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Presentation on theme: " Trading of ESCerts on Power Exchanges."— Presentation transcript:

1 Trading of ESCerts on Power Exchanges

2 NAPCC National Solar Mission National Mission for Enhanced Energy Efficiency (NMEEE) Perform, Achieve, Trade (PAT) Market Transformation for energy efficiency Energy Efficiency Financing Platform Framework for Energy Efficient Economic Development National Mission on Sustainable Habitat National Water Mission National mission for sustaining the Himalayan Ecosystem National Mission for a Green India National Mission for Sustainable Growth National Mission for Strategic Knowledge for climate Genesis of PATscheme-NAPCC NationalAction Plan on Climate Change

3 BEE MoP State Designated Agency Energy Auditor Power Exchange Designated Consumer Stakeholders under the PAT scheme

4 PAT Sector wise Energy Consumption and Targets under Cycle – 1 ( 2012 – 2015) Specific Energy Consumption (SEC) = net energy input into the designated consumers boundary / Total qty of output exported from the designated consumers’ boundary Sr #Sector# of DCs in Cycle 1Targets under Cycle – 1 (million TOE) 1Aluminium100.456 2Cement850.816 3Chlor-Alkali220.054 4Fertilizer290.478 5Iron & Steel671.486 6Pulp & Paper310.119 7Textile900.066 8Thermal Power Plants1443.211 Total4786.686 Source: BEE

5 Baseline Specific energy consumption (SEC) Target SEC Set Targets Under achievement Over achievement Monitoring and Verification Market based trading on Power exchanges Trading of Escerts Reward over achiever Penalize under performer MARKET BASED MECHANISM PAT is a market based mechanism designed to enhance energy efficiency

6 Power Exchanges will provide the trading platform for ESCerts Saving Target Baseline SEC Target SEC Achieved SEC Scenario 1 Scenario 2 Compliance Issued Escerts Purchase Escerts Penalty Energy Saving Certificates (ESCerts) issued by Ministry of Power/BEE 1 ESCert = 1 ton of oil equivalent of (toe) energy saving achieved by the designated consumer, over and above the target savings.

7 ESCert Snapshot Mandatory Compliance Designated Consumers Target Entities Industries not achieving target Buyers Industries achieving beyond target Sellers 6.6 million toe for 1 st Cycle Target Cap and Trade Mechanism 3 yrs Phase Cycle

8 ESCert Snapshot 1 ESCert = 1 MTOE (Metric Tonne of Oil Equivalent ESCerts Power Exchange only Trading Platform To be finalized (Once a month) Trading Frequency Double Sided Closed Auction Price Determination As per Energy Conservation Act, 2001 (Link with market value of oil equivalent) Penalty Allowed for two consecutive cycles Banking 3 Years for DCs Compliance Period

9 ESCerts: Exchange Trading Mechanism ESCertswill be held in electronic form Registeredwith a depository SystemRegistry would maintain record of all transactions

10 ESCerts: Exchange Trading Mechanism IEX would be a one stop shop for buying and selling: 1. ESCerts 2. Renewable Energy Certificates 3. Electricity DCs would have choice of becoming a member on the exchange or client of the member of the exchange Financial settlement will be through electronic bank interfaces

11 ESCert Exchange Trading Mechanism Seller Buyer Participants IEX Bank A/c Deposit fund for trading Confirm Margin Requirement Submits Bid for trading Bids are accumulated MCV & MCP calculated post bidding session Invoice/ Credit Note Financial Settlement through Bank A/c ESCerts

12 Why Electricity Exchanges for ESCerts Transparent & efficient platform Electronically accessiblemarketplace Well established spot market for electricity & RECs

13 Thank You !!! Promoters: Joint Equity Partners : Technology :

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