PERFORM ACHIEVE AND TRADE

(PAT)

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Introduction about National Action Plans (NAPCC)

National Mission for Enhanced Energy Efficiency (NMEEE)

PAT – The NEEDs

PAT –The Journey

PAT in state of Uttar Pradesh

Target in PAT

Threshold limit Sector Wise

Ranges of SEC

Monitoring and Verification Process

Performance Assessment Document

Calculation of ESCerts

FOCUS AREA’S

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India is faced the challenge of sustaining its rapid economic growth while dealing with the global threat of climate change.

This threat emanates from accumulated Green House Gas emissions in the atmosphere, anthropogenically generated through long-term and intensive industrial growth.

India needs a National Strategy to Adopt to climate change To further enhance the ecological sustainability of India’s development

path

With the help of United Nations Framework Convention on Climate Change (UNFCCC); Hon’ble Prime Minister of India launched National Action Plan on Climate Change (NAPCC) on 30th June’2008.

NAPCC outlines a comprehensive policy framework that seeks to protect the poor and vulnerable sections of society through an inclusive and sustainable development strategy, sensitive to climate change.

INTRODUCTION ABOUT NATIONAL PLANS

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NAPCC was further categorised in 8 National Mission

National Solar Mission National Mission for Enhanced Energy Efficiency National Mission on Sustainable Habitat National Water Mission National Mission for Sustaining the Himalayan

Ecosystem National Mission for a Green India National Mission for Sustainable Agriculture National Mission for Strategic Knowledge for Climate

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The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions with the objective of promoting innovative policy and regulatory regimes, financing mechanisms, and business models which not only create, but also sustain, markets for energy efficiency in a transparent manner with clear deliverables to be achieved in a time bound manner.

Perform Achieve and Trade (PAT): Market The market basedmechanism to enhance the cost effectiveness in improving theEnergy Efficiency in Energy Intensive industries throughcertification of energy savings which can be traded.

Market Transformation for Energy Efficiency (MTEE):Accelerating the shift to energy efficient appliances in designatedsectors through innovative measures to make the products moreaffordable.

Energy Efficiency Financing Platform (EEFP): Creation ofmechanisms that would help finance demand side managementprograms in all sectors by capturing future energy savings.

Framework for Energy Efficient Economic Development(FEEED): Developing fiscal instruments to promote energyefficiency.

Efficiency 51%

Renewables 32%

Biofuels 1%

Nuclear 8%

CCS 8%

Share of cumulative abatement between 2010-2035

WEO, 2010

Nation Mission for Enhanced Energy Efficiency (NMEEE)

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The Perform Achieve Trade (PAT) is an innovative, market-based trading scheme announced by the Indian Government in 2008 under its National Mission on Enhanced Energy Efficiency (NMEEE) in National Action Plan.

It aims to improve energy efficiency in industries by trading in energy efficiency certificates in energy-intensive sectors.

The 2010 amendment to the Energy Conservation Act (ECA) provides a legal mandate to PAT. Participation in the scheme is mandatory for Designated Consumers under the ECA.

Energy Conservation Act, 2001, empowers the Central Government to notify energy intensive industries, as listed out in the Schedule to the Act, as Designated Consumers (DCs).

.

PAT – THE NEEDS

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2001 2014-2015

Energy Conservation Act enacted

National Action Plan on Climate Change released

Sector studies Commenced toidentify DCs

Baseline datacollection begins

Financial outlay of overUS$20 million approved

National Mission for Enhanced Energy Efficiency (NMEEE) Approved by Ministry of Power

Nation wide Consultation Workshops organised;consultation continues through 2012

NMEEE approved by Prime Minister's Councilon Climate Change

Energy Conservation Actamended to make provisions for issue of energy saving certificates, imposition of penaltyfor non compliance and tradingOf ESCerts

Perform, Achieve and Trade(PAT) scheme came into effect;first compliance period begins (2012-2015)

2008 2009 2010 2011 2012

PAT –THE JOURNEY

Covers 478 plants in 8 Energy intensive industry ( Aluminum, Cement, Chlor-alkali, Fertilizer, Iron & Steel, Paper & Pulp, Textile and Thermal Power Stations),and gate to gate boundary concept adopted.

Energy consumption of these plants was about 1/3rd of the total energyconsumed in India in the baseline year (2009-10).

Large variations in energy intensities of different units in almost every sector Key Goal :Mandate Specific Energy Consumption improvement Energy Intensity reduction target for each unit based on its current efficiency in

base line (2009-10) Multi- cycle process –First PAT cycle till 2014-15 Approach - Consultative

Base line Studies completed,Draft PAT Rules prepared and feed back sought on draft targets

Assessment year of First PAT Cycle

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Sectoral Share in Energy Saving Target (%)(2012-15)

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S.NO. Sectors

No. of Identified

DCs

Annual Energy

Consumption (Million

toe)

Share Consumpti

on (%)

Apportioned Energy

Reduction For PAT Cycle-1

(Million toe)

1 Power (Thermal) 144 104.56 63.38% 3.211

2 Iron & Steel 67 25.32 15.35% 1.4863 Cement 85 15.01 9.10% 0.8154 Aluminium 10 7.71 4.67% 0.4565 Fertilizer 29 8.20 4.97% 0.4786 Paper & Pulp 31 2.09 1.27% 0.1197 Textile 90 1.20 0.73% 0.0668 Chlor- Alkali 22 0.88 0.53% 0.054

Total 478 164.97 100.00% 6.686

PAT – SECTORAL ENERGY SAVING TARGET

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The PAT Scheme is being implemented in three phases- the first phase runs from 2012-2015 covering 478 facilities from eight energy-intensive sectors, namely Aluminum, Cement, Chor-alkali, Fertilizer, Iron and steel, Pulp and Paper, Textiles and thermal power plants.

