Perform Achieve & Trade
Normalisation & Obligations of
DCs as per PAT Rules
by
Sarabjot Singh Saini, Sector Expert, BEE
Delhi
July 7 2016
Normalization
“Normalisation” means a process of rationalization of energy and production data of Designated Consumer to take into account changes in quantifiable terms that impact of energy performance under equivalent conditions’. • It is a streamlining process by which any DC is not subjected to
undue advantage or disadvantage due to factors beyond the control of the DC
Process – Formation of sectoral/sub-sectoral technical committee – Consultation with stakeholders – Identification of factors – Integration with reporting format - proforma – Validation with real data
Normalization Year Baseline Year Target year
Family Profile The Married Couple Married couple and baby
Gas cylinders consumption per month
14 kg 20 kg
Target energy saving (2 kg reduction from baseline)
12 kg 12 kg
Normalization (Process of rationalizing factors beyond the control of a DC)
Exclude additional consumption due to the child (Normalisation) Scenario 1: Child’s consumption say 8 kgs The couple’s consumption is 12 kg (just met the target) Scenario 2: Child’s consumption say 10 kgs The couple’s consumption is 10 kg ( over achieved the target, ESCerts equivalent) [The couple has made efforts to reduce gas consumption) Scenario 3: Child’s consumption say 4 kgs The couple’s consumption is 16 kg ( Consumed more than baseline year, purchase ESCerts or pay penalty)
• Capacity Utilization
– Availability of Fuel/Raw Material (Effect on
Capacity Utilisation)
– Natural Calamity/Rioting/Social
Unrest/Labor Strike/Lockouts (Effect on
Capacity Utilisation)
– Start/Stop
• Product Mix & Intermediary Product (Import/Export)
• Fuel Mix
• Power Mix ( Imported & Exported from/ to the grid
and self-generation from the captive power plant)
• Fuel Quality
• Low PLF
• Raw Material Quality
• Environmental Concern (Additional
Environmental Equipment requirement due to
major change in government policy on
Environment)
• Biomass/Alternate Fuel
Unavailability
• Construction Phase or Project
Activities
• Addition of New Line/Unit (In Process &
Power Generation)
• Unforeseen Circumstances
• APC Normalization
• Start-up/ shut downs due to external
factors
Normalization Factors- Broad Categorization
Development-New Form I
K Documentation for Normalisation Previous
Year
Current
Year
Source of Data
(i) Fuel Quality in CPP-Document Available for Normalisation
Yes/No
(ii) Intermediary Product-Document Available for Normalization
Yes/No
(iii) PLF- Document Available for Normalisation
Yes/No
(iv) Power Mix-Document Available for Normalisation
Yes/No
(v) Product Mix-Document Available for Normalisation
Yes/No
(vi) Notional Energy for other Factors Yes/No
Select from Drop Down List
Documents
Example of normalization – TPP sector
Coal Quality [With Fuel linkage]
Plant loading factor
Scheduling
Fuel Availability
Auxiliary Power Consumption
Due to low loading
Due to fuel quality
Start/ Stop of unit
Electrical Energy
Thermal Energy
Environmental Concern
Natural Disaster & Unforeseen Circumstances
Electrical Energy
Thermal Energy
Example of normalization – TPP sector
Coal Quality- day wise Internal lab reports, external NABL accredited lab reports for
coal sampling (proximate and ultimate), for AY and BY
Plant loading factor- block wise DC, SG, SI, for AY and BY; LDC communications;
documents showing unavailability of fuels from supplier; OEM characteristic curve for
load Vs heat rate
Auxiliary Power Consumption- APC and loading factors for entire year; curve plotted to
show APC pattern at various loadings, energy meter readings for equipment
Start/ Stop of unit – LDC communications citing stoppage of units; energy meter
readings
Environmental Concern- document citing change in environmental norms, design data
and P.O. of new equipment. Energy consumption of same
Natural Disaster & Unforeseen Circumstances- letters or references citing unforeseen
circumstances as applicable.
Documents required
Normalization Documents and M&V guidelines
https://beeindia.gov.in/content/pat-3
Normalization factors Identified in Refinery Sector
Fuel and Loss during planned shutdown & turnarounds
Additional fuel consumption in technology up-gradation for producing BS-IV &
BS-VI fuels:
Natural Calamities & External factors.
Energy consumed during construction and pre-commissioning stage of a
new/revamp project.
Impact arising due to export of utility
Extra fuel in Boilers & STGs due to disruption of NG supply to GTs to be
normalised .
Energy Saving estimation for projects not commissioned due to no shutdown:
Major Obligations for DCs
• DCs to appoint or designate energy managers who shall be in charge of activities for efficient use of energy and its conservation (clause 14(l)).
• Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of certification examination, conducted by Bureau of Energy Efficiency.
• The following information to be provided for energy manager:
• Name of the energy manager
• Registration number (EA/EM No.)
• Complete postal office address
• Telephone and Mobile number
• Email address)
• The information with regard to energy consumed (clause 14(a)) in Form 1
• Get energy audits conducted by accredited energy auditors
• Implement techno-economic viable recommendations
• Comply with norms of specific energy consumption
• Submit report on steps taken
Form I and Sector Specific Pro-Forma
Performance Assessment Documents (Form A)
Certificate of Verification (Form B)
Certificate of Check-Verification (Form C)
Compliance of Energy Consumption Norms and Standard
Document (Form D)
Various Forms to be submitted by DC and EmAEA
12
31st Dec
M&V Phase
Scrutiny Phase
1st April 31st July
45 Days 2 months 45 Days
M&V- Submission of FORM I, Form A,B, Sectoral Proform and M&V report
SDA’s Scrutiny
BEE’s Scrutiny BEE’s
recommendation to Central Government
Issue of ESCerts and Trading
Compliance Phase
28th Feb
2 months/ Period
specified by CERC 1 month
31st March
FORM D Submission
Key Timelines: Revised
Activity Time Line Description Tentative Dates for PAT Cycle II
Activity by
Submit to
Form 1, Action plan submission
3 Months Within 3 month from Notification 30 June 2016
DC SDA/BEE
Form 1 submission 3 Months Yearly submission of Form 1 within 3 months from last financial year
30 June (Every Year)
DC SDA/BEE
Form A, Form B along with other documents
4 Months Within 4 month from conclusion of target year
31st July 2019
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
15th Sept 2019
SDA BEE
Recommendation of ESCerts to MoP, GOI
Two Months
Within two months from the date of the receipt of the comments from SDA
15th Nov 2019
BEE MoP
Issuance of ESCerts by MoP
45 Days Within 45 days from the date of the recommendation of Escerts from BEE
31st Dec 2019
MoP
Form D Submission One Month After 1 month from the Completion of Trading
DC SDA/BEE
Timelines and Activities
After Completion of Target Year: Every DC within four months of the conclusion of the target year from the baseline year shall submit to the SDA with a copy to the Bureau, the performance assessment document (PAD) in Form ‘A’, duly verified together with certificate in Form ‘B’ given by the empanelled Accredited Energy Auditor (AEA).
Assessment of Performance (Rule 6)
Submission of Form A and B
Procedure for issue of Energy Savings Certificates (ESCerts)
• Central Govt. after receiving recommendation from Bureau issue ESCerts of desired value to DC within 45 days.
• ESCerts shall only be in electronic form
• 1 ESCerts= 1 tonne of Oil Equivalent (toe) = 10968 INR
• The DC who has been issued energy savings certificates may sell them through the power exchange.
• ESCerts issued in current cycle shall remain valid till compliance period of next cycle.
• ESCerts purchased by DC for compliance shall after their submission to Bureau stand expire.
Compliance of energy consumption norms and standards (Form D)
The designated consumer for the purpose of achieving the compliance with the energy consumption norms and standards during the target year, in the relevant cycle shall take the following action and after completing the said action, furnish the status of compliance to the concerned state designated agency with a copy to the Bureau in Form ‘D’ by the end of one from the completion of trading of ESCerts of respective cycle as may be specified by CERC.
(a) by implementation of energy conservation and energy efficiency improvement measures or;
(b) where the measures implemented in terms of clause (a) are found inadequate for achieving compliance with the energy consumption norms and standards, the designated consumer shall purchase the energy savings certificates equivalent in full satisfaction of the shortfall in the energy consumption norms and standards worked out in terms of metric ton of oil equivalent.
Penalties and Adjudication
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.
Status of Energy Return Submission FY 16-17
S.N Refinery Energy Return Form 2
(Action Plan) 1 IOCL-Bongaigoan Recieved Recieved 2 IOCL-Barauni Recieved Recieved 3 IOCL-Gujarat Recieved Recieved 4 IOCL-Haldia Recieved 5 IOCL-Mathura Recieved Recieved 6 IOCL-Panipat Recieved Recieved 7 HPCL-Mumbai Refinery Recieved Received 8 HPCL-Vizag Refinery Recieved Recieved 9 BPCL-Mumbai Refinery Recieved Recieved
10 BPCL-Kochi Refinery Recieved 11 CPCL-Manali Refinery Recieved Recieved 12 NRL Recieved Recieved 13 MRPL Recieved Recieved 14 BORL Recieved 15 HMEL-Bhatinda Recieved 16 RIL-SEZ Recieved 17 RIL-DTA Recieved 18 Essar Recieved
Thank you