The Centre for Science and Environment (CSE) recently released a report highlighting that the Perform, Achieve and Trade (PAT) scheme piloted in 2008 is not performing as productively as expected. The PAT scheme was launched with the objective of enhancing energy efficiency across industries in India and subsequently mitigating greenhouse gas emissions. However, the scheme’s performance is marred by issues like lack of transparency, lenient targets, and overlooked deadlines.
Centre for Science and Environment (CSE)
The CSE is a New Delhi-based public interest research and advocacy organization. It emphasizes on conducting research, advocating, and communicating about sustainable and equitable development.
About PAT Scheme
The PAT scheme is a market-oriented mechanism designed to expedite and motivate enhanced energy efficiency among sizable, energy-intensive industries. In 2011, Energy Savings Certificates (ESCerts) were ushered under PAT by the Bureau of Energy Efficiency (BEE), as a part of the National Mission of Energy Efficiency (NMEEE). NMEEE is one of the eight national missions instigated by the Indian government in 2008 under the National Action Plan on Climate Change (NAPCC).
Energy Savings Certificates (ESCerts)
This market-oriented mechanism is aided by the trading of Energy Savings Certificates (ESCerts). The overachievers are rewarded with ESCerts which can be purchased by underachievers through two power exchanges – Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). The industries participating in this initiative are called designated consumers (DC).
Sectors Covered Under PAT
PAT encapsulates around 13 energy-intensive sectors including thermal power plants, cement, aluminium, iron and steel, pulp and paper, fertiliser, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textiles and commercial buildings such as hotels and airports.
Other Initiatives for Energy Conservation and Efficiency
Apart from the PAT scheme, other initiatives also exist to promote energy conservation and efficiency. These include the Standards and Labeling initiative, Energy Conservation Building Code (ECBC), Demand Side Management, and SAATHEE Portal.
The Way Forward
According to the CSE report, to align with global climate commitments pertaining to greenhouse gas emission reduction, the energy reduction target needs to be made more stringent. Establishing stricter targets and ensuring transparency can uplift the effectiveness of the PAT scheme.
This article is based on data sourced from Down To Earth (DTE).