Power ministry: New Rules notified to ensure Sustainability
The ministry of power announced new rules to ensure sustainability in the economic viability of the power sector.
Key Points
- New rules will also ease the financial stress of various stakeholders.
- It will also ensure timely recovery of costs incurred in the electricity generation.
- It will promote clean energy for ensuring the suitability and meet commitment made by India towards climate change.
What were the concerns?
Investors and other stakeholders across the power sector had been concerned about the timely recovery of costs incurred due to change in law and curtailment of renewable power.
Electricity Act, 2003
Ministry has notified new rules under the Electricity Act, 2003. They are in the interest of electricity consumers and stakeholders. The rules comprise of:
- Electricity (Timely recovery of costs due to Change in Law) Rules, 2021.
- Electricity (Promotion of generation from renewable sources of energy by addressing Must Run and other matters) Rules, 2021.
As per ministry, timely recovery of the costs because of change in law is important because investment in the power sector depends on timely payments.
Energy transition
The energy transition is happening across the world. India has also made commitments for bringing energy transition. India also announced international commitment for setting up 175 GW of renewable energy (RE) capacity by 2022 and 450 GW of energy by 2030.
Significance of new rules
New rules will help in achieving the goal of RE generation. Rules will also help in ensuring that the consumers get green and clean power. They will also secure a healthy environment for future generation.
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Month: Current Affairs - October, 2021