Emerging and developing countries have 80% of the world’s population but consume only 30% of
global commercial energy. As energy consumption rises with increases in population and living
standards, the need to expand access to energy in new ways is growing as is the awareness of the
environmental costs.
1. Energy definition and its history, need, etc.
2. Fundamental right to access energy.
Energy is a fundamental physical concept, plays an important role to satisfy basic human needs and
to achieve the goals of social welfare and country’s economic development. The report of the UN
Advisory Group on Energy and Climate Change breaks down energy access into incremental levels of
basic human needs; productive uses; and modern society needs. ‘Basic human needs’ is the level
that is used for forecasts of costs for universal energy access. This includes “electricity for lighting,
health, education, communication and community services (50-100 kilowatt hours per person per
year)” and “modern fuels and technologies for cooking and heating (50-100 kilograms of oil
equivalent of modern fuel or improved biomass cook stove).” Access to energy is essential for the
basic amenities required for sustenance of life including clean water, shelter, sanitation and
healthcare and for the provision of reliable and efficient lighting, heating, cooking, mechanical
power, transport and telecommunications services. It is an alarming fact that today billions of people
lack access to the most basic energy services: as World Energy Outlook 2014 shows nearly 1.3 billion
people are without access to electricity and 2.7 billion people rely on the traditional use of biomass
for cooking, which causes harmful indoor air pollution. As per Census of India, 2011 Report more
than a third of the country’s households primarily rely on sources other than electricity for their
lighting needs. The Census Report also indicates that nearly two thirds of the households in the
country use fuels such as firewood, dung-cake, charcoal and agricultural residue for their cooking
needs. As a result of this lack of modern energy provisions, a large portion of household demand is
met through energy sources which do not form part of the formal energy accounting process. The
total non-commercial energy consumption in India (firewood, animal dung, agricultural reside, etc.)
is estimated to be more than 150 MTOE, nearly 20%- 25% of the total purchased energy
consumption.
Energy use is closely linked to a variety of social issues, including poverty alleviation, population
growth, urbanization, and a lack of opportunities for development. Access to energy is integral to
overcoming poverty is nowadays widely accepted and recognized in the international community, as
without energy access people are destined to live in poverty. Recognizing the positive link between
modern energy services and employment the World Energy Assessment 2004 Update noted that,
“productive uses of energy provide employment opportunities and reduce the necessity to migrate
to urban areas for employment. Productive uses allow income-generating opportunities that can
help pay for the energy service, thus making them more affordable and sustainable.” From energy
perspective the concept of sustainability calls for utilization of available resources to improve quality
of life of people without harming the interest of the future generations, both from the point of
availability of resources as well as degradation of the environment beyond the inherent corrective
capability of natural processes. As the conventional sources of energy are limited and some of them
causes pollution as well which harms environment, thus need of clean energy is at high importance.
History of energy sector, liberalization of energy sector india:
Energy sector liberalization took place in the early 1990s to attract the involvement of private sector.
Considerable emphasis has been given to private investment and broad policy changes have been
made during the year 1991 to reduce Government control over diverse sector in the economy
including the energy sector. In continuation to this major policy reforms, transmission sector was also
opened for private investments subject to approval of Power Grid Corporation of India Limited
(PGCIL) as Central Transmission Utility (CTU) in 1998. In line with overall economic reforms initiated
by the Government in the early nineties the Electricity Act, 2003 came into existence to bring several
regulatory and structural reforms required to foster competitive markets and encourage private
participation. Recognizing electricity trading as a separate line of business, the Government also
unveiled several programmes, ranging from bringing about efficiency in power generating segment
through introduction of super critical technology, to upgrading the existing transmission and
distribution network, penetration of commercial energy in rural areas etc
Issues of energy sector in India:
The key issues facing India with major energy implications are rising population; need for economic
growth; access to adequate commercial energy supplies and financial resources; need for the
rational energy pricing regime by doing away subsidies; improvements in energy efficiency of both
energy supply and consumption; technological upgrades; matching research and development base;
and environmental protection.53 It has been rightly stated that in the energy sector, India faces the
twin challenges of meeting escalating domestic energy demand as well as reducing the carbon
intensity of energy.54 The current energy mix in India is carbon-intensive, and coal, being the cost
indigenous resource, continues to be the primary energy source. India’s primary energy consumption
is dominated by fossil fuels55 which are directly connected with the higher carbon dioxide
emissions.56 Thus, the Government policy and law should be organized in such manner that it will
expand energy access, mitigate energy security and climate change, in addition to promoting
economic liberalization.
