Electricity Act 2003

The Electricity Act 2003 sought to better coordinate development of the power sector in India, providing a comprehensive framework for power development. Key objectives include: consolidating laws relating to generation, transmission, distribution, trading and the use of electricity; and promoting competition in the industry; promoting efficient and environmentally benign policies, among others.The act recognised the role of renewable energy in the country's National Electricity Policy and in stand-alone systems. Key provisions of the act in relation to renewable energy include:- preparation of a National Energy Policy and tariff policy based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, 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;- promotion cogeneration and the generation of electricity through renewable sources by providing suitable means for connectivity with the grid and sale, and by specifying for the purchase from such sources a percentage of the total consumption of electricity in the area of a distribution licensee.

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