Perform Achieve and Trade (PAT) Scheme

  • With the aim to make the industrial sector energy efficient, India’s Bureau of Energy Efficiency (BEE) launched its ‘Perform, Achieve and Trade’ (PAT) scheme on July 4.
  • The scheme has set energy efficiency targets for industries.
  • Those that fail to achieve targets will have to pay penalty.
  • PAT has been launched under the National Mission for Enhanced Energy Efficiency, one of the eight missions under the umbrella National Action Plan on Climate Change, launched in June 2008.
  • In its first cycle of three years, the scheme covers eight energy guzzling sectors—thermal power, aluminium, cement, fertilizer, iron and steel, pulp and paper, textiles and chlor-alkali.
  • Together, these sectors account for 40 per cent of India’s primary energy consumption.
  • PAT is a market based mechanism in which sectors are assigned efficiency targets. Industries which over-achieve will get incentives in the form of energy saving certificates.
  • These certificates are tradeable and can be bought by other industries which are unable to achieve their targets. These certificates will be tradeable at two energy exchanges: Indian Energy Exchange and Power Exchange India. The price of these certificates will be determined by the market.