Accelerated depreciation (AD) is a fiscal incentive which allows investors to claim 80% of depreciation in the first year, allowing them to write off the investment more quickly.
Agricultural Demand Side Management
The Agricultural Demand Side Management (ADSM) scheme targets the replacement of inefficient water pumps to reduce energy use and increase cost savings. The Bureau of Energy Efficiency (BEE) has initiated this program which is carried out through a public-private partnership mode.
Bachat Lamp Yojana
The Bachat Lamp Yojana (BLY) Programme of Activities (PoA) is a scheme developed by BEE to promote energy efficient lighting in India. Compact Fluorescent Lamps (CFLs) consume only 1/4th to 1/5th of the energy used by Incandescent Lamps (ICLs) to provide the small level of light.
Demand Side Management
Demand-side management is used to describe the actions of a utility, beyond the customer's meter, with the objective of altering the end-use of electricity - whether it be to increase demand, decrease it, shift it between high and low peak periods, or manage it when there are intermittent load demands - in the overall interests of reducing utility costs. In other words DSM is the implementation of those measures that help the customers to use electricity more efficiency and it doing so reduce the customers to use the utility costs.
Electricity Act 2003
The Electricity Act 2003 was passed by both Houses of Parliament and made effective from June 10, 2003, making it the single most important piece of legislation for the sector and effectively nullifying all earlier enactments that governed the electricity businesses of the State Electricity Boards, Licensees and other sectoral entities. This act consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conductive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies constitution of central electricity authority, regulatory commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.
Energy Conservation Act- 2001
Considering the vast potential of energy savings and benefits of energy efficiency, the Government of India enacted the Energy Conservation Act, 2001 (52 of 2001). The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country. Five major provisions of EC Act relate to Designated Consumers, Standard and Labeling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (BEE) and Establishment of Energy Conservation Fund.
The Energy Conservation Act became effective from 1st March, 2002 and Bureau of Energy Efficiency (BEE) operationalized from 1st March, 2002. Energy efficiency institutional practices and programs in India are now mainly being guided through various voluntary and mandatory provisions of the Energy Conservation Act. The EC Act was amended in 2010.
Energy Conservation Building Code
The Energy Conservation Building Code (ECBC) sets minimum energy standards for new commercial buildings with a grid-connected load of 100 kW or greater or a contract demand of 120 kVA.
An economic policy created to promote active investment in and production of renewable energy sources. Feed-in tariffs (FIT) typically make use of long-term agreements and pricing tied to costs of production for renewable energy producers. By offering long-term contracts and guaranteed pricing, producers are sheltered from some of the inherent risks in renewable energy production, thus allowing for more diversity in energy technologies
Generation Based Incentive
The Generation Based Incentive (GBI) is offered by the Indian Renewable Energy Development Agenda (IREDA) to power producers using renewable energy for generation. The incentive is in addition to the tariff approved by the State Electricity Regulatory Commissions in various states. The incentive is disbursed to the power producer twice a year and only applies to power producers that do not use the accelerated/enhanced depreciation benefits under the Income Tax Act.
Hybrid Power Systems is a combination of two different renewable energy technologies or a combination of renewable energy technology and conventional technologies that are used to provide power to remote areas.
The Jawaharlal Nehru National Solar Mission was launched on the 11th January, 2010 by the Prime Minister. The Mission has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022 is aimed at reducing the cost of solar power generation in the country through (i) long term policy; (ii) large scale deployment goals; (iii) aggressive R&D; and (iv) domestic production of critical raw materials, components and products, as a result to achieve grid tariff parity by 2022. Mission will create an enabling policy framework to achieve this objective and make India a global leader in solar energy.
Municipal Demand Side Management
The Municipal Demand Side Management (MDSM) scheme targets the replacement of inefficient street lighting and improvements in municipal water efficiency. These two areas are targeted because they municipalities spend a large portion of their budget on the energy needed to provide street lighting and water.
National Action Plan for Enhanced Energy Efficiency
The National Action Plan for Enhanced Energy Efficiency is an initiative of the Government of India targeted on improving the efficient use of energy across the country. This Mission is based on the Energy Conservation Act of 2011 and is one of the eight Missions created under India's National Action Plan for Climate Change.
