Energy Conservation (Amendment) Act, 2022

Energy Conservation (Amendment) Act, 2022

Last Updated: December 19, 2022

Energy Conservation

An Act further to amend the Energy Conservation Act, 2001. BE it enacted by Parliament in the Seventy-third Year of the Republic of India as follows:–– 1. (1) This Act may be called the Energy Conservation (Amendment) Act, 2022. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Short title and commencement. vl k/kkj.k EXTRAORDINARY Hkkx II — [ k.M1 PART II — Section 1 i zkf/kdkj l s i zdkf’ kr PUBLISHED BY AUTHORITY l añ 26] ubZ fnYyh] eaxyokj] fnl Ecj 20] 2022@vxzgk.; 29] 1944 ¼’kd½ No. 26] NEW DELHI, TUESDAY, DECEMBER 20, 2022/AGRAHAYANA 29, 1944 (SAKA) bl Hkkx esa fHkUu i `”B l a[ ; k nh t krh gS ft l l s fd ; g vyx l adyu ds : i esa j[ kk t k l dsA Separate paging is given to this Part in order that it may be filed as a separate compilation. xxxGIDHxxx xxxGIDExxx jft LVªh l añ Mhñ , yñ—(, u)04@0007@2003—22 REGISTERED NO. DL—(N)04/0007/2003—22 MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 20th December, 2022/Agrahayana 29, 1944 (Saka) The following Act of Parliament received the assent of the President on the 19th December, 2022 and is hereby published for general information:— सी.जी.-डी.एल.-अ.-20122022-241246 CG-DL-E-20122022-241246 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— 2. In section 2 of the Energy Conservation Act, 2001 (hereinafter referred to as the principal Act),–– (i) for clause (c), the following clause shall be substituted, namely:–– ‘(c) “building” means any structure or erection or part of structure or erection–– (i) constructed after the rules relating to energy conservation and sustainable building codes have been notified by the Central Government under clause (p) of section 14 and by the State Government under clause (a) of section 15; (ii) which has a minimum connected load of 100 Kilowatt (kW) or contract demand of 120 Kilovolt Ampere (kVA); and (iii) which is used or intended to be used for commercial purpose or as an office building or for residential purpose: Provided that the State Government may specify a lower connected load or contract demand than the load or demand specified above;’; (ii) after clause (d), the following clauses shall be inserted, namely:–– ‘(da) “carbon credit certificate” means the certificate issued by the Central Government or any agency authorised by it under section 14AA; (db) “carbon credit trading scheme” means the scheme for reduction of carbon emissions notified by the Central Government under clause (w) of section 14;’; (iii) for clause (h), the following clause shall be substituted, namely:–– ‘(h) “energy” means any form of energy derived from fossil fuels or non-fossil sources or renewable sources;’; (iv) after clause (i), the following clause shall be inserted, namely:–– ‘(ia) “energy auditor” means any individual possessing the qualifications prescribed under clause (m) of section 14;’; (v) for clause (j), the following clause shall be substituted, namely:–– ‘(j) “energy conservation and sustainable building code” means the code which provides norms and standards for energy efficiency and its conservation, use of renewable energy and other green building requirements for a building;’; (vi) after clause (q), the following clause shall be inserted, namely:–– ‘(qa) “registered entity” means any entity, including designated consumers, registered for carbon credit trading scheme specified under clause (w) of section 14;’; (vii) after clause (t), the following clauses shall be inserted, namely:— ‘(ta) “vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988; (tb) “vessel” includes every description of water craft used or capable of being used in inland waters or in coastal waters, including any ship, boat, sailing vessel, tug, barge or other description of vessel including non-displacement craft, amphibious craft, wing-in-ground craft, ferry, roll-on-roll-off vessel, container vessel, tanker vessel, gas carrier or floating Amendment of section 2. 52 of 2001. 59 of 1988. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 unit or dumb vessel used for transportation, storage or accommodation within or through inland waters and coastal waters;’.


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Central Electricity Regulatory Commission

Central Electricity Regulatory Commission

Last Updated: December 09, 2022

Central Electricity Regulatory Commission

Determination of Fee and Charges payable under Regulation 15 of the Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2022.


