Govt May Soon Mandate Minimum Share Of Renewable Energy In Power Consumption Of Industries And Large Buildings


The union government has identified new areas to achieve higher penetration of renewable energy by proposing certain amendments to the Energy Conservation Act, 2001.

The objective will be to enhance demand for renewable energy at the end-use sectors such as industry, buildings, transport etc.

The Ministry of Power has prepared amendments, after consultations with stakeholders. The proposal includes defining a 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 through a carbon saving certificate.

“The proposed amendments would facilitate development of the Carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through the grid. This will help in reduction of fossil fuel based energy consumption and carbon emission to the atmosphere,” the Ministry of Power said.

India stands at the forefront of addressing climate change and has committed to an ambitious Nationally Determined Contributions (NDCs) of reducing emission intensity by 33 to 35 per cent in 2030 against the levels of 2005.

The Ministry of Power highlighted that India is committed to achieving more than 40 per cent cumulative electric power installed capacity from non-fossil fuel energy resources by 2030.

Furthermore, by adopting energy efficiency measures, India holds the potential to reduce about 550 mt of CO2 by 2030. The proposed changes to the Energy Conservation Act will boost the adoption of clean technologies in various sectors of the economy.

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 the Act to include larger residential buildings, to promote ‘Sustainable Habitat’, the official statement added.