The Bureau of Energy Efficiency (BEE) would launch Perform-Achieve-Trade (PAT) mechanism for energy-intensive large industries and facilities to reduce energy consumption under Energy Conservation Act 2001 by April 1. According to the mechanism companies consuming less energy will now be able to sell the efficiency certificates to the non-efficient ones, domestically. By adopting the mechanism there would be saving to the tune of about 10 million tonnes oil equivalent in the next three years.
Speaking to Business Standard, BEE Director General, Ajay Mathur who was in the city recently said, “The scheme would start from April 1 this year and within two weeks units would be given targets(regarding energy reduction) to be achieved in next three year. There are nine sectors like power stations, cement, steel, fertilisers, aluminium, textiles etc where consumption is very high. Overall, there are about 700 large units across India which constitutes 55 per cent of the total energy consumption.”
In Punjab, there are 30 units had been identified, including a cement plant, power plants, fertilisers units, pulp and paper units, textile units etc.
The PAT mechanism will enable designated consumers who use less energy then the norm set for them to earn Energy Saving Certificates for the excess savings.
These ESCerts can be used by other designated consumers (who may find it expensive to meet their norms) for compliance. They will be denominated in tonnes of oil-equivalent (ToE) and exchanged on special trading platforms.
He added that the Bureau of Energy Efficiency in partnership with state designated agencies is likely to achieve about 23 million tonnes oil equivalent of fuel savings in coal, gas, and petroleum products in next three years along with expected avoided capacity addition of over 19000 MW. The carbon dioxide emission reduction is estimated to be to 98.55 million tonnes annually.
He added, “We will set a specific energy consumption (SEC) target for each plant, depending on level of energy intensity (specific energy consumed = energy use / output) of that plant. The target will specify by which percentage a plant has to improve its energy intensity from the base line value in a period of three years. Further, Certificates would be given for energy efficiency, so the industry that does better than the target will be able to trade these with under-performers. Those consumers who exceed their target SEC(specific energy consumption) will be credited tradable energy permits. These permits can be sold to designated consumers who failed to meet their target. Designated Consumers who fail to achieve their target have to compensate this failure by buying permits. If they fail to do either of this, they may have to pay penalties.”