India

Laws

  • Energy Conservation Act
    Legislative
    2001
    Last change in December, 2010
    The act empowers central government to grant energy savings certificates to designated consumers whose energy consumption is less than the prescribed norms and standards and consumers whose energy consumption is more than the prescribed norms and standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms and standards.
     
     This Act requires large energy consumers to adhere to energy consumption norms; new buildings to follow the Energy Conservation Building Code; and appliances to meet energy performance standards and to display energy consumption labels.
     
     The 2008 National Climate Action Plan builds on this legislation to achieve its energy efficiency target. Under the Act, large energy-consuming industries are required to undertake energy audits and an energy-labelling programme for appliances has been introduced.
     
     The Act establishes the Bureau of Energy Efficiency to implement the provisions of the Act.
     
     The plan estimates that current initiatives based on the Energy Conservation Act of 2001, will yield 10,000MW of savings by 2012.
     
     The expectations in regard of fuel efficiency as prescribed by the Government through Gazette Notification, 30 January 2014, requires a formulaic improvement which broadly is equivalent to the average fleet fuel efficiency improving to 18.2 km/l by 2016-17 and further to 21 km/l by 2021-22. These targets imply annualised improvement of 1.7% and 3.0% respectively going forward.
  • The Finance Bill 2010-11 and the Clean Energy Cess Rules, 2010
    Legislative
    2010
    The Finance Bill 2010-11 provided for the creation of a corpus called the National Clean Energy Fund, to invest in entrepreneurial ventures and research in the field of clean energy technologies. Subsequent to the budget announcement, the Central Board of Excise & Customs (CBEC) issued a notification dated June 22, 2010 to notify the Clean Energy Cess Rules, 2010.

    The cabinet Committee on Economic Affairs has approved constitution of a 'National Clean Energy Fund' (NCEF) in the public account of India along with the guidelines as well as modalities for approval of projects to be funded from the Fund. An Inter Ministerial Group has been constituted to approve the projects/schemes eligible for financing under the National Clean Energy Fund, headed by the Finance Secretary and including representatives from Ministries of Power, Coal, Chemicals & Fertilizers, Petroleum & Natural Gas, New & Renewable Energy and Environment & Forests.

    The National Clean Energy Fund will be used for funding research and innovative projects in clean energy technologies. Any project/scheme for innovative methods to adopt to clean energy technology and research & development shall be eligible for funding under the NCEF. Projects may be government sponsored or submitted by the private or public sector. Projects may take the form of loan or viability gap funding. Government assistance under the NCEF shall in no case exceed 40% of the total project cost.

    The IMG will identify/appoint appropriate professional agencies to monitor progress of NCEF funded projects.
  • Electricity Act 2003
    Legislative
    2003
    Last change in December, 2007
    The Electricity Act 2003 sought to better co-ordinate development of the power sector in India, providing a comprehensive framework for power development. Objectives include: consoli¬dating laws relating to generation, transmission, distribution, trading and the use of electricity; promoting competition in the industry; and promoting efficient and environmentally benign policies.
    The Act recognised the role of renewable energy in the country's National Electricity Policy and in stand-alone systems. Key provisions of the Act in relation to renewable energy include (IEA):
    • Preparation of a National Energy Policy and tariff policy based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy
    • The specification, by State Electricity Regulatory commissions, of the terms and conditions for the determination of tariffs, as guided by the promotion of cogenera¬tion and the generation of electricity from renewable sources
    • Promotion of cogeneration and the generation of electricity through renewable sources by providing suitable means for connectivity with the grid and sale, and by specifying for the purchase from such sources a percentage of the total consumption of electricity in the area of a distribution licensee.