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SEMINAR ON IMPLEMENTATION OF PAT & ENERGY MANAGEMENT IN CHLOR-ALKALI SECTOR

SEMINAR ON IMPLEMENTATION OF PAT & ENERGY MANAGEMENT IN CHLOR-ALKALI SECTOR. A BRIEF INTRODUCTION by B.S. Gilra , Chairman Tech. Committee & Immediate Past President AMAI 20th July, 2012, WelcomHotel , Vadodara. PAT – Perform, Achieve & Trade. A Regulation of Government of India.

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SEMINAR ON IMPLEMENTATION OF PAT & ENERGY MANAGEMENT IN CHLOR-ALKALI SECTOR

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  1. SEMINAR ON IMPLEMENTATION OF PAT & ENERGY MANAGEMENT IN CHLOR-ALKALI SECTOR A BRIEF INTRODUCTION by B.S. Gilra, Chairman Tech. Committee & Immediate Past President AMAI 20th July, 2012, WelcomHotel, Vadodara

  2. PAT – Perform, Achieve & Trade • A Regulation of Government of India. • A market based mechanism to enhance the cost effectiveness in improving the energy efficiency in energy intensive industries thro’ certification of energy saving, which can be traded. • Industry need to look at PAT as an opportunity to install mechanisms for successful performance and to improve profitability. • Associated with market mechanism, brings revenue opportunity and brings in competitive spirit. • Incentives for cleaner and energy efficient measures. • Benefit of Compliance – One Tradable ESC per MTOE issued, if unit excels the target. • Financial liability for shortfall (Rs. 10 lakhs + Cost of non-compliance @ Rs. 10154/- per MTOE). • For misrepresentation – cost of unfair gain + 25% penalty.

  3. MINIMUM THRESHOLD LIMIT OF ENERGY CONSUMPTION FOR CHLOR ALKALI SECTOR TO BE NOTIFIED AS DESIGNATED CONSUMER, FIXED AT Based on the above, 22 DCs notified in Chlor-Alkali Sector for First PAT Cycle (2012-13 to 2014-15). 12,000 MTOE

  4. 22 DESIGNATED CONSUMERS

  5. PAT Targets as notified by GOI, Ministry of Power

  6. PAT Targets as notified by GOI, Ministry of Power (contd.)

  7. EXPECTED ENERGY SAVINGS FROM CHLOR ALKALI SECTOR • National energy saving target under PAT = 6.6 mMTOE • Energy saving target for chlor alkali = 0.054 mMTOE • Chlor Alkali Target is only 0.81% of total energy saving target under PAT Scheme.

  8. ELEMENTS OF PAT • MULTI- CYCLE PROCESS –First cycle till 2014-15 • TARGET SETTING - based on gate to gate specific energy consumption (SEC) – GtG SEC - each designated consumer has to reduce SEC in target year (2014-15) as compared to baseline year (2009-10) - percentage reduction is based on efficiency in baseline year; efficient units in a sector have a lower percentage reduction target as compared to less efficient units • MONITORING AND VERIFICATION - designated consumers monitor and record their energy purchases and product sales - data to be provided to SDAs and BEE - data will be verified by accredited energy auditor for verification & check verification - check verification on sample basis GtG SEC = All forms of energy converted to Metric Tons of Oil Equivalent (MTOE) Equivalent Caustic Soda Production (T)

  9. ELEMENTS OF PAT • INCENTIVIZATION AND TRADING OF EXCESS SAVINGS - Energy Saving Certificates issued for savings in excess of target; early issuance (after one year) is possible (upto 80%) - Certificates can be traded with other designated consumers who can utilize them to show compliance - Certificates can be banked for one more cycle - Trading platform on the two power exchanges (IEX & PXIL) • PENALTY FOR NON-COMPLIANCE - Quantum of non compliance is deficiency in meeting target at the end of the cycle - Penalty is the energy cost of quantum of non compliance - Quantum of non compliance is provided in verification report and penalty is adjudicated by SERC. - Converted energy cost is Rs 10,154 per toe (2011-12) shall be periodically updated

  10. IMPORTANT TIME LINES FOR SUBMISSION OF PAT RELATED DOCUMENTS

  11. SIGNIFICANCE OF PAT FOR INDUSTRY • Industry moves towards clean and advanced energy efficient technologies, conserving energy besides Improved profitability & monetary benefit. If unit excels the targets, Escerts are issued which can be traded. • Scheme Pays back ; Industry can justify investment / effort since some pay back involved. • Revenue Loss as there are heavy penalties in case of non-compliance and misrepresentation. • It is very important to understand the scheme fully & grab this opportunity. • Involvement & commitment of top management is essential to plan capital outlay to deploy energy saving measures, training and to achieve targets

  12. WHY THIS SEMINAR • AMAI have planned this Seminar for industry & especially the energy managers of DCs who are going to handle day to day work of PAT documentation & reporting, to raise their issues, if any, understand the subject better thro’ deliberations with eminent speakers invited today. • Various energy experts from BEE, Consultancies, Energy Auditors & Industry have been invited who will share their views during the day.

  13. THANKS bs.gilra@ckbirlagroup.com

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