Introduction to Perform Achieve and Trade (PAT) Scheme

KEP- 2nd Workshop For Best Practices in Energy Efficiency in Textile Sector

PAT Rules and Status Overview

Bureau of Energy Efficiency

INDIA

Contents

• Broad Initiatives on energy Efficiency

• PAT Cycle

• Concept of PAT

• PAT Rules and Phases

• Monitoring Reporting and Verification

• Forms

• Timelines

• Penalty and Adjudication

Broad Initiatives on Energy Efficiency

Fiscal Instrument for EE

PRGF VCF

Public Procurement

Stimulate Funding

for ESCOs and capacity building of financial

institutions

Energy Efficient Appliances BLY SEEP DSM

Energy Intensive Industries

Targets for Mandatory Energy Saving

PAT EEFP

FEEED

MTEE

NMEEE

NAPCC: National Action Plan on Climate Change was released by Prime Minister of India in June 2008. The action plan includes eight missions, one of which is National

Mission on Enhanced Energy Efficiency (NMEEE)

NMEEE- Four New Initiatives

PAT Overview and

Elements

5

• PAT Cycle – I Covers 478 plants in 8 energy intensive industrial sectors

• PAT Cycle-II, covers 621 plants in 11 energy intensive industrial sectors (three new sector, Refinery, DISCOMS and Railway has been added, with addition of new DCs in existing as well)

• Key Goal :Mandatory Specific Energy Consumption reduction

PAT Overview and Elements

PAT Cycle

Getting Information through Base Line Format

(Form-1)

Data Compilation, Verification through baseline audits and

Evaluation

Target Setting

[Declaration of Base Year, Target Year ]

Communication to Designated Consumers

Preparation of Performance Assessment

Document by DCs

(PAD or Form A)

Verification of PAD through EmAEA

(Form B)

Communication to SDA and BEE

Re-verification of documents submitted by DC

after M&V, by BEE

Issuance of ESCerts by MoP

Market

for Trade

Check Verification (if applicable) of PAD (Form C) through

EmAEA & submission of compliance doc

(Form D).

PAT-I Activity Flow Sheet P

re-

Not

ifica

tion

phas

e

Impl

emen

tatio

n

phas

e M

&V

and

Com

plia

nce

phas

e

What has been done so far: Capacity Building

What has been done so far: Committee Formation

PAT-I Overview and Status

Capacity building of State Designated Agencies (SDA)

More than 10,000 Certified Energy Auditor (CEA)

Appointment of Energy Manager in DCs (Made Mandatory)

175 Accredited Energy Auditor (AEA)

53 Empanelled Accredited Energy Auditor (EmAEA)

PAT Secretariat

48 Nos of Capacity Building Workshops for SDAs, DCs AEAs, EMs, EmAEA

Technical Committee formation in all the sectors

Sub-Technical Committee formation on Normalisation

70 nos of committee meeting for finalization of Pro-forma and Normalisation Factors

Detailed sector specific proforma development

18 Nos of Plant visit to understand the complexities of operation and finalization of Normalization Factors

10 Nos of plant visit for beta testing of data entry form and calculations

National Energy Saving Targets under PAT (%) (2012-15)

Sr

No

Sector No. of

Identified

DCs PAT

Cycle-1

Reported

Energy

Consumptio

n PAT Cycle-1

(million toe)

Energy

Saving

Targets

under PAT

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 &

Paper

31 2.09 0.119

5 Iron & Steel 67 25.32 1.486

6 Fertilizer 29 8.2 0.478

7 Cement 85 15.01 0.816

8 Thermal

Power

Plants

144 104.56 3.211

Total 478 164.97 6.686

Baseline Period:

2007-08, 2008-09, 2009-10

Assessment year: 2014-15

M&V period: April-2015 to Jun-

2015

PAT-I Overview and Status

Sr.

No

Sector No. of DCs in

PAT I

Additional DC

in PAT Cycle-II

Total no. of

DCs PAT -2

1 Aluminium 10 2 12

2 Chlor-Alkali 22 3 24

3 Textile 90 14 99

4 Pulp & Paper 31 4 29

5 Iron & Steel 67 9 71

6 Fertilizer 29 8 37

7 Cement 85 27 111

8 Thermal Power

Plants

144 22 154

9 Refinery NA 18 18

10 DISCOMS NA 44 44

11 Railway NA 22 22

Total 621

PAT Cycle II Baseline Year: 2014-15 PAT Cycle year 2016-2019 Assessment Year: 2018-19 M&V period: Apr-2019 to 31st July2019

Total Energy Consumption from 11 sectors 227 mtoe

National Target = 8.869 mtoe at the end of 2nd PAT Cycle (by 2018-19)

PAT-II Overview and Status

Concept of PAT

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

PROCESS

Electricity

(KWH)

FO (Ltr)

NG (SCM)

Coal (KG)

Others (KG or

Ltr)

Product (Kg)

