Energy is a fundamental scientific and economic concept defined as the ability to do work or cause change. It is a scalar quantity that exists in various forms, including kinetic, potential, thermal, electrical, and chemical energy. The concept's origin lies in the Law of Conservation of Energy, also known as the First Law of Thermodynamics, which states that energy can neither be created nor destroyed, but only transformed from one form to another. This principle was conclusively formulated by Julius Robert Mayer in 1842.
In the Indian context, the concept is institutionalized through the Energy Conservation Act, 2001 (Act No. 52 of 2001), enacted on September 29, 2001, to reduce the energy intensity of the economy. The Act established the Bureau of Energy Efficiency (BEE) on March 1, 2002, to implement its provisions. The mechanism of the Act includes mandating standards and labeling for appliances, setting energy consumption norms for energy-intensive industries, and enforcing Energy Conservation Building Codes for commercial buildings.
The Act was amended in 2010 to introduce the trading of Energy Savings Certificates for designated consumers, allowing those who consume less than the prescribed norms to sell certificates to those who consume more. This framework connects directly to India's broader Energy Policy, which aims to meet rising demand and reduce energy poverty. A significant recent change is India's commitment to achieve 500 GW of non-fossil fuel installed capacity by 2030. India achieved its original target of 50% non-fossil fuel installed capacity in June 2025, five years ahead of schedule, and further pledged in March 2026 to increase this share to 60% by 2035.