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Energy Saving Certificates (ESCerts):
Energy Saving Certificates will be introduced in India under the
Perform Achieve Trade scheme (PAT) propelled by the Bureau
of Energy Efficiency (BEE) under the National Mission of Energy
Efficiency (NMEE) of the National Action Plan on Climate Change. The
genesis of the PAT mechanism comes from the Energy Conservation
Act, 2001. Eight energy-intensive industries have been selected
(namely aluminium, cement, choralkali, fertilizer, iron and steel,
pulp and paper, textiles, and thermal power plants). Each industry
has three years to reach a Specific Energy Consumption (SEC) and
will get ESCerts that can then be sold to those who failed. With this
mechanism, India hopes to unlock energy efficiency opportunities,
estimated to be about INR 74,000 crore (approx. USD 12.33 billion),
as well as avoid an electricity capacity addition of 19,000 MW and
mitigate 98 million tonnes of CO2 emissions per year by 2014–15.
The energy saving targets of eight sectors covered under PAT cycle I
(April 1, 2012 to March 31, 2015) is 6.686 million toe distributed
among 478 Designated Consumers (DCs). Under cycle II, the DCs
undertake measures to reduce their energy consumption. Within three
months of the end of the cycle I, they have to submit Performance
Assessment Document to State Designated Agency and BEE. BEE then
verifies the report and sends it to Accredited Energy Auditor. Currently
the cycle II is underway, following which ESCerts will be issued and
trading can begin on electricity exchanges such as IEX. The EC Act details
the notified industrial units and other establishments consuming more
energy than the defined threshold energy consumption. The ESCerts
will be issued by the Bureau of Energy Efficiency (BEE), Ministry of
Power, Government of India to eligible DCs.
An ESCert is an instrument issued by an authorized body to a
DC who guarantees that a stipulated amount of energy savings has
been achieved under the PAT scheme. It is a tradable commodity that
gives property rights over benefits created by energy saved above
the baseline level. The monitoring and verification would be done
by Designated Energy Auditors (DENA) who will be notified by BEE
in due course. Table 2.11 depicts the authority and their action with
regard to the process of issuing ESCerts.
Table 2.11: Authority and Action for Issuance of Energy Saving Certificates
Authority Action
Energy Conservation Act, 2001 • Determination of targeted designated consumers
270 Low Carbon Development in China and India
Energy Saving Certificates will be introduced in India under the
Perform Achieve Trade scheme (PAT) propelled by the Bureau
of Energy Efficiency (BEE) under the National Mission of Energy
Efficiency (NMEE) of the National Action Plan on Climate Change. The
genesis of the PAT mechanism comes from the Energy Conservation
Act, 2001. Eight energy-intensive industries have been selected
(namely aluminium, cement, choralkali, fertilizer, iron and steel,
pulp and paper, textiles, and thermal power plants). Each industry
has three years to reach a Specific Energy Consumption (SEC) and
will get ESCerts that can then be sold to those who failed. With this
mechanism, India hopes to unlock energy efficiency opportunities,
estimated to be about INR 74,000 crore (approx. USD 12.33 billion),
as well as avoid an electricity capacity addition of 19,000 MW and
mitigate 98 million tonnes of CO2 emissions per year by 2014–15.
The energy saving targets of eight sectors covered under PAT cycle I
(April 1, 2012 to March 31, 2015) is 6.686 million toe distributed
among 478 Designated Consumers (DCs). Under cycle II, the DCs
undertake measures to reduce their energy consumption. Within three
months of the end of the cycle I, they have to submit Performance
Assessment Document to State Designated Agency and BEE. BEE then
verifies the report and sends it to Accredited Energy Auditor. Currently
the cycle II is underway, following which ESCerts will be issued and
trading can begin on electricity exchanges such as IEX. The EC Act details
the notified industrial units and other establishments consuming more
energy than the defined threshold energy consumption. The ESCerts
will be issued by the Bureau of Energy Efficiency (BEE), Ministry of
Power, Government of India to eligible DCs.
An ESCert is an instrument issued by an authorized body to a
DC who guarantees that a stipulated amount of energy savings has
been achieved under the PAT scheme. It is a tradable commodity that
gives property rights over benefits created by energy saved above
the baseline level. The monitoring and verification would be done
by Designated Energy Auditors (DENA) who will be notified by BEE
in due course. Table 2.11 depicts the authority and their action with
regard to the process of issuing ESCerts.
Table 2.11: Authority and Action for Issuance of Energy Saving Certificates
Authority Action
Energy Conservation Act, 2001 • Determination of targeted designated consumers
270 Low Carbon Development in China and India
