29 Jan 2022

ESCerts Trading

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ESCerts Trading:

Perform, Achieve and Trade is a scheme which is a market based mechanism and got birth under the National Mission on Enhanced Energy Efficiency.

This is the unique scheme which encapsulates all the major Energy Intensive sectors across the PAN India. The industries under the PAT Scheme is given a name of Designated Consumers.

These Designated Consumers are given some target regarding the reduction of their Specific Energy Consumption(SEC). As per the Scheme, the DCs who over achieve their targets are given some Energy Saving Certificates and the DCs who are under achievers are entitled to purchase Energy Saving certificates.

In order to achieve their compliance, the DCs who are under achievers have to purchase the ESCerts from over achievers. This activity is facilitated through the trading of the Energy Saving certificates on the Power Exchanges platform.

Currently, there are two Power Exchanges namely: IEX and PXIL.

In PAT Cycle I, there were 16 successful trading sessions that took place  and trading of approx 14 Lakh ESCerts took place. This has resulted in compliance of 96% and this was a major achievement as this was the first time that Trading of ESCerts took Place.

Currently, there are no floor price or forebearnce price of the ESCerts. The price of the ESCerts is totally depended on the market because the mechanism used in evaluation of the final price of ESCerts is “ double sided closed auction.”

The book keeping of the ESCerts for every individual DCs before and after of trading of ESCerts is done by POSOCO who is acting as the Registry for the PAT Scheme.