22 Nov 2019

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Introduction:

PAT is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded. The energy intensive industries including the thermal power plants are the major players in this entire scheme of PAT. It refers to the calculation of Specific Energy Consumption (SEC) in the baseline year and projected SEC in the target year covering different forms of net energy going into the boundary of the designated consumers’ plant and the products leaving it over a particular cycle.

PAT Cycles for Implementation of Scheme:

a)PAT Cycle -I (2012-2015); PAT cycle – I started from 1st April 2012 and in its first cycle 478 industrial units from 8 sectors (Table 2) viz. Aluminum, Cement, Chlor- Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile. The overall SEC reduction targets aimed to secure an energy saving of 6.686 million tonne of oil equivalent. PAT Cycle I was completed on 31st March, 2015. The energy savings achieved in PAT Cycle –I is 8.67 MTOE which was excess of 30 percent against the target of 6.686 MTOE. This energy saving also translates into avoiding about 31 million tonne of CO2 emission.

Trading of ESCerts:

The energy savings of the DCs of PAT Cycle-I were converted to tradable Energy Saving Certificates (ESCerts). Ministry of Power, Government of India had issued about 38.25 lakh ESCerts to 309 designated consumers while 110 Designated Consumers were directed to purchase about 14.25 lakh for their compliance. BEE has developed online PATNet portal for issuance/entitlement to purchase of ESCerts in electronic forms defined in the PAT Rules, 2012. CERC is the market regulator for trading of ESCerts and POSOCO is Registry for ESCerts. Trading of ESCerts at Power Exchange had commenced from 26th September, 2017. The total volume of ESCerts traded in “PAT cycle I” is about 12.98 lakhs resulting into a business of about INR 100 crores.

Achievements of PAT cycle –I:

b) PAT Cycle –II (2016-17 to 2018-19):

 In order to include new sectors and to identify new DCs under PAT Scheme, “Deepening study” –identifying new DCs in existing sectors and “Widening study” –including new sectors of PAT, was respectively carried out before the commencement of the second cycle. Deepening study resulted into identification of 89 DCs from the existing sectors of PAT. Widening study resulted into notification of three new sectors namely Refineries, Railways and DISCOMs under PAT scheme. PAT in its second cycle (2016-17 to 2018-19) seeks to achieve an overall energy consumption reduction of 8.869 MTOE for which energy reduction targets have been assigned and notified to DCs in these11 sectors (eight existing sectors and three new sectors). This energy saving will translate into avoiding about more than 31 million tonne of Carbon dioxide. PAT Cycle II commenced from 1st April, 2016 covering 621 DCs from 11 sectors which include eight existing sectors and three new sectors viz. Railways, Refineries and DISCOMs.

The deadline for submission of Monitoring & Verification (M&V) reports by the DCs of PAT cycle –II that was extended for the sectors namely Aluminium, Cement, Chlor-Alkali, Fertilizer, Iron & Steel, Pulp & Paper, Textile, Thermal Power Plant, Petroleum Refineries till 31st August 2019 and for the sectors namely Railways, Electricity DISCOMs till 30th September 2019 has ended. The verification of the M&V reports is under process at the State Designated Agencies (SDAs) and at BEE.

       c)  PAT Cycle –III (2017-18 to 2019-20)

The Parliamentary Standing Committee on Energy, Executive Committee on Climate Change under Prime Minister’s Office (PMO) and Group of Secretaries recommended to include DCs annually for accelerated coverage of DCs under PAT. Consequently, PAT scheme is being implemented on a rolling cycle basis where new DCs/sectors will be included every year. In view of this PAT cycle –III has started from 1st April, 2017. PAT Scheme in its third cycle seeks to achieve and 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 Plant, Cement, Aluminum, Pulp & Paper, Iron & Steel and Textile. The energy consumption of these DCs is 35.00 MTOE.

       d) PAT Cycle –IV (2018-19 to 2020-21)

The fourth cycle of PAT has been notified on 28th March-2018. A total of 106 DCs with a total reduction target of 0.6998 million tonnes of oil equivalent have been notified under PAT cycle -IV. These DCs are from 8 sectors consisting of 6 existing sectors and two new sectors. The new sectors are Petrochemicals and Buildings. Under building sector, hotels have been selected as the potential designated consumer sub-sector for this cycle. Other sub-sectors in the building sector may come up in future. Under Petrochemical, naphtha crackers and gas crackers has been considered under this cycle of PAT.

       e) PAT cycle –V (2019-2020 to 2021-22)

PAT cycle –V has commenced with effect from 1st April 2019. Under PAT cycle –V, 110 DCs from the existing sectors of PAT i.e. Aluminum, Cement, Chlor-Alkali, Commercial Buildings (Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant have been notified. The total energy consumption of these DCs comes out to be 15.244 million toe and it is expected to get a total energy savings of 0.5130 million toe through the implementation of PAT cycle –V.