Government of India developed robust mechanism for Online Trading of Energy Saving Certificates

What is the News?

The Ministry of Power issued more than 57 lacs Energy Saving Certificates to 349 industrial units because they saved more energy than the targets. These units will be able to trade certificates through Power Exchange Portal to those units that could not achieve their targets.

About Perform, Achieve and Trade(PAT) Scheme:

1. Launched by: Ministry of Power
2. Aim: PAT is a market-based compliance mechanism that aims to accelerate improvements in energy efficiency in energy-intensive industries.
3. Nodal Agency: It is a flagship programme of the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).

Key Features of the Scheme:

1. The scheme seeks to enhance cost-effectiveness through certification of excess energy savings in energy-intensive industries.
2. Under the scheme, an Energy Audit is done to verify the baseline data (current level of efficiency) and thereafter energy saving targets are given. 
3. Energy Saving Certificates (ESCerts) are issued to those plants that have achieved excess energy savings over their targets. 
4. Units that are unable to meet the targets either through their own actions or through the purchase of ESCerts are liable to financial penalty under the Energy Conservation Act, 2001.

Significance of the Scheme:

1. The scheme has led to the total energy savings of more than 14 million tonnes of oil equivalent (MTOE) which has resulted in mitigation of about 66 million tonnes of CO2 emission.