Perform Achieve & Trade

Normalisation & Obligations of

DCs as per PAT Rules

by

Sarabjot Singh Saini, Sector Expert, BEE

Delhi

July 7 2016

Normalization

“Normalisation” means a process of rationalization of energy and production data of Designated Consumer to take into account changes in quantifiable terms that impact of energy performance under equivalent conditions’. • It is a streamlining process by which any DC is not subjected to

undue advantage or disadvantage due to factors beyond the control of the DC

Process – Formation of sectoral/sub-sectoral technical committee – Consultation with stakeholders – Identification of factors – Integration with reporting format - proforma – Validation with real data

Normalization Year Baseline Year Target year

Family Profile The Married Couple Married couple and baby

Gas cylinders consumption per month

14 kg 20 kg

Target energy saving (2 kg reduction from baseline)

12 kg 12 kg

Normalization (Process of rationalizing factors beyond the control of a DC)

Exclude additional consumption due to the child (Normalisation) Scenario 1: Child’s consumption say 8 kgs The couple’s consumption is 12 kg (just met the target) Scenario 2: Child’s consumption say 10 kgs The couple’s consumption is 10 kg ( over achieved the target, ESCerts equivalent) [The couple has made efforts to reduce gas consumption) Scenario 3: Child’s consumption say 4 kgs The couple’s consumption is 16 kg ( Consumed more than baseline year, purchase ESCerts or pay penalty)

• Capacity Utilization

– Availability of Fuel/Raw Material (Effect on

Capacity Utilisation)

– Natural Calamity/Rioting/Social

Unrest/Labor Strike/Lockouts (Effect on

Capacity Utilisation)

– Start/Stop

• Product Mix & Intermediary Product (Import/Export)

• Fuel Mix

• Power Mix ( Imported & Exported from/ to the grid

and self-generation from the captive power plant)

• Fuel Quality

• Low PLF

• Raw Material Quality

• Environmental Concern (Additional

Environmental Equipment requirement due to

major change in government policy on

Environment)

• Biomass/Alternate Fuel

Unavailability

• Construction Phase or Project

Activities

• Addition of New Line/Unit (In Process &

Power Generation)

• Unforeseen Circumstances

• APC Normalization

• Start-up/ shut downs due to external

factors

Normalization Factors- Broad Categorization

Development-New Form I

K Documentation for Normalisation Previous

Year

Current

Year

Source of Data

(i) Fuel Quality in CPP-Document Available for Normalisation

Yes/No

(ii) Intermediary Product-Document Available for Normalization

Yes/No

(iii) PLF- Document Available for Normalisation

Yes/No

(iv) Power Mix-Document Available for Normalisation

Yes/No

(v) Product Mix-Document Available for Normalisation

Yes/No

(vi) Notional Energy for other Factors Yes/No

Select from Drop Down List

Documents

Example of normalization – TPP sector

Coal Quality [With Fuel linkage]

Plant loading factor

Scheduling

Fuel Availability

Auxiliary Power Consumption

Due to low loading

Due to fuel quality

Start/ Stop of unit

Electrical Energy

Thermal Energy

Environmental Concern

Natural Disaster & Unforeseen Circumstances

Electrical Energy

Thermal Energy

Example of normalization – TPP sector

Coal Quality- day wise Internal lab reports, external NABL accredited lab reports for

coal sampling (proximate and ultimate), for AY and BY

Plant loading factor- block wise DC, SG, SI, for AY and BY; LDC communications;

documents showing unavailability of fuels from supplier; OEM characteristic curve for

load Vs heat rate

Auxiliary Power Consumption- APC and loading factors for entire year; curve plotted to

show APC pattern at various loadings, energy meter readings for equipment

Start/ Stop of unit – LDC communications citing stoppage of units; energy meter

readings

Environmental Concern- document citing change in environmental norms, design data

and P.O. of new equipment. Energy consumption of same

Natural Disaster & Unforeseen Circumstances- letters or references citing unforeseen

circumstances as applicable.

Documents required

Normalization Documents and M&V guidelines

https://beeindia.gov.in/content/pat-3

Normalization factors Identified in Refinery Sector

Fuel and Loss during planned shutdown & turnarounds

Additional fuel consumption in technology up-gradation for producing BS-IV &

BS-VI fuels:

Natural Calamities & External factors.

Energy consumed during construction and pre-commissioning stage of a

new/revamp project.

Impact arising due to export of utility

Extra fuel in Boilers & STGs due to disruption of NG supply to GTs to be

normalised .

Energy Saving estimation for projects not commissioned due to no shutdown:

Major Obligations for DCs

• DCs to appoint or designate energy managers who shall be in charge of activities for efficient use of energy and its conservation (clause 14(l)).

• Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of certification examination, conducted by Bureau of Energy Efficiency.

• The following information to be provided for energy manager:

• Name of the energy manager

• Registration number (EA/EM No.)

