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PAT Scheme
Ministry of Power, Government of India has launched the Perform Achieve and Trade (PAT) scheme for large industries in selected sectors. Under the scheme, 3 year targets for reducing Specific Energy Consumption (SEC) have been notified. The scheme also incentivises higher reduction of SEC by a market based mechanism through issuance of tradeable Energy Savings Certificates (ESCerts). The industrial consumer could achieve the SEC reduction target in one of the following manner:
a. Capital Investment using own funds to invest in new technologies/processes to reduce SEC;
b. Purchase of ESCERTs equal to the gap in meeting SEC target; and
c. Using an Energy Service Company (ESCO) to undertake the investment in Energy Performance Contract (EPC) mode. In this mode, the industry could avoid investments and yet achieve the targets

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Last updated on 10 May 2015