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Perform, Achieve and Trade (PAT) Scheme

  Jun 29, 2023

Perform, Achieve and Trade (PAT) Scheme

Q What is PAT Scheme ?

 A

  • Perform Achieve and Trade (PAT) scheme is a flagship program of Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).
  • 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

 

Q What are key features of the scheme?
A

  • PAT is a market-based compliance mechanism to accelerate improvements in energy efficiency in energy-intensive industries.
  • The energy savings achieved by notified industries is converted into tradable instruments called Energy Saving Certificates (ESCerts).
  • The ESCerts after issuance by the Bureau of Energy Efficiency are traded at Power Exchanges.

 

Q What is PAT cycle?

A

  • The government shortlists industries and restricts the amount of energy they can consume and defines a time limit of three years by when this restriction should be met as part of PAT.
  • These three years of time are called one PAT cycle.
  • The industries are chosen after in-depth, sector-wise analysis by the government.
  • Industries that participate in this scheme are called designated consumers (DC).
  • Those that overachieve their targets are issued energy savings certificates (ESCerts) that can be traded with industries that have not achieved their targets.
  • Non-achievers have to buy the ESCerts after the three years for compliance.

 

Q What are various PAT cycles?

A

  • PAT covered about 13 energy-intensive sectors
  • Sectors included are thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertilizer, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports)
  • Announcements for six cycles since 2012 have been made so far