Energy Conservation Act, 2001

GS 3 – Environment

Context:
  • Enacted to promote energy efficiency and conservation in India.
  • Implemented by the Bureau of Energy Efficiency (BEE) under the Ministry of Power.
Key Objectives:
  1. Reduce energy consumption in industries, buildings, and appliances.
  2. Promote energy efficiency through standards, labelling, and incentives.
  3. Encourage adoption of renewable and efficient technologies.
  4. Develop institutional mechanisms for energy management.
Major Provisions:
  • Energy Conservation Building Code (ECBC): Sets efficiency standards for new and retrofitted buildings.
  • Designation of Energy-Intensive Industries: Industries required to report and improve energy consumption.
  • Energy Audits: Mandatory audits for designated consumers to track and optimise energy usage.
  • Standards & Labelling: Energy efficiency norms for appliances to guide consumers.
  • Financial Incentives: Rebates, tax benefits, and support for energy-saving projects.
  • Penalty Provisions: For non-compliance by designated consumers or appliances.
Recent Updates / Relevance:
  • Energy Conservation (Amendment) Act, 2022: Introduced Carbon Credit Trading Scheme (CCTS) and strengthened BEE’s powers.
  • Focus on achieving India’s Net Zero 2070 target and reducing carbon emissions.
Significance:
  • Enhances energy security by reducing dependence on fossil fuels.
  • Supports climate goals and sustainable development.
  • Encourages investment in energy-efficient technologies, creating jobs and industrial growth.
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