Energy Saving Certificates (ESCerts)ESCerts

Designated Consumers are given some target regarding the reduction of their Specific Energy Consumption (SEC). As per the Scheme, the DCs who overachieve their targets are given some Energy Saving Certificates and the DCs who are under achievers are entitled to purchase Energy Saving certificates

Energy Conservation Rules, 2012 (PAT Rules 2012) notified on 30th March 2012 by Ministry of Power, has specified that the ESCerts to be issued/entitled to purchase will be in electronic form and tradable on Power Exchange. – BEE developed PATNet portal for all the Designated Consumers (DCs) through which they upload their forms and ESCerts can be electronically issued/entitled to purchase to them. CERC is the market regulator for trading of ESCerts, POSOCO is the Registry for ESCerts; and IEX as well as PXIL are the Power exchanges.

Perform, Achieve and Trade (PAT) is a scheme which is a market based mechanism and got birth under the National Mission on Enhanced Energy Efficiency. This is the unique scheme which encapsulates all the major Energy Intensive sectors across the PAN India. The industries under the PAT Scheme is given a name of Designated Consumers.

Specifications of the ESCerts Framework:

Name of Parameter Details
Designated Consumers 1 MWh
Buyers Industries not achieving target
Sellers Industries achieving beyond target
Target 6.6 million toe for 1st Cycle
Mechanism Cap and Trade
Phase Cycle 3 Years
ESCerts 1 ESCert = 1 MTOE (Metric Tonne of Oil Equivalent)
Trading Platform Power Exchanges only
Penalty As per Energy Conservation Act, 2001
(Link with market value of oil equivalent)

Background of PAT CyclesPAT

Pat Cycle-I

In PAT Cycle I, Ministry of Power issued approximately 38.25 lakh ESCerts to 309 DCs while 110 DCs have to purchase ESCerts for their compliance. Important achievements of PAT Cycle I trading are:

  • Trading of approx. Rs. 13 lakh ESCerts has taken place.
  • Overall business of Rs.100 crores have taken place.
  • 96% of the Designated Consumer (buyers)s have met their compliance.

Pat Cycle-II

PAT Cycle –II (2016-17 to 2018-19) commenced from 1st April, 2016 under which 621 industrial units from 11 sectors (8 existing sectors and 3 new notified sectors viz. Railways, Refineries and electricity distribution companies (DISCOMs) have been notified

Pat Cycle-III

PAT Cycle III (2017-18 to 2019-20) has commenced from 1st April 2017 under which targets for 116 DCs in 6 sectors have been notified.

Pat Cycle-IV

PAT Cycle IV (2018-19 to 2020-21) has commenced from 1st April 2018 under which 109 DCs have been notified.

Pat Cycle-V

PAT Cycle V (2019-22) has commenced from 1 April 2019 under which there are 8 sectors and 110 DCs.