Over 400 industries reduced their emissions by 31 MT of CO2, approximately 2 per cent of annual CO2 emissions, during the first implementation cycle of Perform, Achieve & Trade Scheme (PAT) by the Bureau of Energy Efficiency (BEE) between 2012 and 2015.
The first cycle of PAT implementation (2012-15) covered 478 designated industries (DCs) from eight energy-intensive sectors – aluminium, cement, chlor-alkali, fertilizer, iron and steel, pulp and paper, textiles and thermal power plant. Together, these sectors account for about 33 per cent of India’s primary energy consumption. The scheme resulted in saving of energy equivalent to 8.67 MT of oil, exceeding the target of 6.86 MT by about 30 per cent. This also resulted in avoided generation of about 5,635 MW, resulting in monetary savings of Rs 37,685 crore. At the same time Rs 9,500 crore have been saved due to reduction in energy consumption.
PAT is one of the most important initiatives under the National Mission on Enhanced Energy Efficiency (NMEEE), which is a mission under National Action Plan on Climate Change (NAPCC) in 2012. PAT is a market-based mechanism focused on reducing the specific energy consumption (SEC), i.e., energy used per unit of production, in large energy-intensive industries. The scheme facilitates these large, energy-intensive industries to achieve their legal obligation under the Energy Conservation Act, 2001, while also motivating them with necessary market-based incentives to reduce their SEC and hence surpass their individual energy saving targets.
Under the PAT scheme, an energy audit is done to verify the baseline energy consumption of a specific industry to assess the current level of efficiency, and, thereafter, individual targets are given to industrial units. These reduction targets in specific energy consumption are assigned to these large energy-intensive industries, known as designated industries, for a three-year cycle. The targets are decided based on their current levels of efficiency of the industrial units.
The industries that consume more energy per unit production are given targets higher than their energy efficient counterparts. This promotes overall energy savings, as companies strive to surpass their own performance rather than competing with each other.
PAT Cycle II was notified from April 1, 2016 for a period of three years, i.e., up to 2018-19. The overall energy consumption reduction target under PAT II given to 621 units is 8.869 Million Tonnes of Oil Equivalent (MTOE) in which 11 sectors are covered. This includes the eight sectors of PAT I and three new sectors viz railways, discoms and petroleum refineries. PAT III was notified with effect from April 1, 2017 for a period of three years. 116 new units have been included and given a reduction target of 1.06 MTOE. The PAT scheme is now being implemented as a rolling cycle, i.e. new units will be notified for a period of three years every year. Thus, there will be no gap in notifying new units, as was the case between PAT I and PAT II.