Objective

Perform, Achieve and Trade (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.

PAT is a mechanism for improvements in energy efficiency of energy intensive industries. Specific high energy intensive industries are identified as Designated Consumers (DCs) within certain key sectors, who are required to appoint an energy manager, file energy consumption returns every year and conduct mandatory energy audits regularly. The key tasks in the PAT mechanism is to set the methodology for deciding the Specific Energy Consumption (SEC) norms for each designated consumers in the baseline year and in the target years, devise verification process for SEC, finding ways of issuing the Energy Savings Certificates, operationalization of the trading process for ESCerts in addition to the compliance and reconciliation process for ESCerts.

Background

Recognizing the need to maintain a high growth rate for increasing the living standards of vast majority of people and reducing the vulnerability to adverse impacts of Climate Change, National Action Plan on Climate Change (NAPCC) was released in June 2008. NAPCC outlined eight national missions representing long-term and integrated strategies for achieving key goals in the context of climate change. The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions released under the NAPCC. The implementation plans for NMEEE were entrusted with the Ministry of Power and Bureau of Energy Efficiency. NMEEE unrolled the following four initiatives:

1. Perform Achieve and Trade Scheme (PAT)

2. Market Transformation for Energy Efficiency (MTEE)

3. Energy Efficiency Financing Platform (EEFP)

4. Framework for Energy Efficient Economic Development (FEEED)

Creation of the PAT mechanism comes from the provisions of the Energy Conservation Act, 2001 which also empowers the Central Government to notify energy intensive industries as listed out in the Schedule to the Act, as Designated Consumers (DCs).

Bureau of Energy Efficiency had conducted sector specific studies for setting of energy consumption norms and standards. The studies showed that there is a wide bandwidth of SEC within an industrial sector that indicated large energy-savings potential in the sector. For setting targets for Designated Consumers, BEE had carried out background work to enable designing of a transparent, flexible, efficient and robust system for the PAT mechanism. BEE also consulted key stakeholders like Designated Consumers, Energy Auditors/ Managers, Industry Associations, Academics, etc. and solicited comments while framing the complete mechanism of PAT Scheme.

Status/ Acheivements

Perform, Achieve and Trade Cycle- I (2012-13 to 2014-15)

Perform Achieve and Trade in its first cycle was designed to reduce the specific energy consumption (SEC) i.e. energy used per unit of production of 478 industrial units in 8 sectors viz. Aluminum, Cement, Chlor- Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile. Energy saving targets were given to these 478 industrial units called Designated Consumers (DCs) based on their current levels of energy efficiency, so that energy efficient units will have low target of percentage reduction, as compared to less energy efficient units which will have higher targets. The overall SEC reduction targets aimed to secure 4.05% reduction in the total energy consumption of these industries totaling to an energy saving of 6.686 Million Tonne of Oil Equivalent (MTOE). Units which were able to achieve SEC level that are lower than their targets could receive energy savings certificates (ESCerts) for their excess savings.

Summary of energy saving and emission reduction PAT Cycle I:-

PAT Cycle-I had completed in March, 2015 after which the scrutiny of the Performance Assessment Documents (PADs) submitted by the DCs was carried out by BEE. Implementation of PAT cycle –I resulted in energy saving of 8.67 MTOE translating into avoiding of about 31 million tonne of CO2 emissions.

Trading of ESCerts:

Ministry of Power had issued about 38.25 lakh ESCerts to 306 Designated Consumers (DCs of PAT cycle –I) for excess energy saving and 110 DCs of PAT cycle –I were entitled to purchase about 14.25 lakh ESCerts to meet their shortfall to meet energy saving targets. Trading of ESCerts at Power Exchange had commenced in September,2017. The total volume of ESCerts traded was about 12.98 lakhs resulting into a business of about INR 100 crores.

Perform, Achieve and Trade Cycle-II

“Deepening” –identification of new DCs in existing sectors and “Widening” –inclusion of new sectors, was carried out by BEE before the commencement of the second cycle of PAT. Deepening study resulted into identification of 89 DCs new from the existing sectors of PAT. Widening study resulted into notification of three new sectors namely Refineries, Railways and DISCOMs under PAT scheme. Energy consumption targets were notified to 621 DCs from 11 energy intensive sectors (eight existing sectors and three new sectors). PAT Cycle II commenced from 1st April, 2016 and was completed on 31st March 2019. Implementation of PAT cycle -II has resulted into total energy savings of about 14.08 MTOE translating into avoiding of about 68 million tonne of CO2 emission. 

PAT Cycle II Energy Savings Achieved

Target Beneficiaries

Ministry of Power issued about 57.38 lakh ESCerts to 349 DCs and 193 DCs have been directed to purchase 36.68 lakh ESCerts under PAT cycle –II.

Partners

Central Electricity Regulatory Commission (CERC), State Designated Agencies (SDAs), Energy Efficiency Services Limited (EESL), Power System Operation Corporation Limited (POSOCO), Central Electricity Authority (CEA), India Energy Exchange (IEX), Power Exchange of India Limited (PXIL), GIZ

Contact Details of Concerned Officials of BEE

S. No.	Programme Officer	Concerned Area	Contact Details	Email
1	Shri. Ashok Kumar, Deputy Director General	Thermal Power Plant, Textile and Pulp & Paper	011-26766711	kumara[at]beeindia[dot]gov[dot]in
2	Shri. S.K. Khandare, Director	Aluminium, Cement, Fertilizer, Chlor Alkali, Iron & Steel	011-26766747	skhandare[at]beeindia[dot]gov[dot]in
3	Shri. Milind Deore, Director	Railways, Refinery, Electricity DISCOMs , Petrochemicals	011-26766700	mdeore[at]beeindia[dot]gov[dot]in
4	Shri. Saurabh Diddi, Director	Commercial Builidngs (Hotels)	011-26766730	sdiddi[at]beeindia[dot]gov[dot]in