Energy sector in India is structurally handled by five separate ministries51 which work in silos and
make independent policy and decisions which are neither optimal nor in the interests of the country.
3. Type of energy sector and their concerning laws:
- Nuclear Energy
- Oil and Natural Gas
- Renewable energy
4. Ecological concern of the energy sector, their impact on the environment.
- Non-renewable sources of energy and impact on the environment
Coal is the most abundant fossil fuel in the world with an estimated reserve of one trillion metric
tons. Most of the world’s coal reserves exist in Eastern Europe and Asia, but the United States also
has considerable reserves. Coal formed slowly over millions of years from the buried remains of
ancient swamp plants During the formation of coal, carbonaceous matter was first compressed into a
spongy material called “peat,” which is about 90% water. As the peat became more deeply buried,
the increased pressure and temperature turned it into coal. Coal mining creates several
environmental problems. Coal is most cheaply mined from near-surface deposits using strip mining
techniques. Strip-mining causes considerable environmental damage in the forms of erosion and
habitat destruction. Sub-surface mining of coal is less damaging to the surface environment, but is
much more hazardous for the miners due to tunnel collapses and gas explosions. Currently, the world
is consuming coal at a rate of about 5 billion metric tons per [Link] main use of coal is for power
generation, because it is a relatively inexpensive way to produce power. Coal is used to produce over
50% of the electricity in the United States1. In addition to electricity production, coal is sometimes
used for heating and cooking in less developed countries and in rural areas of developed countries. If
the consumption continues at the same level, the current reserves will last for more than 200 years2.
The burning of coal results in significant atmospheric pollution. The sulfur contained in coal forms
sulfur dioxide when burned. Harmful nitrogen oxides, heavy metals, and carbon dioxide are also
released into the air during coal burning. The harmful emissions can be reduced by installing
scrubbers and electrostatic precipitators in the smokestacks of power plants. The toxic ash remaining
after coal burning is also an environmental concern and is usually disposed into landfills.
Oil
Crude oil or liquid petroleum is a fossil fuel that is refined into many different energy products (e.g.,
gasoline, diesel fuel, jet fuel, heating oil). Oil forms underground in rock such as shale, which is rich in
organic materials. After the oil forms, it migrates upward into porous reservoir rock such as
sandstone or limestone, where it can become trapped by an overlying impermeable cap rock. Wells
are drilled into these oil reservoirs to remove the gas and oil. Over 70 percent of oil fields are found
near tectonic plate boundaries, because the conditions there are conducive to oil formation. Oil does
cause environmental problems. The burning of oil releases atmospheric pollutants such as sulfur
dioxide, nitrogen oxides, carbon dioxide and carbon monoxide. These gases are smog-precursors that
pollute the air and greenhouse gases that contribute to global warming. Another environmental
issue associated with the use of oil is the impact of oil drilling. Substantial oil reserves lie under the
ocean. Oil spill accidents involving drilling platforms kill marine organisms and birds. Some reserves
such as those in northern Alaska occur in wilderness areas. The building of roads, structures and
pipelines to support oil recovery operations can severely impact the wildlife in those natural areas.
