In a significant move towards a more sustainable and greener future, the Central Government of India, in consultation with the Bureau of Energy Efficiency vide notification S.O. 4617(E), specified the minimum share of consumption of non-fossil sources, also known as renewable energy, for designated consumers. The aim is to reduce the nation’s dependence on fossil fuels, promote clean energy sources, and combat climate change.
The notification provides a thorough plan for expanding renewable energy consumption by designated users in India. These users include energy distribution licensees as well as other specified users, such as open-access consumers and captive power users, who obtain their electricity from sources other than distribution licensees. The plan sets explicit targets for the share of various types of renewable energy sources in these designated users’ overall energy consumption. The goals are laid out year by year, with the plan spanning the years 2024-25 to 2029-30. Wind, hydro, distributed, and other renewable energy sources are included in the notification.
Designated consumers, particularly open access consumers and those with captive power plants must fulfil their renewable energy consumption targets, regardless of the specific non-fossil fuel source. These targets aim to reduce greenhouse gas emissions, combat climate change, and promote sustainable energy practices.
The notification includes measures to track and enforce compliance with renewable energy consumption objectives to ensure accountability. The Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022 allow designated consumers to accomplish these targets either directly or through Renewable Energy Certificates (“RECs”). Any failure to fulfil the stipulated renewable energy consumption targets will be deemed non-compliance, and fines will be enforced per the Energy Conservation Act, 2001.
The notification is an important step toward India’s commitment to reduce its dependency on fossil fuels and embrace renewable energy sources. The government hopes to build a more sustainable, eco-friendly, and energy-efficient future by setting clear and aggressive targets for designated consumers. This not only supports India’s international climate change goals but also promotes economic growth and job possibilities in the renewable energy sector. As the country progresses, the successful implementation of this strategy will be critical in meeting the government’s green energy goals and fostering a healthier environment for future generations.