PAT, which aims to increase industrial energy efficiency, is expected to bring down energy consumption by 5 per cent, amounting to an avoided capacity of over 5,600 MW over the three-year period.
There would be strict penalties, as well as an incentives, for industries participating in PAT, starting April 1. The penalties would be more than Rs 1 lakh per day, apart from some other charges based on tonnes of oil equivalent consumption, a senior Power Ministry official told PTI.
"Those entities that fail to achieve the targets will have to pay huge penalties. Other (entities) that perform better will be awarded Energy Savings Certificates (ESCerts), which can be traded," the official said.
Entities that are short of targets can also buy these certificates to make up for the shortfall. Eight industries, which account for over 50 per cent of energy consumption, would be a part of PAT. These are: cement, thermal power plants, pulp & paper, textile, fertiliser, iron & steel, aluminium and chlor-alkali industries.
PAT is expected to result in electricity savings corresponding to about 9.78 million metric tonnes of oil equivalent. This would be more than 5,600 MW of avoided capacity (which otherwise need to be added).
The programme will end on March 31, 2014. The basic aim of PAT is to bring down energy consumption and the programme has been finalised after many rounds of meetings and consultation with the stakeholders.
An initiative of the National Mission for Enhanced Energy Efficiency (NMEEE), the programme will be implemented by the Bureau of Energy Efficiency (BEE). As per BEE, ESCerts would be traded on special trading platforms to be created on the two power exchanges. Data on traded prices, traded volumes and trends would also be maintained on the bourses.