Introduction to PAT-2

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1 Energy Efficiency can deliver 38% of what is needed to keep our plant within the two-degree scenario of global warming by 2050 Introduction to PAT-2 By MC Jain Accredited Energy Auditor - AEA 030 Representing MCJ Energy Engineers PVT Ltd

2 Index Steps in PAT Glimpse of PAT Cycle-1 Outcome of PAT-1 Introduction to PAT-2 Amended PAT rules ESCerts for Individual sector Comparison of PAT 1&2 Normalization

3 Steps in PAT Cycle Year PAT Cycle (3 years) Notification of Rules and Targets for Designated consumers Submission of Form-1 once in a year (Mandatory) by all DC s Issue of Escerts and Trading of Escerts Form-C ( Check and Verification by AEA) The verification will be with in I year from date of submission of compliance report M&V Audit (Form-A performance of assessment document, Form-B verification by AEA ) Before compliance period Submission of From-D by DC s Penalty levied by BEE for DC for noncompliance of norms and standard's as per notification Completed Yet to Start

4 Glimpses of PAT Cycle-1 1. Status of M&V of PAT cycle Register in PAT Net, 411 Submitted Form A, 420 submitted Form B offline and 402 Submitted M&V report. 2. With Form-C is in pending exact number Ecerts to be issued is undisclosed. Reduction in India's CO2 emissions by 24 million tons /year in National Target = million toe at the end of 1st PAT Cycle ( by ) With only 36% of total energy consumption industries are covered. Total 478 industries covered in first PAT cycle.

5 Outcome of PAT-1 S.NO Sectors No. of DCs Savings (Million toe) % Increase in savings 1 Aluminum % 2 Cement % 3 Chlor- Alkali % 4 Fertilizer % 5 Iron & Steel % 6 Paper & Pulp % 7 Textile % 8 Thermal Power Plant (-)5% Total % Saving of about 8.67 Million TOE from verified 427 DCs. CO2 mitigation about 31 million tonnes.

6 Energy Consumption Comparison

7 Introduction to PAT-2: MOP Notification on 31 st march S. O. 1264(E). PAT cycle-2 Target for DC s. MOP Notification on 31st march G.S.R. 373(E). Amendment of PAT rules under section (14),(14A) & (14B) of Energy Conservation Act Government is in interest of covering 50% total energy consumption in industry through PAT cycle-2. 3 new Sectors have included in PAT cycle -2 namely: - Petroleum Refinery. - Railway Zonal Railways Production Workshops. - Electrical Distribution company.

8 Amended PAT rules: Form-2 and Form-3 need to be attached with energy audit report. Average rate of reduction in SEC across all DC s Determined on the basis of Form -1 (Sector Specific) and Energy Audit report submitted. DC s can apply for Global best designated consumer based on comparable intentional benchmarks. Some of International agencies - UNIDO United Nations Industrial Development organization - WBSCD(World Business Council for Sustainable Development) Cement Sustainability Initiative - IAI (International Aluminum Institute)-Aluminum industry - World Steel Association

9 Amended PAT rules: Fuel Auto Sampler DC s should make arrangements for taking AS FIRED "samples from auto sampler which need to at solid fuel feeding points. Fuel samples to be pickup from auto sampler at least once in a month & got tested at internal and external NABL accreditation lab for GCV and proximate analysis. Fuel samples to be tested for external NABL accredited lab for ultimate analysis at least once in each quarter. The State designated agency shall ensure that coal samples are picked up at random through an independent agency engaged by it from the auto-sampler and get the same sample tested at the internal lab of the designated consumer and external National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited lab for GCV and proximate analysis of coal.

10 Amended PAT rules: ESCerts Energy Saving certificates will be issued to DC within 45 days from date of receipt of such recommendation from the bureau. 1 ESCerts = 1 Metric Oil equivalent. ESCerts will be issued in electronic format. ESCerts can be banked or traded through power exchanges for compliance with in validity period and any excess ESCerts can be used for the compliance of the next cycle. ESCerts remains valid till the completion of the compliance period of next cycle. Form-D need to submitted within 1 month from completion of trading of the respective cycle as specified by CERC. Value of per metric tonne of oil equivalent Rs for year by GOI.

11 Draft regulation on Exchange of Energy saving certificate by CERC The matching mechanism on Power Exchanges for ESCerts exchange shall be closed bid double-sided auction. Price of ESCerts will be determined by Market through market clearing price mechanism. Clearing volume of ESCerts in a day will be determined by Market clearing volume mechanism. The frequency of exchange of ESCerts, through Power Exchanges, shall be on monthly basis or in such periodicity for all registered and eligible entities as per the procedure approved by the Commission. Removal of Rule 6 in sub-rule (2), Makes ESCerts cant be issued on yearly basis.

12 Structure of Frame work:

13 ESCerts for Individual Sector Sector Target Achieved ESCERTS to be No of DC Saving in Million TOE No of DC Saving In Million TOE issued in Nos Aluminum Cement Chlor- Alkali Fertilizer Iron & Steel Paper & Pulp Textile Thermal Power Plant Total

14 Amended PAT rules: Baseline setting Methodology (New DCs in existing and new sector) Baseline Specific Energy Consumption will be calculated based on the last financial year data, if any conditions mentioned in (A) or (B) or (C) and condition mentioned in (D) are satisfied for the last financial year. In case, conditions are not satisfied for the last financial year, average of all those years where above mentioned conditions are satisfied shall be considered for calculating baseline specific energy consumption.

