Perform Achieve & Trade

Delhi

Target Setting Methodology

22-29th Feb 2016

Cycle II The Next Step Forward

S Vikash Ranjan
Technical Expert
BEE

Baseline Fixation and Target Setting

Methodology

PAT Cycle I Target Setting

Process

A. Baseline Setting
1.
2.
3.

Reported Data for last five years

Average of three Years (2007-08 to 2009-10) made as
Baseline Year
Baseline Production Data in tonnes for toe saving
Calculation

B. Target Setting
1.
2.
3.

4.
5.

Top Down Approach (National Target)

Energy Saving Target in MTOE from total sectors
Energy Consumption
Sectoral Target on pro-rata basis of energy
consumption among sectors to achieve National Target
i.e., Sector specific Energy Saving Target distribution
through Proportional Energy Consumption
Sub-sectoral grouping in the sector
Targets to be statistically calculated based on relative

PAT Cycle I Baseline Fixation

Data Reporting for five years
Three years Data for baseline
consideration
Development of Form I for Data Entry
Data Entry by Designated Consumer
Data verification through Baseline
Energy Audit
Data Fixation through Baseline
Energy Report

PAT Cycles Baseline Fixation

Sr
No

1
2

Item

PAT Cycle I

PAT Cycle II

478 DCs

Existing DCs
478 Nos

New DCs in
Existing
Sector

New DCs in New

Sector

Data
Reporting

Five Years

One Year
15)

Three Years
(2012-15)

Three Years

(2005-10)

Baseline Year

Average of
three years

One year
(2014-15)

One year (2014-

One year (2014-15)

(2014-

(2012-15)

15)

(2007-10)

Pro-forma

Through Form
I and Proforma

Through
developed
Form I and Proforma

Through
developed Form
I and Pro-forma

Pro-forma
development under
final stage through
Form I and Proforma

Data
Verification

Baseline
Energy Audit

M&V

Baseline Data
Verification
through proforma

Baseline Data
Verification through
pro-forma

Data Fixation

Baseline
Energy Audit
In Assessment
year

M&V with
certain
changes in
Formulae of

Baseline data
Verification
Report

Baseline data
Verification Report

PAT Cycle Target Fixation

Plant

Plant
Plant
Plant
Plant
Plant

1
2
3
4
5

Baseline Baseline
Average
Average
Production
SEC
Tonne
toe/t
369939
1.274
358967
1.364
178530
1.400
79587
1.428
37635
1.780

Realtive
SEC

Total Energy
Consumption

%Target

Savings

1.000
1.071
1.099
1.121
1.397

toe
471302
489631
249942
113650
66990
1391516

x
1.07x
1.10x
1.21x
1.40x

4713.023
5242.203
2746.615
1273.882
935.9712
14911.7

Total
Saving
Target
Saving
x

14912.7
x

toe

104000

toe

6.97

To be
Energy
Saving

4713.02x
5242.20x
2746.61x
1273.88x
935.97x
14912.7x

PAT Cycle Target Fixation

Baseline
Target %
To be SEC
Average SEC

toe/t

toe/t
Plant 1
1.274
6.97
1.185
Plant 2
1.364
7.467
1.262
Plant 3
1.400
7.664
1.293
Plant 4
1.428
7.817
1.316
Plant 5
1.780
9.744
1.607
Total energy consumption at the end of three
years
Plant

To be toe
toe
438434
453072
230787
104766
60463
1287523

Total energy consumption in baseline year

1391516

Energy saving during the period

103993

No. of sub-group depends on

bandwidth of baseline SEC

Type of DCs for PAT Cycle II

Existing DCs in existing 8 sectors
New DCs in existing 8 sectors
New DCs in new Sectors

Baseline Fixation-Existing DCs

Existing DCs
As per Rule 14 of Energy Conservation Rules, 2012
SEC achieved -Un-normalised in the target year 201415
The existing Product-mix normalisation to be made for
the year 2014-15 (The energy factor/Ratio/Clinker
factor for target to changed as per target year factor)
Intermediary product effect is same as per Pro-forma
Power Export as per Weighted Heat Rate to be made
for the year 2014-15
As Fired GCV will be used for determining the thermal
energy consumption for SEC calculation
Other normalisation effect to be reviewed for impact in
the SEC in the target year

Existing DCs
Rule 14: The energy consumption norms
and standards achieved by the designated
consumer on the completion of the target
year, as mentioned in the compliance
report in Form-'D' shall be the baseline for
establishment of new plant specific energy
consumption norms and standards for
designated consumers for the next cycle.

