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The Energy Conservation (Amendment) Bill 2022, Explained!

The Energy Conservation Act, of 2001 is the framework to provide for the efficient use of energy and its conservation

By nayanikaphukan
New Update
energy conservation bill 2022

The Energy Conservation Act, of 2001 is the framework to provide for the efficient use of energy and its conservation and for matters connected. The act has set up the Bureau of Energy Efficiency (BEE) to recommend regulations and standards for energy consumption. Furthermore, the act applies to vehicles, appliances, industries, and commercial buildings.

On August 8, 2022, Lok Sabha passed the Energy Conservation (Amendment) Bill to amend the Energy Conservation Act, 2001. The amendments are to help achieve the COP-26 goals and introduce terms such as mandated use of non-fossil sources and carbon trading.


The Energy Conservation (Amendment) Bill 2022: Amendments proposed

Use of non-fossil sources of energy:
The bill proposes that consumers need to meet a minimum share of energy consumption from non-fossil fuel resources. Failure to meet the obligation of the use of non-fossil fuels might result in a fine of up to Rs. 10 lakhs.

Carbon trading:
The government can provide a carbon trading scheme.

The government or any eligible organization can issue carbon credit certificates. In addition, the entities will be permitted to purchase or sell these carbon trading certificates.

Read more: Energy Conservation (Amendment) Bill, 2022

Energy conservation code for buildings:
Empowers the government to specify certain energy consumption standards per square meter. Standards for energy conservation and use of conventional sources of energy.

Energy conservation code for residential buildings:
The buildings constructed after the energy conservation notification need to be connected with a 100-kW load or with a contract load of 120-kVA.

Standards for vehicles and vessels:
The bill proposes to establish consumption standards for vehicles and vessels and failure to comply will be fined with an Rs. 10 lakhs.

For vessels, an additional fine of up to twice the amount of oil equivalent of energy consumed above the prescribed norm. Vehicle manufacturers who do not follow the norms will be imposed a penalty of up to Rs. 50,000 per unit of vehicles sold.

Members of the governing council of BEE:
The Bureau of Energy Efficiency (BEE) includes 20 and 26 members consisting of secretaries of six departments, representatives of regulatory authorities such as the Central Electricity Authority and the Bureau of Indian Standards, and up to four members representing industries and consumers.

The bill proposes that the number of members be between 31 and 37, increase the number of secretaries to 12, and the number of members representing industries and consumers be increased to 7. 

Read more: The Energy Conservation (Amendment) Bill 2022

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