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National Electricity Policy
The Government has notified the National Electricity Policy on 12th February 2005,
which provides direction to the evolution of the power sector within the ambit of
the Electricity Act 2003. The policy objectives include demand to be fully met by
2012 and per capita availability of electricity to be increased to over 1000 units
by 2012. Various other issues listed in the policy like rural electrification, generation,
energy conservation, environmental issues, etc.
In order to minimize the overall requirement, energy conservation and demand side
management (DSM) is being accorded high priority in this policy. As per policy the
BEE would also make available the estimated conservation and DSM potential, its
staged implementation along with cost estimates for consideration in the planning
process for National Electricity Plan. As per this policy the periodic energy audits
have been made compulsory for power intensive industries under the Energy Conservation
Act. Energy conservation measures shall be adopted in all Government buildings for
which saving potential has been estimated to be about 30% energy. Solar water heating
systems and solar passive architecture can contribute significantly to this effort.
In the field of energy conservation initially the policy emphasis is on labelling
of appliances for voluntary and self-regulating initiatives. Gradually as awareness
increases, a more regulatory approach of setting standards would be followed.
Policy also emphasis on the promotion of the high efficiency pump sets and the water
delivery system in agricultural sector and adoption of energy efficient technologies
and energy audits in industrial sector. Energy efficient lighting technologies should
also to be adopted in industries, commercial and domestic establishments.
To reduce the requirements for capacity additions policy promotes the adoption of
suitable load management techniques. Differential tariff structure for peak and
off peak supply and metering arrangements (Time of Day metering) should be conducive
to load management objectives. And also the Regulatory Commissions should ensure
adherence to energy efficiency standards by utilities.
For effective implementation of energy conservation measures, role of Energy Service
Companies would be enlarged. Steps would be taken to encourage and incentivise emergence
of such companies. A National Action Plan has been developed. Progress on all the
proposed measures will be monitored with reference to the specific plans of action.
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