The Perform, Achieve and Trade (PAT) Scheme: A Comprehensive Overview

The Perform, Achieve and Trade (PAT) scheme, launched by the Government of India in 2012, is a cornerstone initiative aimed at enhancing energy efficiency across key sectors of the economy. This initiative, spearheaded by the Ministry of Power, targets energy-intensive industries, providing them with specific energy conservation targets to achieve over a designated period. As of 2024, the PAT scheme has encompassed 1,333 Designated Consumers across thirteen diverse sectors, reflecting a broad and inclusive approach to energy management.

Key Achievements and Progress

The PAT scheme has yielded significant energy savings, particularly highlighted during the 2022-23 period. During this year, participating units collectively saved 25.77 Million Ton of Oil Equivalent (MTOE), equating to approximately 8% of their total annual energy consumption. This substantial reduction not only underscores the effectiveness of the PAT scheme but also its vital role in India’s broader energy conservation strategy.

The scheme has also been instrumental in building a robust cadre of energy professionals. To date, 11,127 candidates have been certified as Energy Auditors. This growing pool of certified professionals plays a crucial role in ensuring rigorous energy audits and the implementation of energy-saving measures across the designated sectors.

Sectors and Future Transition

The PAT scheme currently covers thirteen energy-intensive sectors, including thermal power plants, refineries, iron and steel, and textile industries. These sectors have been identified based on their significant energy consumption and potential for energy savings. The initiative sets a benchmark for each sector, and units are encouraged to meet or exceed these benchmarks, with the opportunity to trade any excess savings.

In June 2023, the Government introduced the Carbon Credit Trading Scheme (CCTS), marking a pivotal shift in the country’s approach to managing greenhouse gas emissions. Under this new framework, nine sectors currently under PAT, including refineries, iron and steel plants, and textile industries, will gradually transition to the CCTS by the financial year 2026-27. This transition aims to align these sectors with global carbon credit trading practices, providing a market-driven approach to emissions reduction.

Meanwhile, the remaining four sectors, notably including thermal power plants, will continue to operate under the PAT scheme. This decision reflects a strategic approach, ensuring that each sector receives tailored support and regulation, optimizing energy savings and emissions reductions.

Continuous Expansion and Future Prospects

The PAT scheme is dynamic and evolving, with the continuous inclusion of new energy-intensive industries through regular energy audits. This expansion ensures that the scheme remains comprehensive and adaptable, reflecting the changing landscape of India’s industrial energy consumption.

As India progresses towards its energy efficiency goals, the PAT scheme, alongside the emerging CCTS, will play a pivotal role in shaping a sustainable industrial sector. The successful implementation and expansion of these schemes are crucial for achieving India’s energy conservation targets and fostering a more sustainable and efficient industrial economy.

In summary, the PAT scheme represents a critical component of India’s energy conservation framework, driving substantial energy savings and fostering a culture of energy efficiency across key sectors. As it evolves and integrates with new initiatives like the CCTS, the scheme is poised to continue making significant contributions to India’s sustainable development goals.

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