Page 58 - Energy Efficiency Policies in China and India - A Research Paper
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Energy efficiency policies in
China and India
The Bureau of Energy Efficiency has created task forces within several industrial sectors to
improve their energy efficiency. It has the authority to mandate energy efficiency standards. It
promotes, manages, finances and monitors energy efficiency efforts throughout the country.
In 2012, under the National Mission for Enhanced Energy Efficiency (NMEEE) in NAPCC,
BEE launched a market based mechanism – called Perform, Achieve and Trade (PAT) – to
reduce specific energy consumption14 levels in large energy intensive industries through
the certification of excess energy saving which can be traded. Under the mechanism, 478
Designated Consumers (DCs) within eight industrial sectors viz. power (thermal), iron & steel,
aluminium, fertilizer, paper & pulp, textile and chlor-alkali, are given energy saving targets (Table
13). Overall, the SEC reduction targets aim to secure 4.05% reduction in energy consumption
in these industries totalling an energy saving of 6.686 million tonne of oil equivalent. The
co-benefit would be a reduction of about 25 million tonnes of CO2 equivalent. In 2015, the
mandated decrease in the specific energy consumption of the DCs under the PAT programme
has led to a decline of 4%–5% of their specific energy consumption as compared to that in
2012 (MoEFCC, 2015). Assessed 427 DCs have resulted in savings of about 8.67 million tonnes
of oil equivalent. This amounts to CO2 mitigation of about 31 million tonnes (BEE 2016). Trading
of energy saving certificates (ESCerts) under the PAT mechanism is yet to take place.
Table 13: PAT Cycle-I Notified Sectors
No Sectors Annual No. of Annual Share Apportioned No. of Savings
Energy Identified Energy Consumption Energy Assessed (Mtoe)
Consumption Consumption
Norm to be DCs (Mtoe) (%) Reduction for DCs 3.06
DC (Mtoe) PAT Cycle-1 2.1
1.44
(Mtoe) 0.73
0.83
1 Power 30000 144 104.56 63.38% 3.211 123 0.26
(Thermal) 0.12
0.13
2 Iron & Steel 30000 67 25.32 15.35% 1.486 60 8.67
3 Cement 30000 85 15.01 9.10% 0.815 75
4 Aluminium 7500 10 7.71 4.67% 0.456 10
5 Fertilizer 30000 29 8.2 4.97% 0.478 29
6 Paper & Pulp 30000 31 2.09 1.27% 0.119 26
7 Textile 3000 90 1.2 0.73% 0.066 82
8 Chlor-Alkali 12000 22 0.88 0.53% 0.054 22
Total 478 164.97 100% 6.686 427
Source: BEE(2016)
The power ministry has expanded the mission to include three more energy intensive industrial
sectors viz. railways, oil refineries and electricity distribution companies and more than 900
industrial units under the PAT scheme.
14Energy used per unit of production
Research Paper 43
China and India
The Bureau of Energy Efficiency has created task forces within several industrial sectors to
improve their energy efficiency. It has the authority to mandate energy efficiency standards. It
promotes, manages, finances and monitors energy efficiency efforts throughout the country.
In 2012, under the National Mission for Enhanced Energy Efficiency (NMEEE) in NAPCC,
BEE launched a market based mechanism – called Perform, Achieve and Trade (PAT) – to
reduce specific energy consumption14 levels in large energy intensive industries through
the certification of excess energy saving which can be traded. Under the mechanism, 478
Designated Consumers (DCs) within eight industrial sectors viz. power (thermal), iron & steel,
aluminium, fertilizer, paper & pulp, textile and chlor-alkali, are given energy saving targets (Table
13). Overall, the SEC reduction targets aim to secure 4.05% reduction in energy consumption
in these industries totalling an energy saving of 6.686 million tonne of oil equivalent. The
co-benefit would be a reduction of about 25 million tonnes of CO2 equivalent. In 2015, the
mandated decrease in the specific energy consumption of the DCs under the PAT programme
has led to a decline of 4%–5% of their specific energy consumption as compared to that in
2012 (MoEFCC, 2015). Assessed 427 DCs have resulted in savings of about 8.67 million tonnes
of oil equivalent. This amounts to CO2 mitigation of about 31 million tonnes (BEE 2016). Trading
of energy saving certificates (ESCerts) under the PAT mechanism is yet to take place.
Table 13: PAT Cycle-I Notified Sectors
No Sectors Annual No. of Annual Share Apportioned No. of Savings
Energy Identified Energy Consumption Energy Assessed (Mtoe)
Consumption Consumption
Norm to be DCs (Mtoe) (%) Reduction for DCs 3.06
DC (Mtoe) PAT Cycle-1 2.1
1.44
(Mtoe) 0.73
0.83
1 Power 30000 144 104.56 63.38% 3.211 123 0.26
(Thermal) 0.12
0.13
2 Iron & Steel 30000 67 25.32 15.35% 1.486 60 8.67
3 Cement 30000 85 15.01 9.10% 0.815 75
4 Aluminium 7500 10 7.71 4.67% 0.456 10
5 Fertilizer 30000 29 8.2 4.97% 0.478 29
6 Paper & Pulp 30000 31 2.09 1.27% 0.119 26
7 Textile 3000 90 1.2 0.73% 0.066 82
8 Chlor-Alkali 12000 22 0.88 0.53% 0.054 22
Total 478 164.97 100% 6.686 427
Source: BEE(2016)
The power ministry has expanded the mission to include three more energy intensive industrial
sectors viz. railways, oil refineries and electricity distribution companies and more than 900
industrial units under the PAT scheme.
14Energy used per unit of production
Research Paper 43