15 Amended PAT rules: Baseline setting Methodology (For Existing DCs ) The SEC achieved by the designated consumer on the completion of the target year, as mentioned in the compliance report in Form- A & Form B shall be the baseline for establishment of new plant specific energy consumption norms and standards for designated consumers for the next cycle. SEC achieved -Un-normalised in the target year The existing Product-mix normalization to be made for the year (The energy factor/ratio/clinker factor for target to changed as per target year factor). Intermediary product effect is same as per Pro-forma Power Export as per Weighted Heat Rate to be made as per year As Fired GCV will be used for determining the thermal energy consumption for SEC calculation

16 Amended PAT rules: Validation of fuel quality If the difference in GCV from internal and external lab test report is greater than 71.7 kcal/kg, the difference will be added to the gross calorific value (GCV) of the test result obtained in DC s lab for that particular month ( as per ISO 1928 : 1995 (E)).

17 Amended PAT rules: For first cycle, value to be rounded to three decimal places except for cement sector and refinery sector for which value to be rounded to four decimal places. For second cycle, the value to be rounded to four decimal places except for thermal plant sector, electricity distribution companies and railways sector for which value to be rounded to two decimal places. Once the designated consumers boundary has been fixed, the same boundary shall be considered for entire cycle, and any change in the said boundary such as capacity expansion, merger of two plants, division of operation etc. shall be duly intimated to the Bureau of Energy Efficiency. few additional sector specific information like process technology, process flow, raw material, product mix etc. shall also be collected.

18 New Sector in PAT cycle-2: Petroleum Refinery No of Dc-18 no, approximate energy reduction in Million BTU MBTU. Zonal Railways No of DC s 16 no, approximate energy reduction in Kiloliter of Diesel Kiloliter and Million Kwh of Electricity Million Kwh. Production & workshop of railway No of Dc s 6 Nos and approximate energy reduction in Toe Toe. State Electricity Distribution company No of DC s 44 Nos and approximate Electricity saving in Million Kwh Million Kwh

19 Normalization In order make every DC in a same platform apart from Technology, Raw material and Product normalization has been introduced. To give advantage for DC who are facing inevitable situation like natural disaster or policy change etc. Textile Spinning Composite Processing Fiber The designated consumers whose production is measured in meters of cloth, the average grams per square meter (GSM) as 125 and average width as 44 inches shall be assumed for weight calculations.

20 Normalization 1.Import and Export of Intermediary product 2. Value added product 3. Product Mix 4. Power Mix ( Imported & Exported from/ to the grid and self-generation from the captive power plant) 5. Yarn Products and Open End Products 6. SEC calculation of Spinning Sub-group 7. Finished Fabric for Composite Sub-group 8. SEC calculation of Composite Sub-group 9. Weaving Production 10. Knitting Production 11. CPP PLF Normalisation 12. Fuel Quality Normalisation 13. Normalisation for Start and Stop of the Plant 14. Other Normalisations Factors

21 Normalization 15. Total Normalised energy consumption 16. Total Equaivalent production 17. Normalised specific energy consumption 18. Gate to Gate energy consumption after REC compliance 19. Normalised gate to gate SEC after REC compliance 20. Baseline Normalisation 21. Normalised gate to gate SEC after REC compliance

22 Normalization Import and Export of Intermediary Products (Applicable in Composite, Fiber & Spinning Sub-Group) Import of intermediary product for production of final product is common practice in Textile industry along with export of intermediary product or job work also undertaken as per market demand. The change in the proportion of import or export during baseline year to target year may affect the SEC of the plant. In Textile sector, there are several processes running in the plant either in series or in parallel flow. The Intermediary import and Export is incorporated in following ways for different sub groups under Textile sector.

23 Normalization Value added product (Applicable in Spinning, Processing & Composite Sub-Group) Many Textile Industries due to demand of their customers or by their own, do the work of value addition in their product. Value addition sometimes also increases the quality of the products. These value additions are of different types. The impact of the value addition results in the increase in the SEC of the plant. It may also be noted that the value addition Normalization shall be applicable to the should not suffer / or gain advantage due to this changes.

24 Normalization Yarn Products and Open End Products In order to normalize the variation caused due to the change in the count, BEE has fixed 40 s Count as a standard count for giving production value of the spinning yarn production and 10 s Count as standard for giving the production of Open end (OE)Yarn. All the plants who are producing Single yarn at different count may convert their production into 40 s equivalent yarn production by using SITRA documents. Weaving Production In case of weaving, 60 PPI (Picks per Inch) has been finalized as standard value and all the DCs should convert their weaving production at different picks to production at 60 PP. Knitting Process In case of Knitting, all the production must be on weight basis not in the length basis.

25 Who We are? MCJ Energy Engineers Pvt Ltd serving in energy conservation field for past 23 years and also an Accredited Energy Auditor & Empaneled Energy Consultant with BEE and EESL (MOP). Involved in Conducting 20+Baseline audit associate with EESL. 13 Monitoring and verification audit under 1 st PAT cycle. 20 Mandatory energy audit under EC ACT 2001 for Diverse Industries Thermal Power Plant, Cement, Iron and Steel and Paper and Pulp Industries. A total of 120+ energy audit have been done.

26 What We Do? Energy Audit / process & system wise Audit PAT Consultancy Energy efficiency Project consultancy / ISO Audit consultancy Solar Project Consultancy

27 Contact us: Bhilai Office: ; to Visit :