Introduction to Perform Achieve and

Trade (PAT) Scheme

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
 NMEEE- Four New Initiatives
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)

Energy Intensive Stimulate

Industries Funding
for
Targets for Mandatory ESCOs and capacity
Energy Saving building of financial
PAT EEFP institutions

NMEEE
MTEE FEEED
Fiscal
Energy Efficient
Instrument for EE
Appliances
BLY
PRGF
SEEP VCF
DSM Public Procurement
 PAT Steps

Conducted
Prepared PAT
Constituted PAT stakeholder
Consultation
Steering committee consultation
document
workshop

Developed rules for

Draft Mechanism for implementation of
Collected Baseline
overall structure for PAT based on
Data
PAT consultation
workshops

Constituted Sector
Notified rules and
Approval of NMEEE Technical
targets for
including PAT scheme Committees for the
Designated
by Cabinet formulation target
Consumers
setting methodology
 PAT Overview and Elements
PAT Overview and
Elements

• 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

6
PAT Cycle
Notification PAT-I Activity Flow Sheet
Getting Information Data Compilation,
Verification through Target Setting
through Base Line Format
phase

baseline audits and [Declaration of Base Year,

Pre-

(Form-1)
Evaluation Target Year ]
Implementation

Communication to
Designated Consumers
phase

Preparation of
Verification of PAD through Performance Assessment
Communication to SDA
EmAEA
M&V and Compliance phase

and BEE Document by DCs

(Form B) (PAD or Form A)

Check Verification (if

applicable) of PAD
Re-verification of Issuance of ESCerts by Market (Form C) through
documents submitted by DC
after M&V, by BEE
MoP for Trade EmAEA & submission
of compliance doc
(Form D).
 PAT-I Overview and Status
Sr Sector No. of Reported Energy National Energy Saving Targets under PAT (%)
No Identified Energy Saving (2012-15)
DCs PAT Consumptio Targets
Cycle-1 n PAT Cycle-1 under PAT
(million toe) 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 & 31 2.09 0.119
Paper
5 Iron & Steel 67 25.32 1.486
6 Fertilizer 29 8.2 0.478
7 Cement 85 15.01 0.816
8 Thermal 144 104.56 3.211
Baseline Period:
Power
2007-08, 2008-09, 2009-10
Plants
Total 478 164.97 6.686
Assessment year: 2014-15

M&V period: April-2015 to Jun-2015

 PAT-I Overview and Status

What has been done so far: Capacity Building What has been done so far: Committee Formation
 Capacity building of State Designated  Technical Committee formation in all the
Agencies (SDA) sectors
 More than 10,000 Certified Energy  Sub-Technical Committee formation on
Auditor (CEA) Normalisation
 Appointment of Energy Manager in DCs  70 nos of committee meeting for finalization
(Made Mandatory) of Pro-forma and Normalisation Factors
 175 Accredited Energy Auditor (AEA)  Detailed sector specific proforma
development
 53 Empanelled Accredited Energy
Auditor (EmAEA)  18 Nos of Plant visit to understand the
complexities of operation and finalization of
 PAT Secretariat
Normalization Factors
 48 Nos of Capacity Building Workshops
 10 Nos of plant visit for beta testing of data
for SDAs, DCs AEAs, EMs, EmAEA
entry form and calculations
 PAT-II Overview and Status
Sr. Sector No. of DCs in Additional DC Total no. of PAT Cycle II
No PAT I in PAT Cycle-II DCs PAT -2 Baseline Year: 2014-15
PAT Cycle year 2016-2019
1 Aluminium 10 2 12 Assessment Year: 2018-19
2 Chlor-Alkali 22 3 24 M&V period: Apr-2019 to
3 Textile 90 14 99 31st July2019
4 Pulp & Paper 31 4 29
5 Iron & Steel 67 9 71
6 Fertilizer 29 8 37 Total Energy
7 Cement 85 27 111 Consumption from
8 Thermal Power 144 22 154 11 sectors 227 mtoe
Plants
9 Refinery NA 18 18
10 DISCOMS NA 44 44 National Target =
11 Railway NA 22 22 8.869 mtoe at the
end of 2nd PAT Cycle
Total 621 (by 2018-19)
Concept of PAT
Specific Energy Consumption
As the SEC is calculated on a Gate-to-Gate concept, the definition of
plant boundary plays an important role.

