Indian industry has generated Rs 11.62 crore of additional revenue during the first month of trading energy saving certificates. Energy Saving Certificates, or ESCerts, are issued by Power Ministry to designated industries that surpass the energy saving targets set by the Bureau of Energy Efficiency under the Perform, Achieve and Trade scheme (PAT).
On 26 September 2017, Minister of State (I/C) for power and new and renewable energy, launched the trading of these ESCerts on Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Traded only on Tuesdays through closed double-sided uniform price auction, 1,17,425 certificates have been exchanged at an average bid price of
` 990 in the auctions over the past month.
Commenting on the development, Abhay Bakre, Director General, Bureau of Energy Efficiency, stated, “The industry has been an able and willing partner in India’s efforts to reduce its emissions by 33-35 per cent as per the nationally determined contributions, and the success of the ESCert trading program is evidence of the harmonious government-private partnership. I hope that we continue building on these encouraging results.”
The trading of ESCerts enables eligible, designated industries that do not achieve their energy efficiency targets to comply with energy consumption norms and standards, while enabling overachieving designated industries that surpass their energy savings targets to monetise the energy savings achieved through their operations. Units that are unable to meet the targets either through their own actions or through purchase of EScerts are liable to financial penalty under the Act.