Energy Conservation Act, 2001


The Energy Conservation Act, 2001 consists of the provisions regarding the protection of energy resources and controlling and maintaining the resources of energy. This law provides the standard for maintaining energy consuming tools and guidelines for the conservation of energy. There are around 10 chapters along with 62 sections. The act consists of different chapters such as preliminary, Bureau of energy efficiency, transfer of assets and liabilities of energy management centre to Bureau, powers and functions of Bureau, powers of the state and central government, penalties, appellate tribunals for energy conservation and miscellaneous, etc.


The very primary purpose of the Energy Conservation Act, 2001 is to provide the basic framework and guidelines regarding energy, also it aims to provide the provisions which support the conservation of energy. The act aims to furnish the systematic utility of energy and services.


Some of the essential characteristics of this act are Energy conservation building code (ECBC), standards and labelling, demand-side management, Bachat lamp yojana, promoting energy efficiency in small and medium enterprise designated consumers, certification of energy managers and energy Auditors.

  • Standard and labelling- Firstly, this act fixes the set of standards for particular apparatus and tools to provide guidelines for its use or utilization and its conducting. The act consists prohibiting of the production, assembling, or selling of any appliances which are not according to the guidelines or standards provided by the act.

The act established compulsory labels as per the standards. There are practical examples such as, in our day to day life, we often have seen many machines or tools which contains some stars that represent which kinds of powers consumption can be done with the established and that can be easily understood by the customers.

  • Designated consumer- The act lays down about designated consumers that they must obtain energy examined by authorized or certified firms and energy inspection held by an authorized or certified energy auditor.
  • Energy conservation building codes (ECBC)- Bureau of energy efficiency is a body that constructs the instructions regarding ECBC. It lays down the lesser needs for the energy-efficient design and making of buildings. The norms are applicable for 3 types of the establishment of building such as compulsory for commercial buildings consisting connected load of less than or equal to 500-kilo workload or contact demand of less than or equal to 600-kilo workload. Also, applicable for air-conditioned areas of less than or equal to  1000 square meters including existing blogs.
  • Energy conservation fund- This act also constitutes the financial resources for energy conservation for the purpose of providing the advancement or degradation of the company which serves the energy, and secondly for serving the research and development demonstration and for creation of testing facilities awareness creation such as advertisement we are on television or get from radio or similar platform.
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  • Bureau of Energy Efficiency (BEE)- According to the Energy Conservation Act, 2001, it is an agency which plays a very essential role in conserving energy, it is a mechanism which operates the implementation of provisions of the energy conservation act by the firms or companies who are requires or suppose to act as per the provisions of the act, Also other works of BEE are such as Quick coordination, policy research, promotion of energy efficiency, development of new financial instruments, reduce the intensity in the Indian economy, etc.
  • Central or state government in the respect of the act- In the aspect of this act, the central government shall be there to notify rules and regulations under the provisions of the act, also it shall have to coordinate with the state government, penalties and adjudication. And, concerning this act, the state government shall have to amend energy conservation building codes to suit the regional and local climatic conditions and to consists state energy conservation fund for the advancement of energy efficiency, etc.

According to the Energy Conservation Act, 2001, if any person performs contradictory to the provisions given under the act then he shall be liable for the offence under this act and shall be liable for the penalty that he shall be liable to pay the fine which is the amounts not exceeding to the amount ₹ 10,00,000.


There is a very pivotal role of BEE in conserving energy as per the Energy Conservation Act, 2001. The major role of BEE is to arrange the yardstick and description of apparatus and tools, and also it evolves the assigned consumers. As well as it plays an essential role in accreditation procedure, specify certification, serving for building codes, sustaining the fund of energy conservation by central, handle the advancement functioning in coordination with the central and state action, fabricate or produces the alertness and attention about energy conservation, converting the market into an energy efficiency platform, etc.


The very Energy Conservation Act, 2001 is the statute formed for the regulation of energy resources, which comprises the provisions that in regards to conserve the energy resources and preclude the exploitation or misuse of energy resources. It constitutes the standard and legal framework in order to protect energy resources.

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