The Indian industry has generated Rs 11.62 crore of additional revenue during the first month of trading energy saving certificates. Energy Saving Certificates, or ESCerts, are issued by Ministry of Power to designated industries that surpass the energy saving targets set by the Bureau of Energy Efficiency under the Perform, Achieve and Trade scheme (PAT).
On September 26, 2017, Minister of State (I/C) for Power and New & Renewable Energy, launched the trading of these ESCerts on Indian Energy Exchange (IEX) and Power Exchange India (PXIL). Traded only on Tuesdays through closed double-sided uniform price auction, 117,425 certificates have been exchanged at an average bid price of Rs 990 in the auctions over the past month.
Commenting on the development, Abhay Bakre, Director General, Bureau of Energy Efficiency, stated, “The industry has been an able and willing partner in India’s efforts to reduce its emissions by 33-35 per cent as per the Nationally Determined Contributions, and the success of the ESCert trading programme is evidence of the harmonious government-private partnership. I hope that we continue building on these encouraging results.”
The trading of ESCerts enables eligible, designated industries that do not achieve their energy-efficiency targets to comply with energy consumption norms and standards, while enabling overachieving designated industries that surpass their energy savings targets to monetise the energy savings achieved through their operations. Units that are unable to meet the targets either through their own actions or through purchase of EScerts are liable to financial penalty under the Act.
Based on BEE’s recommendations and following a verification of energy savings achieved, Ministry of Power has issued over 38 lakh Energy Saving Certificates (ESCerts) to 306 designated customers via the PATNet portal till date. Along with this, 110 designated customers have been entitled to purchase 14.25 lakh ESCerts.
The designated industries need to register as an eligible entity for trading. This registration can be done on the PATNet portal. The Bureau of Energy Efficiency administers the trading of these certificates and the Power System Operation Corporation (POSOCO) performs the duties of the Registry.