Background :
The Energy Conservation (Amendment) Bill, 2022 is a piece of legislation that aims to improve energy efficiency and reduce energy consumption in the country. The bill includes a number of measures that are intended to encourage individuals, businesses, and organizations to adopt energy-saving practices and technologies.
The bill seeks to amend the Energy Conservation Act, 2001 in order to provide a framework for the implementation of Energy Conservation measures and to enhance the role of the Bureau of Energy Efficiency in promoting energy efficiency.
One of the key provisions of the bill is the establishment of a Domestic Carbon Credit Trading Scheme in which large scale consumers will need to meet a portion of their energy needs from renewable sources of energy.
Another major component of the bill is the expansion of the energy auditing program, which provides grants and incentives for businesses to conduct energy audits and implement energy-saving measures. This program is designed to help businesses identify opportunities to improve energy efficiency and reduce their energy costs.
Overall, the Energy Conservation (Amendment) Bill, 2022 represents a significant step forward in the effort to reduce energy consumption and improve energy efficiency in the country. By establishing performance standards, expanding the energy auditing program, and developing a carbon credit trading scheme, the bill will help to encourage individuals, businesses, and organizations to adopt energy-saving practices and technologies. This will ultimately help to reduce energy costs and protect the environment.
The Energy Conservation (Amendment) Bill, 2022 was introduced in the Parliament in February 2022 and was subsequently passed by the Rajya Sabha on December 12, 2022.
The main provisions of the Energy Conservation (Amendment) Bill, 2022 include:
Carbon Credit Trading:
The Carbon Credit Scheme is a tradable certificate to produce a specified amount of carbon-dioxide or any other greenhouse gas.
Energy Conservation Code for Buildings:
The Code prescribes the consumption standards in regard to the area covered and prescribes standards for green buildings.
Under the Act, commercial buildings have to follow Energy Conservation code: (i) erected after the notification of the Code, and (ii) having a minimum connected load of 100 kilowatt (kW) or contract load of 120 kilo volt-ampere (kVA).
Under the current Bill, the new “Energy Conservation and Sustainable Building Code” will also apply to the office and residential buildings meeting the above criteria. The Bill also seeks to empower the respective State Governments to lower the load thresholds for it to be applicable.
Promoting the use of renewable energy:
The Bill mandates use of Non Fossil fuel and other sources of renewable energy for designated large scale consumers. The Designated consumers include but are not limited to the commercial transport sector, commercial buildings and other industries such as mining, cement and steel etc.
Conclusion :
The Energy Conservation (Amendment) Bill, 2022 is a welcome move that aims to address the growing demands of the country and to reduce its reliance on fossil fuels and thus it has significant potential to make a remarkable impact on the Country’s energy consumption patterns thereby promoting the use of Renewable Energy sources.
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