The Indian industry traded over 1 lakh Energy Saving Certificates (ESCerts) worth Rs 11.62 crore in the first month since their introduction on 26 September, according to an official statement by the power ministry’s arm Bureau of Energy Efficiency (BEE).
Power and renewable energy minister R K Singh had launched the trading of ESCerts on Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). “The industry has been an able and willing partner in India’s efforts to reduce its emissions by 33-35 per cent as per the Nationally Determined Contributions and the success of the ESCert trading program is evidence of the harmonious government-private partnership,” BEE Director General Abhay Bakre said.
ESCerts trading enables eligible and designated industries that do not achieve their energy efficiency targets to comply with energy consumption norms and standards, while enabling overachieving designated industries that surpass their energy savings targets to monetise the energy savings achieved through their operations. Industrial units which are unable to meet the targets either through their own actions or through purchase of EScerts are liable to financial penalty under the act.
Traded only on Tuesdays through closed double-sided uniform price auction, 1,17,425 certificates were exchanged at an average bid price of Rs 990 in the auctions over the past month, according to BEE. “Based on BEE’s recommendations and following a verification of energy savings achieved, ministry of power has issued over 38 lakh Energy Saving Certificates (ESCerts) to 306 designated customers via the PATNet portal till date,” the statement said.
Along with this, 110 designated customers have been entitled to purchase 14.25 lakh ESCerts. The designated industries need to register as an eligible entity for trading on the PATNet portal. BEE administers the trading of these certificates and Power System Operation Corporation limited (POSOCO) performs the duties of the registry. Read more