Country:India
Year:2011
Policy status:In Force
Date Effective:2011
Policy Type:Economic Instruments>Market-based instruments, Regulatory Instruments>Auditing
Policy Target:Industry>Energy-intensive, Industry
Agency:Bureau of Energy Efficiency
URL:http://india.gov.in/allimpfrms/alldocs/15659.pdf
Funding:Expected investment: USD 15 billion
Description:

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 eight most energy-intensive sectors.

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 are:

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

Designated Consumers who fail to achieve their target have to compensate this failure by buying permits.These eight sectors will cover 65% of India’s total industrial energy consumption. Expected savings are 19 GW of energy and emissions reductions of 98 million tonnes a year once the scheme is implemented. It is estimated that the expected investment will be around USD 15 billion.

Last modified: Thu, 26 Feb 2015 17:38:28 CET