main focus is on the Bureau of energy efficiency (BEE), established in 2002, so it can work efficiently.
- Promotion of green Hydrogen fuel
To reduce the amount of highly spreading carbon emissions, promoting hydrogen fuel has become a need of the hour as a supplement.
Production of hydrogen fuel is cheap and does not affect the environment as carbon emissions have been affected. Green hydrogen fuel is environmentally friendly and does not harm.
- Promotion of sustainable habitat in residential buildings
Those where people live or residential areas should co-operate with the government in this idea of sustainable habitats under energy conservation standards. Be it any village or city
