New Rules Notified By Power Ministry To Ensure Sustainability
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Highlights:
♦ New rules will reduce the financial stress of various stakeholders.
♦ It will also assure timely recovery of costs incurred in electricity generation.
♦ It will support clean energy for ensuring suitability and meeting the commitment made by India towards climate change.
♦ Investors and other stakeholders across the power sector had been worried about the timely return of costs acquired due to changes in law and the reduction of renewable power.
♦ New rules will help achieve the goal of RE generation and help ensure that the consumers get green and clean power. They will also secure a healthy environment for the future generation.
Electricity Act, 2003
♦ The Ministry has notified new rules under the Electricity Act, 2003. The rules comprise of:
Electricity (Timely recovery of costs due to Change in Law) Rules, 2021.
Electricity (Promotion of generation from renewable energy sources by addressing Must Run and other matters) Rules, 2021.
♦ As per the ministry, timely recovery of the costs because of a change in the law is significant because investment in the power sector depends on timely payments.
♦ The energy transition is happening across the world. India has also made commitments for bringing energy transition.
♦ India also announced an international commitment for setting up 175 GW of renewable energy (RE) capacity by 2022 and 450 GW of energy by 2030.