PAT Cycle I Un-normalised SEC of Assessment year will be considered as Baseline year SEC for
the existing DCs in PAT Cycle II

Baseline Fixation-New DCs in existing sector

Consideration of years data
(A) During the first cycle of designated consumer
having more than three years life,

(D) Applications on New

DCs

data for the previous three years, shall be considered.

(B) During the first cycle of designated consumer

having more than three years life and less than
three years data has been reported,

the same shall be considered

(C ) During the first cycle of designated consumer

having less than three years life and less than
three years data been reported,
the available years data shall be considered.

(D1) During the first cycle of

designated consumer, the data shall
be considered for those years where
the capacity utilisation is greater than
seventy percent (70%)
(D2) if only one year data is reported,
the same shall be considered provided
the capacity utilization is greater than
seventy percent (70%)
(D3) and if capacity utilization is less
than 70 % for all reported years,
average of all these years shall be
considered

Baseline Fixation-New DCs in existing and new sector

Baseline SEC Calculation- Based on Last financial year data
[A] Plants
Life > 3
years

OR

AND

[B] Plants Life

>3 years
and Data
reported<3
years but >1
year

OR

[C] Plants
Life <3 years
and Data
reported<3
years but >1
year

AND

AND

Baseline SEC:
SEC of Last
Financial year

Baseline Specific Energy Consumption

will be calculated based on the last
financial year data, if any conditions
mentioned in (A) or (B) or (C) and
condition mentioned in (D) are satisfied
for the last financial year.

In case, conditions are not satisfied for

the last financial year, average of all
those year where above mentioned
conditions are satisfied shall be
considered for calculating baseline
specific energy consumption

AND

AND

[D1] Capacity
Utilisation>70%

[C.1] Plants
Life <3 years
OR
and Data
reported=1
year

[E] Baseline SEC Fixation

Condition

[D2] Capacity
Utilisation<70%

AND

Baseline SEC:
SEC calculated
average of
years

AND

[D3] Capacity
Utilisation>70%
AND

Baseline SEC:
SEC calculated
one year

Last financial year of three year reported data will be considered as the Baseline year for the new
DCs in PAT Cycle II (Majority of the DCs)

Capacity Utilisation
The Capacity Utilisation referred to in this rule is the ratio of actual production(s) per unit of
time, to maximum potential installed or established production capacity per unit time of a
unit/major process of plant/establishment for the operating period(s).
(g) The Capacity Utilisation and Plant Loading Factor shall be calculated as per following
equations:
Capacity Utilisation:
Capacity Utilisation % (CU%) =
(C1 x ICU1+C2 x ICU2+.Cn x ICUn)*100/(C1+C2+.Cn)
Where: ICU1n = (P 1..n x 8760)/(Hr1..n x C 1..n)
C 1..n = Installed or Established Production capacity in tonne per annum for 1..nth product
P 1n = Actual Production in tonne per anuum for 1..nth product
Hr1..n = Nos of operating hours in Hours per annum for 1..nth product
ICU 1..n = Intermediate Capacity utilization of 1..nth product for the operating period

Plant Loading Factor

Plant Loading Factor:
The plant loading factor for a unit referred to in the said rule is defined as the ratio of total generation
(MU) to the maximum available generating potential (MU) for the period under review.
Plant Loading Factor (%) =(G1xULF1+G2xULF2+ GnxULFn.)/(G1+G2+ Gn.)
Where:
G1,2..n
= Generation (MU) for Unit #1,2..n
ULF 1,2..n = Unit Loading Factor for Unit #1,2..n

For Individual Unit 1,2,n

Unit Loading Factor, (ULF1,2..n) (%) = (Average Operating Load in MW)/(C ) X100
Average Operating Load in MW = (Energy generated during the period in MU X 1000)/((H-h) )
C = Capacity of individual Unit in MW
H = Total No. of operating hours in a year (8760 hrs)
h = Total non-operating hours (hrs)
Total non-operating hours = Forced Outage (FO), Planned Maintenance (PM), Fuel Unavailability, etc.

