PAT is a market-based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. The genesis of the PAT mechanism flows out of the provision of the Energy Conservation Act, 2001, hereinafter referred to as the Act. Section 14 (e) of the Act empowers the Central Government to notify energy intensive industries, as listed out in the Schedule to the Act, as Designated Consumers (DCs).
Sector Wise Threshold For notification of DC's under PAT
Sr.No. |
Sector Under PAT |
Minimum Annual Threshold limit(MTOE) |
Numbers of DC’s under PAT cycle in the State of Jharkhand |
1 |
Aluminium |
7,500 |
01 |
2 |
Cement |
30,000 |
03 |
3 |
Chlor-Alkali |
12,000 |
01 |
4 |
Fertilizer |
30,000 |
- |
5 |
Iron & Steel |
20,000 |
08 |
6 |
Pulp & Paper |
20,000 |
- |
7 |
Textile |
3,000 |
- |
8 |
Thermal Power Plant |
30,000 |
08 |
9 |
DISCOMs |
86,000 |
01 |
10 |
Petro Chemical |
1,00,000 |
- |
11 |
Commercial Building(Hotel) |
500 |
- |
12 |
Railways |
70,000 |
- |
13 |
Petroleum Refinery |
90,000 |
- |
Under this scheme, reductions in specific energy saving targets are assigned to Designated Consumers (DCs) for a three year cycle. The target reduction for each DC is based on their current levels of Specific Energy Consumption(SEC), so that energy efficient DCs will have lower target of percentage reduction, as compared to less energy efficient DCs which will have higher targets. While calculating the specific energy consumption “gate-to-gate” approach is adopted, thereby including all energy consumption against the total production. Verification of the performance of DCs at the end of the cycle is carried out by a cadre of energy professionals i.e. Accredited Energy Auditors who are empanelled with Bureau of Energy Efficiency.
In total, there are 737 DCs (621 DCs of PAT Cycle II and 116 DCs of PAT Cycle III) participating under PAT scheme.