(The Gist of PIB) Ministry of Power notifies Norms and Standards for trading of E-certificate under PAT Cycle II
(THE GIST OF PIB) Ministry of Power notifies Norms and Standards for trading of E-certificate under PAT Cycle II
Ministry of Power notifies Norms and Standards for trading of E-certificate under PAT Cycle II
- Perform Achieve and Trade (PAT) scheme is a market-based carbon trading programme to reduce energy consumption and promote enhanced energy efficiency among specific energy intensive industries called Designated Consumers (DCs).
- It is a flagship programme of the Bureau of Energy Efficiency (BEE) under the National Mission for Enhanced Energy Efficiency, one of the 8 missions under National Action Plan on Climate Change (NAPCC).
- Under this scheme, reductions in specific energy saving targets are assigned to DCs for a three year cycle. PAT Cycle-II was notified in 2016.
- Energy saving certificates (ESCerts) are awarded after a DC surpasses its target and can then be sold to another DC that has failed to achieve its target. ESCerts, equivalent to 1 tonne of oil equivalent (toe) of energy savings, are given.
- ESCerts could be traded at Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) or bought by other units under PAT who can use them to meet their compliance requirements.
- BEE is the administrator and Central Electricity Regulatory Commission is the regulatory body of ESCerts trading.