Oil shale and Tar Sands
Oil shale and tar sands are the least utilized fossil fuel sources. Oil shale is sedimentary rock with very
fine pores that contain kerogen, a carbon-based, waxy substance. If shale is heated to 490º C, the
kerogen vaporizes and can then be condensed as shale oil, a thick viscous liquid. This shale oil is
generally further refined into usable oil products. Production of shale oil requires large amounts of
energy for mining and processing the shale. Indeed about a half barrel of oil is required to extract
every barrel of shale oil. Oil shale is plentiful, with estimated reserves totaling 3 trillion barrels of
recoverable shale oil. These reserves alone could satisfy the world’s oil needs for about 100 years.
Environmental problems associated with oil shale recovery include: large amounts of water needed
for processing, disposal of toxic waste water, and disruption of large areas of surface lands. Tar sand
is a type of sedimentary rock that is impregnated with a very thick crude oil. This thick crude does
not flow easily and thus normal oil recovery methods cannot be used to mine it. If tar sands are near
the surface, they can be mined directly. In order to extract the oil from deep-seated tar sands,
however, steam must be injected into the reservoir to make the oil flow better and push it toward
the recovery well. The energy cost for producing a barrel of tar sand is similar to that for oil shale.
The largest tar-sand deposit in the world is in Canada and contains enough material (about 500
billion barrels) to supply the world with oil for about 15 years. However, because of environmental
concerns and high production costs these tar sand fields are not being fully utilized.
Nuclear Power
In most electric power plants, water is heated and converted into steam, which drives a turbine-
generator to produce electricity. Fossil-fueled power plants produce heat by burning coal, oil, or
natural gas. In a nuclear power plant, the fission of uranium atoms in the reactor provides the heat to
produce steam for generating electricity. Originally, nuclear energy was expected to be a clean and
cheap source of energy. Nuclear fission does not produce atmospheric pollution or greenhouse gases
and it proponents expected that nuclear energy would be cheaper and last longer than fossil fuels.
Unfortunately, because of construction cost overruns, poor management, and numerous regulations,
nuclear power ended up being much more expensive than predicted. The nuclear accidents at Three
Mile Island in Pennsylvania and the Chernobyl Nuclear Plant in the Ukraine raised concerns about the
safety of nuclear power. Furthermore, the problem of safely disposing spent nuclear fuel remains
unresolved. The United States has not built a new nuclear facility in over twenty years, but with
continued energy crises across the country that situation may change.
5. Importance of clean energy for sustainable future of country, Laws
regarding clean energy.
Coal, oil, and natural gas fuel the majority of electricity generation around the world. Burning of
these fossil fuels has resulted in more than one-third of global greenhouse gas emissions, which in
turn is responsible for drastic climate change, depletion of the ozone layer, melting polar caps and
the rise of the sea level at an alarming rate. Ironically, more than 1.3 billion people in the world still
lack access to electricity that could help them raise their standard of living.11 Among the biggest
chunk of this population, are the natives of rural India. The new policies aim to reduce this number
and provide cleaner, more economic and dependable sources of energy. However, there are certain
challenges that India faces before there can be a successful transition by the country to clean energy.
These challenges include heavy dependence on unclean and archaic sources of energy, widespread
use of obsolete technologies and inefficient electric power distribution, among other issues.
As per the 2011 Census, almost 85% of rural households were dependent on traditional biomass
fuels for their cooking energy requirements. According to the NSSO Reports (55th, 61st and 66th
Rounds), there has been an increase in biomass fuel use in terms of absolute quantity consumed
over the past decade among rural households. This is due to the non-availability of fuel with high
calorific value. Lack of investment towards generation of clean energy sources has forced a major
section of the population to fall back on cheap and low grade fuel sources such as agriculture
residue, especially sugar cane residues and even rubber tyres.12 There are many health hazards
caused by such fuels and when discharged excessively into the environment, the residue may poison
the soil, kill aquatic life forms, create stink and air pollution, and even cause eutrophication13 of
lakes and rivers.