27 DCs are present in state of Uttar Pradesh out of 478 DCs; which are categories in 7 sectors: Aluminum : 01 Cement: 02 Chlor-Alkali: 01 Fertilizers: 07 Iron & Steel: 01 Paper & Pulp: 03 Thermal Power Plants: 12

PAT IN STATE OF UTTAR PRADESH

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TARGET IN PAT

Target is defined as the % reduction of ‘Specific Energy Consumption (SEC)’ from Baseline value.

Plant System Boundary

All forms of Energy Product

E P

SEC = E / PSEC

Y1 Y2 Y3

Baseline SEC

Target SECReduction in SEC

Expressed in %

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THRESHOLD LIMIT SECTOR WISE

Aluminum Industry : 750 toe

Cement Industry : 30000 toe

Chlor- Alkali : 12000 toe

Fertilizer : 30000 Mtoe

Iron & Steel : 30000 toe

Pulp & Paper : 30000 toe

Textile : 3000 toe

Thermal Power Plant : 30000 toe

*1 toe = 11.63 megawatt-hours (MWh) * 1 toe = 41.868 gigajoules (GJ)

*1 toe = 10 gigacalorie (Gcal)

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SECTORAL STUDIES BY BEE ON ‘SETTING UP OF SECTORAL BANDWIDTH FOR DCS’ HAVE REVEALED THE IMPACT ON SEC DUE TO ABOVE DIVERSITIES

Sector Range of SEC

Power plant 2300 – 3400 kcal / kwh

Fertilizer 5.86 – 9.11 Gcal/T of Urea

Cement 665 – 900 Kcal/Kg of Clinker (Thermal)

66 – 127 KWH/ T (Elect)

Integrated Steel 6.15 – 8.18 Gcal / tcs

Sponge Iron 4.4 – 7.6 Gcal / T (Thermal)

72 – 135 KWH/T (Elect)

Aluminium (Smelter)

Aluminium (Refinery)

15000-16000 KWH/T

3.28 – 4.12 MKcal / T of Alumina

Pulp & Paper 25.3 – 121 GJ/T

Textile 3000 – 16100 Kcal/kg (Thermal)

0.25 – 10 KWH/Kg (Elect)

Chlor-Alkali 2300 – 2600 kwh/ T of caustic soda

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Engagement of EmAEAs

Preparation of Performance

Assessment Document by DCs

(PAD or Form A)

Verification of PAD by EmAEA

(Form B)

DC submits FORM I, FORM A, FORM B, Sectoral proforma,

supporting documents to SDA with a copy to

BEE

SDA will Check for Completeness and Consistency of the

submitted documents

SDA submits to BEE with due diligence

BEE conducts its verification and

submits to Central Government

Central Government Issues the ESCerts

Market for Trade

Monitoring and Verification MONITORING AND VERIFICATION PROCESS

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PERFORMANCE ASSESSMENT DOCUMENT

Below forms to be filled by designated Consumers Form – I

Form – A

Form – B

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EMPANELLED ACCREDITED ENERGY AUDITOR (EMAEA)

A firm registered under the Indian Partnership Act, 1932 (9 of 1932) or acompany incorporated under the Companies Act, 1956 (1 of 1956) or anyother legal entity competent to sue or to be sued or enter into contracts shallbe entitled to undertake verification and check-verification regardingcompliance with the energy consumption norms and standards and issue orpurchase of energy savings certificate if it –

(a) has at least one accredited energy auditor whose name is included in thelist of the accredited energy auditors maintained by the Bureau underregulation 7 of the Bureau of Energy Efficiency (Qualifications for AccreditedEnergy Auditors and Maintenance of their List) Regulations, 2010;

(b) has at least three certified energy auditors;

(c) has adequate expertise of field studies including observations, probing skills,collection and generation of data, depth of technical knowledge andanalytical abilities for undertaking verification and check-verification;

(d) has a minimum turnover of ten lakhs rupees per annum in at least one of theprevious three years or in case of a newly formed organization, a net worth of tenlakhs rupees.

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ESCerts = Baseline notified production * ( Notified Target SEC – Normalised assessment SEC)

Central Govt. after receiving recommendation from Bureau issue ESCerts of desired value to DC within 15 working days.

ESCerts shall only be in electronic form

1 ESCerts= 1 toe

The DC who has been issued energy savings certificates may sell them through the power exchange.

ESCerts issued in current cycle shall remain valid till compliance period of next cycle.

ESCerts purchased by DC for compliance shall after their submission to Bureau stand expire.

CALCULATION & PROCEDURE FOR ISSUE OF ESCERTS

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Activities TimelinesSubmission of Form 1 Once in a yearSubmission of Form A(Performance Assessment Document)

Once in 3 years

Submission of Form B(Verification by EmAEA)

Once in 3 years

Submission of Sector Specific Proforma

Once in a years

Issuance of ESCerts Once in a yearSubmission of Form D(Performance Compliance Document)

Once in 3 years

KEY TIMELINES