Question : Energy Consuming Industries

(a) whether the Government has identified high energy-consuming industries in the country;

(b) if so, the details thereof, State and industry-wise;

(c) whether Government has put any norms in place to restrict the consumption of energy by these industries and if so, the details thereof;

(d) whether the said criteria is being followed by all the industries;

(e) if so, the details thereof and if not, the reasons therefor; and

(f) the steps taken by the Government to ensure that the mandatory energy consumption norms are followed by industries?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND
NEW & RENEWABLE ENERGY

( SHRI R. K. SINGH )

(a) to (f) : Under clauses (g) and (n) of Section 14 of the Energy Conservation Act, 2001 (52 of 2001), the Central Government is empowered to establish and prescribe energy consumption norms and standards for designated consumers (DCs) and to direct every DC to comply with prescribed energy consumption norms and standards. Accordingly, Government has notified 737 high energy consuming industries, refer to as DCs, in 11 sectors under the Perform, Achieve & Trade (PAT) Scheme. The specific energy consumption reduction targets given to the DCs under PAT are to be achieved during a cycle of 3 years.

PAT is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market based mechanism through certification of excess energy savings, which can be traded.

The State wise details of DCs covered under PAT are given in Annexure.

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Out of the 737 DCs notified so far, 478 DCs were covered under the PAT cycle-I (2012 to 2015), which has already been completed. Under PAT cycle-I, approximately 38.25 lakh Energy Saving Certificates (ESCerts) were issued to 306 DCs while 110 DCs have been entitled to purchase approximately 14.25 ESCerts. 3 DCs have earned zero ESCerts and out of the remaining 59 DCs, 21 DCs are defaulters, 30 DCs have been shut down or are below the threshold level of PAT, 7 DCs have gone for litigation and one DC in Iron and Steel sector did not submit Performance Assessment Document to the Bureau of Energy Efficiency (BEE).

BEE has developed a robust monitoring and verification mechanism to ensure mandatory reduction in energy consumption, which is being followed by the industries. The DCs covered under PAT scheme, have to carry out the monitoring and verification audit of their plants/processes as per the prescribed methodology and formats by a third party auditing agency, if the DCs do not meet the prescribed norms, they can make up the shortfall by purchase of ESCerts, failing which they are liable to be penalized under the relevant provisions of Energy Conservation Act, 2001.


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