Thus, the Plant Loading Factor is the percentage ratio of Plant Load Factor (PLF) and Plant
Availability Factor (PAF) on bar.

Target Setting Methodology

(I) Average rate of reduction
in specific energy consumption across the
designated consumers sectors

(II ) Policy objectives

of keeping the target of reducing the specific
energy consumption a few percentage points
above the average rate of reduction

Target Setting
Proposed to be based
Average rate of
reduction in specific
energy consumption
(SEC) across all the
designated consumers
sectors + Policy
objectives of keeping
the target of reducing
the specific energy
consumption a few
percentage points
above the average rate
of reduction

Target Setting
(II ) Policy objectives
INDC
Intended Nationally determined Contribution (INDC): reduction of
emission intensity by 33-35% of GDP by 2030 from the base year of 2005

GOALS
Reduction in energy intensity between 2016 and 2019 by 7 %

(II) Policy Objective

Target Setting
% rate of reduction per year as per
policy objective (Energy
Conservation)= 2.3% per year
Net ESCerts available in PAT Cycle II
will be over 2 mtoe
Total Saving Required: 19.6 + 2 =
21.6 mtoe

Global best DC
Sector
Differentiation between
Global best and other
sector
The target for the global
best sector(s)
The target for other
sector

Target Setting
Global best DCs sector
The energy consumption

norms and standards

Global best designated
consumers sector < other
non-Global best DCs
sector(s)
The rationale for determining
the global best designated
consumer sector(s)
OEM design document with
factors of SEC improvements
project
Published International Journals
and documents on Industrial
Energy Efficiency of respective
sector
Certification of Global best
designated consumer sector

Non-global best DCs sector

The weighted average percentage
energy consumption norms and
standard for the non-global best
designated consumer sector (s)

=(Overall percentage of
norms and standards for
all designated consumer
sectors of respective cycle
x total energy
consumption of all nonglobal best designated
consumer sectors(s) (toe))
+ [1/3 x(ESCerts IssuedESCerts to be purchased,
for 3 previous cycles
irrespective of sector)]

Target Setting
Zero Energy Saving Target for first 10% DCs for greater
than 25% difference
(For the first cycle of a DC and except TPP sector)
All Sub-sector of sector (Sub-Sector having > 10 Nos of
DCs)
if (Lowest specific energy consumption-weighted average
specific energy consumption of designated consumers ) > 25%,
then there will be Zero Energy Saving Target for first 10%
DCs
All Sub-sector or sub-group of a sector (Sub-Sector having < 10 Nos of
DCs) then Energy Saving Target for the most efficient DC shall be as per
following equation
% Energy consumption norms and standards in current Cycle of DCs= A
Achieved % Energy consumption norms and standards in the previous cycle DCs:
B
% Energy consumption norms and standards in previous Cycle of DCs: C
If (B-C) 0 then % Energy consumption norms and standards for a designated
consumers shall be =A-(B-C)
If (B-C) < 0 then % Energy consumption norms and standard for a designated
consumers shall be as per Rule 6 excluding (vi)
If (B-C) > A, Then % Energy consumption norms and standard for a designated

Target Setting
Zero Energy Saving Target for first 10% DCs for greater
than 25% difference
(For the first cycle of a DC and except TPP sector)

>25%
Sr
No

DC

1
2
3
4
5
6
7
8
9
10
11

Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant

1
2
3
4
5
6
7
8
9
10
11

Productio
n

SEC BY
PAT C1
[C]

tonne
120000
150000
130000
120000
160000
111000
120000
200000
160000
85000
150000

toe/t
0.485
0.459
0.451
0.453
0.496
0.48
0.522
0.464
0.47
0.491
0.624

Achieved
Target SEC
SEC AY Differenc Achieved Target SEC
O/A PAT C2
PAT C1
e
SEC
O/A PAT C1
(A)
[B]
toe/t
%
%
%
toe/t
0.4
17.53
7.5
0.4
0.42
8.50
7.5
0.42
0.425
5.76
7.5
0.393
0.43
5.08
7.5
0.398
0.43
13.31
7.5
0.398
0.45
6.25
7.5
0.416
0.45
13.79
7.5
0.416
0.47
-1.29
7.5
0.435
0.49
35.63
-4.26
7.5
0.453
0.52
-5.91
7.5
0.481
0.6
3.85
7.5
0.555

