Green Energy: Centre proposes amendments to Energy Conservation Act

The Centre has proposed amendments to the Energy Conservation Act, 2001, to further promote the usage of renewable energy sources.

The Power Ministry proposed the amendments to enhance demand for renewable energy at the end-use sectors such as industry, buildings, transport amongst other.

"Amidst the growing energy needs and changing global climate landscape, the Government of India has identified new areas to achieve higher levels of penetration of renewable energy by proposing certain amendments to the Energy Conservation Act, 2001," it said.

"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 amendments would facilitate development of carbon credit market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through the grid, the ministry said.

"This will help in reduction of fossil fuel based energy consumption and carbon emissions into the atmosphere."

Besides, these proposed changes will boost the adoption of clean technologies in various sectors of economy, it added.


"The provisions would facilitate promotion of green hydrogen as an alternate to the existing fossil fuels used by the industries.

"The additional incentives in the form of carbon credits against deployment of clean technologies will result in private sector involvement in climate actions."

Furthermore, the proposal also includes expanding the scope of the Act to include larger residential buildings, with an aim to promote "sustainable habitats".


The ministry stated that the need for energy is inevitable and with the changing business landscape, it is has become even more imperative to address the nation's need to become energy-efficient without putting further pressure on the environment.

"With the amendment to EC Act, 2001, the focus is to empower institutions to contribute for our Paris commitments and fully implement our NDCs in a timely manner."

At present, India aims to achieve more than 40 per cent of its cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030 - IANS