Context :
All you need to know about the energy conservation bill / DownttoEarth / 17 Aug 2022
Extract :
The Lok Sabha passed Energy Conservation (Amendment) Bill 2022 August 9, 2022. The bill brings in a list of amendments to the Energy Conservation Act 2001 to promote energy efficiency and conservation.
The bill focuses on energy transition, favouring renewable energy sources and green hydrogen.
The bill focuses on :
Ø deploying renewable energy sources,
Ø introducing the national carbon market,
Ø realising carbon trading and
Ø authorising the utilisation of non-fossil energy resources,
- to achieve decarbonisation and the Sustainable Development Goals as outlined in the Paris Agreement.
It has provisions for regulating energy consumption by,
Ø equipment,
Ø appliances,
Ø buildings
Ø industries.
The major amendments proposed are:
Mandatory utilisation of non-fossil sources of energy
Bill specifies the end users to meet minimal demand from fossil sources. The end users include the industrial sector, transport sector and commercial buildings.
Non-adherence to the obligation for utilisation of non-fossil sources of energy will attract a fine of up to Rs 10 lakh.
Carbon market
The bill allows the government to provide a carbon trading scheme. The government or any authorised agency may issue carbon certificates to registered units that comply with the scheme. The units will be permitted to purchase or sell the certificates.
Energy conservation code for large buildings
The code specifies the standards for energy consumption per square metre. The new code provides standards for energy conservation, utilisation of non-conventional sources of energy and other necessities for green and sustainable buildings.
Upgradation of the scope of the Energy Conservation Building Code to residential buildings
The Energy Conservation Code under the Act pertains to commercial buildings erected after the code’s notification with a 100-kilowatt connected load or with a contractual demand of 120 kilo-volt-ampere and above.
The new Energy Conservation Building Code will apply to office and residential buildings with the above specifications for commercial buildings. The bill also allows the state governments to reduce the load limit.
Extension of scope to include vehicles and vessels
The scope has been expanded to include the Vehicles (Motor Vehicles Act 1988) and Vessels ( ships and boats ), according to the bill.
A fine of up to Rs 10 lakh will be imposed for not adhering to standards. In the case of vessels, an additional fine of up to twice the amount of oil equivalent of energy that is consumed above the authorised level will be imposed.
In the case of the vehicle manufacturers, failure to adhere to fuel consumption norms will attract a penalty of up to Rs 50,000 for each unit of the sold vehicle.
Revised penalty provisions by SERCs
The State Electricity Regulatory Commissions (SERC) are allowed to adjudge the penalties under the Act. The bill includes that the SERCs may also form regulations to discharge their duties.
Arrangement of members in the governing council of BEE
The Act has a provision for the formation of the Bureau of Energy Efficiency (BEE).
The governing council of the BEE is constituted of members between 20 and 26, including the six secretaries of departments, regulatory authorities and Bureau of Indian Standards and four members from industries and consumers.
The bill has provisions for members between 31 and 37, and the number of secretaries is increased to 12. Seven members from the industries and consumers sector will represent the council.
MY TAKE :
Dear Shri R K Singhji,
Congratulations for this revolutionary initiative .
It is only a matter of time before it gets replicated in countries around the World . Much like UPI – NPCI – Aadhar – ONDC etc., with this initiative, India will lead the World.
