Perform Achieve and Trade

Perform Achieve and Trade (PAT) scheme is a market-based mechanism -- through tradable energy saving certificates (ESCerts) -- to enhance energy efficiency in the 'Designated Consumers' (large energy-intensive industries and facilities).

• An initiative under the NMEEE, the PAT scheme is a market-based mechanism to make improvements in energy efficiency in energy-intensive large industries and facilities more cost-effective by certification of energy savings that could be traded.

The scheme includes: - Goal setting: Set a specific energy consumption target for each plant, depending on level of energy intensity (specific energy consumed = energy use/output) of that plant. The target will specify by which percentage a plant has to improve its energy intensity from the base line value, in a period of three years. - Reduction phase: Within a three-year period (2009-2012), the designated consumers try to reduce their energy intensity according to their target. - Trading phase: Those consumers who exceed their target specific energy consumption will be credited tradable energy permits. These permits can be sold to designated consumers who failed to meet their target.

The Government, in March 2007, notified units in nine sectors, namely aluminum, cement, chlor-alkali, fertilizers, iron and steel, pulp and paper, railways, textiles and thermal power plants, as Designated Consumers (DCs). DCs in 8 industrial sectors will have mandatory participation in the first cycle of PAT scheme which will be implemented during 2011-12 to 2013-14. Under the PAT scheme, the BEE will be issuing ESCerts against targets that the BEE will set for them. The DCs will have to meet their targets and those having excess ESCerts can sell credits to those who fall short. A time frame of three years, beginning April 2011, has been set out by the BEE for driving energy-intensive manufacturing companies to adhere to energy conservation norms and for ESCerts to become a reality.