Indian Electricity Act 2003 – Relevant Clauses of Energy Conservation | New Topic [2024]

In this note, we are going to learn about Indian Electricity Act 2003 and its relevant clauses of energy conservation. Welcome to Poly Notes Hub, a leading destination for polytechnic notes for diploma and degree engineering students.

Author Name: Arun Paul.

About Indian Electricity Act 2003

The Indian Electricity Act is an extensive act of legislation that covers all elements of electricity generation, transmission, distribution, trading, and use in India. It establishes the legal framework for the operation of the electricity sector, addressing both regulatory and developmental concerns. The Act’s goal is to maintain a dependable, affordable, and sustainable electricity supply while encouraging competition, efficiency, and conservation of resources.

Objectives of Indian Electricity Act 2003 –
  1. The Act creates regulatory agencies such as the Central Electricity Authority (CEA) at the national level and State Electricity Regulatory Commissions (SERCs) at the state level.
  2. It promotes competition and fair trading practices in the electrical industry.
  3. The Act encourages the development and application of renewable energy sources, including biomass, solar, wind, and hydropower, for the production of electricity.
  4. It has clauses that safeguard consumers’ interests by ensuring the cost, dependability, and quality of the energy supply.
  5. The Act includes provisions to promote energy conservation, efficiency, and demand-side planning.

Relevant Clauses of Energy Conservation

Here are some important clauses of Indian Electricity Act 2003 about energy conservation –
  • Section 14 (d): This clause allows the Central Electricity Authority (CEA) to encourage the effective use and conservation of electricity.
  • Section 86 (1) (e): It directs the State power Regulatory Commission (SERC) to encourage co-generation and generation of power from renewable energy sources.
  • Section 14 (f): The CEA is responsible for encouraging the use of renewable energy sources to generate electricity. To this end, it may impose requirements on license holders and other electricity producers to install and maintain equipment or implement energy-saving measures.
  • Section 14 (g): Additionally, the CEA may outline the ways in which the State Electricity Regulatory Commissions (SERCs) may encourage power generation and the production of electricity from renewable energy sources, such as demand side management, energy efficiency, and conservation.
  • Section 14 (h): The CEA has the authority to establish guidelines for the installation and use of meters as well as the quality, consistency, and dependability of an electrical supply’s service.
  • Section 86 (1) (h): It gives the SERC the authority to designate a portion of its overall electricity consumption as coming from cogeneration or renewable energy sources.
  • Section 86 (1) (k): It gives the SERC permission to support renewable energy sources, energy efficiency, and energy conservation.
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