Per capita consumption of energy is one of the indices for measurement of socio-economic growth of a country. Unfortunately in our country such consumption is much below the international level, even below the level of some developing countries.
Though massive capacity addition programme of 78,000 MW has been undertaken in 11th Plan, the gap between supply and demand cannot be fully met, unless we use energy efficiently. Moreover, the reserve of fossil fuel is decreasing and also causing environmental pollution. Because of cost factor and other constraints, non-conventional energy till date could not play appreciable role to meet the gap between supply and demand of energy.
In the above context, conservation and efficient use of energy in all forms has its importance to reduce the gap between demand and supply of energy, as it is the cheapest option to supply more energy to the people.
The developed countries have already taken many measures for efficient use of energy as they can afford higher consumption of energy. But in our country both conservation and efficient use require to be achieved.
With a view to achieve this objective, Government of India has enacted Energy Conservation Act. 2001 in October, 2001. The Act provides for legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country.
The Energy Conservation Act, 2001 became effective from 1st March, 2002.