A recent report by the Centre for Science and Environment (CSE) has attributed the inefficiency of the PAT scheme to non-transparency, loose targets and overlooked deadlines.

PAT Scheme

• Perform Achieve and Trade (PAT) scheme is a flagship program of Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).
• NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008

Working of the scheme

• PAT is a market-based compliance mechanism to accelerate improvements in energy efficiency in energy-intensive industries.
• The energy savings achieved by notified industries is converted into tradable instruments called Energy Saving Certificates (ESCerts).
• The ESCerts after issuance by the Bureau of Energy Efficiency are traded at Power Exchanges.

What is PAT cycle?

• The government shortlists industries and restricts the amount of energy they can consume and defines a time limit of three years by when this restriction should be met as part of PAT.
• These three years of time are called one PAT cycle.
• The industries are chosen after in-depth, sector-wise analysis by the government.
• Industries that participate in this scheme are called designated consumers (DC).
• Those that overachieve their targets are issued energy savings certificates (ESCerts) that can be traded with industries that have not achieved their targets.
• Non-achievers have to buy the ESCerts after the three years for compliance.

Various PAT cycles

• PAT covered about 13 energy-intensive sectors
• Sectors included are thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertilizer, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports)
• Announcements for six cycles since 2012 have been made so far

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