• Complete postal office address

• Telephone and Mobile number

• Email address)

• The information with regard to energy consumed (clause 14(a)) in Form 1

• Get energy audits conducted by accredited energy auditors

• Implement techno-economic viable recommendations

• Comply with norms of specific energy consumption

• Submit report on steps taken

Form I and Sector Specific Pro-Forma

Performance Assessment Documents (Form A)

Certificate of Verification (Form B)

Certificate of Check-Verification (Form C)

Compliance of Energy Consumption Norms and Standard

Document (Form D)

Various Forms to be submitted by DC and EmAEA

12

31st Dec

M&V Phase

Scrutiny Phase

1st April 31st July

45 Days 2 months 45 Days

M&V- Submission of FORM I, Form A,B, Sectoral Proform and M&V report

SDA’s Scrutiny

BEE’s Scrutiny BEE’s

recommendation to Central Government

Issue of ESCerts and Trading

Compliance Phase

28th Feb

2 months/ Period

specified by CERC 1 month

31st March

FORM D Submission

Key Timelines: Revised

Activity Time Line Description Tentative Dates for PAT Cycle II

Activity by

Submit to

Form 1, Action plan submission

3 Months Within 3 month from Notification 30 June 2016

DC SDA/BEE

Form 1 submission 3 Months Yearly submission of Form 1 within 3 months from last financial year

30 June (Every Year)

DC SDA/BEE

Form A, Form B along with other documents

4 Months Within 4 month from conclusion of target year

31st July 2019

DC SDA/BEE

Submission of Form A, Form B with SDA comments

45 Days Within 45 days of the last date of submission of Form A

15th Sept 2019

SDA BEE

Recommendation of ESCerts to MoP, GOI

Two Months

Within two months from the date of the receipt of the comments from SDA

15th Nov 2019

BEE MoP

Issuance of ESCerts by MoP

45 Days Within 45 days from the date of the recommendation of Escerts from BEE

31st Dec 2019

MoP

Form D Submission One Month After 1 month from the Completion of Trading

DC SDA/BEE

Timelines and Activities

After Completion of Target Year: Every DC within four months of the conclusion of the target year from the baseline year shall submit to the SDA with a copy to the Bureau, the performance assessment document (PAD) in Form ‘A’, duly verified together with certificate in Form ‘B’ given by the empanelled Accredited Energy Auditor (AEA).

Assessment of Performance (Rule 6)

Submission of Form A and B

Procedure for issue of Energy Savings Certificates (ESCerts)

• Central Govt. after receiving recommendation from Bureau issue ESCerts of desired value to DC within 45 days.

• ESCerts shall only be in electronic form

• 1 ESCerts= 1 tonne of Oil Equivalent (toe) = 10968 INR

• 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.

Compliance of energy consumption norms and standards (Form D)

The designated consumer for the purpose of achieving the compliance with the energy consumption norms and standards during the target year, in the relevant cycle shall take the following action and after completing the said action, furnish the status of compliance to the concerned state designated agency with a copy to the Bureau in Form ‘D’ by the end of one from the completion of trading of ESCerts of respective cycle as may be specified by CERC.

(a) by implementation of energy conservation and energy efficiency improvement measures or;

(b) where the measures implemented in terms of clause (a) are found inadequate for achieving compliance with the energy consumption norms and standards, the designated consumer shall purchase the energy savings certificates equivalent in full satisfaction of the shortfall in the energy consumption norms and standards worked out in terms of metric ton of oil equivalent.

Penalties and Adjudication

As per Section 26 of EC Act, If any DC fails to comply with the timelines of M&V

procedure, he shall be liable for a penalty of Rs. 10 lakh, in addition to Rs. 10,000 per day

If any DC fails to comply with the provisions, he shall be

liable to a penalty of Rs. 10 lakh rupees and, in the case of continuing failure, with an additional penalty of the price of every metric ton of oil equivalent of energy

Any amount payable under this section, if not paid, may be

recovered as if it were an arrear of land revenue.

Status of Energy Return Submission FY 16-17

S.N Refinery Energy Return Form 2

(Action Plan) 1 IOCL-Bongaigoan Recieved Recieved 2 IOCL-Barauni Recieved Recieved 3 IOCL-Gujarat Recieved Recieved 4 IOCL-Haldia Recieved 5 IOCL-Mathura Recieved Recieved 6 IOCL-Panipat Recieved Recieved 7 HPCL-Mumbai Refinery Recieved Received 8 HPCL-Vizag Refinery Recieved Recieved 9 BPCL-Mumbai Refinery Recieved Recieved

10 BPCL-Kochi Refinery Recieved 11 CPCL-Manali Refinery Recieved Recieved 12 NRL Recieved Recieved 13 MRPL Recieved Recieved 14 BORL Recieved 15 HMEL-Bhatinda Recieved 16 RIL-SEZ Recieved 17 RIL-DTA Recieved 18 Essar Recieved

Thank you