The Commission notified the Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2022 (hereinafter referred to as ‘REC Regulations’) on 09.05.2022. By virtue of clause (1) of Regulation 3 of the REC Regulations, this Commission has designated the National Load Despatch Centre as the Central Agency to perform the functions under clause (2). 2. Regulation 3(2) of the REC Regulations provides the functions of the Central Agency as under: i. undertake registration of eligible entities, ii. develop a mechanism for accounting of generation and sale in respect of Certificates; iii. undertake issuance of Certificates, iv. maintain and settle accounts in respect of Certificates, Order in Petition No. 15/SM/2022 Page 2 v. act as repository of transactions in Certificates, vi. maintain Registry of Certificates, vii. perform such other functions incidental to sub-clauses (i) to (vi) of this clause, viii. undertake any other function that may be assigned by the Commission 3. Regulation 15 of the REC Regulations empowers the Commission to determine by order, based on the proposal in this regard from the Central Agency, the fees and charges payable by the eligible entities for participation in the scheme for accreditation, registration, issuance of certificates, and other matters connected therewith. The relevant portion of the REC Regulations is extracted as under: “15. FEES and CHARGES The Commission may, based on the proposal from the Central Agency, determine the fees and charges payable by the eligible entities for accreditation, registration, issuance of Certificates and other matters connected therewith.” 4. In accordance with the above Regulation, the Central Agency submitted a proposal through communication dated 7th October, 2022 for the determination of the fees and charges payable by the eligible entities for accreditation, registration, issuance of certificates and other matters connected therewith. 5. Central Registry in its proposal has highlighted that the expenditure towards Central Agency’s responsibility for REC mechanism is not covered through RLDC Fees and charges and these charges are determined and recovered through separate orders of the Commission from time to time, based on the proposal in this regard from the Central Agency. 6. According to the proposal expenditure likely to be incurred by the Central Agency towards discharging its functions as described in the REC Regulations 2022 can be categorised under the following heads: i. Development of REC Web Application ii. Comprehensive AMC charges of REC Web Application iii. Server co-location charges/ Cloud Server Space charges iv. Expenditure towards Cyber Security Compliance v. Manpower Expenses vi. Legal Expenses Order in Petition No. 15/SM/2022 Page 3 vii. Expenditure towards Compliance Audit viii. Capital Expenditure towards IT infrastructure upgradation ix. Miscellaneous expenses 7. Central Agency has highlighted that a complete upgradation of REC Web application would require conforming the same with the REC Regulations 2022 and would require exclusive expenditure towards Cyber Security infrastructure and audit compliance to comply with Government of India’s thrust towards Cyber security. 8. It is also highlighted that as per the REC Regulations 2022 the registration granted by the Central Agency to the eligible entities shall remain valid for a period of 25 years which will further reduce the fees received towards the revalidation of registration charges. 9. The proposal also includes fees and charges for accreditation by RLDCs as per the Regulations 6 (2) of the REC Regulations 2022 for accreditation of eligible entities connected to inter-State transmission system. 10. The Central Agency in its proposal has provided audited accounts of income and expenditure statement and balance sheet pertaining to REC mechanism for FY 2020-21 and FY 2021-22 and highlighted that it has suffered recurrent loss of Rs. 55.86 Lakhs and Rs. 50.09 Lakhs in the previous FY 21 and FY 22 respectively.

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Indias Renewable Energy Progress: At 166.36 GW By November End, Installed Capacity Nears 2022 Target

Indias Renewable Energy Progress: At 166.36 GW By November End, Installed Capacity Nears 2022 Target

Last Updated: December 22, 2022

Indias Renewable Energy

The government has informed the Parliament that a total of 166.36 GW of renewable energy capacity has been installed till November end in the country against the target of 175 GW by December 2022.

“Against the target of achieving 175 gigawatt (GW) of renewable energy installed capacity by 2022, a total of 166.36 GW of renewable energy capacity has been installed in the country as on 30 November,” Union Minister of New and Renewable Energy R K Singh said in a written reply to a question in the Lok Sabha. on Thursday (22 December).

The RE capacity installed so far includes 61.97 GW solar power, 46.85 GW large hydro power, 41.89 GW wind power, 10.73 GW biopower and 4.92 small hydro power,

Further, a capacity of 76.37 GW is under various stages of implementation and a capacity of 37.16 GW is under various stages of bidding, the minister said.

