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Outlook for the second cycle of the Perform Achieve and Trade Scheme: Understanding the Designated Consumer (DC) Viewpoint
Sustainability Outlook and Alliance for an Energy Efficient Economy (AEEE) have compiled this Market Brief (through research and interviews with DCs, energy service companies and think tanks) to capture:
- Impact of operationalizing the PAT Scheme from the perspective of Designated Consumers (DCs) with a sectoral deep dive on pulp and paper, cement, iron and steel sectors
- Outlook for the second cycle of PAT from a Designated Consumers (DC) perspective with a focus on using Energy Saving Certificates (ESCerts) to build an internal business case
CONCLUDING THE 1ST CYCLE OF THE PAT SCHEME- SETS THE TONE FOR THE 2ND CYCLE
Based on industry conversations, it is expected that 65-70% of the Designated Consumer (DC) units would be able to meet the PAT targets under first cycle. By a conservative estimate, 5200 million KWh of energy has been saved due to measures undertaken by DCs under the PAT mandate. This equates into an avoided expenditure on energy of at least INR 5500 crore resulting from the measures undertaken by DCs in the PAT sectors. The actual energy savings and avoided investment cost could actually be even higher, and would come to light once the measurement and verification (M& V) of energy savings realized by the DCs is completed.
Some experts are of the view that setting data management systems in place for DCs is far more challenging than actual project implementation in some cases. There is a need for a robust data management system in PAT to ensure transparency, acceptability, measurability, traceability and verifiability.
A Normalization Committee was set up by Bureau of Energy Efficiency and industry wide consultations were held over the past year to arrive at sector specific normalization factors for the DCs, which are expected to be announced in mid to end March 2015. Indicative normalization factors that are expected to be considered for adjustment of SEC targets are represented in the graphic below. Given the constraints of the quality and availability of supporting data within the DCs, there could be challenges in meeting the two key requirements of data during measurement and verification i.e. completeness of dat a for ensuring transparency and benchmarkable data for comparability. This necessitates a need for standardization of the data requirements at the end of the first cycle to ensure smoother progress moving forward.
To read the complete report, click here.