Corporate
Friday, 20 October 2017 16:00

Trading in energy efficiency Certificates off to healthy start

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20/10/2017

Trading in Energy Efficiency Certificates (ESCerts) has got off to a healthy start registering a volume of one lakh certificates in a month since the trading began, indicating the industry's commitment to using energy more efficiently as part of the government's commitment to reduce the economy's carbon footprint.

The government launched ESCert trading on the Indian Energy Exchange (IEX) and the Power Exchange India Ltd (PXIL) on September 26. The certificates are traded only on Tuesdays through closed double-sided uniform price auction.

According to the Bureau of Energy Efficiency (BEE), a body administered by the power ministry, industry generated over Rs 11 crore of additional revenue during the first month of trading. Some 117,425 ESCerts have been exchanged at an average bid price of Rs 990 each in the auctions over the past month.

The certificates are issued by the power ministry to industries that surpass the energy saving targets set by BEE under 'PAT (perform, achieve and trade)' scheme. The trading of ESCerts enables eligible, designated industries that do not achieve their energy efficiency targets to comply with energy consumption norms and standards by subscribing to the certificates, while enabling overachieving industries that surpass their energy saving targets to monetise efficiency.

The units that are unable to meet targets either through their own actions or through purchase of EScerts are liable to financial penalty. Based on BEE's recommendations and following a verification of energy savings achieved, the power ministry has issued over 38 lakh ESCerts to 306 designated customers via the PATNet portal till date. Along with this, 110 designated customers have been entitled to purchase 14.25 lakh ESCerts.

Additional Info

  • News Section: Corporate
  • Month: October
  • Year: 2017
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