In reply to a separate question, the minister informed that the government has taken several measures to promote renewable energy in the country, including setting up of ultra mega renewable energy parks, permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route in the sector, and declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30.

Furhter, schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM), Solar Rooftop Phase II, 12,000 MW CPSU Scheme Phase II, etc have been launched to promote renewable energy development.

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Renewable energy sector to attract $25 billion in investments in 2023

Renewable energy sector to attract $25 billion in investments in 2023

Last Updated: December 22, 2022

Renewable Energy Sector

India would have to add at least 25GW of renewable energy capacity per annum for eight years continuously to achieve the 500 GW target by 2030.

With over USD 25 billion or 2 lakh crore in planned investments in India for using sunlight, water, and air to produce energy, the focus has shifted to renewable energy as an oil price shock threatens to topple economies worldwide.
In addition to reducing imports, switching to renewable energy is seen as a way to reduce carbon footprint and achieve net-zero goals. In order to achieve its ambitious goal of 500 Gigawatt (GW) of renewable capacity by 2030, the government vigorously promoted the adoption of electric vehicles, the production of green hydrogen, the manufacturing of solar equipment, and the development of energy storage in 2022.
To reach its 500 GW goal by 2030, India would have to continuously add at least 25 GW of renewable energy capacity every year for eight years. India currently has about 173 GW of clean energy capacity based on non-fossil fuels, including 62 GW of solar, 42 GW of wind, 10 GW of biomass, 5 GW of small hydro, 47 GW of large hydro, and 7 GW of nuclear power.

R K Singh, the Union Minister for Power, told PTI that in 2023, investments in the renewable energy sector could total around USD 25 billion.

Singh further explained, “We have to achieve a 500 GW target (of clean energy by 2030). Currently, we have a capacity of 173 GW (including large hydro and nuclear power). Capacity under construction is around 80 GW. It takes it to 250 GW. So we have to do another 200 GW by 2030.”

He went on to say that India needs to add 25 GW of renewable energy capacity annually for the next eight years, which would cost an investment of 1,25,000 crore, or USD 15 to 16 billion, taking into account the requirement of 5 crore per MW of capacity addition.

Singh further added, “We are also doing (solar) manufacturing, which will also attract investment. Currently, a capacity worth 8,780 crore is under construction. It includes polysilicon and  module. We are bringing the PLI (Production Linked Incentive) scheme worth 19,500 crore, under which around 40GW capacity will be developed. We are also doing offshore wind of 4GW, which will also fetch billions of dollars.”

Green hydrogen and Green ammonia

With its National Mission on Green Hydrogen, the government has also made green hydrogen a priority. Next year, bids are anticipated for the production of electrolysers. Additionally, that would attract investment to the clean energy market.

Green ammonia and green hydrogen production should be included in the definition of an infrastructure sector, according to the Solar Power Developer Association (SPDA), and investments in these sectors can also be made via the FVCI (Foreign Venture Capital Investor) route. This will increase foreign investors’ flexibility and draw in investment.

Solar PV modules

The government allocated an additional 19,500 crore in 2022 for the production-linked incentive (PLI) programme known as the “National Programme on High-Efficiency Solar PV Modules.” The bids were already issued this year, and the allocation would take place in 2023.

To support and promote the production of high-efficiency solar photovoltaic (PV) modules, the government launched the PLI in 2021 with an investment of 4,500 crore. These include the vertical components that are above them, such as polysilicon, wafers, cells, and ingots. In the solar PV industry, the initiative is anticipated to lessen reliance on imports.

Gyanesh Chaudhary, Vice Chairman and Managing Director, Vikram Solar told PTI, “Investment in India’s renewable energy sector grew more than 125 per cent YoY (Year on Year) to touch a record USD 14.5 billion in FY22. India has already crossed 11 GW capacity installation in the first 9 months of the year (2022-23).”

He listed some of the challenges including continued solar import (80-90 per cent still imported, worth USD 3.2 billion in FY22) and expensive raw materials (50 per cent price rise in domestic panels).

He stated that the hike in shipping costs adds to module and overall project cost. Besides, Indian rupee falling against USD will lead to exchange rate variations between bidding and finalisation of projects, he added.

He also mentioned the lack of accessible, flexible financing options, tax exemptions, and subsidies for R&D in renewable energy.

