IEX starts trading in energy saving certificates

 

Indian Energy Exchange (IEX) has announced that it has started trading in energy saving certificates (ESCerts) effective October 26, 2021. Trading in ESCerts on IEX will take place once in a week – every Tuesday.

The ESCerts to be traded are under the Perform, Achieve & Trade Cycle-II (PAT-II) scheme as notified by Bureau of Energy Efficiency (BEE), on March 31, 2016.

PAT-II aims at achieving an overall energy savings of 8.87 MTOE and covers 621 Designated Consumers (DC) spanning across 11 energy intensive industry sectors. Petroleum refinery, railways and power distribution utilities have been added under PAT-II besides the eight industries including cement, thermal power plant, iron and steel, textile, aluminum, fertilizer,chlor-alkali, paper and pulp that continue to be included from PAT-I.

The National Load Despatch Center (NLDC), which is the nodal agency for ESCerts trade in accordance with the CERC ESCerts Regulations 2016 has already commenced the process of registration of the DC as eligible entities  effective August 23, 2021.

 

Trading of ESCerts takes place exclusively on power exchanges as per the CERC ESCerts Regulations 2016

 

A total 349 DCs can sell and 193 DCs are expected to participate on the buy side as per the BEE notification dated August 18, 2021. The Ministry of Power has already issued 57 lakh EScerts to 349 DCs and about 193 DCs are entitled to purchase 36.68 lakh ESCerts, as per BEE.

Speaking on the occasion, S N Goel, Chairman and MD, IEX, said, “PAT scheme has been playing a crucial role in promoting industrial energy efficiency. IEX pioneered trade in ESCerts in 2018 under PAT cycle I which covered 478 DCs from8 energy intensive sectors. PAT-1 over-achieved its target with realization of a total of 8.67 MTOE energy savings with 31 million tons of CO2 emissions against the set target of 6.68 MTOE.

About 13 lakh ESCerts worth Rs.100 crore were traded under PAT I at IEX which resulted in net savings to the tune of Rs 9,500 crore. After the success of PAT I cycle, IEX is excited to commence ESCert trade under PAT II. We have maximum liquidity on our platform to enable the market participants to trade in the most competitive and efficient manner.”

ESCerts trading is regulated by Central Electricity Regulatory Commission (CERC) with BEE as the Administrator and Power System Operation Corporation Ltd (POSOCO) as the Registry for registering Designated Consumers as eligible entities, trading and bookkeeping of ESCerts.

Also Read: PXIL to launch trading in energy saving certificates from October 26

Featured photograph (source: rtma.in) shows generic textile machinery. Textiles is one of the eight original industries eligible for ESCerts under PAT-I. Under PAT-II, three more industries were added.

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