About Perform, Achieve & Trade (PAT) Scheme:
- PAT Scheme is a flagship program under the National Mission for Enhanced Energy Efficiency (NMEEE).
- Implementing Agency: It is implemented by the Bureau of Energy Efficiency (BEE) under the aegis of the Ministry of Power.
- Objective: PAT scheme aims at reducing Specific Energy Consumption (SEC),e., energy use per unit of production for Designated Consumers (DCs) in energy-intensive sectors, with an associated market mechanism to enhance the cost-effectiveness through certification of excess energy saving, which can be traded.
- Energy Saving Certificates (ESCerts):
- The excess energy savings are converted into tradable instruments called Energy Saving Certificates (ESCerts) that are traded at the Power Exchanges.
- Trading Platform: The two Power Exchanges, India Energy Exchange (IEX) and Power Exchange India Limited (PXIL) provide the trading platform for ESCerts.
- Central Electricity Regulatory Commission (CERC) is the market regulator for the trading of ESCerts.
- PAT Scheme is implemented in cycles of 3 years each, where the Designated Consumers (DCs) are assigned SEC reduction targets.
- Designated Consumers (DCs) who fall short of their targets bid for the purchase of ESCerts.
Bureau of Energy Efficiency (BEE):
- BEE is a statutory body under the Union Ministry of Power.
- The Government of India set up BEE on 1st March 2002 under the provisions of the Energy Conservation Act, 2001.
- Mission: Develop policy and strategies with a thrust on self-regulation and market principles within the overall framework of the Energy Conservation Act (EC Act), 2001.
- Primary Objective: To reduce energy intensity in the Indian economy.
What is the National Mission for Enhanced Energy Efficiency (NMEEE)?
- It is one of the eight national missions under the National Action Plan on Climate Change (NAPCC).
- Objective: NMEEE aims to strengthen the market for energy efficiency by creating a conducive regulatory and policy regime.
- BEE fosters innovative and sustainable business models in the energy efficiency sector.
- The mission is implemented since 2011.
- Implementing Agencies: Bureau of Energy Efficiency (BEE), Energy Efficiency Services Limited (EESL).