All forms of Plant Boundary

Energy
Electricity
(KWH)
FO (Ltr)
Product (Kg)
NG (SCM) PROCESS

E Coal (KG)
P
Others (KG or
Ltr)

SEC = E / P

Baseline
SEC

SEC Reduction in
SEC
Target SEC

Year 1 Year 2 Year 3

 Gate to Gate Boundary

◙ Output Product: Equivalent Product in tonnes Specific Energy Consumption (SEC) is the division of
◙ Input Net Energy: Fuel and Power in tonnes of oil Input Net Energy by Output Equivalent Product
equivalent
 Concept of Target, Compliance, ESCerts
Concept&ofPenalty
Target, Compliance, ESCerts & penalty

Issued
Baseline Penalty
Escerts
SEC

Saving
Target Achieved
SEC Compliance

Target
SEC

Purch
ase
Escert
s

Scenario 1 Scenario 2
 Stakeholders

Trading
State
Administrator Nodal Agency Implementer Verifier Regulator,
Administrator
Registry

Central
State Electrici
Designat ty
Bureau Designat Accredite
MoP/Cen ed Regulat
of Energy ed d Energy
tral Govt Consume ory
Efficiency Agency/ Auditor
r
SERC Commis
sion/PO
SCO
PAT Rules and Phases
Mandatory requirement to be fulfilled by DC
• 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
 PAT Phases

Target Setting Phase

Notification Phase
Implementation Phase
Monitoring , Reporting and Verification (MRV) Phase
 Target Setting Phase

1. Establishment of Baseline
2. Review of Baseline
3. Finalization of SEC reduction Targets
4. Consultation with DC
 Target Setting Phase

Role of BEE
• Consultation with DC regarding PAT Scheme
• Collection of Energy Consumption and Production details in
sector specific proforma from DCs
• Compilation and Analysis of submitted details
• Formulation of sector Technical committee and finalization of
Target setting methodology .
• Establishment of Energy Consumption Norms and Standards for
DCs in consultation with Technical Committee .
• Conducting the Regional Workshops and guiding the DCs
regarding the PAT Scheme
 Target Setting Phase

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%.
 Notification Phase

1. Recommendation by BEE to Central Govt.

2. Notification by Govt.
3. Formal intimation to DCs
 Notification 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)
 Implementation Phase

1. Reporting to BEE / SDA

2. Energy Audit
3. Compliance Mechanism
 Notification Phase
Role of DC
1. Preparation of scheme for implementation of efficient use of energy and its
conservation
Every Designated Consumer, within three months of the issue of notification under sub-rule
(6) of rule 4 shall submit a scheme to State designated agency with a copy to Bureau, which
may include: -
 Action Plan containing inter- alia, a brief description of identified energy saving measures to
comply energy consumption norms and standards by the target year.
 The estimated cost of each identified energy saving measures.

2. Preparation for monitoring and verification

Maintenance of Quarterly Data Reports to be prepared by DCs from baseline year onwards
up to assessment year
 On the performance of plant and production process
 Internal Field Audit Report on Energy and Process
 Outcome of Internal field Audit
 Measures to reduce energy consumption and improve energy efficiency
 Measures taken to improve the efficiency of the production processes during each year
 Specific energy Consumption achieved
 Comparison of SEC Reduction and Energy Efficiency project (SEC Quantification) yearly wise
and EOC.
Monitoring and Verification
 Steps for M&V to be taken by the DC
Collect and keep ready all the
Fill in the relevant documents as evidences
sector specific as per instructions sheet of Appoint
proforma proforma and M&V guidelines Empanelled
Accredited
Energy
Auditor
Obtain duly Fill in the Form A, Make (EmAEA),
signed and and get it signed available all for carrying
stamped and stamped by the out M&V
form B the plant head and documents as
from the energy manager of required by
EmAEA the plant 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.
 Form A and B submission

Assessment of Performance (Rule 6)

After Completion of Target Year: Every DC within four

months of the conclusion of the target year from the
baseline year shall submit to the SDA with a copy to the
Bureau, the performance assessment document (PAD)
in Form ‘A’, duly verified together with certificate in Form
‘B’ given by the empanelled Accredited Energy Auditor
(AEA).
Role of State Designated Agency (SDA)

After submission of duly verified Form ‘A’ by

designated consumer, state designated agency may
convey its comments, if any, on Form ‘A’ to the Bureau
within Forty-five days of the last date of submission of
Form ‘A’ for PAT Cycle 1.
 Recommendation for issue of energy savings
Recommendation of Energy Saving Certificate
certificates

