A journey through

Perform Achieve & Trade (PAT)

Piyush SharmaNew Delhi

17th Feb 2017

Fiscal Instrument for EE

PRGFVCF

Public Procurement

Stimulate Funding

for ESCOs and capacity building

of financial institutions

Energy Efficient AppliancesBLYSEEPDSM

Energy Intensive IndustriesTargets for Mandatory Energy Saving

PAT EEFP

FEEEDMTEE

NMEEE

NAPCC (2008) NMEEE

Background

Background

Formation of technical committee

Analysis on total energy consumption of country and savings potential

Defining threshold for every sector through notification

Collection of data from plant in Form -1

As the SEC is calculated on a Gate-to-Gate concept, the definition of plant boundary plays an important role.

PROCESS

Electricity (KWH)

FO (Ltr)

NG (SCM)

Coal (KG)

Others (KG or Ltr)

Product (Kg)

All forms of Energy

E P

SEC = E / P

Plant Boundary

Baseline SEC

Target SEC

Reduction in SEC

Year 1 Year 2 Year 3

SE

C

Concept of PAT

Normalization

WhatIt is a process of rationalization of the energy and production data of a plant to take into account the impact of quantifiable external variables that are beyond the control of a designated consumer.

WhyTo ensure that the Designated Consumers is not placed in a position of advantage or disadvantage when compared to baseline scenario

HowIt was done through several technical committee meetings and various consultation workshop identifying the issues of DCs, and finding out ways to address them

RequirementsAuthentic relevant documents as per prescribed guidelines and instruction sheet should be submitted. Since normalization are compared to a baseline, hence all the data required, should be of baseline as well as assessment year.

Concept of PAT

Getting Information through Base Line Format

(Form-1)

Data Compilation, Verification through baseline audits

and Evaluation

Target Setting [Declaration of Base

Year, Target Year ]

Communication to Designated Consumers

Preparation of Performance Assessment

Document by DCs (PAD or Form A)

Verification of PAD through EmAEA

(Form B)

Communication to SDA and BEE

Re-verification of documents submitted by DC

after M&V, by BEE Issuance of ESCerts by

MoP Market

for Trade

Check Verification (if applicable) of PAD (Form C) through

EmAEA & submission of compliance doc

(Form D).

Pre-

Notifi

catio

n ph

ase

Imple

menta

tion

phas

eM&

V an

d Com

plian

ce ph

ase

Concept of PAT

SavingTarget

Baseline SEC

Target SEC

Achieved SEC

Scenario 1 Scenario 2

Compliance

Issued Escerts

Purchase Escerts

Penalty

Concept of Target, Compliance, ESCerts & PenaltyConcept of PAT

Administrator

MoP/Central Govt

Nodal Agency

Bureau of Energy Efficiency

Implementer

Designated

Consumer

State Administrator

State Designat

ed Agency/

SERC

Verifier

Accredited Energy Auditor

Trading Regulator, Registry

Central Electrici

ty Regulat

ory Commission/PO

SCO

Stakeholders

Concept of PAT

Activity Time Line

Description Activity by

Where

Form 1, Action plan submission

3 Months

Within 3 month from Notification DC SDA/BEE

Form 1 submission 3 Months

Yearly submission of Form 1 within 3 months from last financial year

DC SDA/BEE

Form A, Form B along with others documents

4 Months

Within 4 month from conclusion of target year

DC SDA/BEE

Submission of Form A, Form B with SDA comments

45 Days Within 45 days of the last date of submission of Form A

SDA BEE

Recommendation of Escertsto MoP, GOI

Two Months

Within two months from the date of the receipt of the comments from SDA

BEE MoP

Issuance of Escerts by MoP 45 Days Within 45 days from the date of the recommendation of Escerts from BEE

MoP

Form D Submission One Month

After 1 month from the Completion of Trading

DC SDA/BEE

Timelines and Activities

Concept of PAT

Enforcement

As per Section 26 of EC Act, If any DC fails to comply with the timelines of M&V

procedure, he shall be liable for a penalty of Rs. 10 lakh, in addition to Rs. 10,000 per day

If any DC fails to comply with the provisions, he shall be liable to a penalty of Rs. 10 lakh rupees and, in the case of continuing failure, with an additional penalty of the price of every metric ton of oil equivalent of energy

Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue.

