PAT scheme is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded.
Under this scheme, reductions in specific energy saving targets are assigned to Designated Consumers (DCs) for a three year cycle. The target reduction for each DC is based on their current levels of energy efficiency, so that energy efficient DCs will have lower target of percentage reduction, as compared to less energy efficient DCs which will have higher targets. While calculating the specific energy consumption “gate-to-gate” approach is adopted, thereby including all energy consumption against the total production. Verification of the performance of DCs at the end of the cycle is carried out by a cadre of energy professionals i.e. Accredited Energy Auditors who are empanelled with Bureau of Energy Efficiency.
In total, there are 737 DCs (621 DCs of PAT Cycle II and 116 DCs of PAT Cycle III) participating under PAT scheme.