Energy Conservation Act

Table of Contents

Energy Management Center (EMC) was set up in 1989, with a mandate to promote energy efficiency and energy conservation. EMC created initial awareness of energy conservation. In 1997, Ministry of Power realized to strenghten EMC with statutory powers to promote energy conservation, considering the vast potential of energy saving and benefits of energy efficiency,.

Energy Conservation Act 2001 was enacted to provide for efficient use of energy and its conservation. It received the assent of President on 29th September, 2001. The provisions of Act, except those related to Appellate Tribunal, became effective from 1st March 2002. The EC Act has been amended in 2010.

Important Provisions of EC Act

Bureau of Energy Efficiency

Bureau of Energy Efficiency (BEE) was established with effect from 1st March 2002. The powers and functions of bureau are to:

  • coordinate with designated consumers, designated agencies and other agencies;
  • recommend to central government the norms for processes and energy consumption standards;
  • recommend to the central government for issuing of energy saving certificates;
  • recommend to the central government the particulars of label on equipment and appliances and and manner of their display;
  • recommend to the central government for notifying any use or class of users of energy as designated consumer;
  • prescribe guidelines for energy conservation building codes;
  • create awareness and disseminate information for efficient use of energy and its conservation;
  • arrange and organise training of personnel and specialists for efficient use energy and its conservation;
  • strengthen consultancy services in the field of energy conservation;
  • promote research and development in the field of energy conservation;
  • develop testing and certification procedures and promote testing facilities for testing and certification of energy consumption of equipment and appliances;
  • formulate and facilitate implementation of pilot projects and demonstartion projects for promotion of efficient use of energy and its conservation;
  • promote use of energy efficienct processes, equipment, devices and systems;
  • promote innovative financing of energy efficiency projects;
  • give financial assistance to institutions for promoting efficient use of energy and its conservation;
  • levy fee for services provided for promoting efficient use of energy and its conservation;
  • maintain a list of accredited energy auditors;
  • specify criterion and procedure for accrediation of energy auditor;
  • specify the manner and interval for conduction of energy audit;
  • specify certification procedures for energy auditors and energy managers;
  • prepare educational curriculam on efficient use of energy and its conservation and coordination with educational institutes for its inclusion in syllabus;
  • conduct examination for capacity building and strenthening of services in the field of energy conservation including certification of energy managers and energy auditors;
  • implement international cooperation programmes relating to efficient use of energy and its conservation as may be assigned by central government.

Enforcement by central government

To enforce efficient use of energy and its conservation, central government, by notification, in consultation with the BEE, may:

  • specify the norms for processes and energy consumption standards for any equipment or appliance which consumes, generates, transmits, or supplies energy;
  • specify equipment or appliances or class of equipment or appliances for the purpose of this Act;
  • prohibit manufacture or sale or purchase or import of equipment and appliances specified above, unless they conform to energy consumption standards;
  • direct display of label on equipment or on appliances specified above;
  • specify, having regard to the intensity or quantity of energy consumed and the investment required for switching over to energy efficient equipment and capacity of industry to invest in it and availability of energy efficient eqipment required by the industry, any user or class of users of energy in the enrgy intensive industries and other establishments as specified in the schedule as a designated consumer;

    As per the schedule, the list of energy intensive industries and other establishments is:

    1. Aluminium;
    2. Fertilizers;
    3. Iron and Steel;
    4. Cement;
    5. Pulp and Paper;
    6. Chlor Alkali;
    7. Sugar;
    8. Textile;
    9. Chemicals;
    10. Railways;
    11. Port Trust;
    12. Transport Sector (Industries & Services);
    13. Petrochemical, Gas Crackers, Naptha Crackers and Petroleum Refineries;
    14. Thernal Power Station, Hydel Power Station, Electricity Transmission Companies, and Distribution Companies;
    15. Commercial Buildings and Establishments.
  • alter the list of energy intensive industries specified in the schedule;
  • establish and prescribe energy consumption norms and standards for designated consumers;
  • direct, having regard to quantity of energy consumed and standards of energy consumption specified, energy intensive industries specified in the schedule to get energy audit conducted by accrediated energy auditor in the such manner and interval as specified;
  • direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get energy audit conducted by an accredited energy auditor;
  • specify the matter to be included for purpose of inspection;
  • direct and designated consumer to furnish to the designated agency, information with regard to the energy consumed and action taken on the recommendation of accredited energy auditor;
  • direct any designated consumer to designate or appoint energy manager in charge of activities for efficient use of energy and its conservation and submit a report on the status of energy consumption to designated agency annually;
  • prescribe minimum qualification for energy managers and energy auditors;
  • direct any designated consumer to comply with energy consumption norms and standards;
  • direct any designated consumer, who does not fulfill the energy consumption norms, to prepare and implement a scheme for efficient use of energy and its conservation;
  • prescribe energy conservation building codes (ECBC) for efficient use of energy and its conservation in the building or building complex;

    Building means any structure or erection or part of structure or erection after rules under ECBC codes have been notified and includes any existing structure or election or part of structure or erection, which is having a connected load of 100 kW or contract demand of 120 kVA and above and is used or intended to be used for commercial purposes.

