Perform Achieve & Trade (PAT) Scheme: Impressive Progress In Recent Years
The Director of Bureau of Energy Efficiency (BEE) recently said that the Government of India has made impressive progress in recent years in accelerating energy efficiency in industrial sectors through its flagship program Perform, Achieve & Trade (PAT) Scheme.
- PAT Scheme is a flagship program under the National Mission for Enhanced Energy Efficiency (NMEEE).
- It is implemented by the Bureau of Energy Efficiency (BEE) under the aegis of the Ministry of Power.
- PAT scheme aims at reducing Specific Energy Consumption (SEC),e., energy use per unit of production for Designated Consumers (DCs) in energy-intensive sectors, with an associated market mechanism to enhance the cost-effectiveness through certification of excess energy saving, which can be traded.
- Energy Saving Certificates (ESCerts):
- The excess energy savings are converted into tradable instruments called Energy Saving Certificates (ESCerts) that are traded at the Power Exchanges.
- Trading Platform: The two Power Exchanges, India Energy Exchange (IEX) and Power Exchange India Limited (PXIL) provide the trading platform for ESCerts.
- Central Electricity Regulatory Commission (CERC) is the market regulator for the trading of ESCerts.
- PAT Scheme is implemented in cycles of 3 years each, where the Designated Consumers (DCs) are assigned SEC reduction targets.
- Designated Consumers (DCs) who fall short of their targets bid for the purchase of ESCerts.