Perform, Achieve, Trade (PAT) Scheme

In News

• A recent report by the New Delhi-based non-profit Centre for Science and Environment (CSE) revealed that Perform, Achieve, Trade (PAT) is not effective.
  • The report attributed the inefficiency of the scheme to non-transparency, loose targets and overlooked deadlines.

About Perform, Achieve, Trade (PAT)

• The Perform, Achieve, Trade (PAT) scheme was established by the National Mission for Enhanced Energy Efficiency.
  • NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008.
    • The Union Ministry of Power and Bureau of Energy Efficiency were entrusted with the task of preparing the implementation plan for the NMEEE.

• Features :
  • Under PAT Scheme, the Energy Savings Certificates (ESCerts) were introduced in India in 2012 by the Bureau of Energy Efficiency (BEE)

• It is a regulatory instrument to reduce specific energy consumption in energy-intensive industries, with an associated market-based mechanism to enhance the cost-effectiveness through certification of excess energy saving which can be traded. 

• Coverage: PAT scheme covered about 13 energy-intensive sectors. Sectors included are thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertiliser, Chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports).
• Working: Industries that participate in this scheme are called designated consumers (DC). and they are given specific energy-saving targets for a three-year cycle.

• The targets are given according to the current energy efficiency levels of the DCs in such a manner that energy-efficient DCs are given lower targets while DCs that are not energy efficient are given higher targets.

Source: DTE