ABSTRACT
The first cycle of PAT, to be implemented through 2011-2012 to 2013-2014, will involve mandatory participation by the 468 designated consumers across eight industrial sectors. The BEE was designated as the overall regulator and dispute resolution agency while the Energy Efficiency Service Limited (EESL), a joint venture of four GOI public sector units9, functions as an implementation and monitoring agency. Plants, placed under different SEC bands within their sector, would be mandated to reduce their SEC by a specific percentage based on their current position within the sectoral SEC bandwidth. At the end of the target period of the first cycle, Energy Savings Certificates (ESCs) would be issued to plants that achieve better than target SECs and penalties would be imposed on those who fell short of the target SEC, with the ESCs and penalties reflecting the difference between the achieved and the target SEC. Plants would further have an option to purchase SECs through a ESC market that is being established with BEE help to attain compliance. Through the first phase of PAT, according to BEE estimates, a collective 5% reduction10 in the SEC of the designated consumers should be possible (Mathur, 2011).
