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Energy Conservation Act, 2001

Considering the vast potential of energy savings and benefits of energy efficiency, the Government of India enacted the Energy Conservation Act, 2001 (52 of 2001). The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country. Five major provisions of EC Act relate to Designated Consumers, Standard and Labeling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (Bureau of Energy Efficiency) and Establishment of Energy Conservation Fund.

Bureau of Energy Efficiency (BEE)

The Government of India set up Bureau of Energy Efficiency (BEE) ( on 1st March 2002 under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 with the primary objective of reducing energy intensity of the Indian economy. This will be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.
BEE co-ordinates with Designated Consumers (DC), State Designated Agencies (SDA) and other organizations and recognize, identify and utilize the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act.

State Designated Agency (SDA)

SDAs are statutory bodies set up under Section 15 of the Energy Conservation Act, 2001 at the State level to Coordinate, Regulate & Enforce the provisions of the Act. They are the nodal agencies at State level and coordinate & cooperate with BEE at the Central level to ensure a smooth and speedy implementation of the Act in the country. SDAs have an important role to play particularly in creating public awareness and enforcement of the EC Act, 2001 at the grass root level. The Government of Chhattisgarh has notified CREDA as the SDA to coordinate, regulate and enforce the provision of the Energy Conservation Act-2001 and implement schemes under the said Act within the State of Chhattisgarh. This is a significant step forward for CREDA having additional responsibility of promoting energy efficiency and developing energy conservation projects besides facilitating renewable energy development within Chhattisgarh State.