Status of Perform Achieve and Trade (PAT) scheme
Perform Achieve and Trade (PAT) is a scheme initiated by the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency. It is a market-based mechanism aimed at improving energy efficiency in energy-intensive industries. The scheme is part of the National Action Plan on Climate Change launched by the Indian Government in 2008. This blog post provides a brief overview of the PAT market in India.
PAT Background The PAT scheme is a regulatory instrument designed to reduce specific energy consumption in energy-intensive industries. The scheme aims to improve energy efficiency in large energy-intensive sectors through the adoption of efficient and low-carbon technologies. The target definition under the scheme is provided by the Bureau of Energy Efficiency. The scheme is market-based and focuses on enhancing energy efficiency in energy-intensive sectors.
PAT Cycles As of April 2020, six cycles of the PAT scheme have been launched, covering 1073 industries from 13 industrial and service sectors. These sectors represent about 50% of the primary energy consumption in India. The first cycle of the PAT scheme concluded in 2015 and had 478 units known as “Designated Consumers” from eight energy-intensive sectors. The second cycle (2016-19) included three more sectors, bringing the total number of Designated Consumers to 621. The third cycle was notified in March 2017 and included six sectors. The fourth cycle, with a baseline year of 2016-17 and a target year of 2020-21, included eight sectors, including two new sectors. The fifth cycle commenced in April 2019.
PAT Market The PAT market is a platform for trading Energy Saving Certificates (ESCerts) that are issued to Designated Consumers who exceed their energy-saving targets. One ESCert represents one tonne of oil equivalent energy savings. These certificates can be traded on the Indian Energy Exchange and the Power Exchange India Limited. The market is aimed at encouraging Designated Consumers to exceed their energy-saving targets and receive ESCerts that can be traded for revenue.
The PAT scheme is an important initiative aimed at improving energy efficiency in India’s energy-intensive sectors. The scheme’s market-based mechanism encourages Designated Consumers to exceed their energy-saving targets and receive ESCerts that can be traded for revenue. As the scheme progresses through its various cycles, it is expected to lead to significant improvements in energy efficiency and a reduction in greenhouse gas emissions.