India's energy conservation framework rests on the Energy Conservation Act, 2001, which established the Bureau of Energy Efficiency (BEE) and the Energy Conservation Building Code (ECBC) — both directly relevant to Railways, since Railways is explicitly listed as an energy-intensive industry under the Act.
Bureau of Energy Efficiency (BEE)
BEE was established on 1st March 2002 under the Energy Conservation Act, 2001, with a mission to assist in developing policies and strategies emphasising self-regulation and market principles, aimed at reducing the energy intensity of the Indian economy. Its first energy-efficiency programme (2002) covered 9 prestigious government buildings in New Delhi, and energy assessment studies there identified an average savings potential of approximately 30%.
Mandatory Energy Audit
Effective from 01.04.2006, mandatory energy audit applies to every industry with a connected load of 5 MW and above, and every building/individual installation with a connected load of 0.5 MW (500 kW) and above. These audits must be conducted by Energy Managers/Auditors certified by BEE through the National Productivity Council's National Certification Examination.
Energy Conservation Building Code (ECBC)
ECBC sets minimum energy performance standards for new commercial building construction. Commercial buildings with a connected load of 100 kW, or a contract demand of 120 kVA and above, fall under ECBC's purview under the Energy Conservation Act.
Other Provisions of the Act
- Mandatory labelling: the Act empowers standards-setting and mandatory labelling for selected appliances/equipment, and can prohibit manufacture, sale, or import of non-conforming equipment.
- Energy Savings Certificate: issued by the Central Government to a designated consumer whose energy consumption is BELOW prescribed norms; a consumer exceeding norms must purchase such certificates to comply.
- Central Energy Conservation Fund — set up to develop delivery mechanisms for large-scale adoption of energy efficiency services, such as performance contracting and promoting Energy Service Companies (ESCOs).
- Penalties, adjudication, and an Appellate Tribunal for aggrieved persons are all provided for under the Act.
- Geographic scope: the Act extends to the whole of India, with the historical exception of the state of Jammu & Kashmir (as originally recorded, pre-dating subsequent constitutional changes).