I am happy that the provisions of this Act, incorporates my several suggestions, listed in following e-mails
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 01 Sept 2022
[ A ]………… Equipment – Appliances
Ø Carbon Finance through Carbon Credits………………… [ 12 Mar 2021 ]
Extract :
Here is a partial list of domestic appliances which consume electricity ( apart from LED bulbs ) :
TV sets – Refrigerators – Air Conditioners – Fans – Deep Freezers – Ovens – Electric Stoves – Mixers – Computers – Cloths Washing Machines – Dish Washers – Radios – Tablets – Robotic Floor Sweepers – Massagers – etc
Ø By 2030, all of these must be made “ Energy Efficient Appliances “ , certified by Bureau of Energy
Efficiency [ BEE ]
Ø Just as was done in respect of ICE vehicles ( BS IV > BS VI compliance ), all electric Appliance
Manufacturers must be mandated to switch over to manufacture of only BEE certified appliances in
4 phases ( April 2022 – 24 – 26- 28 )
Ø Each such appliance MUST be pre-installed / integrated with SENSORS which will continuously
monitor its,
# State of Usage ( ON or OFF )
# Rate of Consumption of electricity ( Units )
These INTERNET-CONNECTED
In turn, each SMART METER will relay / transmit to concerned DISCOM ( and to any other specified govt agency servers ), such usage / consumption data, through Internet ( IoT / Internet of Everything ).
These data-transfer will be separate for EACH INDIVIDUAL APPLIANCE
This will enable DISCOM / concerned Agencies, to know / monitor, IN-EFFICIENT
Appliances operating “ above “ the threshold, will be assigned / allotted “ CARBON DEBITS “ , whereas those operating “ below “ the threshold, will be assigned “ CARBON CREDITS “
If the NET of these two is POSITIVE ( + ), that home will be incentivized by a lower tariff – and vice-versa
This model ( of INCENTIVIZATION ) must be further strengthened by measuring the amount of ROOF TOP Solar Power , flowing into the SMART METER , with appropriate linkages to CARBON CREDIT
This linkage will motivate a large number of households to install ROOF TOP solar panels
This scheme will enable us to take the CARBON MARKET / CARBON CREDIT / CARBON FINANCE concept, right inside our 290 MILLION households !
Ø All manufacturers of House-hold Electric Meters must be told to manufacture only SMART
ELECTRIC METERS , starting April 2022
Ø All DISCOMS to replace existing meters in each and every home, with a SMART METER, by April
2024
This is only a CONCEPTUAL FRAMEWORK whose details are not difficult to work out
Dear Shri R K Singhji
During past 3 years, you have initiated many reforms to replace FOSSIL-FUEL power with RENEWABLE power
If implemented, my above-mentioned suggestion will ensure that we exceed our commitment given in Paris Agreement
ADDENDUM :
Ø The Energy Conservation (Amendment) Bill 2022
Extract :
Prohibition until Conforms Specified Norms:
The Act allows the Centre to prohibit the manufacture, sale, purchase or import of any particular equipment unless it conforms to specified norms issued six months/ one year before.
Penalty:
Consumers who utilise excess energy will be penalized according to their excess
consumption.
Applicability to Residential Buildings:
Including larger residential buildings under energy conservation standards to promote sustainable habitats.
Currently, only large industries and their buildings come under the ambit of the Act.
Share of renewable Energy:
Defining the minimum share of renewable energy to be consumed by industrial units or any establishment.
This consumption may be done directly from a renewable energy source or indirectly via the power grid.
