India tightens energy-efficiency rules as industrial decarbonisation accelerates

Policy push and investment scale

India’s commercial and industrial electricity demand is rising at 7.4% annually, pushing peak demand above 271 GW and driving $170 billion of investment into the energy market.

Non-fossil fuel sources now account for over 53% of India’s overall power capacity, supporting earlier achievement of its Paris Agreement climate goals.

Clean energy capacity is concentrated in Rajasthan, Gujarat, Maharashtra, Tamil Nadu, and Karnataka, which together hold over 66% of the country’s non-fossil fuel capacity.

Industrial decarbonisation measures

Industries are decoupling growth from emissions by integrating rooftop solar, hybrid battery energy storage systems, and bio-based alternative fuels to reduce diesel dependence.

For C&I users deploying hybrid storage, reported diesel backup usage has fallen by up to 80%.

Harder sectors such as steel and cement are prioritising waste heat recovery (WHR) systems, blended cement, and upgrades to energy-efficient kilns and furnaces.

Energy Conservation and grid/renewables compliance

India’s transition is anchored in the Energy Conservation (Amendment) Act, 2022, and the Draft National Electricity Policy, 2026, which emphasise greater grid integration for distributed clean energy.

The policies include explicit emissions targets, peer-to-peer energy trading via aggregators, and renewable consumption obligations requiring minimum energy shares from non-fossil sources.

Under newly established Energy Conservation Rules, 2026, 1 metric tonne of oil equivalent (mtoe) of energy consumed is valued at Rs 22,774, with the Bureau of Energy Efficiency (BEE) empowered to penalise non-compliance.

A Draft Electricity (Amendment) Bill, 2025 also proposes phasing out manufacturing cross-subsidies within five years.

Manufacturers face tighter online and physical market checks, alongside mandatory star labelling and QR code installation on consumer and industrial appliances.

BEE oversight of PAT and shift toward cap-and-trade

BEE is overseeing the final stages of PAT Cycle-VIII (2023-24 to 2025-26), targeting 0.3370 mtoe of savings across 138 designated consumers in six energy-heavy sectors.

PAT is described as a market-based mechanism that sets energy reduction targets; entities exceeding targets receive energy saving certificates that can be traded.

The article also says seven major industrial sectors are shifting to legally binding greenhouse gas (GHG) targets under the Carbon Credit Trading Scheme (CCTS), enabling 490 large-scale industries to trade carbon credit certificates based on GHG emission intensity targets.

For smaller operations, the government launched ADEETIE to support end-to-end technical upgrades and interest subventions for efficient equipment adoption.

Assistance for upgrades and WHR economics

Under ADEETIE, micro and small enterprises receive a 5% interest subvention, while medium enterprises receive a 3% subvention, with net borrowing rates reported as low as 2% for efficient equipment adoption.

The article links energy savings to waste heat recovery for cement and steel, noting that energy cost is about 40% of cement production cost.

It describes WHR power generation using heat from rotary kiln preheater and after-quenching cooler exhaust gases to produce steam for electricity generation, with typical cement plant power needs reportedly 20-30% coverable via WHR.

It also cites an earlier pathway to WHR adoption beginning in 2002 and references a Best Practice Manual for Waste Heat Recovery in Cement Sector in India issued in 2022 with European Union financial support under an EU-India Clean Energy and Climate Partnership.

Reported WHR investment potential in India in 2016 was estimated at Rs 50.81 billion.
The article also references WHR market value near $2.1 billion in 2025 and a forecast to $4,227.5 million by 2034.

MNRE approves Rs 2.59 billion HRD programme covering 2026-27 to 2030-31

The Ministry of New and Renewable Energy (MNRE) has approved the continuation of its Human Resource Development (HRD) Programme for FY 2026-27 to FY 2030-31, with a financial outlay of Rs 2.59 billion.

MNRE says the programme is intended to develop skilled manpower to support the expansion of the renewable energy sector and India’s target of 500 GW of non-fossil fuel capacity by 2030.

Of the total outlay, Rs 2 billion is earmarked for funding new initiatives, while Rs 588.3 million is earmarked to meet committed liabilities from earlier HRD programmes.

Under the programme, MNRE targets around 700,000 man-days of training for approximately 12,500 people.

MNRE plans to expand existing workforce programmes nationwide, including Suryamitra for solar energy, Vayumitra for wind energy, Varunmitra for solar pumping, Jal Urja Mitra for small hydro, and Biomitra for bioenergy.
The programme will provide 165 national renewable energy fellowships for higher education and research.
MNRE will support hyper-localised training across 100 districts and provide grants of up to Rs 10 million for laboratory upgrades at ten higher education institutions.
A digital learning platform modelled on the iGOT platform is also planned.

Bailong unit 2 hits conventional island first concrete milestone as SPIC advances CAP1000 phase

Unit 2 conventional (turbine island) first concrete completed

Work has started on the conventional island, also referred to as the turbine island, for unit 2 at the Bailong Nuclear Power Project. The basement slab uses an integral raft foundation that is divided into nine construction zones and installed using a “skip-pour” method.

Concrete pouring in Zone 1 began on the evening of 7 August and was completed on the morning of 9 August. SPIC reported that 1,732 cubic metres of concrete were poured during 38 hours and 46 minutes of continuous work, with the project team monitoring process standards and strengthening supervision throughout the pour.

Zone 1 first concrete for unit 2 basement raft completed: 7 August (evening) to 9 August (morning)
Pour scope: 1,732 cubic metres of concrete over 38 hours and 46 minutes
Foundation approach: integral raft foundation split into nine construction zones using “skip-pour”

Milestone supports turbine foundation and basement sidewalls

SPIC said completion of the conventional island first concrete pouring for unit 2 is a key engineering milestone. The company stated it provides a foundation for subsequent turbine foundation works and basement sidewall construction, supporting overall progress on the project.

The text also notes that excavation for the nuclear island foundation pit for unit 1 began in late December 2024, with SPIC subsidiary Shanghai Nuclear Engineering Research & Design Institute (SNERDI) reporting first concrete was poured on 22 December 2025. SNERDI stated that 6,662 cubic metres of concrete were poured over just over 64 hours.

Unit 1: foundation pit excavation began in late December 2024
Unit 1 first concrete: 22 December 2025, with 6,662 cubic metres poured over just over 64 hours

Bailong phase I CAP1000 scope, investment and schedule context

The Bailong plant, located on Jiangshan Peninsula in Fangchenggang City, Guangxi Province, is planned to have six units with total installed capacity of 8.62 GWe and total investment of approximately CNY120 billion.

Phase I, covering units 1 and 2, adopts the CAP1000 design. SPIC plans to build two CAP1000 pressurised water reactors, described as the Chinese version of the Westinghouse AP1000, as the first phase of the plant.

An investment of about CNY40 billion (USD5.6 billion) is planned for the two units, which are expected to take 56 months to construct. The project also proposes building four larger CAP1400 reactors in later phases.

Phase I: two CAP1000 pressurised water reactors (units 1 and 2)
Planned investment for two CAP1000 units: about CNY40 billion (USD5.6 billion)
Expected construction duration for the two units: 56 months
Later phases: four CAP1400 reactors proposed