PAT-Perform Achieve and Trade

An INDIAN action plan on climate Change

Facts and Opportunities

Indian Action Plan on Climatic Change

National Mission for Enhanced Energy Efficiency (NMEEE)

The National Action Plan on Climate Change was released by Honorable Prime Minister of India in June 2008
National Mission for Enhanced Energy Efficiency (NMEEE) is part of action plan The Mission has outlined specific goals

NMEEE Mission Objectives & Goals

The basic objective of the NMEEE mission is to ensure a sustainable growth by an appropriate mix of 4 Es, namelyEnergy, Efficiency, Equity and Environment Market-based approaches to unlock energy efficiency opportunities, estimated to be about Rs. 74,000 Crores By 2014-15:
Annual fuel savings in excess of 23 million toe (Tons of Oil Equivalent) Cumulative avoided electricity capacity addition of 19,000 MW CO2 emission mitigation of 98 million tons per year

The PAT mechanism

The market based mechanism to enhance the cost effectiveness in improving the Energy Efficiency in Energy Intensive industries through certification of energy saving which can be traded.

PAT (Perform,Achieve,Trade) Mechanism

Overall structure
Market Based Mechanism Reward over achiever Penalize under performer

Set Targets
Setting targets on the basis of current specific energy consumption Set compliance period May take into account Location, Vintage, Technology, raw materials, product mix etc.

Administrator
Set target period and compliance

Designated Consumers
8 sectors (714 units) Power, Steel, Cement, Fertilizer, Pulp & Paper, Textile, Aluminium, Chlor-alkali

Monitoring & verification of targets by Designated Energy Auditors

Check if designated consumer has achieved targets Underachievement: Obligations to buy ESCerts or pay penalty Overachievement: Issuance of ESCerts for banking for later use or trade

Auditing Agencies
Independent Monitor, verify and certify

Trading of ESCerts
Participation by Designated consumers on platform provided by Power Exchanges Symmetrical flow of information

Market Place
Transaction of efficiency instrument energy

The PAT Scheme ..Approach

INDUSTRY (DC)
Review of Present Energy Scenario & Bandwidth (Completed) Development of Baseline Formats with System Boundaries Data Collection, Compilation & Analysis Verification of Data

Establish Baseline

Set Targets for SEC Reduction Technology Transfer, EE Technology, R&D Verification Protocol

Achieve the Target

Trade the higher achieved saving through E-Certs

Target in PAT
Target is defined as the % reduction of Specific Energy Consumption (SEC) from Baseline value.
All forms of Energy Product

Plant System Boundary

S E C

SEC = E / P
Baseline SEC

Reduction in SEC
Target SEC

Expressed in %

Y1

Y2

Y3