UPSC Exam Preparation: Topic of the Day – PAT Scheme
In line with the energy conservation and efficiency policies of the Bureau of Energy Efficiency (BEE) under the Ministry of Power, Perform, Achieve and Trade (PAT) scheme under the National Mission for Enhanced Energy Efficiency (NMEEE) as a part of the National Action Plan on Climate Change (NAPCC) was launched in 2012. Recently, the government released the first report card of the PAT scheme. In 2012, the Government had set targets to save energy in eight energy intensive sectors, under the Energy Conservation Act, 2001. Those eight Energy Intensive Sectors included are Chlor-alkali, Pulp & Paper, Textile, Aluminum, Thermal Power plants, Fertilizer, Iron & Steel and Cement.
- It is a market based mechanism in which sectors are assigned efficiency targets. The Industries which successfully surpass the assigned targets are given incentives in the form of energy saving certificates (ESCert).
- These ESCerts are tradable at two energy exchanges i.e, Power Exchange India and Indian Energy Exchange. Those industries which fail to achieve the assigned efficiency targets can buy the ESCerts from any of the two energy exchanges.
- Central Electricity Regulatory Commission (CERC) is the Market Regulator and Bureau of Energy Efficiency is Administrator for the trading of ESCerts. POSOCO (Power System Operation Corporation limited) has been appointed as Registry for making Designated Consumers as eligible entities for trading of ESCerts and book-keeping of ESCerts.
- The 2010 amendment to the Energy Conservation Act (ECA) provided a legal mandate to PAT. Participation in the scheme is mandatory for Designated Consumers under the ECA.
- PAT cycle I stretching from 2012-13 to 2014-15, was applicable on eight energy intensive sectors. There are about 478 numbers of Designated Consumers in these 8 sectors accounting for about 165 million tonnes oil equivalent of energy consumption annually i.e, 33% of India’s primary energy consumption.
- PAT cycle II stretching from 2016 to 2018-19 shall include 3 new sectors i.e, petroleum refineries, discoms and railways, along with the previous 8 energy intensive sectors of PAT cycle I.
- PAT cycle III stretching from 2017-20 shall include 116 new units under it and have been given a reduction target of 1.06 million tonnes of oil equivalent.