PAT is a market based mechanism to enhance cost effectivenessof improvements in energy efficiency in energy-intensive largeindustries and facilities, through certification of energy savingsthat could be traded. Thus the PAT Mechanism would broadlycover the 9 sectors designated by Government of India underEnergy Conservation Act, 2001. The 9 covered sectors are Fertilizer,Aluminium, Chlor-alkali, Railways, Cement, Iron andSteel, Pulp and Paper, Textile, Power Generation Plant.In this mechanism, an individual target will be set for theindustries by the Government of India to reduce their SpecificEnergy Consumption (SEC). The overall objective of thisscheme is to save 10 mMtoe in the first PAT cycle. Among the23 mMTOE set as target from NMEEE, implementation of PATscheme do focus on achieving 10 mMTOE by 2014. These targetscan be achieved over a period of 3 years. The industriescan achieve this target by implementing best practices in theirindustries, change the old technology to the latest one, by usingenergy efficient equipment and by any other suitable innovativemethod or they can use their R&D facilities to develop efficientprocess. etc., or any other initiatives.Those industries that achieve and exceed the target would beissued Energy Saving Certificates (ESCerts) and those industrieswho could not achieve the target have to either pay penaltiesor buy the ESCerts from the industries who have securedESCerts by exceeding the target assigned to them.The PAT has been divided into 2 Phases, Design of the PATframework and Implementation. Some of the steps involved inPAT are:1. Collection of Data from the Industries through baselineaudit2. Methodology for setting Specific Consumption targets forEach Industry;3. Monitoring and Verification for target achieved;4. Issuance of Energy Saving Certificates (ESCerts);5. Trading Process for ESCerts;6. Compliance and reconciliation process for ESCerts;Sharing of Technology of Higher Efficient Industries to otherindustries means sharing of methodology of efficient plant toinefficient plant.The objective of this paper is to share the initiativetaken by govt. of India to save energy and start trading ofthe savings and achieve monitory benefits.
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