Status of Implementation of National Mission for Enhanced Energy Efficiency (NMEEE)

IAS Prelims 2023

The current status of the implementation of the National Mission for Enhanced Energy Efficiency (NMEEE) and various schemes under this including the Perform, Achieve and Trade (PAT) scheme and Market Transformation for Energy Efficiency (MTEE) is as under:

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE):- National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight missions under the National Action Plan on Climate Change (NAPCC). Perform, Achieve and Trade (PAT) is the flagship programme under the mission implemented by Bureau of Energy Efficiency (BEE) under the aegis of Ministry of Power. PAT scheme aims at reducing Specific Energy Consumption (SEC) i.e. energy use per unit of production for Designated Consumers (DCs) in energy intensive sectors, with an associated market mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded. The excess energy savings are converted into tradable instruments called Energy Saving Certificates (ESCerts) that are traded at the Power Exchanges. Central Electricity Regulatory Commission (CERC) is the market regulator for trading of ESCerts and Power System Operation Corporation Limited (POSOCO) is entrusted with the responsibility of the Registry. The two Power Exchanges such as India Energy Exchange (IEX) and Power Exchange India Limited (PXIL) provide the trading platform where the Designated Consumers (DCs) who fall short of their compliance, bid for purchase of ESCerts.

PAT Scheme is implemented in cycles of 3 years each where the Designated Consumers (DCs) are assigned SEC reduction targets. Upon verification of their performance in the assessment year by third party verifying agencies, the issuance or obligation to purchase ESCerts is carried out by BEE after scrutiny of the performance.

  1. PAT Cycle –I: PAT cycle –I aimed at reducing the SEC of 478 Designated Consumers in 8 sectors viz. Aluminum, Cement, Chlor- Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile. Implementation of the first cycle of PAT had resulted in energy savings of

8.67 million tonnes of oil equivalent (MTOE) and translating into emission reduction of about 31 million tonnes of CO2.

  1. PAT Cycle –II: PAT Cycle II was notified with effect from 1st April, 2016 and was completed on 31st March 2019. Under this cycle, SEC reduction targets were notified to 621 DCs from 11 energy intensive sectors (eight sectors and three new sectors namely Refineries, Railways and DISCOMs). Implementation of PAT cycle -II has resulted into total energy savings of about

14.08 MTOE translating into avoiding emission reduction of 66.01 million tonne of CO2.

  1. PAT Cycle III: PAT cycle-III commenced with effect from 1st April 2017 after the decision of notifying PAT scheme on a rolling basis was taken. PAT cycle -III aimed to achieve an overall energy consumption reduction of 1.06 MTOE for which targets were notified to 116 Designated Consumers from six sectors viz. Thermal Power Plant, Cement, Aluminium, Pulp & Paper, Iron & Steel and Textile. PAT Cycle –III was completed on 31st March 2020 and implementation of this cycle has resulted in energy savings of 1.745 MTOE.
  2. PAT Cycle IV: PAT cycle –IV commenced with effect from 1st April 2018. A total of 106 DCs with an estimated energy consumption reduction target of 0.6998 million tonnes of oil equivalent were notified. These DCs were from 8 sectors consisting of 6 existing sectors of PAT cycle -I and two new sectors namely Petrochemicals and Commercial Buildings (Hotels). The assessment year of these DCs was April –July 2021 which was affected by the outbreak of the Pandemic due to COVID19 and thus was extended to April –July 2022 vide notification S.O. 3510

(E) dated 27th August 2021.

  1. PAT Cycle V: PAT cycle –V commenced with effect from 1st April 2019. Under PAT cycle

– V, 110 DCs from the existing sectors of PAT i.e. Aluminum, Cement, Chlor-Alkali, Commercial Buildings (Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant were notified. The estimated energy consumption of these DCs is 15.244 MTOE and it is targeted to get a total energy savings of 0.5130 MTOE.

  1. PAT Cycle –VI: PAT Cycle-VI commenced with effect from 1st April 2020. Under PAT Cycle-VI, 135 DCs from six sectors, i.e. Cement, Commercial buildings (hotels), Iron and Steel, Petroleum Refinery, Pulp and Paper and Textiles, were notified. With implementation of PAT cycle

–VI, it is expected to achieve a total energy savings of 1.277 MTOE. These 135 DCs are under process of implementation of various energy efficiency measures to meet their notified targets.

  1. PAT Cycle –VII: PAT cycle –VII has been notified in October 2021 for the period 2022-23 to 2024-25 wherein 509 DCs have been notified with overall energy saving target of 6.627 MTOE.

Market Transformation for Energy Efficiency (MTEE): MTEE aims for accelerating the shift to energy efficient appliances in designated sectors through incentives and innovative business models. Under MTEE, the following programmes were introduced for the promotion of energy efficient products in the market:-

    1. Bachat Lamp Yojana (BLY): The programme was developed for replacement of inefficient bulbs with Compact Fluorescent Lamps (CFLs). BLY involved support to LED deployment under “Unnat Jyoti by Affordable LEDs for All (UJALA)” by providing technical assistance to partner agencies such as Energy Efficiency Services Limited (EESL) and Rural Electrification Corporation (REC). Under BLY, 29 million bulbs were replaced with CFL resulting into energy saving of 3.598 billion units/ year.
    2. Super-Efficient Equipment Program (SEEP): This programme was designed for market transformation of super-efficient appliances by providing financial stimulus innovatively at critical point/s of interventions.
    3. Following programme is being implemented by EESL for market transformation:

Unnat Jyoti by Affordable LEDs for All (UJALA): UJALA program was launched on 5th January, 2015 for replacement of incandescent lamps with LED (Light-Emitting Diode) bulbs, in order to promote energy efficiency in the country. Under the said scheme, EESL, provides LED bulbs to domestic consumers at a low cost. LEDs have a relatively longer life and are highly energy efficient as compared to incandescent bulbs and CFLs (compact fluorescent lamps), thus saving both energy and costs in the medium term. EESL with support of stakeholders was able to achieve reduction in procurement price from Rs. 310 per 7W bulb in 2014 to Rs. 38 per 9W bulb in 2016.

As on February 2022, EESL has distributed 36.79 crore LED bulbs, 72.18 lakh LED tube lights and 23.59 lakh energy efficient fans across the country under UJALA program.

This information was given by Shri R.K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.





    Source PIB