All forms of

Energy

E P

SEC = E / P

Plant Boundary

Baseline

SEC

Target SEC

Reduction in

SEC

Year 1 Year 2 Year 3

SE

C

Specific Energy Consumption

◙ Output Product: Equivalent Product in tonnes

◙ Input Net Energy: Fuel and Power in tonnes of oil equivalent

Specific Energy Consumption (SEC) is the division of

Input Net Energy by Output Equivalent Product

Gate to Gate Boundary

Saving

Target

Baseline

SEC

Target

SEC

Achieved

SEC

Scenario 1 Scenario 2

Compliance

Issued

Escerts

Purch

ase

Escert

s

Penalty

Concept of Target, Compliance, ESCerts & Penalty Concept of Target, Compliance, ESCerts & penalty

Administrator

MoP/Central Govt

Nodal Agency

Bureau of Energy Efficiency

Implementer

Designated

Consumer

State Administrator

State Designat

ed Agency/

SERC

Verifier

Accredited Energy Auditor

Trading Regulator, Registry

Central Electrici

ty Regulat

ory Commission/PO

SCO

Stakeholders

PAT Rules and Phases

• EC Act schedule provides list of 15 energy intensive industries and other establishments to be notified as designated consumers (DC).

• DCs to appoint or designate energy managers who shall be in charge of activities for efficient use of energy and its conservation (clause 14(l)).

• Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of certification examination, conducted by Bureau of Energy Efficiency.

• The following information to be provided for energy manager:

• Name of the energy manager

• Registration number (EA/EM No.)

• Complete postal office address

• Telephone and Mobile number

• Email address)

• The information with regard to energy consumed (clause 14(a)) in Form 1

• Get energy audits conducted by accredited energy auditors

• Implement techno-economic viable recommendations

• Comply with norms of specific energy consumption fixed

• Submit report on steps taken

Mandatory requirement to be fulfilled by DC

Target Setting Phase

Notification Phase

Implementation Phase

Monitoring , Reporting and Verification (MRV) Phase

PAT Phases

Policy Objectives

INDC

Intended Nationally Determined Contribution by India: targets to lower the emissions intensity of GDP by 33% to 35% by 2030 below 2005 levels

Goals

Reduction in Energy Intensity between 2016 and 2019 by 7%.

Target Setting Phase

Role of BEE

• The Bureau recommended the Energy Consumption Norms and Standard for

DCs to Central Govt.

Role of Central Govt. The Central Govt. shall by notification :

• Establish and specify the energy consumption norms & standards for

every DC’s plant under clause(g) of section 14

• Give direction to all DCs for compliance with the energy consumption

norms and standards under clause(n) of section 14 and inform the

Bureau & all the SDAs

• With recommendation of Bureau, the central Govt has notified the

Target (S.O. 1264(E) dated 31st March, 2016)

Notification Phase

Monitoring and Verification

Steps for M&V to be taken by the DC

Fill in the sector specific proforma

Collect and keep ready all the relevant documents as evidences as per instructions sheet of proforma and M&V guidelines

Appoint Empanelled Accredited Energy Auditor (EmAEA), for carrying out M&V

Make available all the documents as required by EmAEA

Fill in the Form A, and get it signed and stamped by the plant head and energy manager of the plant

Obtain duly signed and stamped form B from the EmAEA

Submit the form, I, A and B, with M&V report and supporting documents to SDA with a copy to BEE within the timeline.

Timelines

Activity Time Line Description Tentative Dates for PAT Cycle II

Activity by

Where

Form 1, Action plan submission

3 Months Within 3 month from Notification 30 June 2016

DC SDA/BEE

Form 1 submission 3 Months Yearly submission of Form 1 within 3 months from last financial year

30 June (Every Year)

DC SDA/BEE

Form A, Form B along with others documents

4 Months Within 4 month from conclusion of target year

31st July 2019

DC SDA/BEE

Submission of Form A, Form B with SDA comments

45 Days Within 45 days of the last date of submission of Form A

15th Sept 2019

SDA BEE

Recommendation of Escerts to MoP, GOI

Two Months

Within two months from the date of the receipt of the comments from SDA

15th Nov 2019

BEE MoP

Issuance of Escerts by MoP

45 Days Within 45 days from the date of the recommendation of Escerts from BEE

31st Dec 2019

MoP

Form D Submission One Month After 1 month from the Completion of Trading

DC SDA/BEE

Timelines and Activities

Check-Verification

The Bureau may on its own or receipt of a complaint within 1 yr from date of submission of compliance report from the date of issue of ESCerts shall initiate action in accordance with following procedures:

It shall be competent for the State Designated Agency to supervise the completion of check-verification through its Inspecting Officer, who shall, if need be, may submit its inspection report under the Energy Conservation (Inspection, Rules),2010 2010 to the State Designated Agency who shall take further necessary action under intimation to the Bureau

Issue a Notice to DC and EmAEA , asking for comments

Within two months from receipt of comment, Bureau

shall after taking into consideration the said

comments, decide to undertake or not to undertake

review and the Bureau shall record the reasons in

writing for its decision

Check-Verification

Bureau appoints EmAEA to conduct Check Verification

EmAEA shall assess and verify that

the activities performed by the DC

The DC shall furnish full and complete data, provide necessary

documents and other facilities required by the AEA for the purpose of

performing the function of check-verification under these rules.