Another challenge faced by the Government in the successful transitioning to a clean and efficient
source of energy is the overdependence of the rural population on biomass, which is putting
enormous stress on natural resources.14 Though initially advertised as a renewable source of energy,
it is only recently that experts have realized the true nature of converting biomass into fuel, viz; as a
highly inefficient process which is hardly carbon neutral. Furthermore, an additional and potentially
damaging effect of biomass to a steady carbon emission from burning of other fuels such as coal is a
cause of concern for many people as most of the coal utilized for power generation sector in India is
extracted from the Gondwana Coal Reserves. This coal is of low quality with low calorific value and
high ash content. While electricity is available in many regions, people continue to use obsolete
technology such as tungsten bulbs and old models of air conditioners and refrigerators. The
appliances used in India.
6. what are environmental laws that address energy sector?
LEGAL FRAMEWORK
Constitutional Provisions The Constitution of India is a recent legislation vis-à-vis the oldest electricity
legislation in India. However, post-Independence, the Constitution of India, 1950 is the most sacred
legal document in the country. All the power/ duties/ legality of any legislation flows from the
Constitution. India follows a federal set up, which has been recognised in the Preamble to the
Constitution. There is a clear division of powers between the Centre and the State. Schedule VII of
the Constitution provides for a clear demarcation of subjects between the Centre and the State for
the purpose of avoiding any situation of overlap. List I contains 97 subjects over which the Centre has
the power of legislate. List II contains state subjects, over which only the respective States have the
authority to legislate. List III is the concurrent list, which contains those subjects over which both the
Centre and the State can legislate. Entry 38 of List III contains ‘Electricity’.4 Therefore, both the
Centre and the State can legislate in this subject area. By virtue of the powers to legislate been given
to the Centre and the State, there can be a situation wherein both have legislated on a subject. The
Supreme Court in several cases has opined and propounded the ‘Doctrine of Eclipse’, according to
which the Union legislation shall prevail over the one enacted by the State. In case of overlap, the
state law shall be inoperative to the extent of inconsistency. The rest of the law shall be applicable.
An example of the above situation is the State Electricity Reform Laws which were enacted before
the enactment of the Electricity Act, 2003. After the enactment of the latter, the former were
inapplicable to the extent of inconsistency.
The Energy Conservation Act 2001
The increasing preference of commercial energy has led to considerable spurt in the demand for
electricity and fossil fuels. There is enormous potential for reducing energy consumption by adopting
energy efficiency measures in various sectors. The Energy Conservation Act is a statutory measure to
regulate the energy efficiency and conservation due to an increase in the demand for electricity and
fossil fuel and an increasing dependence on commercial energy. The Act tries to promote energy
efficiency in the commercial sector, which is the largest user of energy. This would reduce the
pressure on already existing resources and would be beneficial to the environment, as there will be
drastic reduction in greenhouse gas emissions.
This Act is very similar to the Environment Protection Act, 1986 with regard to delegated legislation.
The legislation for efficient use of energy and its conservation purposes to provide for a Bureau by
merging existing Energy Management Centre to effective co-ordinate with designated consumers and
agencies for performing such functions and exercise such powers which may be necessary for
efficient use of energy and its conservation. Further, the Act confers power upon the Central
Government and state government for enforcing the provisions of the legislations; establish a fund
called the Energy Conservation Fund separately by the Central Government and the state
governments; impose penalties in case of contravention of provisions of the proposed legislation;
and prescribe the procedure for adjudication of the penalties and appeal to the High Court. The Act
clearly states the objective for ‘providing for efficient use of energy and its conservation and for
matters connected therewith or incidental thereof’, where energy is defined as any form of energy
derived from fossil fuels, nuclear substances or materials, hydroelectricity and includes electrical
energy or electricity generated from renewable sources of energy or bio mass connected to the grid.
