Energy conservation law to get a new look

  • August 6, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Energy conservation law to get a new look

Subject :Environment

Section: Climate Change

Context:

  • The Energy Conservation (Amendment) Bill, 2022, seeks to mandate use of non-fossil sources, including biomass and ethanol for energy and feedstock along with the use of green hydrogen and green ammonia.
  • It also proposes to enhance the scope of Energy Conservation Building Code and bring large residential buildings within the ambit of energy conservation regime.
  • The Energy Conservation Act, 2001 was last amended in the year 2010 to address various new factors which emerged with the development of the energy market over a period of time and to provide for more efficient and effective use of energy and its conservation.
  • In the endeavour to empower the state electricity regulatory commissions, the bill would allow the state commissions to make regulations in terms of making applications to the commission and the fees payable.
  • The bill would also empower state governments to make rules regarding fees to be levied for the services rendered by the designated agency for promoting efficient use of energy and its conservation along with the preparation of the budget of the designated agency.
  • A legal framework for a carbon market with the objective of incentivizing actions for emission reduction leading to increased investments in clean energy and energy efficiency areas
  • Along with the proposal to increase members in the governing council of the Bureau of Energy Efficiency, the bill, also seeks to empower the Bureau to make regulations regarding the agency which may be authorised to carry out the functions of the bureau and the technical qualification to test samples.
  • The bill further said that state governments shall constitute a fund to be called the ‘State Energy Conservation Fund’ for the purposes of promotion of efficient use of energy and its conservation within the state. The fund would be credited by grants and funds by the state government, Centre and any other organisation or individua
  • Under the regulatory framework for carbon credit trading, the union government or any agency authorized by it may issue carbon credit certificate to the registered entity which complies with the requirements of the carbon credit trading scheme. The registered entity shall be entitled to purchase or sell the carbon credit certificate in accordance with the carbon credit trading scheme.
  • The amendment seeks to build on the progress so far. Like the standards for appliances and equipment, energy consumption standards will be specified for motor vehicles, ships and other water vessels, industrial units, and buildings. The government will be empowered to prohibit the manufacture or import of vehicles and water vessels that do not conform to prescribed energy standards.
  • Every building —industrial, commerical, or residential—with a certain threshold of energy consumption, will have to adhere to new sustainable building codes. The buildings will be required to ensure that at least a part of their total energy consumption comes from renewable or non-fossil fuel sources.
  • India has had a scheme to incentivise energy efficiency for over a decade now. The scheme, run by the Bureau of Energy Efficiency (BEE), is called PAT (perform, achieve, and trade), and it allows units to earn efficiency certificates if they outperform prescribed efficiency standards. The laggards can buy these certificates to continue operating.
  • Domestic or regional carbon markets, though, are functioning in several places — most notably in Europe, where an emission trading scheme(ETS) works on a similar

National Hydrogen Energy Mission (NHM)

About the National Hydrogen Energy Mission:

  • Focus on generation of hydrogen from green power resources.
  • To link India’s growing renewable capacity with the hydrogen economy.
    • India’s ambitious goal of 175 GW by 2022 got an impetus in the 2021-22 budget which allocated Rs. 1500 crore for renewable energy development and NHM.
    • The usage of hydrogen will not only help India in achieving its emission goals under the Paris Agreement, but will also reduce import dependency on fossil fuels.

Hydrogen:

  • Hydrogen is the lightest and first element on the periodic table. Since the weight of hydrogen is less than air, it rises in the atmosphere and is therefore rarely found in its pure form, H2.
  • At standard temperature and pressure, hydrogen is a nontoxic, nonmetallic, odorless, tasteless, colorless, and highly combustible diatomic gas.
  • Hydrogen fuel is a zero-emission fuel burned with oxygen. It can be used in fuel cells or internal combustion engines. It is also used as a fuel for spacecraft propulsion.
  • Type of Hydrogen:
    • Grey Hydrogen:
      • Constitutes India’s bulk Production.
      • Extracted from hydrocarbons(fossil fuels, natural gas).
      • By product: CO2
    • Blue Hydrogen:
      • Sourced from fossil fuels.
      • By product: CO, CO2
      • By products are Captured and Stored, so better than gey hydrogen.
    • Green Hydrogen:
      • Generated from renewable energy (like Solar, Wind).
      • Electricity splits water into hydrogen and oxygen.
      • By Products : Water, Water Vapor
Energy conservation law to get a new look Environment