Thermal Power Plants as Designate Consumers in PAT

About 65% of the electricity consumed in India is generated by thermal power plants, 22% by hydroelectric power plants, 3% by nuclear power plants and rest 10% from other alternate sources like solar, wind, biomass etc. In Thermal Power Plant sector to become a designated consumer the identified threshold limit is 30000 toe and in first PAT cycle 144 designated consumers from various states have been identified for which the target have already been notified.

Thermal Power Plant sector has been categorized on the basis of their fuel input in to three subsector i.e. Gas, oil and coal based plants. The total reported energy consumption of these designated consumers is about 104 million ton of oil equivalent. By the end of the first PAT cycle, the energy savings of 3.211 million ton of oil equivalent /year is expected to be achieved, which is around 48% of total national energy saving targets assessed under PAT.

Thermal power plants earmarked as Designate Consumers have been given a target in terms of their Net Heat Rate. Baseline audit was conducted to identify the existing operating net heat rate . This was bench marked with industry standards and the target heat rate at end of PAT cycle has been set. 

Market Trading & Penalties

Market mechanism will be based on ESCERT (Energy Saving CERTificate) that will be issued by MoP/BEE. An ESCERT will be valued at one ton of oil equivalent( 1toe). These certificates will be tradable in IEX & PXIL at the completion of PAT cycle or on an interim achievable basis. In case of a TPP, the ESCERT will either have to be bought or sold depending on by how much margin the heat rate target is achieved or missed. 

PAT is one of the most promising initiatives to achieve the goal by implementing Best Available Practices and Technologies in the identified sectors through economical and viable projects. Broader implementation of sectoral crediting mechanisms could ensure that low‐carbon technologies are also used more widely, which in turn would encourage Indian industries to invest in these technologies.

(*Source: BEE PAT Booklet. To know more, please feel free to read about about it from BEE)