A statutory authority ‘Bureau of Energy Efficiency’ is established under the Act.5 The management of
the Bureau is vested in the Governing Council.6 The Central government can appoint twenty to
twenty six members which includes the Secretary of various Resource Departments related with
energy and representing the state governments, industry, equipment and appliance manufacturers,
architects and consumers. The Act specifies the structure of the Bureau clearly in the subsequent
provisions. The Energy Management Centre is completely made a part of the Bureau. The powers
and functions of Bureau in promoting the objectives of the Act is that the Bureau shall coordinate
with designated consumers, designated agencies and other agencies and utilize existing resources
and infrastructure in performing the functions assigned to the Bureau.7 The Bureau has
recommendatory power to recommend to the Central Government the norms for process and
energy consumption standards, particulars for labeling on equipment or appliance, for notifying any
user or class of users as designated consumers. The Bureau shall prescribe guidelines for the energy
conservation code, prescribe qualifications for appointment of energy manager and engagement of
accredited energy auditors by the designated consumers and other functions specified to promote
energy conservation.
Powers have also been given to the Central Government to enforce efficient use and consumption of
energy in consultation with the Bureau regarding the norms for process and energy consumption
standards for any equipment or appliance which consumes, generates, transmits or supplies energy;
specify equipment or appliance for purpose of the Act; prohibit manufacture or purchase or sale of
certain equipment or appliance unless it conforms to energy consumption standards; direct display
of certain particulars on the label of equipment or appliances; specify a designated consumer; direct
them to comply with energy consumption standards or norms; direct energy audit to be conducted
by energy intensive industries specified in the Schedule to the Act or by the designated consumer;
prescribe energy conservation code; direct designated consumer to prepare scheme in respect of
conservation of energy and implement such scheme and to get energy audit conducted in the
building and with concerned state governments in relation to energy consumption building code.
Power has also been conferred upon the state government to enforce relevant provisions, in
consultation with Bureau, for efficient use of energy and its conservation. It may amend the energy
conservation building codes, notify a designated consumer who is an owner or occupier of a building
or building complex to comply with the provisions of the codes and to get an energy audit conducted
by an energy auditor, notify to furnish the information with regard to energy consumed by a
designated consumer, take measures to create awareness and disseminate the information for
efficient use of energy and its conservation etc. A state Energy Conservation Fund is established to
meet the expense incurred for implementing the provisions of the Act.
The Central Government and the State Government have been given the powers to issue the
directions, which will bind the person concerned to further the purpose of the Act. The penalty for
non-compliance for certain provisions is specified. The penalty is Rs. 10,000 and below for each
failure and continuance of failure to comply may extend to Rs. 1000 for every day of such failure. The
proviso to the section on penalty lays down that no person shall be liable to pay penalty within five
years from the commencement of the Act. The amount, if not paid, may be recovered as if it were
arrears of land revenue. Under the Act, appellate tribunal shall be established to hear appeals
against the orders of the adjudicating officer or the Central Government or the State Government.
Civil Court has not been given jurisdiction explicitly. The structure of the appellate tribunal has been
specified.
Also, specifications for appeal to appellate tribunal have been clearly stated. An appeal to Supreme
Court lies on the decision or order of the appellate tribunal.16 Power has been conferred upon the
Central Government to supersede the Bureau in specified circumstances.17 Default by companies is
covered, where the person in-charge shall be liable to be proceeded against and penalty can be
imposed unless the person in-charge proves that the failure of compliance waseither without his
knowledge or that he had exercised all due diligence required to prevent the contravention.18 The
power to exempt only the designated consumer or class of the designated consumer is with the
Central Government or the State Government based on the public interest. The exemption should be
in consultation with the Bureau and should not exceed five years.
The power to make rules has not been specified for the Central and State Government. Central
Government has been given the power to issue directions to the State Government or Bureau for the
execution of this Act in the state. The power of the Bureau to make regulations has also been
specified. Every rule and regulation needs to be laid before Parliament and state legislature in
accordance to the specification laid down. Power to remove any difficulty, which may arise in giving
effect to the provision, is being given to the Central Government. The Act explicitly excludes the
application of the Act on certain ministries or as may be notified by the Central Government.
