Institutional Structure. Power Exchange India Limited

Transcription

1 Capacity Building Programme on PAT Mechanism Workshop for Designated Consumers Institutional Structure Power Exchange India Limited August 2nd, 2011

2 Institutional Design Essentially a structure of entities and their interfacing with each other for enabling implementation of any initiative or policy directive on a community scale For Policy Mandated Market-Based mechanism institutional structure is essential to Create and implement a functioning market-place that enables seamless transactions through appropriately designed regulatory and policy mechanisms Provide for an authority with ability to detect non-compliance and sanction remedial measures to all entities in the institutional structure Provide for legal certainty and stability on a wider scale

3 Institutional Design Enables Creation of demand for the tradable energy efficiency instrument Adequate supply Proper Monitoring, Verification & reporting Availability of a trading platform Creating systems for recording and registering transactions Creation of mechanism for dispute resolution Clarity of roles and responsibilities Setting specific energy efficiency targets Mandate participation in the market based mechanism Assure accuracy and reliability information on price and stakeholders in public domain negating possibility of duplicity and double counting speedy resolution of conflicts avoid conflict situation and promote collaboration

4 Proposed Institutional Design Highlights The Policy Governor is not an active part of the Institutional Framework Gives broad policy guidelines Not involved in the day to day operations of the energy efficiency market. No direct role in implementation of PAT Mechanism Scheme Administrator and Scheme Regulator are appointed by Policy Governor Scheme Administrator is the body that will look after day to day operations Prescribe energy savings obligation to the Designated Consumers. Specify the compliance period Prescribe operational procedures and protocols Scheme Regulator would be responsible for issuing regulations governing overall operation of the scheme. Independent body for dispute resolution.

5 Proposed Institutional Design Highlights There would be an electronic registry/ Depository to track the movement of market based instrument throughout its lifetime. Certificates will be awarded to Designated Consumers only if the energy savings in the particular exceed the savings target. Certificates would be traded through Power Exchanges which would have interfacing with Registry, Banks and Clearing and Settlement system Independent Authority to adjudicate matters related to penalties Monitoring, Verification process would be done by independent bodies The independent body responsible for Validation and Verification is referred as Designated Accredited Energy Auditor (DEA).

6 Proposed Institutional Design Schematic State Designated Agencies (SDA) Designated Energy Auditors (DEA) Designated Consumers (DCs)

7 Proposed Institutional Design Entities and Roles Entity in Institutional setup Entity in Proposed Design Key role Policy Maker Scheme Regulator Scheme Administrator Designated Consumers Designated Energy Auditors (DENA) Scheme Depository/ Registry Trading Platform/ Exchanges State Designated Agencies Government of India/ Ministry of Power Bureau of Energy Efficiency Energy Efficiency Services Ltd. Industrial units as identified under the provisions of the Energy Conservation Act, 2001 Entities or companies empanelled by Scheme Administrator Energy Efficiency Services Ltd./ Other entities like NSDL Power Exchange India Limited & Indian Electricity Exchange State nodal agencies For giving broad policy directive For regulating the functioning of the mechanism Target setting and allocation Empanelment of Auditors Obligated Entities under PAT Mechanism Independent auditing agencies for undertaking monitoring verification and reporting Online interface for dematerializing the ESCerts and keeping records and tracking them through out the lifetime For providing fair and level trading platform Adjudicate all matters related to penalties

8 THANK YOU