The Ministry of Power has given entitlement to purchase Energy Savings Certificates (ESCerts) to Designated Consumers (DCs) of Perform, Achieve and Trade (PAT) Cycle I on February 16, 2017, on verification of their performance with regard to energy savings, based on the recommendations of Bureau of Energy Efficiency (BEE). The first cycle of PAT has been completed in March 2015, the ministry said in a press release.
According to the power ministry, DCs have contributed to the success of PAT Cycle I. The cycle has witnessed an energy saving of 8.67 million tonnes of oil equivalent (Mtoe), against the targeted energy saving of 6.886 Mtoe, which is about 30% more than the target. The cycle also contributed in emission reduction of 31 million tonnes of CO2 and avoided generation of about 5,635 MW, resulting in monetary savings of Rs 37,685 crore. It has also contributed in investment of Rs 24,517 crore for energy efficient technologies by DCs under PAT.
PAT is a multi-cycle scheme aimed at covering most of the energy intensive sectors of the economy. In this regard currently in the PAT cycle II, 621 DCs from 11 sectors have been included in the scheme.
BEE, under Ministry of Power, is implementing PAT scheme, a component under National Mission for Enhanced Energy Efficiency (NMEEE) in India. PAT is a market based mechanism to enhance cost effectiveness through certification of excess energy savings in energy intensive industries that can be traded. PAT scheme was launched in 2012 with first PAT cycle (2012-15) covering 478 Designated Consumers (DCs) from eight energy-intensive sectors, namely aluminium, cement, chlor-alkali, fertiliser, iron & steel, pulp & paper, textiles, and thermal power plant, which roughly covered 33% of India’s total energy consumption.
Central Electricity Regulatory Commission (CERC) is the Market Regulator and BEE is Administrator for the trading of ESCerts. POSOCO (Power System Operation Corporation Ltd) has been appointed as Registry for making DCs as eligible entities for trading of ESCerts and book-keeping of ESCerts. There are two power exchanges – IEX and PXIL – where trading of ESCerts shall take place.
CERC has already approved the Procedure for Transaction of Energy Savings Certificates (ESCerts) on February 14, 2017. BEE shall soon inform the date of opening of Registration to all DCs along with the fee details, after the same is approved by CERC. Trading/transaction of ESCerts shall be done on continuous basis ie every Tuesday on weekly basis. Trading of ESCerts at power exchanges is expected to start from April 2017.