The Bureau on satisfying itself about the correctness of

verification report, and check-verification report, wherever
sought by it, send its recommendation to the Central
Government, based on the claim raised by the designated
consumer in Form ‘A’, within two months from the last date of
submission of said Form ‘A’ by the concerned state designated
agency, for issuance of energy savings certificates.
 Procedure for issuance of ESCerts
• Central Govt. after receiving recommendation from Bureau
issue ESCerts of desired value to DC within 45 days.
• ESCerts shall only be in electronic form
• 1 ESCerts= 1 toe = 10968 INR
• The DC who has been issued energy savings certificates may
sell them through the power exchange.
• ESCerts issued in current cycle shall remain valid till compliance
period of next cycle.
• ESCerts purchased by DC for compliance shall after their
submission to Bureau stand expire
Formula for determining number of ESCerts

• For Thermal power plant sector:

No of ESCerts = (heat rate notified for target yr- heat rate
achieved in target yr) X production in baseline yr in million
kWh/10

• For other sectors :

No. of ESCerts = (SEC notified for target yr.- SEC achieved in
target yr) X production in baseline yr.
Compliance of energy consumption norms and standards (Form D)

The designated consumer for the purpose of achieving the compliance

with the energy consumption norms and standards during the target year,
in the relevant cycle shall take the following action and after completing
the said action, furnish the status of compliance to the concerned state
designated agency with a copy to the Bureau in Form ‘D’ by the end of
five months from the last date of submission of Form ‘A’-
(a) by implementation of energy conservation and energy efficiency
improvement measures or;
(b) where the measures implemented in terms of clause (a) are found
inadequate for achieving compliance with the energy consumption norms
and standards, the designated consumer shall purchase the energy
savings certificates equivalent in full satisfaction of the shortfall in the
energy consumption norms and standards worked out in terms of metric
ton of oil equivalent.
Check-Verification
 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:
Issue a Notice to Within two months from receipt of comment, Bureau
DC and EmAEA , shall after taking into consideration the said
asking for comments, decide to undertake or not to undertake
comments review and the Bureau shall record the reasons in
writing for its decision

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
 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)

Check-verification
report (Form-’C’)

+ ve Opinion -ve opinion

Effect of such opinion on

ECN&S, issue or purchase of
All requirement ESCerts, liability of AEA in giving
regarding ECN&S verification report, amount of
& issue or unfair gain gained by DC shall be
purchase of calculated by AEA
ESCerts met.

Amount
Payable by
DC
 Details provided by BEE to SDA

• 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
 Amount payable by DC

• 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
Penalty proceedings (After check verification)

• 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
Forms
Performance Assessment Documents (Form A)
To be filled by DCs
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 () Submitted/Not submitted Date of submission

Specify the year in the bracket

c. Form I ( ) Submitted/Not submitted Date of submission

Specify the year in the bracket

d. Form I ( ) Submitted/Not submitted Date of submission

Specify the year in the bracket

e. Form II Submitted/Not submitted Date of submission

f. Form III Submitted/Not submitted Date of submission

43
Performance Assessment Documents (Form A)
7 Target Year Notified target specific energy Energy savings certificates Revised target specific energy
consumption for the cycle issued consumption for the cycle
toe/ton of product or Net Nos toe/ton of product or Net Kcal/kWh
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 Annual Energy Energy tariff Investment
consumption consumption
(before) (after)

44
 Form B Form B
Form B

(See rule 5)

CERTIFICATE OF VERIFICATION

I/W e __________________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 saving s 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 .

45
Form D- Compliance of Energy Consumption
Norms and Standard Document
1. Name of designated consumer

2. Registration number

3. Sector

4. Sub-sector

5. List of documents submitted

a. Performance Assessment Submitted/Not Submitted Date of Submission
Document (Form ‘A’)

6. Compliance
a. Energy Savings Certificates Issued/Recommended for
purchase
b. Energy Savings Certificates If recommended for
submitted for compliance purchase
c. Balance Energy Savings Certificates Nos
46
Timelines
 Timelines and Activities
Activity Time Line Description Tentative Activity Where
Dates for by
PAT Cycle II
Form 1, Action plan 3 Months Within 3 month from Notification 30 June DC SDA/BEE
submission 2016
Form 1 submission 3 Months Yearly submission of Form 1 within 30 June DC SDA/BEE
3 months from last financial year (Every Year)
Form A, Form B 4 Months Within 4 month from conclusion of 31st July DC SDA/BEE
along with others target year 2019
documents
Submission of Form 45 Days Within 45 days of the last date of 15th Sept SDA BEE
A, Form B with SDA submission of Form A 2019
comments

Recommendation Two Within two months from the date 15th Nov BEE MoP
of Escerts to MoP, Months of the receipt of the comments 2019
GOI from SDA
Issuance of Escerts 45 Days Within 45 days from the date of 31st Dec MoP
by MoP the recommendation of Escerts 2019
from BEE
Form D Submission One Month After 1 month from the DC SDA/BEE
Completion of Trading
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.
Thank You