STRIVING FOR A MORE LEGALLY ENERGETIC INDIA

An article on Renewable Energy & the Laws governing it in India

 Introduction

Energy and Infrastructure law in India is a nascent and growing field. With the increasing awareness towards global warming and the country’s aim to adhere to the Sustainable Development Goals set by the United Nations we see a transition from the conventional sources of energy (oil/coal) to renewable sources of energy, although at a pace where the transition is with and comfort to the country. 

 In this essay we will look at the regulations around Renewable Energy in India. Are the rules and regulations adequate to start this transforming journey? Or do we require a stronger boost from the government. The applicability of energy legislation in the Indian judiciary. 

 Regulations Governing Energy Law

 The electrical sector in India is primarily governed by the Electricity Act, 2003 and Energy Conservation Act, 2001. The Electricity Act consolidates the legislation regarding the production, transmission, distribution, trading, and utilization of electricity, as well as measures aimed at promoting the development of the electrical industry. The Energy Conservation Act, 2001 establishes the regulatory structure for the effective utilization and preservation of energy. 

 The Ministry of Power is responsible for developing electrical energy, while the Ministry of New and Renewable Energy is responsible for promoting renewable energy resources in the country to support environmentally sustainable growth. To develop inter-ministerial coordination and to ensure expert assistance, the Ministry of New and Renewable Energy released the draft Renewable Energy Act in 2015. The draft proposes the establishment of the National Renewable Energy Committee and National Renewable Energy Advisory Group to that effect. 

 Energy regulation framework, sufficient or not? 

For a developing nation, it is crucial to have a robust and up-to-date legal framework that regulates energy and infrastructure development in the country. In recent years, the Indian government has been advocating for reforms in the Energy and Infrastructure sector. Significant advancements in the energy and infrastructure industry are expected in the coming years. These innovations will be driven not just by government policies but also by the needs and expectations of the general public. The focus on renewables sharpened again in the backdrop of COP28 and the sector also witnessed a revival in M&A as a consequence of the increasing economic activity. However, legislative and regulatory developments in the renewable energy sector proved to be a mixed bag – while the state of Punjab’s proposed law allowing redetermination of tariffs under long-term power purchase agreements[1] was concerning from an investor and lender perspective, the Ministry of Power’s rules on the must-run status of renewable power plants and change in law provided welcome clarity.