Power ministry proposes mandatory green energy use for industrial units
The move, once notified, will be significant as 41.16% of India’s total electricity demand comes from the industrial sector
Industrial units may soon have to use a share of renewable energy mandatorily as the Union power ministry has proposed amendments to the Energy Conservation (EC) Act, 2001 to increase India’s reliance on green power resources. The amendments will also include incentives in the form of carbon saving certificates for use of green hydrogen as an alternative to the fossil fuels that are currently being used by the industries.
“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 Energy Conservation Act, 2001. The objective will be to enhance demand for renewable energy at the end-use sectors such as industry, buildings, transport and so on. The ministry of power has prepared amendments, after consultations with stakeholders, and the proposal includes defining minimum share of renewable energy in the overall consumption by industrial units or any establishment,” the ministry said in a statement.
The move, once notified, will be significant as 41.16% of India’s total electricity demand comes from the industrial sector. The proposal is also likely to be mentioned by the government in the Glasgow climate change conference (COP26), which starts from Sunday since the developed countries want India to frame the updated Nationally Determined Contributions (NDCs) or targets for reducing greenhouse gas emissions.
At present, India has an installed renewable energy capacity of 147 GW, including hydropower, and another 63 GW is under installation through various projects.
“Union power minister RK Singh reviewed the proposed amendments recently and directed to seek comments and suggestions from the concerned ministries, departments and state governments. Accordingly, a meeting was held by Alok Kumar, secretary (Power) on October 28 with all the stakeholders to give a final shape to the proposed amendments in the EC Act,” a ministry spokesperson said.
A senior ministry official, on condition of anonymity, explained that the prescribed minimum consumption of renewable energy by industries could either be through direct consumption or even indirect use by purchasing green energy from the grid.