The Indian Energy Exchange (IEX), India’s premier energy trading platform, will begin trade in Energy Saving Certificates (ESCerts) under Perform, Achieve and Trade Cycle-II (PAT-II) scheme, the company said on Tuesday.
The trading on the exchange will happen once a week every Tuesday.
PAT-II aims at accomplishing overall energy savings of 8.87 MTOE (million metric tonnes of oil equivalent) 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, counting 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 DC as eligible entities w.e.f. 23 August 2021.
A total 349 DCs can sell and 193 DCs are likely to participate on the buy side under BEE notification dated 18 August 2021. The ministry of power has already issued 5.7 million ESCerts to 349 DCs and about 193 DCs are entitled to purchase 3.668 million ESCerts according to the BEE.
S.N. Goel, chairman and managing director, Indian Energy Exchange Limited stated, “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 eight energy-intensive sectors."
PAT-1 overachieved its target with realization of 8.67 MTOE energy savings with 31 million tonnes of CO2 emissions against the set target of 6.68 MTOE.
About 1.3 million ESCerts worth ₹100 crore were traded under PAT I at IEX, which resulted in net savings to the tune of ₹9,500 crore.
ESCerts trading is regulated by Central Electricity Regulatory Commission (CERC) with BEE as the administrator and Power System Operation Corporation Ltd (POSOCO) as the registry for registering designated consumers as eligible entities, trading and book-keeping of ESCerts.
Trading of ESCerts takes place completely on power exchanges under CERC ESCerts Regulations 2016.