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December 2011 - SIMA

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PERFORM, ACHIEVE & TRADE (PAT) MECHANISM & COAL BASED DRISuresh Thawani, P.Chattopadhyay, B.K.AgrawalTata Sponge Iron LimitedPAT is a flagship programme of National Mission forEnhanced Energy Efficiency (NMEEE) underNational Action Plan on Climate Change (NAPCC).It is a market-based mechanism to enhance costeffectiveness of improvements in energy efficiencyin energy intensive large industries through tradablecertification of energy savings. The genesis of thePAT mechanism flows out of the provision of theEnergy Conservation Act, 2001.Bureau of Energy Efficiency (BEE) under Ministry ofPower has identified 563 nos of DesignatedConsumers (DCs) in eight energy intensive sectors.The selection basis of DCs is annual energyconsumption as shown in the table below. All unitsexceeding the energy consumption are coveredunder PAT mechanism.Industry Annual Energy No. ofSector Consumption, IdentifiedMToe(metric DCstonnes of oilequivalent)Aluminium 7,500 11Cement 30000 83Chlor- alkali 12000 20Fertilizer 30000 23Pulp & Paper 30000 51Power(Thermal) 30000 146Iron & Steel 30000 101Textile 3000 128The PAT frame work has the following elements1. Setting Specific Energy Consumption (SEC) foreach DC in the baseline year.2. Setting the target to reduce the SEC by the targetyear from baseline year.3. Verification of the SEC of each DC in the baselineyear & in the target year by an accreditedverification agency.4. Issuance of energy saving certificates (ESCerts)to those DCs who achieve SEC lower than thespecified value/target.5. Trading mechanism of ESCerts.6. Compliance & reconciliation of ESCerts.7. Cross-sectoral use of ESCerts and their synergywith renewable energy certificates.Establishment of Baseline SEC :Under PAT mechanism SEC is calculated on the basisof Gate-to-Gate concept.EAll forms of EnergyPlantBoundarySEC=E/PProductTotal Energy Input to the plant boundarySEC =Total ProductionThe following factors are considered for the above1. All the forms of energy inputs are calculated tosingle unit i.e MTOE(metric tonne of oilequivalent)2. Energy used through renewable energy sourcesis not considered.3. Any energy used for major construction work,colony & outside transportation is not considered.Plant boundary means entire plant excluding colonyif any & transportation system outside the plant area.The baseline SEC is the estimated based on theaverage SEC of the year 2007-08, 2008-09 & 2009-10 and base year is defined as 2009-10.PDECEMBER-<strong>2011</strong>/2

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