Policy status:In Force
Date Effective:2012
Policy Type:Economic Instruments>Market-based instruments, Regulatory Instruments>Auditing, Economic Instruments, Regulatory Instruments
Policy Target:Industry>Energy-intensive, Industry
Agency:Bureau of Energy Efficiency

The Perform, Achieve, Trade (PAT) scheme is a market-based trading scheme that aims to improve energy efficiency in industries by trading in energy efficiency certificates in the country's most energy-intensive sectors. Reductions in specific energy saving targets are given to Designated Consumers (DCs), with the reduction dependent on the DC's level of energy efficiency. The targets are set for three year periods.

PAT Cycle I (2012-13 to 2014-15)

The first cycle applied to 478 DCs from the country's eight most energy-intensive sectors, Aluminium, Cement, Chlor-Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile

Those units that exceed their benchmarks will be issued energy-saving certificates that can then be sold to those units that fail to meet the set targets.

The action steps in PAT cycle I were:

  1. Goal Setting: specific energy consumption targets were set for each plant, benchmarks are determined
  2. Reduction: over the next 3 year period, energy consumption was to be decreased to meet targets
  3. Trading: when targets were exceeded, tradable energy permits were awarded; these permits could be sold to designated consumers who failed to meet their target.

Designated Consumers who failed to achieve their target had to compensate this failure by buying permits. These eight sectors covered 65% of India’s total industrial energy consumption. The energy savings goal of 6.7 million tonne of oil equivalent (mtoe) by the end of 2014-15 was exceeded: actual achievement amounted to 8.7 mtoe, 30% above the target. This is equivalent to the savings of 31 Mt of CO2 emissions. 

PAT Cycle II (2016-17 to 2018-19)

This cycle included three new sectors (Railways, Refineries and Electricity Distribution Companies [DISCOMs]) and a total of 173 new DCs (89 new from the eight already included sectors and 84 from the three added sectors). The overall target for this period is an energy consumption reduction of 8.9 mtoe.

PAT Cycle III (2017-18 to 2019-20)

The third cycle could include new consumers annually. An additional 116 DCs were included in 2017 and the extension is effective since 1 April 2017, they have been assigned an energy saving target of 1.06 mtoe by the end of the cycle 2019-20.

Last modified: Thu, 22 Feb 2018 11:14:49 CET