The Electricity Amendment Bill 2014, introduced in the Lok Sabha on Friday, lays strong emphasis on promoting renewable energy generation in the country while also aiming at increasing accountability and transparency in the functioning of regulatory bodies.
For the first time, the Bill, introduced by Power Minister Piyush Goyal, proposes to make it mandatory for any company establishing lignite and coal-based thermal power plants, to generate renewable energy.
While the amount of renewable energy to be generated by such plants will be decided later, the Bill proposes it to be not less than 10 percent of the total installed capacity of a thermal plant.
Working groupThe Planning Commission had in March 2011, constituted a working group on power sector reforms. The group had recommended several amendments to the Electricity Act 2003.
The current Bill, prepared following consultations with various stakeholders including those from central ministries, State governments, power utilities, regulatory commissions, private developers, industry associations, consumer groups, among others, seeks to usher in a further wave of reforms in the power sector.
