Explain PAT scheme and why it is a market based mechanism?
Perform, Achieve and Trade (PAT) Scheme is a market based mechanism to
enhance cost effectiveness of improvements in energy efficiency in energy-intensive
large industries and facilities, through certification of energy savings that could be
traded. The genesis of the PAT mechanism flows out of the provision of the
Energy Conservation Act, 2001 (amended in 2010).
The key goal of PAT scheme is to mandate specific energy efficiency improvements for
the most energy intensive industries in sectors as listed below.
Sector
1. Aluminium
2. Cement
3. Chlor-Alkali
4. Fertilizer
5. Iron and Steel
6. Pulp and Paper
7. Textile
8. Thermal Power Plant