Indian Energy Exchange commences trade in Energy Saving Certificates

Biznextindia : Energy Trading Platform the Indian Energy Exchange (IEX) has announced the commencement of trade in Energy Saving Certificates (ESCerts) under Perform, Achieve & Trade Cycle-II (PAT-II) scheme apropos the notification dated 31 March 2016 as issued by the Bureau of Energy Efficiency (BEE), Ministry of Power. The trading on the Exchange will happen once a week on every Tuesday.

PAT-II 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, aluminum, fertilizer, chlor-alkali, paper and pulp that continue to be included from PAT-I.

The National Load Despatch Center (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 DC as eligible entities w.e.f. 23 August’21 A total 349 DCs can sell and 193 DCs are expected to participate on the buy side as per the BEE notification dated 18 August’21. 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.

“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 realization 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 crores were traded under PAT I at IEX which resulted in net savings to the tune of Rs 9,500 crores. 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” said S N Goel, Chairman and MD, IEX.