Industry to Pay Millions for Energy Efficiency

THE INDIAN Power Ministry revealed today that eight industrial sectors would invest Rs 30,000 crore ($6.6 million) to save 10 million tonnes of oil equivalent in the next three years.

The Power Ministry has notified the industrial sectors affected; thermal power plants, fertilisers, cement, pulp and paper, textiles, chlor-alkali, iron and steel and aluminium; who will invest Rs 30,000 towards energy efficiency over the next three years.

"Under the government's PAT (Perform, Acheive and Trade) scheme which starts from April 1, 2011, these eight industrial sectors will collectively pump in Rs 30,000 crore for energy efficiency programme in the next three years," Power Secretary P Uma Shankar told reporters here.

"Companies can save about Rs 20,000-30,000 crore every year after three years," Shankar added.

It is mandatory for these eight industrial sectors to be a part of this scheme, otherwise they may have to pay Rs 10 lakh for non-compliance.

The scheme is an important mechanism under the Indian National Mission on Enhanced Energy Efficiency, which is one of eight missions under the country’s National Action Plan on Climate Change.

The scheme also provides for issuing tradeable energy saving certificates to those industries that consume less than the permitted energy, allowing them to sell their earned credits to the industries that consume more than the permitted energy.

One certificate will be valued at one tonne oil equivalent and will be traded on the energy exchange.

"Power exchange would create a platform and the prices would be market driven... trading would take about six months to one year from the date of start (April 1,2011)," Ajay Mathur , Director General Bureau of Energy Efficiency (BEE), said.

Picture by Jason

Thursday 27th January 2011

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