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Government of India developed robust mechanism for Online Trading of Energy Saving Certificates

Details

• Government rewarded energy efficiency industries through energy saving certificates.
• Ministry of Power issued more than 57 lacs Energy Saving Certificates to 349 industrial units because they saved more energy than the targets.
  
• These units will be able to trade certificates through Power Exchange Portal after a month to those units who could not achieve their targets.
  
• The objective is to reduce consumption of fossil fuel, coal, oil and gas thereby leading to low carbon economy.
  
• This will not only enhance energy security for India but will also contribute towards climate goals as per the Paris Agreement.

Perform, Achieve and Trade (PAT)

• One of the flagship initiative known as Perform, Achieve and Trade (PAT) was implemented under Cycle II (during 2016-19) covering 621 large industries from 11 sectors.
• Bureau of Energy Efficiency who is piloting this initiative completed the verification of energy savings achieved by these industries called as Designated Consumers (DCs).
• As per the audit reports received by BEE, total energy saving was more than 14 million tonne of oil equivalent (MTOE) which has also avoided 66 million tonnes CO2 emission. 
• PAT scheme as a market-based mechanism, under National Mission for Enhanced Energy Efficiency (NMEEE) is to enhance cost effectiveness through certification of excess energy savings in energy intensive industries that can be traded.
• The scheme seeks to reduce the specific energy consumption (SEC), i.e. energy used per unit of production in energy intensive large industries.
• Under this scheme, an Energy Audit is done to verify the baseline data (current level of efficiency) and thereafter energy saving targets are given.
• Energy Saving Certificates (ESCerts) are issued to those plants that have achieved excess energy savings over their targets.

About BEE

• The Government of India has set up the Bureau of Energy Efficiency (BEE) on 1st March 2002 under the provision of the Energy Conservation Act, 2001.
• The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles with the primary objective of reducing energy intensity of the Indian economy within the overall framework of the Energy Conservation Act, 2001.
• This will be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.

Source: PIB