  • amend the ECBC to suit regional and local climatic conditions;
  • direct every owner or occupier of the building or building complex, being a designated consumer to comply with ECBC and, if considered necessary, to get energy audit conducted;
  • take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation;
  • arrange and organize training of personnel and specialists for efficient use of energy and its conservation;
  • encourage preferential treatment for use of energy efficient equipment or appliances;
  • issue the energy saving certificate to the designated consumer whose energy consumption is less than the prescribed norm and standards. The designated consumer whose energy consumption is more than the prescribed norms and standards, shall be entitled to purchase the energy saving certificates to comply with prescribed norms and standards;
  • prescribe the value of per metric tonne of oil equivalent of energy consumed.

All the powers under ECBC shall be exercised in consultation with concerned state.

Enforcement by state government

To enforce efficient use of energy and its conservation, state government, by notification, in consultation with the BEE, may:

  • amend the ECBC to suit the regional and local climatic conditions and may specify and notify ECBC with respect to use of energy in the buildings;
  • direct every owner or occupier of the building or building complex, being a designated consumer to comply with ECBC and, if considered necessary, to get energy audit conducted;
  • designate any agency as designated agaency to coordinate, regulate end enforce the provisions of the act within the state;
  • take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation;
  • arrange and organize training of personnel and specialists for efficient use of energy and its conservation;
  • encourage preferential treatment for use of energy efficient equipment or appliances;
  • direct any designated consumer to furnish to the designated agency information with regard to the energy consumed;
  • specify the matters to be included for the purpose of inspection.

Energy Conservation Fund

  • Central government shall constitute Central Energy Conservation Fund to be used for salaries and expenses of BEE and for expenses on objects and purposes authorized by Act.
  • State government shall constitute State Energy Conservation Fund for the purposes of efficient use of energy and its conservation within the state.

Penalties and Adjudication

  • If any person fails to comply with the provisions of the act (except energy consumption norms and standards), he shall be liable to a penalty not exceeding ₹ 10 lakh for each failure and, in case of continuing failure, with an additional penalty up to ₹ 10 thousand per day.
  • If any person fails to comply with the provisions of the energy consumption norms and standards, he shall be liable to a penalty not exceeding ₹ 10 lakh for each failure and, in case of continuing failure, which shall not be less than the price of every metric tonne of oil equivalent of energy in excess of the prescribed norms.
  • State Electricity Regulatory Commission to adjudicate by appointing any one of its member as an adjudicating officer for holding an enquiry in connection with the penalty imposed.
  • The Appellate tribunal established under the Electricity Act, 2003 shall be the Appellate Tribunal for the purpose of this Act.

Miscellaneous

  • The designated agency may appoint as many inspecting officers as necessary for the purpose of ensuring compliance with energy consumption standards or ensure display of labels or for performing other functions assigned to them.
  • The central government or the state government may issue directions to any person, officer, authority or any designated consumer and he shall be bound to comply with such directions.
  • Central government may issue directions to BEE on the question of policy.

Implementation of EC Act

The EC Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the central and state level to promote energy efficiency. Five major provisions of this act relates to BEE, standards and labelling, designated consumers, ECBC, and establishment of Energy Conservation Fund.

Bureau of Energy Efficiency (BEE) is nodal agency at the centre and Designated Agencies (SDAs) at the state level to implement the provision of this act. Mission of BEE is to develop policy and strategies for reducing energy intensity of the Indian Economy.

Standards and Labeling Programme

BEE has prepared Scheme for Energy Efiiciency Labelling, which was launched on 18th May, 2006.

Designated Consumer

Central Government, on 12th March, 2007, has notified 9 energy intensive industries as designated consumers (aluminium, cement, chlor-alkali, fretilizers, iron and steel, pulp and paper, railways, textiles, and thermal power plants). Designated consumers to :

  • get energy audit by accredited energy audit firms
  • implement cost effective recommendations
  • appoint or designate energy manager.
  • comply with energy consumption norms and standards

Certification of Energy Managers and accreditation of Energy Auditing Firms: By regulations BEE has prescribed:

  • qualification and certification procedure for Energy Manager & Energy Auditors.
  • accreditation procedure for Energy Audit firms
  • Designing Training Modules and conducting a national level examination for certification of Energy Managers and Energy Auditors.

