Understanding Perform, Achieve & Trade
The market based mechanism to enhance the cost effectiveness in improving the Energy Efficiency in Energy Intensive industries through certification of energy saving which can be traded.
It will be a foundation to the scheme like:
Market Transformation for Energy Efficiency (MTEE) – Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable.
Energy Efficiency Financing Platform (EEFP) – Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings.
Framework for Energy Efficient Economic Development (FEEED) – Developing fiscal instruments to promote energy efficiency.
In the ensuing PAT scheme, all the DCs will be required to achieve a reduction of Specific Energy Consumption (SEC) from their baseline SEC within 3 years time PAT Cycle 1: (2012-13 to 2014-15), PAT Cycle 2: (2016-17 to 2018-19), PAT Cycle 3 likewise.
The Perform Achieve and Trade scheme is a market-based mechanism to enhance energy efficiency in the ‘Designated Consumers’ (large energy-intensive industries and facilities).
The PAT Scheme includes the following project steps:
Goal setting: Set a specific energy consumption (SEC) target for each plant, depending on level of energy intensity (specific energy consumed = energy use / output) of that plant. The target will specify by which percentage a plant has to improve its energy intensity from the base line value in a period of three years.
Reduction phase: Within a three-year period the designated consumers try to reduce their energy intensity according to their target.
Trading phase: Those consumers who exceed their target SEC will be credited tradable energy permits. 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. If they fail to do either of this, they may have to pay penalties.
The energy consumption reported by designated consumers is based on audit by any of the BEE accredited agencies. BEE may verify correctness of reported values.
PAT Cycle could also be referred as the reduction phase. It is a three-year period provided to the designated consumers to reduce their energy intensity according to their target.
PAT Cycle 1 was between 2012-13 to 2014-15
PAT Cycle 2 is between 2016-2017 to 2018-2019
PAT Cycle 3 is yet to be announced
Bringing value to your monitoring & verification process by studying & analysing your weaknesses and strengths, to develop a robust process. We will assist you keep a check on all the key parameters required for PAT M&V audit, to ensure a smooth audit.
How do we assist you with Perform, Achieve & Trade (PAT)?
Ideally the aim for the DCs should be get a Detailed Energy done toward the beginning of new PAT Cycle. Followed by implementation of suggestion to meet the target.
Post PAT Cycle -1 M&V audits, BEE has streamlined the requirements. The M&V audits will be more stringent, and non compliance with requirements will be dealt seriously. We will assure, that all the requirements of PAT M&V are complied with like Documentation, Recording of Data, Sampling Methods, Calibration requirements etc. A reliable monitoring and verification (M&V) system forms the backbone of PAT’s assessment process. The objective is to streamline the process before the PAT M&V audit of a designated consumer in the target year. ESCert Trading will bring in newer challenges for a DC in terms of regulatory and compliance related. We at Bicon could help the DCs to embrace the new challenges, through our PAT advisory services, by hand holding them through the entire process of ESCert Trading and assisting them to meet all the compliance requirements.
Towards the end of the cycle, DCs would require to prepare the data, so that the M&V audits could be completed within the timelines & inherent delays. We will help you be ready, with all documents for the PAT M&V audits.
Why Bicon Consultants?
- BICON is one of the accredited energy audit firms, engaged in PAT since the 1st cycle.
- Having audited some of the largest companies, we have a good understanding of various industries, process and documentation processes followed by them.
- Bicon’s team comprises of energy specialists, sector experts and a rich consulting experience, makes it one of the sought for companies to work with in energy advisory.
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