National Electricity Policy
Under the provision of Section 3(1) of Electricity Act, 2003, the central government has notified National Electricity Policy (NEP) on February 12, 2005. NEP is one of the key instruments for providing policy guidance to the Electricity Regulatory Commissions for discharge of their functions and to the Central Electricity Authority for preparation of the National Electricity Plan. The Policy aims at accelerated development of the power sector, providing supply of electricity to all areas and protecting interests of consumers and other stakeholders keeping in view availability of energy resources, technology available to exploit these resources, economics of generation using different resources and energy security issues. The Policy bestows CTU and STU with the responsibility of transmission network planning and expansion at the central and state level respectively. Besides it envisions an appropriate transmission pricing mechanism to be implemented across India.
National Electricity Plan
As per Section 3 of the Electricity Act 2003, Central Electricity Authority (CEA) has been entrusted with the responsibility of preparing the National Electricity Plan in accordance with the National Electricity Policy and notifies such plan once in five years.
National Tariff Policy
In pursuance with Section 3 of the Electricity Act 2003, the Central Government notified the National Tariff Policy on January 6, 2006. According to the Act, the CERC and SERCs are to be guided by the Tariff Policy in framing its regulations. Also, the SERCs are expected to follow the principles and methodologies specified by the CERC for generation and transmission. Forum of Regulators is expected to facilitate consistency across SERC regulations especially in distribution. The Tariff Policy recognizes that it is important to balance the requirement of providing fair and appropriate return on investment to attract investments in the sector and to ensure reasonability of user charges for the consumers.
Open Access refers to the non-discriminatory provision for allowing access to and use of transmission lines, distribution systems, or associated lines or systems by any licensee, consumer, or person engaged in energy generation in accordance with the regulations specified by the appropriate commission.
Perform, Achieve & Trade
The Perform, Achieve & Trade (PAT) mechanism is a market-based trading program to incentivize large, energy-intensive industries to reduce their energy consumption. Companies are allocated a number of credits based on energy use targets established by BEE. Companies can purchase or sell credits as needed so that they have the same amount of credits as energy used. The first cycle of the PAT is from FY2013 through FY2015. Approximately 470 Designated Consumers (DCs) are required to participate in the first cycle. The DCs must demonstrate compliance with the individual targets established by BEE by the end of the first cycle.
Renewable Energy Certificate
Renewable Energy Certificates (REC) represents the attributes of electricity generated from renewable energy sources. These attributes are unbundled from the physical electricity and the two products (the renewable attributes embodied in the certificates and the electricity generated) may be sold or traded separately. A REC represents one MWh of electricity generated from renewable sources. RECs can be used by obligated entities to demonstrate compliance with regulatory requirements such as Renewable Purchase Obligations.
Renewable Purchase Obligation
A Renewable Purchase Obligation (RPO) is established by State Electricity Regulatory Commissions (SERC) on certain entities mandating a certain portion of electricity generation be generated with renewable energy. For obligated entities that cannot meet the RPO through direct generation, they can purchase Renewable Energy Certificates (REC) representing the generation of electricity from renewable sources by other entities. Obligated entities are primarily electricity distribution companies, captive consumers, and open access users. RECs are issued to companies that produce power from renewable sources and opt not to see it at a preferable tariff to a distribution company.
Renewable Regulatory Fund
The Renewable Regulatory Fund (RRF) regulations require wind and solar projects that meet certain criteria to forecast and schedule their power on a day-ahead basis.
The wind/solar generators shall be responsible for forecasting their generation up to accuracy of 70%. Therefore, if the actual generation is beyond +/- 30% of the schedule, wind/solar generator would have to bear the UI charges. For actual generation within +/- 30% of the schedule, no UI would be payable/receivable by Generator, The host state, shall bear the UI charges for this variation, i.e. within +/- 30%. However, the UI charges borne by the host State due to the wind/solar generation, shall be shared among all the States of the country in the ratio of their peak demands in the previous month based on the data published by Central Electricity Authority (CEA), in the form of a regulatory charge known as the Renewable Regulatory Charge operated through the Renewable Regulatory Fund. This fund shall be operated by National Load Dispatch Centre.
Standard & Labelling
The Standard & Labelling (S&L) scheme provides consumers with information on the energy use for certain appliances and equipment, allowing them to make informed decisions about the energy use and costs associated with this appliances/equipment. The S&L scheme is voluntary and currently includes air conditioners, refrigerators, Tubular Fluorescent Lamps (TFLs), and distribution transformers. Under this scheme, minimum energy performance standards for this appliances/equipment have been established and energy performance labels are provided with the appliance/equipment.