Why Energy Conservation Act, 2001 enacted?

The magnitude of energy consumption has always been taken as an indicator of development status of any economy. However, what actually a country requires is not energy per se but the services that energy provides. A nation can increase the service by keeping the same inefficient device and pump in more energy.

More energy will positively not accelerate the economic growth as long as economy has high-energy intensity. India's energy intensity per unit of GDP is higher by 3.7 times of Japan, 1.4 times of Asia and 1.5 times of USA, indicating to very high energy wastage. In the globalized economy, countries with high energy intensity may become uncompetitive due to high energy input cost.

Therefore, energy cost reduction must become one of the important benchmarks for economic success. Efficiency in consumption of energy and its conservation would be one of the most important means of energy cost reduction and also for meeting future energy demand. There is a huge scope of energy saving ... more.

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