At last we are seeing Government fixing up targets under PAT scheme for 478 most energy-intensive industrial units in India. Indian Government announced on the last day of financial year 2011-12 that it has set energy efficiency targets for the core sector — power, steel, cement etc. — to be achieved by 2014-15, failing which the companies shall be penalised.

Those units which are able to achieve greater energy efficiency improvements within the specified targets can capture the excess savings through the issuance of energy saving certificates.

Units which will unable to meet their targets, either through their own action or through purchase of certificates will be penalized at Rs. 10,154 for every shortfall of 1 ton of oil equivalent in the achievement of the target. The targets reflect the amount of energy that an organisation must save in producing its product rather than just a overall reduction in its energy consumption.

This action of Government was long overdue and with this the energy efficiency professionals, the CEA and CEM, can hope for some positives coming out through the recent notifications. Energy Conservation Act 2001 which was virtually on the back burner for last one decade, may see some revival.

Though, the targets are tough but the time limits are certainly not so stiff. We need some concerted action from all concerned so that the targets are achieved in all the sectors.

Download PAT_Notification_English here.

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Energy Efficiency Outlook