Concept of PAT

National Energy Saving Targets under PAT (%)(2012-15)

SrNo

Sector No. of Identified DCs PAT Cycle-1

Reported Energy

Consumption PAT Cycle-1(million toe)

Energy Saving Targets

under PAT Cycle-1

(million toe)1 Aluminium 10 7.71 0.4562 Chlor-Alkali 22 0.88 0.0543 Textile 90 1.2 0.0664 Pulp &

Paper31 2.09 0.119

5 Iron & Steel 67 25.32 1.4866 Fertilizer 29 8.2 0.4787 Cement 85 15.01 0.8168 Thermal

Power Plants

144 104.56 3.211

Total 478 164.97 6.686

Baseline Period:2007-08, 2008-09, 2009-10

Assessment year: 2014-15

M&V period: April-2015 to Jun-2015

PAT Cycle-I

Sr. No

Sector No. of DCs in PAT I

Additional DC in PAT Cycle-II

Total no. of DCs PAT -2

1 Aluminium 10 2 122 Chlor-Alkali 22 3 243 Textile 90 14 994 Pulp & Paper 31 4 295 Iron & Steel 67 9 716 Fertilizer 29 8 377 Cement 85 27 1118 Thermal Power

Plants144 22 154

9 Refinery NA 18 1810 DISCOMS NA 44 44

11 Railway NA 22 22

Total 621

PAT Cycle IIBaseline Year: 2014-15PAT Cycle year 2016-2019Assessment Year: 2018-19M&V period: Apr-2019 to

31st July2019

Total Energy Consumption from 11 sectors 227 mtoe

National Target = 8.869 mtoe at the end of 2nd PAT Cycle (by 2018-19)

PAT Cycle-II

What has been done so far: Capacity Building What has been done so far: Committee Formation Capacity building of State Designated

Agencies (SDA), EmAEA and DCs

Appointment of Energy Manager in DCs(Made Mandatory)

53 Empanelled Accredited Energy Auditor(EmAEA)

PAT Secretariat

Technical Committee formation in all thesectors

Sub-Technical Committee formation onNormalisation

70 nos of committee meeting for finalizationof Pro-forma and Normalisation Factors

Detailed sector specific proformadevelopment

18 Nos of Plant visit to understand thecomplexities of operation and finalization ofNormalization Factors

10 Nos of plant visit for beta testing of dataentry form and calculations

Strengthening of PAT

Achievement of PAT Cycle-I

Achievement of PAT Cycle-I

Energy savings of 8.67 million toe1.25% of India’s total primary energy supply

2.38% of total energy consumed by Indian industries5.24% of total energy consumed by Indian industries under PAT

32 million Tonnes of CO21.93% of India’s Total CO2 emission

Coal savings of 21 million tonnes6600 rakes of coal

Investment of Rs.25,000 crorein energy efficient technologies

Capacity building 13718 Energy Auditors and Managers certified

219 Energy Auditors accredited53 Empanelled Accredited Energy Auditors

Capacity building of over 5000 engineers and operators

Technology Adoption

Relevance of PAT

• Nation- Reduce CO2 emission - Conserve the limited primary energy resources- Assist in meeting the NDC commitment- Create more business opportunities

• Social - Create more job opportunities in market- Change in habit towards energy conservation- Better environment to live in

Relevance of PAT

• Designated Consumer- Reduced SEC will lower per unit production cost, ultimatelyleading to higher profit

- Overachieved EsCerts can be traded for additional money - Capacity building of employees

• Technology Suppliers - Scope for research and development in particular field- Business opportunity for new technologies

• Service Sector- Opportunities in terms of Energy audit, capacity building, projects on ESCO model

Way Forward

• Capacity building on energy efficient technologies

• Financial instruments for energy efficiency investments

• Robust monitoring and verification system

• Strict enforcement• PAT help-desk/ apps

Thank You

E-mail ID: piyush.sharma@giz.de