Power Exchange India Ltd (PXIL) will be launching ESCerts Trading under the Perform, Achieve and Trade (PAT) Scheme – Cycle II, effective October 26, 2021.
PXIL had conducted a mock trading session on 8thOctober 2021, which received encouraging reception.
Also read: The Outlook For PXIL Remains Encouraging: Power Exchange India Ltd
What are ESCerts?
‘ESCerts’ are Energy Savings Certificates issued by the Central Government in the Ministry of Power to the Designated Consumer under Sub-section (1) of Section 14 (A) of Energy Conservation Act, 2001. ESCerts is a tradable certificate for EE mandates under Energy Conservation Act 2001. The validity of ESCerts will be up to the next PAT cycle (currently the 2ndcycle in progress). ESCerts will be transacted every Tuesday of the week on PXIL platform or as decided by CERC/BEE.
PAT Scheme
Under National Mission for Enhanced Energy Efficiency (NMEEE), the scheme of Perform, Achieve and Trade (PAT) is a regulatory instrument to reduce specific energy consumption in energy-intensive industries, with an associated market-based mechanism to enhance the cost-effectiveness through certification of excess energy saving which can be traded.
Fulfilling energy saving requirement
Commenting on ESCerts Trading, Prabhajit Kumar Sarkar, MD & CEO, PXIL said “ESCerts trading will take forward and diversify amongst participants the benefits of the PAT Cycle-II, which has reportedly prompted savings of 13.28 million toe of energy for the country resulting in absolute saving of more than Rs.30,000 crore, for sustainable growth of the country. We have achieved major market share in REC and TAM market by continuously fulfilling the transactional needs of the market participants through PXIL’s robust transaction platform. In ESCerts too, we seek to serve all market participants to fulfill their energy savings requirements.”
Impact of PAT
Perform Achieve and Trade (PAT) scheme as launched by the Bureau of Energy Efficiency has resulted in significant improvements in energy efficiency in energy-intensive industries. PAT Cycle –I included eight sectors namely aluminium, cement, chlor-alkali, fertilizers, iron & steel, paper & pulp, thermal power plant and textile. Under the scheme PAT cycle -II three new sectors namely refineries, railways and discoms were included – making it 11 sectors. This has so far resulted resulting in a total saving of about 13.28 million toe translating into avoiding about 61.34 million tonnes of carbon dioxide emission.
Featured photograph for representation only
