Perform, Achieve and Trade Scheme
- 03 Dec 2021
- 3 min read
Why in News
- The PAT scheme was introduced to improve energy efficiency in Indian industries and consequently reduce greenhouse gas.
- The report attributed the inefficiency of the scheme to non-transparency, unfastened targets and neglected deadlines.
Centre for Science and Environment (CSE)
- CSE is a public interest research and advocacy organisation based in New Delhi.
- It researches into, lobbies for and communicates the urgency of development that is both sustainable and equitable.
- It is a market-based mechanism to further accelerate as well as incentivize energy efficiency in the large energy-intensive industries.
- The Energy Savings Certificates (ESCerts) were introduced in India in 2011 under the PAT by the Bureau of Energy Efficiency (BEE) under the National Mission of Energy Efficiency.
- NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008.
- Energy Savings Certificates (ESCerts):
- This market- based mechanism is facilitated through the trading of Energy Savings Certificates (ESCerts) which are issued to those plants who have overachieved their targets.
- The underachievers are entitled to purchase ESCerts through two power exchanges - Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL).
- Industries that take part in this scheme are referred to as designated shoppers (DC).
- Sectors Covered:
- PAT covered about 13 energy-intensive sectors: Thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertiliser, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports).
- Other initiatives to Promote Energy Conservation and Energy Efficiency:
The energy reduction target should be made stringent in order to meet up with the global climate commitments with respect to greenhouse gas emission mitigation.