Home BusinessCabinet may allow trading of energy units saved
The Cabinet is likely to discuss a proposal to allow trading of energy units saved-- on the lines of sale of carbon credits-- by nine power-intensive sectors, under the clean development mechanism.
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Saving of a energy unit means achieving the targeted production by consuming energy lesser than the prescribed level. The saved units can be sold to those who consume more energy than the norm.
The proposal mooted by the Power Ministry would require amendments to the Energy Conservation Act of 2001, a source close to the development said. If the amendment goes through, the companies in power, steel, cement, fertilizer and five other sectors will be able to trade energy units saved.
The sources declined to give details about how much energy could be traded.
They, however, said this would be slightly different from sales of carbon credits under the CDM, wherein a certificate of efficiency is issued to companies on the basis of overall energy conservation.
The proposal also suggests reduction in the threshold limit of minimum load for buildings/offices to 100-kw from the existing 500-kw to bring in more commerce buildings and offices under the purview of the Energy Conservation Act.
At present, around 4,000 buildings/offices have a connected load of 500 kw or more in the country, the number is expected to surge five folds once the Act is amended.
The proposal is also not in favour of setting up an Appellate Tribunal for Energy Conservation, since there is already an Appellate Tribunal for Electricity for hearing cases under the Energy Conservation Act.