The Center proposed to make renewable energy production mandatory for industrial, institutional and commercial establishments in order to achieve higher levels of renewable energy penetration and reduce India’s carbon footprint.
In a draft proposal, the Union Ministry of Energy has proposed to “define a minimum share of renewable energy” in the overall consumption of industrial units or any establishment. The ministry also suggested provisions to incentivize efforts to use clean energy sources through a carbon saving certificate, a senior energy ministry official said.
The steps were taken in the wake of growing energy needs and the changing global climate landscape, a senior energy ministry official said on Saturday. As a result, the Union government has proposed certain amendments to the Energy Conservation Act 2001.
“The aim of the amendment is to increase demand for renewable energy in end-use sectors, including industry, buildings and transport,” said a senior official at the Energy Ministry.
The proposed changes were made after consultations with stakeholders, the officer said. Union Energy Minister RK Singh also reviewed the proposed changes and asked to seek comments and suggestions from relevant central ministries and state governments.
“The proposed changes would facilitate the development of the carbon market in India and prescribe a minimum consumption of renewable energy, either as direct or indirect consumption via the grid. This will help reduce fossil fuel energy consumption and carbon emissions into the atmosphere, ”the ministry said.
India has already announced its ambitious Nationally Determined Contributions (NDCs), according to which it would reduce its emissions intensity by 33-35% in 2030 from 2005 levels.
The Department of Energy further announced its commitment to reach over 40% of cumulative installed electricity capacity from non-fossil energy resources by 2030.