An article in the Business Line quoted that savings of Rs 37,685 Cr have been brought about in the country because of BEEs (Bureau of Energy Efficiency) ‘Perform, achieve and trade PAT’ scheme. In the first cycle of the scheme, or PAT-I, 478 DCs (designated consumers) from 8 sectors invested Rs 21,517 crore. For the second cycle of the scheme, BEE has names 621 DCs from 11 sectors. The consumption is expected to be tighter in this cycle.

As per Chetan Adhikari, Vice-president of REConnect Energy, the supply of RECs is going to be very high, supply of 38 lack certificates as opposed to demand of just 14 lack. In his opinion, the price of the certificates is going to range between Rs 1,226 and Rs 3,464 a certificate (This value has been given on the basis of a detailed analysis of the prices at which ESCerts will be traded in Newsletter 61)

He also had the following view about it “Many DCs are likely to ‘bank’ their ESCerts and carry them over to the second cycle. This will help them set off against any shortfall in meeting the consumption norms. Conversely if the prices fall steeply, DCs might find it cheaper to buy the certificates rather than invest in energy efficiency.”

A detailed analysis of the PAT scheme has been done by REConnect in one off it’s blog.