ENERGY CONSERVATION ACT 2001 (IMPORTANT FEATURES)

ENERGY CONSERVATION ACT 2001 (IMPORTANT FEATURES)

Important features of Energy Conservation Act 2001 are

ENERGY CONSERVATION ACT 2001 (IMPORTANT FEATURES)

1. Standards and Labelling : 

Standards and Labelling (S and L) has been identified as a key activity for energy efficiency improvement. The S and L program, when in place would ensure that only energy efficient equipment and appliance would be made available to the consumers .

The main provisions of EC act on Standards and Labelling are : 

  • Evolve minimum energy consumption and performance standards for notified equipment and appliances.
  • Prohibit manufacture, sale and import of such equipment, which does not confirm to the standards.
  • Introduce a mandatory labeling scheme for notified equipment appliances to enable consumers to make informed choices. 
  • Disseminate information on the benefits to consumers.
2. Designated Consumers : 

The main provisions of EC Act on designated consumers are : 

  • The government would notity energy intensive industries and other establishments as designated consumers.
  • Schedule to the Act provides list of designated consumers which covered basically energy intensive industries, Railways, Port Trust, Transport Sector, Power Stations Transmission and Distribution Companies and Commercial buildings or establishments.
  • The designated consumer to get an energy audit conducted by an accredited energy auditor. 
  • Energy managers with prescribed qualification are required to be appointed or designated by the designated consumers. 
  • Designated consumers would comply with norms and standards of energy consumption as prescribed by the central government.
3. Certification of Energy Managers and Accreditation of Energy Auditing Firms :

A cadre of professionally qualified energy managers and auditors with expertise in policy analysis, project management financing and implementation of energy efficiency projects would be developed through Certification and Accreditation programme. BEE to design training modules, and conduct a National level examination for certification of energy managers and energy auditors.

4. Energy Conservation Building Codes :

The main provisions of Act on Energy Conservation Building Codes are :

  • The BE would prepare guidelines for Energy Conservation Building Codes (ECBC) 
  • These would be notified to suit local climate condition or other compelling factors by the respect for commercial buildings erected after the rules relating to every conservation building codes notified In addition, these buildings should have connected load of 500 kW or contra demand of  600 kVA and above and are intended to be used for commercial purposes
  •  Energy audit of specific designated commercial building consumers would also be prescribed.
5. Central Energy Conservation Fund 

The EC Act provisions in this case are :

The fund would be set up at the centre to develop the delivery mechanism for large-scale adoption of energy efficiency services such as performance contracting and promotion of energy service companies. The fund expected to give a thrust to R & D and demonstration in order to boost market penetratrion of efficient equipment and appliances. It would support the creation of facilities for testing and development and to promote consume awareness.

6. Role of Central and State Governments : 

The following role of Central and State Government is envisaged in the Act.

  • Central - to notify rules and regulation under various provisions of the Act provide initial finance assistance to BEE and EC fund, coordinate with various State Governments for notification enforcement penalties and adjudication.
  • State - to amend energy conservation building codes to suit the regional and local climatic condition to designate state level agency to coordinate regulate and enforce provisions of the Act and constitute Suate Energy Conservation Fund for promotion of energy efficiency. 
7. Enforcement through Self Regulation : 
  • EC Act would require inspection of only two items. The following procedure of self-regulation is proposed to be adopted for verifying areas that require inspection of only two items that require inspection.
  • The certification of energy consumption norms and standards of production process by the Accredited Energy Auditors is a way to enforce effective energy efficiency in Designated Consumers.
  • For energy performance and standards manufacturer's declared values would be checked in Accredited Laboratories by drawing sample from market.  Any manufacturer or consumer or consumer association can challenge the values of the other manufacturer and bring to the notice of BEE. BEE can recognize for challenge testing in disputed cases as a measure for self- regulation.
8. Penalties and Adjudication :
  • Penalty for each offence under the Act would be in monetary terms i.e. 10,000 for each offence and 1.000 for each day for continued non-compliance.
  • The initial phase of 5 years would be promotional and creating infrastructure for implementation of Act. No penalties would be effective during this phase.
  • The power to adjudicate has been vested with state Electricity Regulatory Commission which shall appoint any one of its member to be an adjudicating officer for holding an enquiry in connection with the penalty imposed.

(A) Energy Conservation Act 2001 (Important Features)

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