The government has introduced the energy conservation bill amendment, 2022 in Lok Sabha this week. The amendment in the energy conservation bill will boost energy efficiency activities in the commercial and industrial sectors. Here are some key features of energy consumption in amendment 2022:
- Mandatory use of non-fossil sources
Now it will become mandatory for commercial and industrial sectors o use certain percentages of nonfossil fuel-based energy in their operations. This may include green hydrogen, green ammonia, ethanol, and biomass. The introduction of non-fossil fuel-based energy in industries will reduce our imports of crude oil and is expected to generate a big market for green, hydrogen production and uses in the industries. one of the key features of low-cost solar is that solar power can be used for the production of green hydrogen and it will promote further uses of solar power beyond electricity generation.
- Enhancing the scope of energy conversation building (ECBC)
The amendment in the energy conservation bill will also facilitate the adaptation of ECBC at the state level. The state electricity regulatory commissions can make regulations for the adoption of ECBC in the buildings. The amendment will also empower the Bureau of Energy Efficiency (BEE) for the development of energy conservation activities in various sectors.
- The creation of a domestic carbon trading market.
the amendment in the energy conservation bill will facilitate a legal framework for the trading of carbon credits in the domestic market. The companies reducing energy consumption through various energy efficiency budgets will be able to generate carbon credits which will be allowed to be traded in the domestic market.