PAT and S&L: Status & Way Forward Saurabh Diddi Energy Economist Bureau of Energy Efficiency

Perform, Achieve and Trade PAT

PAT Preparation Process 2008 2009 2010 2011 2012 Release of NAPCC- 30th June   Consultation Finalization Submission of NMEEE document to PM's council - 28th December Approval of PM's council Submission of EC(Amendment) bill in parliament EFC/Cabinet approval Parliament passes EC amendment bill Collection of baseline data Preparation of draft methodology consultation Finalization of rules, methodology and targets PAT notification - 30th March

Challenges Mandatory Voluntary Mechanism Approach Entity Project Market Regulated ESCerts Price MRV 3rd Party Self Verification Targets Potential Investments Baseline Measured and Verified Self certification

Elements of PAT Multi- cycle process – Target setting first cycle till 2014-15 (PAT 1) Second Cycle: 2015-2018 (PAT 2) Target setting based on gate to gate specific energy consumption (SEC) each designated consumer has to reduce SEC in target year (2014-15) as compare to baseline year (2009-10) percentage reduction is based on efficiency in baseline year; efficient units in a sector have a lower percentage reduction target as compare to less efficient units Monitoring and Verification designated consumers monitor and record their energy purchases and product sales data to be provided to SDAs and BEE data will be verified by accredited energy auditor for verification & check verification check verification on sample basis

Elements of PAT Incentivization and trading of excess savings Energy Saving Certificates issued for savings in excess of target; early issuance (after one year) is possible Certificates can be traded with other designated consumers who can utilize them to show compliance Certificates can be banked for one more cycle Trading platform on the two power exchanges (IEX & PXIL) Penalty for Non-Compliance Quantum of non compliance is deficiency in meeting target at the end of the cycle Penalty is the energy cost of quantum of non compliance Quantum of non compliance is provided in verification report and penalty is adjudicated by the state electricity regulatory commission Converted energy cost is Rs 10,154 per toe (2011-12) shall be periodically updated

Next Steps Resolution of issues: Sectoral committee will address issue related to methodology and targets Normalization process: Formulae for normalizing performance in target year with respect to changes in - Capacity utilization - Relation of grid to captive power - Raw material quality - Product mix Coverage for next cycle: Identification of sectors and units to be included in next cycle and targets for next cycle

Standard and Labeling S&L

Standard & Labeling Major Achievement During XI plan : The appliance energy efficiency program gives a informed choice to the consumer to buy an energy efficient appliance. Energy performance standards are set and identified through different star ratings i.e. from 1-Star to 5-Star. Higher the star rating more energy efficient is the appliance. Major Achievement During XI plan : Launched in May 2006 14 products (4 Mandatory & 10 Voluntary) introduced in the scheme Market Transformation : About 1000 million star labeled products manufactured in over 13000 models in 14 product categories Avg. market has transformed to 2-star in 2011-12 as compared to No-Star in 2006 Policy Initiative : 4 products notified under Mandatory program Tightening of norms for Split AC and FFR with effect from 1.1.2012 Amendment of Regulation for Manner of Display of Labels done Fuel Efficiency Norms for passenger cars proposed Super Efficient Appliance Deployment (SEAD) for Color TV initiated under Clean Energy Ministerial Energy Efficiency Standards have been finalized by technical committees Inverter, Office Automation and Industrial Boiler (upto 10 TPH). Up-gradation of Web-Portal initiated

Standard & Labeling Institutionalization : Consumer Awareness : Independent Agency for Monitoring & Evaluation (M/S RITES and M/S EESL) for application processing, check-testing and disposal of test samples Capacity Building of Labs Consumer Awareness : Print Media, Electronic Media and outdoor campaign National Educational & Training Program on Standard and Labelling for salesmen conducted in 37 cities. National Energy Conservation Awards given to manufacturers of 8 product categories since 2009 during Energy Conservation Day (December 14th). 7766 MW avoided generation capacity (3rd party verified)

Positioning Status of S&L Program of BEE as on 10.01.2013 Baseline Study / Situational Survey Setting-up of Standards Approval by MoP Launch of Program Voluntary Program Mandatory Program Boilers DCR RAC DG Sets Ceiling Fans FFR Volt. Stab DG Pumps Laptop DT Inverters Set-Top Box Pumps P1 TFL Off. Equpt P2 Geysers LPG Stove P3 Color TV P4 Batteries LPG Stove P5 Motors Motors Washing M/C Ballast Positioning Status of S&L Program of BEE as on 10.01.2013

XII plan roadmap Widening the Program Deepening the Program 8 carry-forward products from 11th plan 5 new products (to be picked up as per Baseline study) Labeling Program for Passenger Cars By the end of 12th Plan : 27 products (7 Mandatory + 20 voluntary) Deepening the Program Tightening of Norms (RAC, Ref., DTs) Moving to mandatory norms for at least 3 products (DC Ref., CTV and Gyser) Encouraging more Participation by Manufacturers Create Market demand for star labeled products (So Consumer Awareness program to be intensified) Strengthening of Helpdesk and Upgradation of web-portal Increase Credibility of the Scheme Intensify check-testing Institutionalization ( more IAMEs, involvement of SDAs in label verification and check-testing, set-up of PMU at BEE) Streamline the implementation of the scheme (Revise the provisions of the Scheme, operationalization of NSLIC)

Issues and Barriers faced during 11th Plan No proper enforcement of the use and manner of display of labels Label Verification process Inspection process Initiating Action against the defaulters Inadequate Institutional Mechanism to Manage the Scheme Too big program managed by few people No proper Independent Agencies for Execution of the Work E-portal not being able to handle the quantum of work Inadequate Help-Desk to address day-to-day queries/clarifications Not able to integrate with other Entities / Policies Role and Responsibility of SDAs ERCs State Governments / State Utilities Procurement Policy

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