[ B ] ………… Vehicles / Ships / Boats
Ø FAME II > FAME III > FAME IV ……………………………[ 05 Mar 2019 ]
Extract :
There are no “ dis-incentives “ for manufacture / sale / purchase of Petrol – Diesel vehicles
Dis-incentivize manufacturers for production of Petrol / Diesel vehicle
This could be achieved by gradually raising the GST rate for such vehicles, starting from April 2022 and simultaneously gradual reduction in the GST rate for Electric vehicles
Policy Instrument > Taxing all Vehicles based on their “ Harm Quotient “ for environment
Instead of spending / wasting scarce government funds to “ Subsidize “ the buyers for purchase of E Vehicles,
( and that too, for 3 years ) , it would be far better to “ dis-incentivize / penalize “ them ( and permanently ),
by introduction of Pigovian TRANS-TAX on each and every vehicle , for its entire life ( no more “ Old Vehicles “
only ), as conceptualized in detail , at :
Ø Transport : an Integrated Logistic Plan ? [ 20 Nov 2018 ]
Extract :
ROAD-MAP TO ACHIEVE THESE OBJECTIVES
# Levying of TRANS-TAX on all vehicles from birth to death of a vehicle ( irrespective of change in ownership
through gifting / selling )
# TRANS-TAX will get collected automatically and for each hour of a vehicle’s life
# In this collection process , there will be NO HUMAN INTERVENTION whatsoever
# Amount of TRANS-TAX to be collected every hour , will depend on it’s TRANSCORE
# A vehicle’s TRANSCORE will be based on its total HQ [ Harm Quotient ] for that hour
# Higher the total HQ [ TRANSCORE ] , higher the TRANS-TAX ( directly proportional )
# Logic : To lower their TRANS-TAX liability , people will opt for vehicles and driving conditions which
generate a low TRANSCORE
# TRANS-TAX will replace all other vehicle-related taxes ( eg : Registration tax / Road Tax etc ) , other than
the GST payable by buyer at time of purchase of vehicle
# TRANS-TAX will be uniform throughout India but credited to the State in which vehicle is, at each hour of its
Life
# TRANS-TAX will be computed as per following HQ MATRIX . For exact mechanism, look up para on
TECHNOLOGY PLATFORM below
This is a conceptual frame work and transport experts may debate and come up with a different set of “
Factors “ / “ Weightages “ / “ Rating Scales “
Without doubt , all of these will differ from country to country and from time to time , within the same country
[ C ] …………… Buildings – Industries
The provision of this Act applicable to Buildings / Industries , says :
“… 100-kilowatt connected load or with a contractual demand of 120 kilo-volt-ampere and above “
This will not be possible unless my following suggestions are implemented simultaneously :
Ø Not Good Enough ! …………………………………[ 02 Dec 2017 ]
Extract :
Anyone can generate and SELL electricity, anytime and to anyone and at any price
Ø Market-based Model for Renewable Energy ………………[ 09 June 2021 ]
Extract :
# Introduce “ Co-operative Farming of Solar Power / CFSP “ { call it a kind of
“ Contract Farming “ }
# Solar Farm company can “ Sell “ ownership rights of solar panels
to individuals in modules of 1000 sq ft, (costing Rs 4- 6 lakh per module )
These rights can be sold / transferred to any buyer, only with prior
permission of the Solar Farm Company Concerned
# My nearest DISCOM will supply me those 10 KW, free of cost ( ie: deduct
from my monthly usage )
Any excess over my actual consumption, to be credited to my account
Related Readings :
Ø Energy Conservation Amendment Bill 2022: It all boils down to targets for industries
The Energy Conservation (Amendment) Bill, 2022
Ø National Carbon Market : Suggested Action Plan………………… [ 28 Jan 2022 ]
Ø Thank You, Shri R K Singhji : the Green Warrior
Ø My blog's on solar power
Ø Congratulations, Shri Vijaybhai Rupaniji, ……………………………….[ 30 Dec 2020 ]
Ø A Tale of Two States………………………………………………………….. …..[ 28 Oct 2020 ]
Extract :
Indian cities are full of high-rise ( 5 – 20 stories ) buildings , having very small terrace area for installing rooftop solar panels – may
be just enough to power the staircase lights. There is not enough area for larger installations which can supply any meaningful
power to 20 – 100 flat-owners
Under such condition, it becomes very difficult to convince all the flat-owners to cooperate and fork out initial capital costs ( even
after 30 % subsidy ) , which would only light up staircases !
Flat owners are vary of signing a 25 year PPA with the DISCOM , especially at (may be ) Rs 6-7 per unit
Rooftop Solar installation capital costs are much higher than GRID level Solar Farm installations
MY SUGGESTION :
Out-of-the-Box Concept :
In my building, we are 10 flat-owners. Each needs 20 KW of solar – total of 200 KW
That would require 20,000 sq ft . But the terrace is no more than 2,000 sq ft . Not enough for all
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