Target
PAT C2
%
0%
0%
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5

Target Setting
Less than 10 DC in a sub-sector

Sr
DC
No

Achiev
%
Achiev Target
Target Target
Produc SEC BY ed Target Differe ed SEC SEC O/A
SEC O/A
PAT
tion PAT C1 SEC AY PAT C1 nce
(%)
PAT C1
PAT C2
C2
PAT C1 (C]
(B)
(A)

toe/t

toe/t

1 Plant 1 130000 0.451

0.429

2 Plant 2 120000 0.495

0.43

4.5

3 Plant 3 160000 0.496

0.43

4 Plant 4 150000 0.459

0.44

5 Plant 5 120000 0.485

0.45

6 Plant 6 111000

0.45

7 Plant 7 120000 0.522

0.45

8 Plant 8 200000 0.464

0.47

0.48

Remarks

toe/t

toe/t

4.88

7.5

0.401

6.622

7.5

0.435

-1.131

13.31

7.5

0.398

7.5

4.14
5.00

7.5

0.44

7.5

7.22

7.5

0.45

7.5

Irresp
ective
of %
dif

6.25

7.5

0.416

7.5

13.79

7.5

0.416

7.5

-1.29

7.5

0.435

7.5

-4.26

7.5

0.453

7.5

13.13

9 Plant 9 160000 0.47

0.49
127100

0
608360 572520

0.479

0.450

Target Setting
Zero Energy Saving Target for first 10% DCs for less than
25% difference
(For the first cycle of a DC and except TPP sector)
All Sub-sector of sector

if (Lowest specific energy consumption-weighted average

specific energy consumption of designated consumers )<25%,
then Target for first 10% DCs as per following equation
% Energy consumption norms and standards in current Cycle of DCs= A
Achieved % Energy consumption norms and standards in the previous cycle DCs:
B
% Energy consumption norms and standards in previous Cycle of DCs: C
If (B-C) 0 then % Energy consumption norms and standards for a designated
consumers shall be =A-(B-C)
If (B-C) < 0 then % Energy consumption norms and standard for a designated
consumers shall be as per Rule 6 excluding (vi)
If (B-C) > A, Then % Energy consumption norms and standard for a designated
consumers shall be zero

Target Setting
Zero Energy Saving Target for first 10% DCs for less than
25% difference
(For the first cycle of a DC and except TPP sector)
Sr
DC
No

3 Plant 3
4
5
2
1
6
7
8
9
10
11
12
13
14
15
16
17

Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant
Plant

4
5
2
1
6
7
8
9
10
11
12
13
14
15
16
17

Achiev
%
Achiev Target
Target
Produc SEC BY ed SEC
Differe
Target
Target
ed SEC SEC O/A SEC O/A
Remarks
tion PAT C1 AY PAT
nce
PAT C2
PAT C1
(%)
PAT C1
PAT C2
C1

toe/t toe/t
%
%
%
toe/t
toe/t
%

4.88
130000 0.451 0.429
4
7.5
0.401
6.622
Target will
13.13
120000 0.495
0.43
4.5
7.5
0.435
-1.131 become 0%
13.31
160000 0.496
0.43
6
7.5
0.398
7.5
4.14
150000 0.459
0.44
4
7.5
0.44
7.5
7.22
120000 0.485
0.45
4
7.5
0.45
7.5
6.25
111000 0.48
0.45
4
7.5
0.416
7.5
<25
13.79
120000 0.522
0.45
8
7.5
0.416
7.5
%
-1.29
200000 0.464
0.47
4
7.5
0.435
7.5
23.85
-4.26
160000 0.47
0.49
4
7.5
0.453
7.5
8.35
85000 0.491
0.45
4.5
7.5
0.416
7.5
11.86
150000 0.624
0.55
4.5
7.5
0.509
7.5
7.14
85000
0.7
0.65
5
7.5
0.601
7.5
-6.09
80000
0.69
0.732
5
7.5
0.677
7.5
15.87
111000 0.832
0.7
5
7.5
0.648
7.5
18.85
80000 0.801
0.65
4
7.5
0.601
7.5
3.99
110000 0.802
0.77
3
7.5
0.712
7.5
16.76
120000 0.901
0.75
7
7.5
0.694
7.5
209200 121116 111148
0
7
0

0.579 0.531

Thank You