Centre has proposed to make renewable energy production mandatory for industrial, institutional and commercial establishment so as to achieve higher levels of penetration of renewable energy and reduce India’s carbon footprint.
In a draft proposal, the Union Power Ministry has proposed to ‘define minimum share of renewable energy’ in the overall consumption by industrial units or any establishment. The Ministry has also suggested provisions to incentivise efforts on using clean energy sources by means of carbon saving certificate, said a senior officer of the Power Ministry.
The steps have been taken in wake of growing energy needs and changing global climate landscape, said a senior officer of the Power Ministry here on Saturday. Accordingly, the Union Government has proposed certain Amendments to the Energy Conservation Act, 2001.
“The objective of the amendment is to enhance demand for renewable energy at the end-use sectors including Industry, buildings, transport,” said a senior officer of the Power Ministry.
The proposed amendments have been made after consultations with stakeholders, the officer said. Union Power Minister R K Singh also reviewed the proposed amendments and directed to seek comments and suggestions from concerned ministries at the centre and State Governments.
“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 said.
India has already announced its ambitious Nationally Determined Contributions (NDCs), according to which it would reduce its emission intensity by 33-35% in 2030 against the levels of 2005.
The Ministry of Power has further announced its commitment to achieve more than 40 per cent cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030.