PAT Scheme

The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC). The scheme was launched in 2011 and Bureau of Energy Efficiency (BEE) has been entrusted with the task of preparing the implementation of NMEEE and to upscale the efforts to create and sustain market for energy efficiency.

One of the initiatives under NMEEE is the Perform, Achieve and Trade (PAT) scheme, which is a market, based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. India’s PAT Scheme is one the most ambitious energy efficiency improvement project that has ever been implemented in the history of this country. This approach has facilitated BEE to focus on development of robust energy management system across the organized sectors by capacity building of manufacturing units, energy auditors (accredited as well as certified), and implementation agencies / state designated agencies (SDA) / nodal agencies.

PAT scheme aims at reducing Specific Energy Consumption (SEC) i.e. energy use per unit of production for Designated Consumers (DCs) in energy intensive sectors, with an associated market mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded. The excess energy savings are converted into tradable instruments called Energy Saving Certificates (ESCerts) that are traded at the Power Exchanges.

PAT Scheme is implemented in cycles of 3 years each where the Designated Consumers (DCs) are assigned SEC reduction targets. Upon verification of their performance in the assessment year by third party verifying agencies, the issuance or obligation to purchase ESCerts is carried out by BEE after scrutiny of the performance. 

1. PAT Cycle I was aimed at reducing the SEC of 478 Designated Consumers in 8 sectors viz. Aluminium, Cement, Chlor- Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile. Implementation of the first cycle of PAT had resulted in energy savings of 8.67 million tonnes of oil equivalent (MTOE) and translating into emission reduction of about 31 million tonnes of CO2. 
2. PAT Cycle II: Under this cycle, SEC reduction targets were notified to 621 DCs from 11 energy intensive sectors (eight sectors and three new sectors namely Refineries, Railways and DISCOMs). Implementation of PAT cycle -II has resulted into total energy savings of about 14.08 MTOE translating into avoiding emission reduction of 66.01 million tonne of CO2. 
3. PAT Cycle III aimed to 116 Designated Consumers from six sectors viz. Thermal Power Plant, Cement, Aluminium, Pulp & Paper, Iron & Steel and Textile and implementation of this cycle has resulted in energy savings of 1.745 MTOE. 
4. PAT Cycle IV: A total of 106 DCs with an estimated energy consumption reduction target of 0.6998 million tonnes of oil equivalent. 
5. PAT Cycle V commenced with 110 DCs from the existing sectors of PAT i.e. Aluminum, Cement, Chlor-Alkali, Commercial Buildings (Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant were notified. The estimated energy consumption of these DCs is 15.244 MTOE and it is targeted to get a total energy savings of 0.5130 MTOE. 
6. PAT Cycle VI commenced with effect from 1st April 2020 for 135 DCs from six sectors, i.e. Cement, Commercial buildings (hotels), Iron and Steel, Petroleum Refinery, Pulp and Paper and Textiles, were notified. With implementation of PAT cycle VI, it is expected to achieve a total energy savings of 1.277 MTOE. These 135 DCs are under process of implementation of various energy efficiency measures to meet their notified targets. 
7. PAT Cycle VII: PAT cycle –VII has been notified in October 2021 for the period 2022-23 to 2024-25 wherein 509 DCs have been notified with overall energy saving target of 6.627 MTOE. 

Key Challenges to PAT Scheme: 

Benchmarking  

The PAT phase has relied to large extent on the historical data for setting the benchmarks for efficiency improvement. The reason for this kind of approach revolves over the benchmarking on historical data accounts for the site-specific conditions and thereby easy adaptation / acceptance of the benchmarks by the industry. However, with the fast-improving technologies in manufacturing and production, it is evident that generally newer plants are more efficient. So, factoring for the best available technology (energy efficiency wise) in the benchmarking is essential. This approach would lead to real market transformation and a sustainable reduction in energy consumption. With modern day statistical tools accompanied by reliable data and process expertise the redefined benchmarking can be made available for all designated consumers (DCs). 

Data management and integration 

The involvement and help of BEE to ensure timely submission of correct data by the DCs is immensely important. It is necessary to build up confidence of the stakeholders and if required hand hold the institutions through the initial stages. 

Technological Compatibility 

Some industries may still rely on legacy systems that may not be easily integrated with modern digital solutions. Upgrading or replacing these systems can be costly and time-consuming. Ensuring that different digital systems can communicate and share data seamlessly is essential for a smooth transition to a digitized PAT scheme. 

Flexibility and Scalability 

The PAT scheme may need to accommodate changes in the scale and scope of operations. Digital systems must be flexible and scalable to adapt to evolving industry needs. 

Way forward:

Standardization  

Establish data standards to ensure consistency and interoperability across different sources. 

Data Accuracy and availability  

Implement regular data quality checks and validation processes to identify and rectify errors promptly. 

Integrated Platforms 

Invest in integrated platforms that can consolidate data from diverse sources. 

Technological compatibility 

Use Application Programming Interfaces (APIs) and middleware to facilitate communication and data exchange between different systems. 

Flexible Architecture 

Invest in flexible and scalable digital solutions that can adapt to changes in the scale and scope of operations.