Per­form Achieve and Trade (PAT) Scheme

Resource Digest - - CONTENTS -

The en­ergy ef­fi­ciency ini­tia­tive of the Govern­ment of In­dia in en­ergy in­ten­sive sec­tors has re­sulted in sav­ings of about 8.67 Mil­lion Tonne of Oil Equiv­a­lent (MTOE), equiv­a­lent into avoid­ing of about 31 mil­lion tonne of CO2 emis­sion. The En­ergy Con­ser­va­tion Act was en­acted in 2001 with the goal of re­duc­ing the en­ergy in­ten­sity of In­dian econ­omy. The Bu­reau of En­ergy Ef­fi­ciency (BEE) was set up as a statu­tory body in 2002 at the Cen­tral level to fa­cil­i­tate the im­ple­men­ta­tion of pro­vi­sions of the Act. The Act pro­vides a reg­u­la­tory man­date for stan­dards & la­bel­ing of equip­ment and ap­pli­ances, en­ergy con­ser­va­tion build­ing codes for com­mer­cial build­ings, and en­ergy con­sump­tion norms for en­ergy-in­ten­sive in­dus­tries. For im­prove­ment of en­ergy ef­fi­ciency in in­dus­tries and to achieve the na­tional and in­ter­na­tional tar­get of emis­sions re­duc­tion, the Per­form, Achieve and Trade (PAT) Scheme was launched un­der the Na­tional Mis­sion for En­hanced En­ergy Ef­fi­ciency (NMEEE) in the year 2012.

The PAT scheme is a reg­u­la­tory in­stru­ment to im­prove Spe­cific En­ergy Con­sump­tion (SEC) in en­ergy-in­ten­sive in­dus­tries fol­lowed by in­cen­tiviza­tion in the form of En­ergy Sav­ing Cer­tifi­cates (Escerts) which can be traded at the Power Ex­changes. PAT is a multi-cy­cle pro­gramme in which SEC re­duc­tion tar­gets are as­signed to in­dus­tries called Des­ig­nated Con­sumers (DCS) from en­ergy-in­ten­sive sec­tors for a cy­cle pe­riod of three years. These DCS are then re­quired to im­ple­ment nec­es­sary en­ergy ef­fi­ciency mea­sures to achieve the re­quired re­duc­tion in their pre­vail­ing lev­els of SEC.

PAT Cy­cle-i (2012-13 to 2014-15) was en­vis­aged to re­duce the SEC of 478 DCS from eight en­ergy-in­ten­sive sec­tors, viz Alu­minium, Ce­ment, Chlor-al­kali, Fer­til­izer, Iron & Steel, Pa­per & Pulp, Ther­mal Power Plants and Tex­tiles. The over­all en­ergy sav­ing tar­get for PAT Cy­cle –I was 6.686 Mil­lion Tonne of Oil Equiv­a­lent (MTOE) — to be achieved by the end of 2014-15. The achieve­ment in PAT Cy­cle-i is 8.67 MTOE, which is an over­achieve­ment of about 30 per cent in com­par­i­son to the as­signed tar­gets. This amount of en­ergy sav­ing is equiv­a­lent to to­tal en­ergy con­sump­tion of coun­tries such as Ice­land, Costa Rica, Kenya and Zim­babwe. The en­ergy sav­ing in­curred in cy­cle I has been con­verted to trad­able emol­u­ments in the form of Escerts. The Min­istry of Power has is­sued such Escerts to the DCS of PAT Cy­cle-i in lieu of en­ergy sav­ing be­yond the as­signed tar­gets and en­ti­tle­ment to pur­chase of Escerts for com­pli­ance to meet the short­fall to­wards achiev­ing the tar­gets.

In the sec­ond cy­cle of the PAT scheme,which com­menced from April 1, 2016, the scheme was ex­panded both ver­ti­cally to in­clude more DCS from the ex­ist­ing sec­tors and hor­i­zon­tally to in­clude new sec­tors in ad­di­tion to the present sec­tors. In the sec­ond cy­cle of PAT, 621 in­dus­trial units from 11 sec­tors (eight ex­ist­ing sec­tors and three new no­ti­fied sec­tors viz Rail­ways, Re­finer­ies and DISCOMS) were no­ti­fied as DCS with an over­all en­ergy con­sump­tion re­duc­tion tar­get of 8.869 MTOE. In the end of the PAT Cy­cle –II, a to­tal en­ergy sav­ing of 17.54 MTOE is ex­pected to be achieved which is ap­prox­i­mately equiv­a­lent to the pri­mary en­ergy sup­ply of a coun­try like Morocco.

The PAT scheme is cur­rently be­ing im­ple­mented on a rolling cy­cle ba­sis(ie an­nual in­clu­sion of new DCS from ex­ist­ing or new sec­tors). In view of this, PAT cy­cle –III has been started from April 1, 2017. The PAT Scheme in its third cy­cle seeks to achieve an over­all en­ergy con­sump­tion re­duc­tion of 1.06 MTOE for which SEC re­duc­tion tar­gets have been as­signed to 116 Des­ig­nated Con­sumers from six sec­tors, viz Ther­mal Power Plants, Ce­ment, Alu­minum, Pulp & Pa­per, Iron & Steel and Tex­tiles.

At present, the to­tal en­ergy con­sump­tion share of DCS cov­ered un­der PAT is about 70 per cent of the to­tal in­dus­trial en­ergy con­sump­tion in­clud­ing Ther­mal Power Plants. The PAT scheme is now be­ing im­ple­mented on a rolling cy­cle ba­sis, ie new DCS will be no­ti­fied ev­ery year. In fu­ture cy­cles of the PAT scheme, it is en­vis­aged that new sec­tors such as Com­mer­cial Build­ings, Petro­chem­i­cals and other sec­tors as listed in the Sched­ule of the En­ergy Con­ser­va­tion Act, 2001, will be in­cluded.

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