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Govt Plans To Regulate Energy Use In 9 Sectors, To Cover Around 750 Large Industrial Installations


By akansha, Section Development
Posted on Fri Jun 05, 2009 at 03:36:49 AM EST

For those complaining that India does not do much on climate change, here is a plan to look at. The government has finalised a blueprint to reduce energy consumption in the nine most energy-intensive industrial sectors of the country.

The plan mooted under the National Action Plan on Climate Change has been given final shape and will soon regulate the energy guzzled by railways, aluminium, cement, chlor-alkali, pulp and paper, fertilisers and steel industries. It will also cover power generation plants.

The plan will cover around 750 large industrial installations across the nine sectors. Only those plants which consume more than specified levels of energy annually will be targeted.

Industrial plants will be expected to achieve targets assigned to them within a 3-year period starting from the time the scheme is launched. The target for each plant will be based on the average specific energy consumption over the financial years 2005-2008.

The target will be set as a percentage of this average. The plants which are presently less energy-efficient will have to attain a higher percentage of improvement than the better performers.

The Bureau of Energy Efficiency has already started baseline studies for all these sectors and the work will be completed by 2009-end. The targets for all the sectors will be ready by March 2010.

In case of thermal power plants, the targets will be set by the Central Electricity Authority to ensure alignment of tariff-setting with the energy-efficiency goals. In case of fertiliser plants, the department of fertilisers will do the job.

Source: Times Of India Govt plans to regulate energy use in 9 sectors

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If any plant achieves savings in its energy consumption beyond the target, it will be provided energy-saving certificates after designated energy auditors check up on the performance.

Those who earn the certificates will be able to sell them to underachieving plants of any sector. The certificates will be saleable bilaterally as well as on power exchanges. This will ensure that the cost of achieving energy efficiency across the sectors will find a market-based mechanism to settle.

The financial penalty for those who do not achieve their targets either through improvement in the plant or by purchasing the certificates will be raised much higher than the existing Rs 3.74 lakh per year. The government plans to amend the Energy Conservation Act to operationalise market-based energy efficiency trading.

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