He went on to say, “Although the challenges are there, the growth story presents a compelling argument for domestic manufacturers like Vikram Solar to focus on innovation and capacity expansion.”

Hydro power

The government is also concentrating on taking advantage of the opportunity to establish significant hydropower projects in the nation. Like small hydro, which has a capacity of up to 25MW, large hydro has already been granted renewable energy status.

ISTS (Inter-State Transmission System) or wheeling fees on the transmission of electricity produced by new hydro power projects were waived earlier this month by the government for a period of 18 years beginning with the date of commissioning.

In March 2019, the Indian government declared hydro power projects to be a renewable source of energy in recognition of the inherent benefits of hydro power. Hydropower projects, however, had not received the same waiver of interstate transmission fees offered to solar and wind energy projects.

The government has now decided to extend the waiver of ISTS charges on the transmission of power from new hydropower projects, for which construction work is awarded and PPA (power purchase agreement) is signed on or before June 30, 2025, in order to eliminate this discrepancy and to provide a level playing field for hydro projects.

Investment in clean energy

In order to achieve its goal of 500 GW of clean energy by 2030, the government has also budgeted an additional investment of more than USD 30 billion, or 2.44 lakh crore.

A high-level committee worked with states and other stakeholders to create the detailed plan, “Transmission System for Integration of over 500 GW RE Capacity by 2030.”

By laying out a comprehensive plan for the necessary transmission system to support 537 GW of renewable energy capacity by 2030, the plan represents a significant step towards realising the objective of integrating 500 GW of non-fossil fuel-based capacity by 2030.

500 GW of non-fossil fuel will require additional transmission systems, which are expected to cost around 2.44 lakh crore. These systems will include 8,120 ckm (circuit kilometres) of high voltage direct current transmission corridors (800 kV and 350 kV), 25,960 ckm of 765 kV ac lines, 15,758 ckm of 400 kV lines, and 1,052 ckm of 220 kV cable.

Girish Tanti, Executive Vice Chairman, Suzlon Group. said, “The year 2022 has been a remarkable year for renewables and energy transition in India. While renewable energy crosses over 165 GW of installations, the cumulative SECI bids reached over 42 GW. With our vision to commission 500 GW of renewable energy by 2030 and net zero by 2070 at COP26, this will require a significant step up of our on-ground efforts.”

He went on to say that he thinks 2023 will be one of the most significant turning points in “accelerating our energy transition journey.”

He believed that the key to ensuring that all renewable energy sources have equal opportunities to participate in India’s energy transition would be to harmonise all renewable energy policies, thereby equating the benefits and support provided to various renewable sources.

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More than half of India’s energy demand to be met by non-fossil sources by 2030

More than half of India’s energy demand to be met by non-fossil sources by 2030

Last Updated: December 18, 2022

More than half of India’s energy demand to be met by non-fossil sources by 2030

New Delhi: By 2030, India is expected to meet more than half or 62 per cent of its total energy requirements from non-fossil sources. This is around 12 per cent more than the target. At present, the country is sourcing about 42 per cent of its energy requirements from non-fossils sectors.
The total installed electricity generating capacity in the country was 409 GW, including 166 GW of renewable generating capacity (including large hydro) as of October 31, 2022, the official data indicates.
“Going by the current pace and trajectory, India is likely to source about 62 per cent of its energy requirements from non-fossil sources by 2030, exceeding the target it has set for itself for sourcing about 50 per cent of energy requirements from non-fossils sources by that year,” Additional Power Secretary Ajay Tiwari said at South Asia (BBIN) Power Summit organised by industry body Confederation of Indian Industry on Friday.
In addition, India’s electricity generation capacity will touch 820 GW by 2030, including more than 500 GW from non-fossil fuel sources, according to the power ministry. India is actively working towards a vision to have an interconnected power grid across the South Asian region covering as many countries as possible, the senior ministry official pointed out.
India has a very robust power grid running from North to South and East to West of the country. In future we would like to see the grid connected to neighbouring countries including Myanmar, Sri Lanka, and then expand that connection to Southeast Asian countries, to emerge as a unified market, he said at the event.
A discussion at the inter-government level is already happening in this regard to strengthen the cross-border grid between India and Nepal and India and Bhutan.

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