The Perform, Achieve and Trade (PAT) scheme was launched in 2012 to promote energy efficiency in energy intensive industries. The scheme is market based where on over achieving the target, energy saving certificates (ESCerts) will be issued which will be purchased by under achievers from the power exchanges to meet their compliance. The targets were assigned to 478 energy intensive industries known as Designated Consumers (DCs) from 8 different sectors. Please refer to our past Newsletters Vol. IX “Introduction to Energy Efficiency“, and Vol. XX “Analysis of the Energy Saving Certificate” for more details.
There has been satisfactory progress in the PAT scheme so far as Bureau of Energy Efficiency (BEE) has actively pushed the scheme. The first PAT cycle (2012-15) is going to end in March 2015. The online PAT Net platform is at its final stage and consultants have been invited to review the framework for ESCerts trading.
There was a recent press release by Bureau of Energy Efficiency on the status of PAT scheme. The final verification of the energy saving done is due followed by issuance of ESCerts. The final verification and certification will be done by Accredited Energy Auditors. After the verification, ESCerts will be issued.
From the above chart we can see that demand is likely to be seen in the first cycle. With more than 50% still to meet the target, the 1st session of ESCerts market will be interesting to watch as the scheme is nascent.
Dr. Ajay Mathur, Director General of the Bureau of Energy Efficiency, said that,
“Overall, it seems likely that there would be overall compliance with the target, with some amount of trading for compliance purposes”.
The price of an ESCert will also attract the market which is variable in nature and depends upon the market price of coal, gas & crude oil. The price of an ESCerts determined by BEE for the year 2011-12 was Rs.10,154.
The trading is likely to happen between Aug and Nov 15.