line with the energy conservation and efficiency policies of the Bureau of
Energy Efficiency (BEE) under the Ministry of Power, the Honorable Union
Minister of Power, Shri Sushilkumar Shinde, today launched the Perform, Achieve and Trade
(PAT) scheme under the National Mission for Enhanced Energy Efficiency
(NMEEE). Union Minister of state for Power, Shri K.C.Venugopal
and Power Secretory, Shri P. Uma
Shankar were also present at the inaugural function
held at Dr. D. S. Kothari
Auditorium, DRDO HQ Bhawan, New
launch of PAT scheme added another feather in the cap of BEE
, along with other ongoing popular schemes. The Government of India
notified the targets under the Energy Conservation Act, 2001 for 478 industrial
units in India on 30th March, 2012. These targets are to be achieved
by the units up to 2014-15.
Ministry of Power and the Bureau of Energy Efficiency (BEE) have been in the
vanguard of promoting the efficient use of energy and its conservation. This is
further supplemented by the National Mission for Enhanced Energy Efficiency
(NMEEE) which is one of the missions under the National Action Plan on Climate Change
(NAPCC). The PAT Mechanism is one of the initiatives under NMEEE programme. It is a market based mechanism to further
accelerate as well as incentivize energy efficiency
in the large energy-intensive
industries. The scheme provides the option to trade any
additional certified energy savings with other designated consumers to comply
with the Specific Energy Consumption reduction targets.
The Energy Savings Certificates (ESCerts) so issued
will be tradable on special trading platforms to be created in the two power
exchanges -- Indian Energy Exchange and Power Exchange India.
function was attended by senior executives of industries, energy auditors , eminent persons and senior government officials.
Speaking on the occasion, Shri Sushilkumar Shinde said, “The PAT
scheme is a unique and innovative programme with no
precedence anywhere else in the world. PAT would become a valuable model for
other countries to adopt for their own energy efficiency programmes with a
business perspective. In particular,
developing countries would have a proven framework to study and incorporate,
with the knowledge that emerging economies can achieve energy savings in a
cost-effective way that boosts economic growth. It is expected to bring a
transformational change in energy efficiency through energy intensive
The Hon. Minister of State for Power, Shri K.C. Venu Gopal, said, “Today, we are gathered here to
witness the start of one of our country’s most promising energy efficiency
initiatives. This also has very strong climate change mitigation co-benefits.
For the coming years, we look forward to an active participation from both
currently notified DCs, and from units that are going
to be included in the subsequent PAT cycles.”
to Shri P. Uma Shankar,
Secretary, Ministry of Power, “The design of PAT is the result of extensive
consultations, which have contributed to its robustness and simplicity. Upon implementation of the first cycle of
PAT, it is expected to help our country save energy to the tune of
approximately 6.6 million tonnes of oil equivalent by
the end of 2014-15.”
Shinde appreciated that the programme
covers energy conversion chain from generation to the end use by industry. He
further emphasized that at a time when growth stories are punctuated with
increased constraints of energy resource availability and emissions released to
atmosphere from the usage of such resources, promotion of energy efficiency
comes as a first choice. In the global energy discourse, there is an emerging
argument that energy efficiency should be treated as a resource as it gives the
same outcome as any other energy resource and that too at a lower cost most of
the function, Shri Shinde also launched a book on PAT
that covers a brief summary of Designated Consumers’(DC)
Energy consumption and target fixation under PAT rules. This book has been
designed to help the DCs to understand the do’s and don’ts related to the PAT scheme.
from the book, PATNET was also launched at the function. PATNET will enable the
designated consumer to fill all the formats related to PAT including Energy
return in electronic form, which further accelerates the communication of DCs with BEE.
During the first cycle of PAT scheme i.e. from 2012-13 to 2014-15,
eight energy intensive sectors such as Thermal Power plants, Iron & Steel,
Cement, Fertilizer, Aluminum, Textile, Pulp & Paper, Chlor-alkali
have been included. There are about 478 numbers of Designated Consumers in
these 8 sectors and they account for about 165 million tonnes
oil equivalent of energy consumption annually.
scheme is unique in many ways, particularly from a developing-country’s
perspective since it creates a market for energy efficiency through tradable
certificates, called Energy Saving Certificate (ESCerts)
by allowing them to be used for meeting energy reduction targets. These
certificates can be issued by any of the 478 industries who are able to exceed
their respective notified target, the value of the certificate being the excess
achievement, more than the target set. The beneficiary industry can trade this
certificate with any of the other entities (of the 478) that is unable to meet
its target. Buying ESCerts has been allowed as
sufficient fulfillment of compliance requirement without any penal action.
The PAT scheme has the makings
of becoming a benchmark for design and implementation of policies and measures.
It also highlights an innovative approach of introducing market-based
instruments within a regulatory framework to encourage compliance. Successful implementation
of the scheme could serve as a model for addressing upcoming challenges in a
transparent and economically efficient manner.