Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
From UPSC perspective, following things are important:
Prelims level: Particulars of the Index, PAT
Mains level: Read the attached story
State Energy Efficiency Preparedness Index
- Bureau of Energy Efficiency (BEE) and Alliance for an Energy Efficient Economy (AEEE) has released the ‘State Energy Efficiency Preparedness Index’, which assesses state policies and programmes.
- The nationwide Index is a joint effort of the NITI Aayog and BEE.
- Aim: To create awareness about energy efficiency as a resource and also to develop an action plan for energy conservation initiatives.
Energy Conversation Guidelines
- These were also released for energy intensive industries that are covered under the Government’s Perform Achieve and Trade (PAT)
- As a part of Indo-Japan Energy Dialogue, Energy Conservation Centre of Japan (ECCJ) and Bureau of Energy Efficiency (BEE) have developed Energy Conservation Guidelines for energy intensive industries covering both large as well as MSMEs.
Particulars of the Index
- The State Energy Efficiency Preparedness Index has 63 indicators across Building, Industry, Municipality, Transport, Agriculture and DISCOM with 4 cross-cutting indicators.
- The Index examines states’ policies and regulations, financing mechanisms, institutional capacity, adoption of energy efficiency measures and energy savings achieved.
- The required data was collected from the concerned state departments such as DISCOMs, Urban Development Departments, etc., with the help of State Designated Agencies (SDAs) nominated by the BEE.
- States are categorized based on their efforts and achievements towards energy efficiency implementation, as ‘Front Runner’, ‘Achiever’, ‘Contender’ and ‘Aspirant’.
- The ‘Front Runner’ states in the inaugural edition of the Index are: Andhra Pradesh, Kerala, Maharashtra, Punjab, and Rajasthan based on available data.
Perform Achieve and Trade (PAT) Scheme
- Nodal Agencies: Bureau of Energy Efficiency (BEE) under the Ministry of Power,
- It isscheme under the National Mission for Enhanced Energy Efficiency (NMEEE) as a part of the National Action Plan on Climate Change (NAPCC) launched in 2012.
- In 2012, the Government had set targets to save energy in eight energy intensive sectors, under the Energy Conservation Act, 2001.
- Those eight Energy Intensive Sectors included are Chlor-alkali, Pulp & Paper, Textile, Aluminum, Thermal Power plants, Fertilizer, Iron & Steel and Cement.
- It is a market based mechanism in which sectors are assigned efficiency targets. The Industries which successfully surpass the assigned targets are given incentives in the form of energy saving certificates (ESCert).
- These ESCerts are tradable at two energy exchanges i.e, Power Exchange India and Indian Energy Exchange.
- Central Electricity Regulatory Commission (CERC) is the Market Regulator and Bureau of Energy Efficiency is Administrator for the trading of ESCerts.
- Implementation: In 3 cycles-
- PAT cycle I (2012-13 to 2014-15): It was applicable on eight energy intensive sectors which account for 33% of India’s primary energy consumption.
- PAT cycle II (2016 to 2018-19): It shall include 3 new sectors i.e, petroleum refineries, discoms and railways, along with the previous 8 energy intensive sectors of PAT cycle I.
- PAT cycle III (2017-2020): It shall include 116 new units under it and have been given a reduction target of 1.06 million tonnes of oil equivalent.