The AEA in-charge of check-verification function shall report the results of his assessment (Form C) in a check-verification report to BEE.

Check-verification report (Form-’C’)

+ ve Opinion -ve opinion

All requirement regarding ECN&S & issue or purchase of ESCerts met.

Effect of such opinion on ECN&S, issue or purchase of ESCerts, liability of AEA in giving verification report, amount of unfair gain gained by DC shall be calculated by AEA

Amount Payable by

DC

Check-Verification report (Form C)

• No. of ESCerts wrongfully obtained by DC

• No. of ESCerts which DC was liable to purchase for non-compliance

• Details of misrepresentation & unfair gain due to misrepresentation.

• Cost of check verification

Details provided by BEE to SDA

• Value of amount payable by DC shall be as worked out in report PLUS 25% of such value because of unfair practice used by DC

• Amount of toe of energy specified because of unfair gain

• Cost of check-verification

Amount payable by DC

• Within 2 month from data of receipt of Form C shall initiate:

• Action to recover from DC the loss to central Govt. by unfair gain

• Penalty proceedings against persons mention in report under intimation to BEE

• Register complaint for unfair gain if DC doesn’t pay penalty & loss to exchequer in specified time

Penalty proceedings (After check verification)

Forms

1. Name of designated consumer

2. Registration number

3. Sector

4. Sub-sector

5. Accredited energy auditor

Name

Registration number

6. List of documents submitted

a. Baseline data (three years) Submitted/Not submitted Date of submission

b. Form I ()

Specify the year in the bracket

Submitted/Not submitted Date of submission

c. Form I ( )

Specify the year in the bracket

Submitted/Not submitted Date of submission

d. Form I ( )

Specify the year in the bracket

Submitted/Not submitted Date of submission

e. Form II Submitted/Not submitted Date of submission

f. Form III Submitted/Not submitted Date of submission 32

Performance Assessment Documents (Form A) To be filled by DCs

33

7 Target Year Notified target specific energy

consumption for the cycle

Energy savings certificates

issued

Revised target specific energy

consumption for the cycle

toe/ton of product or Net

Kcal/kWh

Nos toe/ton of product or Net Kcal/kWh

a. Mention the year

( )

-

b. Mention the year

( )

c. Mention the year

( )

-

8. Specific energy consumption

a. Specific energy consumption (baseline) toe/ton or Net kcal/kWh

b. Production (baseline) ton or Million kWh

c. Revised target SEC (from 7.b) toe/ton or Net kcal/kWh

d. Target after normalisation, if any toe/ton or Net kcal/kWh

e. Achieved specific energy consumption toe/ton or Net kcal/kWh

f. Energy savings certificates nos

9. Energy Efficiency Project implemented during current cycle

Project Year of Implementation Annual Energy

consumption

(before)

Annual Energy

consumption

(after)

Energy tariff Investment

Performance Assessment Documents (Form A)

Form B

34

Form B

(See rule 5)

CERTIFICATE OF VERIFICATION

I/We __________________the accredited energy auditor, have undertaken a

thorough independent evaluation of the activities undertaken by M/s. _________________,a

designated consumer for compliance with the energy consumption norms and standards

specified under the Government of India Ministry of Power notification

number_______________, dated the ___________during the target year compared to the

baseline year and consequent entitlement or requirement of energy savings certificates and

certify that-

(a) the verification of the data collection in relation to energy consumed and

specific energy consumption per unit of production in the baseline year and in

the target year in Form 1under Rules 2007 or Rules 2008, has been carried

out diligently and truthfully;

(b) the verification of the identified energy efficiency measures, and the progress

of their implementation given in Form II and Form III under Rules 2008 has

been carried out diligently and truthfully;

(c) the verification of the compliance with energy consumption norms and

standards during the target year has been carried out diligently and truthfully;

(d) the verification of the total amount of energy saved, year-wise, after the

baseline year and until target year or otherwise and request made by the

designated consumer, the entitlement of _________ (Nos) energy savings

certificate (s) required to be issued or purchased by him have been carried

out diligently and truthfully;

(e) all reasonable professional skill ,care, and diligence have been taken in

verifying the various verification activities, findings and conclusions,

documents, reports, preparing the documents including the performance

assessment document in Form ‘A’ and verification report and the contents

thereof are a true representation of the facts.

Form B

1. Name of designated consumer

2. Registration number

3. Sector

4. Sub-sector

5. List of documents submitted

a. Performance Assessment

Document (Form ‘A’)

Submitted/Not Submitted Date of Submission

6. Compliance

a. Energy Savings Certificates Issued/Recommended for

purchase

b. Energy Savings Certificates

submitted for compliance

If recommended for

purchase

c. Balance Energy Savings Certificates Nos 35

Form D- Compliance of Energy Consumption Norms and Standard Document

Penalties and Adjudication

Penalties and Adjudication

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.

Trading of Escerts

Thank You

Process Flow for Escert Trading Process Flow For Escerts Trading

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Process Flow for Escert Trading Process Flow For Extinguishing of Escerts

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