Power ministry proposes minimum green energy consumption for industrial units
There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate
New Delhi: As part of its strategy to promote green energy, the union power ministry has proposed a minimum share of renewable energy in the overall consumption by an industrial unit or an establishment.
This assumes significance given that of India’s total electricity demand load pattern, industrial load is the largest and accounts for 41.16%. In comparison, the agricultural and commercial electricity consumption account for 17.69% and 8.24% respectively.
“The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate," the union power ministry said in a statement on Saturday.
India’s non-fossil fuel-based capacity is on track to surpass the 40% target under its nationally determined contribution (NDC). According to the government, India has already reached 38.5% of its installed power capacity from non-fossil fuels and this will go up to 66% by 2030. Also, India has already reached an emission reduction of 28%.
“Amidst the growing energy needs and changing global climate landscape, the Government of India has identified new areas to achieve higher levels of penetration of Renewable energy by proposing certain Amendments to Energy Conservation Act, 2001. The objective will be to enhance demand for renewable energy at the end-use sectors such as Industry, buildings, transport etc," the statement added.
India is pulling out all stops to promote green energy. A recent case in point being the power ministry fast-tracking the process to create electricity transmission capacity to help solar and wind power reach from one part of the country to another.
“The proposed amendments would facilitate development of Carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid. This will help in reduction of fossil fuel based energy consumption and carbon emission to the atmosphere," the statement said.
According to the Central Electricity Authority, by 2030, the country’s power requirement would be 817GW, more than half of which would be clean energy, and 280GW would be from solar energy alone.
“Hon’ble Power Minister Shri R.K. Singh, reviewed the proposed amendments recently and directed to seek comments and suggestions from concerned Line ministries / departments and State Governments. Accordingly, a meeting was held by Shri Alok Kumar, Secretary (Power) with the stakeholders Ministries and Organizations on 28th Oct,2021 to give a final shape to the proposed amendments in the EC Act," the statement said.
As part of India’s green energy push, the government is also working on an Energy Storage policy for large-scale integration of renewable energy into the country's power system. Large storages can help keep India’s power grids stable.
“Furthermore, by adopting energy efficiency measures, India holds a potential to reduce about 550 MtCO2 by 2030. The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of economy. The provisions would facilitate promotion of green Hydrogen as an alternate to the existing fossil fuels used by the Industries," the statement said.
As part of its energy security strategy, India plans to shortly kick-start its green hydrogen pathway by calling bids for 4 gigawatt (GW) electrolyser capacity. This comes in the backdrop of Prime Minister Narendra Modi in his Independence Day speech announcing a National Hydrogen Mission. Also, the union government plans to implement the Green Hydrogen Consumption Obligation (GHCO) in fertilizer production and petroleum refining, similar to what was done with renewable purchase obligations (RPO).
“The additional incentives in the form of Carbon credits against deployment of clean technologies will result in private sector involvement in climate actions. The proposal also includes expanding the scope of Act to include larger Residential buildings, with an aim to promote Sustainable Habitat," the statement added.
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