A journey through

Perform Achieve & Trade (PAT)

Piyush Sharma
New Delhi
17th Feb 2017
 Background
NAPCC (2008) NMEEE

Energy Intensive Stimulate

Industries Funding
Targets for Mandatory for ESCOs
Energy Saving and capacity building
of financial institutions
PAT EEFP

NMEEE
Energy Efficient Fiscal
MTEE FEEED Instrument for EE
Appliances
BLY PRGF
SEEP VCF
DSM
Public Procurement
 Background

Analysis on total energy consumption of country and

savings potential

Formation of technical committee

Defining threshold for every sector through notification

Collection of data from plant in Form -1

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

All forms of Plant Boundary

Energy
Electricity
(KWH)
FO (Ltr)
Product (Kg)
NG (SCM) PROCESS

Coal (KG)
E P
Others (KG or
Ltr)

SEC = E / P

Baseline
SEC

SEC Reduction in
SEC
Target SEC

Year 1 Year 2 Year 3

 Concept of PAT
Normalization

What
It 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.

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

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

Requirements
Authentic 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
Data Target Setting
Notification

Getting Information
Compilation, Verification
through Base Line Format [Declaration of Base
through baseline audits
phase

(Form-1) Year, Target Year ]

Pre-

and Evaluation
Implementation

Communication to
Designated Consumers
phase

Preparation of
Verification of PAD through
M&V and Compliance phase

Communication to SDA Performance Assessment

EmAEA Document by DCs
and BEE
(Form B) (PAD or Form A)

Check Verification (if

Re-verification of applicable) of PAD
documents submitted by DC Issuance of ESCerts by Market (Form C) through
MoP EmAEA & submission
after M&V, by BEE for Trade of compliance doc
(Form D).
 Concept of Target, Compliance, ESCerts &
Concept of PAT
Penalty

Issued
Baseline Penalty
Escerts
SEC

Saving
Target Achieved
SEC Compliance

Target
SEC

Purch
ase
Escert
s

Scenario 1 Scenario 2
 Concept of PAT
Stakeholders

Trading
Administrator Nodal Agency Implementer State Administrator Verifier
Regulator, Registry

Central
State Electrici
Designat
Bureau Designat Accredite ty
MoP/Cen ed
of Energy ed d Energy Regulat
tral Govt Consume
Efficiency Agency/ Auditor ory
r
SERC Commis
sion/PO
SCO
 Concept of PAT
Timelines and Activities
Activity Time Description Activity Where
Line by

Form 1, Action plan 3 Within 3 month from Notification DC SDA/BEE

submission Months
Form 1 submission 3 Yearly submission of Form 1 within 3 DC SDA/BEE
Months months from last financial year
Form A, Form B along with 4 Within 4 month from conclusion of DC SDA/BEE
others documents Months target year

Submission of Form A, Form 45 Days Within 45 days of the last date of SDA BEE
B with SDA comments submission of Form A
Recommendation of Escerts Two Within two months from the date of the BEE MoP
to MoP, GOI Months receipt of the comments from SDA
Issuance of Escerts by MoP 45 Days Within 45 days from the date of the MoP
recommendation of Escerts from BEE
Form D Submission One After 1 month from the Completion of DC SDA/BEE
Month Trading
 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.
 PAT Cycle-I
Sr Sector No. of Reported Energy National Energy Saving Targets under PAT (%)
No Identified Energy Saving (2012-15)
DCs PAT Consumptio Targets
Cycle-1 n PAT Cycle-1 under PAT
(million toe) Cycle-1
(million toe)
1 Aluminium 10 7.71 0.456
2 Chlor-Alkali 22 0.88 0.054
3 Textile 90 1.2 0.066
4 Pulp & 31 2.09 0.119
Paper
5 Iron & Steel 67 25.32 1.486
6 Fertilizer 29 8.2 0.478
7 Cement 85 15.01 0.816
Baseline Period:
8 Thermal 144 104.56 3.211 2007-08, 2008-09, 2009-10
Power
Plants Assessment year: 2014-15
Total 478 164.97 6.686
M&V period: April-2015 to Jun-2015
 PAT Cycle-II
Sr. Sector No. of DCs in Additional DC Total no. of
PAT Cycle II
No PAT I in PAT Cycle-II DCs PAT -2
Baseline Year: 2014-15
PAT Cycle year 2016-2019
1 Aluminium 10 2 12
Assessment Year: 2018-19
2 Chlor-Alkali 22 3 24 M&V period: Apr-2019 to
3 Textile 90 14 99 31st July2019
4 Pulp & Paper 31 4 29
5 Iron & Steel 67 9 71
6 Fertilizer 29 8 37 Total Energy
7 Cement 85 27 111 Consumption from
8 Thermal Power 144 22 154 11 sectors 227 mtoe
Plants
9 Refinery NA 18 18
10 DISCOMS NA 44 44 National Target =
8.869 mtoe at the
11 Railway NA 22 22 end of 2nd PAT Cycle
Total 621 (by 2018-19)
 Strengthening of PAT
What has been done so far: Capacity Building What has been done so far: Committee Formation
 Capacity building of State Designated  Technical Committee formation in all the
Agencies (SDA), EmAEA and DCs sectors
 Sub-Technical Committee formation on
 Appointment of Energy Manager in DCs Normalisation
(Made Mandatory)
 70 nos of committee meeting for finalization
of Pro-forma and Normalisation Factors
 53 Empanelled Accredited Energy Auditor
(EmAEA)  Detailed sector specific proforma
development
 18 Nos of Plant visit to understand the
 PAT Secretariat complexities of operation and finalization of
Normalization Factors
 10 Nos of plant visit for beta testing of data
entry form and calculations
Achievement of PAT Cycle-I
Achievement of PAT Cycle-I
32 million Tonnes of CO2
1.93% of India’s Total CO2 emission

Energy savings of 8.67 million toe

1.25% of India’s total primary energy supply
2.38% of total energy consumed by Indian industries
5.24% of total energy consumed by Indian industries under PAT

Coal savings of 21 million tonnes

6600 rakes of coal

Investment of Rs.25,000 crore

in energy efficient technologies

Capacity building
13718 Energy Auditors and Managers certified
219 Energy Auditors accredited
53 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, ultimately
leading 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