IEX commences trading of ESCerts under second phase of PAT scheme

• The trading on the exchange will happen once a week on every Tuesday
• The PAT-II scheme aims at achieving an overall energy savings of 8.87 MTOE and covers 621 designated consumers spanning across 11 energy-intensive industry sectors

New Delhi: The Indian Energy Exchange (IEX) has commenced the trading of Energy Saving Certificates (ESCerts) on Tuesday, an official statement said. "The Indian Energy Exchange, India's premier energy trading platform, is pleased to announce the commencement of trade in Energy Saving Certificates (ESCerts) under Perform, Achieve & Trade Cycle-II (PAT-II) scheme apropos the notification dated March 31, 2016 as issued by the Bureau of Energy Efficiency (BEE), Ministry of Power," said IEX. The trading on the exchange will happen once a week on every Tuesday.

The PAT-II scheme aims at achieving an overall energy savings of 8.87 MTOE and covers 621 designated consumers 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, aluminium, fertiliser, chlor-alkali, paper and pulp that continue to be included from PAT-I.

193 consumers expected to participate on buy side

The National Load Despatch Centre (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 designated consumers as eligible entities with effect from August 23. "A total of 349 DCs (designated consumers) can sell and 193 DCs are expected to participate on the buy side as per the BEE notification dated August 18. 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 the BEE," said IEX in the statement.

~13 lakh ESCerts worth Rs 100 crore traded under PAT-I at IEX: CMD

Speaking on the occasion, SN Goel, IEX's Chairman and MD, 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 from 8 energy intensive sectors. PAT-1 overachieved its target with realisation 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 lacs 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 Limited (POSOCO) as the Registry for registering designated consumers as eligible entities, trading and book-keeping of ESCerts. Trading of ESCerts takes place exclusively on the power exchanges as per the CERC ESCerts Regulations, 2016.

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