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PRID=1811051


Ministry of Power

Status of Implementation of National

Mission for Enhanced Energy Efficiency
(NMEEE)

Three years of PAT Scheme constitutes of

7 cycles

Various programmes introduced under

Market Transformation for Energy
Efficiency (MTEE) for the promotion of
energy efficient products in the market
Posted On: 29 MAR 2022 6:22PM by PIB Delhi

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

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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.

i. 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.
ii. 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.

iii. 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.
iv. 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

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Pandemic due to COVID19 and thus was extended to April –July 2022 vide
notification S.O. 3510

(E) dated 27th August 2021.

v. PATCycle 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.

vi. 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.

vii. 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:-
i. 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.
ii. 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.

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iii. 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.

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MV/IG

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