The purpose of this Act is to regulate the generation, distribution, transmission and trading of electricity. The Act contains key provisions in relation to renewable energy including: the preparation of a National Electricity Plan, by the Central Government in consultation with State Governments, based on the optimal utilization of resources such as coal, natural gas, nuclear substances, hydro and renewable sources of energy; the specification, by state electricity commissions, of the terms and conditions for the determination of tariffs, as guided by the promotion of cogeneration and the generation of electricity from renewable sources; and the promotion, cogeneration and the generation of electricity through renewable sources by providing suitable means for connectivity with the grid and sale of electricity, and by specifying for the purchase from such sources a percentage of the total consumption of electricity in the area of a distribution licensee. The generation of electricity shall not need a licence if the generating station complies with specific technical standards. However, hydro-projects shall need clearance from the Central Electricity Authority. Furthermore, licences shall be mandatory for the transmission, distribution and trade in electricity except for persons undergoing these activities in rural areas. The Act also provides for the establishment of a Central Electricity Authority and defines its internal organization and functions. The Act further provides for the following matters: Inter-State and Intra-State transmission of electricity; distribution of electricity; tariff regulations; constitution of Regulatory Commissions; constitution of an Appellate Tribunal for Electricity; offences and penalties; constitution of Special Courts for providing speedy trials of offences referred to in the Act; etc.
India · 2003-07-10