India Proposes To Mandate Clean Energy Use At Industrial Units
The Energy Conservation (Amendment) Bill, 2022, was introduced in the Lok Sabha on Wednesday.
India proposes to order industrial and commercial power consumers to meet a certain percentage of their power requirement from clean energy sources as it looks to speed up its transition to a low-carbon economy.
The Energy Conservation (Amendment) Bill, 2022, introduced in the Lok Sabha on Wednesday, will mandate the use of non-fossil fuel sources for generating power and using as feedstock for operations.
This will be applicable for designated consumers that include industrial units in energy-intensive sectors, railways, port trust, power stations, transmission and distribution companies, and commercial buildings.
"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," the document tabled in Parliament said. "This will help in reduction of fossil fuel-based energy consumption and resultant carbon emissions to the atmosphere."
This comes on a day when the cabinet has approved updated climate targets that were pledged by Prime Minister Narendra Modi at COP26 in Glasgow, Scotland last year. Under the new targets, India plans to meet 50% of its electricity needs from non-fossil fuel sources, while it aims to reduce the emission intensity of its economy.
The bill will have to be passed in the two houses before it is codified as law.
Besides mandating the use of clean energy, the proposed amendments to the law also have a "special focus" on promoting India's National Hydrogen Mission, the bill said. It also plans to establish a market framework for carbon trading.
Energy savings certifications will be issued by the central government for those consumers that use less energy than the prescribed levels. Those consuming more will be able to purchase those certifications to remain compliant.
The bill seeks to bring large residential buildings under the Energy Conservation code. Till now, only commercial buildings come under the law's ambit.
The proposed law also plans to introduce penalties up to Rs 10 lakh for those failing to comply with the new energy consumption standards.
State electricity regulatory commissions will be allowed to come up with rules that implement the new policies, it said.