Energy Conservation Building Codes (ECBC)

Energy Conservation Building Code 2007 has been developed.

Demand Side Management (DSM)

Under this BEE will assist electric utilities to setup DSM cells. BEE to undertake Agricultural DSM, Municipal DSM and domestic lighting.

In Agricultural DSM, improvement of pump set efficiency in PPP mode is the key area, while in Municipa DSM, water pumping and street lighting have much scope for improvement.

Bachat Lamp Yojna (BLY)

BLY promotes energy efficient and high quality CFL as a replacement for incandescent bulb in the households at the rate of incandescent bulb. It targets replacement of about 400 million bulbs.

State Designated Agencies (SDAs)

SDAs are statutory bodies set up by states to implement energy conservation measures at the state level. Most of these SDAs have limited experience in energy efficiency or conservation.

The Central government to enable SDAs to prepare and implement Energy Conservation Action Plan (ECAP) and to enhance the capacity of SDAs, so that they can perform their regulatory duties.

State Energy Conservation Fund (SECF)

BEE to provide support to SECF to invest in energy efficiency projects. Effort is to create financially sustainable activities for SDAs to augment the fund. Rs. 70 Cr has been contributed to SECF in 2009-12.

Energy Efficiency in SME's

For Small and medium enterprises, thrust areas are: energy use and technology gap study; preparation of cluster specific manual; preparation of DPR on energy efficient technology, and; Total Energy Management (TEM) programmes.

Professional Certification and Accredition

National level certification examination for Energy Manager and Energy Auditors has been started since 2004. Its aim is to create a cadre of professional with expertise in energy management, financing and implementation of energy efficiency programmes.

Manuals and Codes

Earlier no manual standard test procedure or code was available to guide in conduction energfy audit. Manuals and codes help to increase awareness and to clarify users regarding the output of energy audit.

Manuals and codes for seven technologies has been prepared: Lighting; Dryers; Cogeneration plants; Electric motors; Electric transformers; Fluid piping system insulation, and; HVAC. These manuals and code to help in standardizing the process of energy audit to support energy manager and energy auditor.

Energy Conservation Awards

The energy conservation awards recognize innovation and achievement in energy conservation by the industry, buildings, railways, SDAs, aviation, maufacturers of BEE star level appliances and municipalities to raise awareness about energy conservation.

School Education Programme

To make the next generation more aware in efficient use of energy resources, it is necessary to introduce the same in school education. This is promoted by government through BEACON programme and effort is underway to include chapter on energy efficiency in school syllabus.

Painting Competetion on Energy Conservation

This was started in 2010. Under this, a painting competetion on energy conservation at school, state and national level are conducted. The expressive paintings of the children reflects their interest in the energy conservation activities and their concern about climate change.

National Mission for Enhanced Energy Efficiency (NMEEE)

NMEEE is one of the eight missions of the National Action Plan on Climate Change.

List of Rules and Regulations

  • The BEE (Appointment and Terms and Conditions of Service of Director-General) Rules, 2003.
  • The BEE (Appointment of Secretary) Rules, 2004.
  • The BEE (Appointment of Members, Manner of Filling Vacancies, Fees and Allowances and Procedures for Discharging their Functions) Rule, 2007.
  • The Energy Conservation (The Form and Manner of Submission of Report on the Status of Energy Consumption by the Designated Consumers) Rules, 2007.
  • The Energy Conservation (Form and Manner and Time for Furnishing Information with regard to Energy Consumed and Action Taken on Recommendation of Accredited Energy Auditor) Rules, 2008.
  • The Energy Conservation (Manner of Holding Inquiry) Rules, 2009.
  • The Energy Conservation (Inspection) Rules, 2010.
  • The BEE (Advisory Committees) Regulations, 2008.
  • The BEE (Particulars and Manner of their Display on Labels of Household Frost Free Refrigerators) Regulations, 2009.
  • The BEE (Particulars and Manner of their Display on Labels of Tubular Fluorescent Lamps) Regulations, 2009.
  • The BEE (Particulars and Manner of their Display on Labels of Room Air Conditioners) Regulations, 2009.
  • The BEE (Particulars and Manner of their Display on Labels of Distribution Transformers) Regulations, 2009.
  • The BEE (Qualification for Accredited Energy Auditors and Maintenance of their List) Regulations, 2010.
  • The BEE (Certification Procedures for Energy Managers) Regulations, 2010.
  • The BEE (Manner and Intervals of Time for Conduct of Energy Audit) Regulations, 2010.

Comments

Post a comment