Power exchange Indian Energy Exchange (IEX) today said trading in Energy Saving Certificates (ESCerts) on its platform will start from September 26, 2017.
The ESCerts trading will facilitate implementation of PAT (Perform Achieve and Trade) targets. PAT is a market based mechanism to reduce the specific energy consumption (SEC) in energy intensive large industries, IEX said in a statement.
The PAT scheme is designed to reduce the SEC i.e. energy used per unit of production. Large energy intensive industries that consume more energy are required to purchase ESCerts, while those industries which have met their energy consumption targets get the ESCerts.
Also Read
The PAT is one of the initiatives under the National Mission on Enhanced Energy Efficiency (NMEEE), which is one of the missions under the National Action Plan on Climate Change (NAPCC).
"We are happy to know that the PAT Cycle-1 targets have been met and the scheme has achieved a saving of 8.67 MTOE (million tons of oil-equivalent) which is an over achievement of about 30 per cent in comparison to assigned targets. In monetary terms, about Rs 9,500 crore have been saved.
"I would like to acknowledge the efforts put by Bureau of Energy Efficiency (BEE) for taking this initiative and CERC (Central Electricity Regulatory Commission) for putting the regulatory framework in place, S N Goel, MD and CEO, Indian Energy Exchange, said in a statement.
For trading of ESCerts, the CERC is the Market Regulator, the BEE is the Administrator and Power System Operation Corporation Limited (POSOCO) is the registry for registering DCs (designated consumers) as eligible entities, trading and book-keeping of ESCerts.
The exchange based markets have come a long way in the last nine years.
Today, IEX has over 5,900 participants, including over 400 generators, distribution companies from all the states, 5 Union Territories and over 3,800 industrial consumers.
In fiscal 2016-17, IEX traded 40.5 billon units of electricity and 46.2 lacs renewable energy certificates, it added.
Disclaimer: No Business Standard Journalist was involved in creation of this content