OTHER PERTINENT LEGISLATIONS THAT IMPACT ON ENERGY CONSERVATION
The Energy Conservation Act fails to address the issue of conservation of energy at a source point
and in other sectors. This can be fairly addressed by amending various Acts which directly concern
the energy resources. The non-existence of this aspect in the laws is because energy conservation
was never prioritized as a matter of urgent concern. With the urgency felt today, the laws need to be
amended for satisfying the objective of efficient use of energy and its conservation. The list of laws is
innumerable. Several other amendments need to be brought about in various other laws to fill the
lacunae of the New Energy Conservation Act.
The Coal Mines (Conservation and Development) Act 1974 The Act directs the owners of the coal
mines to conserve coal.22 Section 2 specifically of the Act may be amended to include the definition
of conservation.
Electricity (Supply) Act 1948 The Preamble of the Act should itself contain the objective of
conservation. An amendment should be brought in this regard by making electricity boards furnish
annual reports showing action taken by them in regard to energy conservation. The electricity board
should be made responsible for efficient supply of electricity. Similar responsibility should be placed
on the licensee.23 Further, the Act should make it clear that nothing in the Section shall apply to any
energy generated by means of cogeneration24. Also, the Act should be amended so as to include
licensee or any other person to pay all fines.
The Essential Commodities Act 1955
The Act should be amended to include conservation and efficient production with maintaining or
increasing supplies of any essential commodity.
The Indian Electricity Act 1910 The Preamble to the Act should include conservation of electrical
energy. Under the Act, the Central Electricity Board may make rules to regulate the generation,
transmission, supply and use of energy. This should be amended so that all these processes are
regulated for energy efficiency.26 Either amendment to this effect should be brought to explicitly
mention energy efficiency or regulation should be read so as to include energy efficiency. Also, the
Act may be amended to secure efficient supply of energy.
The Mines Act 1952 The Act provides for one manager to be responsible for the control,
management, supervision and direction of the mine. The Act should also include conservation as one
of the responsibilities of the manager.
The Mines and Minerals (Regultion and Development) Act 1957 Provisions need to be made to
conserve petroleum and coal resources.
Motor Vehicles Act 1939 Under the Act, every motor vehicle should be so constructed so as to meet
the fuel efficiency standards prescribed by the government under this Act or any other law. A new
clause may be added to include fuel efficiency as one of the criteria for which Central Government
may make regulating rules.
The Oil Industries (Development) Act 1974 Under the Act provision should be added as scientific
research for conservation of oil in industries and appliances and prescribing conservation wherever
measure.
The Oilfields (Regulation and Development) Act 1948 The Preamble of the Act should be so
amended to include conservation with development of mineral oil resources.
The Oil and Natural Gas Commission Act 1959 Under the Act, the Commission has the function of
planning, promoting, organizing and implementing programs for development of petroleum
resources. The section should be so amended to include development in the most efficient
manner.32 The Commission should also take such steps so as to conserve petroleum resources
where possible. The Commission has to furnish returns and statements and particulars regarding any
proposed or existing programme for development. This section should be so amended to include
development and conservation.
The Land Acquisition Act 1894 Under the Act, the definition of ‘public purpose’ should be expanded
to include the provision of land for promoting energy conservation programme.33 The Dabhol Power
Company was a company based in India, formed to manage and operate the Dabhol Power Plant.
The Dabhol plant was built through the combined effort of Enron, GE, and Bechtel. GE provided the
generating turbines to Dabhol, Bechtel constructed the physical plant, and Enron was charged with
managing the project through Enron International.
7. Environmental loss in energy infrastructure development, how can legal
framework reduce it?
8. How interdisciplinary study of environment and energy is important and
how legal perspective as an independent discipline for this crucial.
