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India’s Parliament briefed about upcoming PAT scheme

According to reports, the Indian Parliament’s lower house “Lok Sabha” was briefed about the upcoming energy efficiency cap and trade, the Perform Achieve Trade (PAT), scheme yesterday. The information was provided by the Minister of State for Environment and Forests (independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Shri Prahlad Joshi (MP from Dharwad in Karnataka) and Shri Jayant Chaudhary (MP from Mathura in Uttar Pradesh).

As per the official release by Press Information Bureau and accessed by Climate Connect, the Government has proposal to start scheme that sets benchmark efficiency for big polluting sources including certain plants. The Energy Conservation Act (ECA), 2001 seeks to achieve efficient use of energy and its conservation. The power plants and steel plants, among others, have been identified as energy intensive industries and large plants in these two sectors have been notified as ‘Designated Consumers’. Specific targets have been assigned to each of ‘Designated Consumers’ for reduction in specific energy consumption under Performance, Achieve and Trade (PAT) mechanism by the year 2014-15.

In keeping with the provisions of the ECA, 2001, plants that exceed their targeted savings would be issued energy saving certificates. Other ‘Designated Consumers’ may purchase the said saving certificates in order to achieve compliance with their own targets. ‘Designated Consumers’ who are unable to comply with the targets, either by their own actions, through purchase of certificate or both, are liable to penalty as provided in the Act.

In order to improve energy efficiency across the country, the National Mission for Enhanced Energy Efficiency (NMEEE), which is one of the eight missions under National Action Plan on Climate Change (NAPCC), was approved by Government during June 2008. Since then, various components of NMEEE like Perform, Achieve and Trade (PAT), Market Transformation for Energy Efficiency (MTEE), Energy Efficiency Financing Platform (EEFP) and Framework for Energy Efficient Economic Development (FEEED) are under implementation. Government has introduced a generation based incentive scheme for wind power and solar power.

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