Global mechanisms to create Energy Efficient and low-carbon infrastructures: An indian perspective

The Bureau of Energy Efficiency (BEE) in India has proposed the Perform, Achieve and Trade mechanism to improve industrial energy efficiency. Several European countries and Australia have other energy efficiency schemes. Major developing economies like India and China are also engaged in reducing energy consumption, lowering energy intensity in a manner that would be technically feasible and economically viable. This paper compares some energy efficiency schemes which are being implemented or already implemented in countries.We will draw lessons from these schemes in the design of Perform, Achieve and Trade (PAT) mechanism for India. This paper also discusses design and operational features of white certificate schemes mainly in terms of obliged parties, size of target, eligible customers etc. Most of the schemes discussed are based on quantified energy savings obligations imposed on energy distributors or suppliers, coupled with a certification of the energy savings (via white certificates), and a possibility to trade certificates. These market based instruments help countries to encourage investments in energy efficiency improvement and achieve national energy saving targets. The paper looks at several issues that may arise during/after implementation of PAT mechanism.