Overview of PAT Scheme and inclusion

of DISCOMs into PAT cycle-II

 ENERGY and HDI

A minimum energy
How much energy is required ? consumption of 2.3
toe/year/cap is
needed
today to achieve HDI
of 0.9
Countries which
develop
later achieve transition
at lower energy
levels
Probable that
transition
may occur at 1.5 toe in
the future
Enhanced energy
efficiency is essential
 ENERGY Scenario

Energy demand in India will increase

Energy consumption
by a factor of 1.5 to 2.5 by 2030
in India was about
750 mln toe in
2011

Per capita supply

was about 0.6 toe
Per capita
consumption was
0.4 toe

Supply is expected to
grow to 1200 mln toe
(IEA) to 1700 million
toe (India Integrated
Energy Policy) by
PAT WHY?

Share of cumulative abatement

between 2010-2035
Efficiency 51%
Renewables 32%
Biofuels 1%
Nuclear 8%
CCS 8%

Source: WEO 2010

Background- Energy Conservation
As per the schedule of
Actthe Energy Conservation (EC)
Act, 2001, industries in 15 energy intensive sectors
are being identified as a Designated Consumer (DC).
In exercise of the powers conferred by the section
14(e) and (f) of the EC Act, the Central Government
has notified 9 industrial sectors out of 15 as DCs. This
notification was issued in March 2007.
Electricity Distribution Companies (DISCOMs) are
one of the identified energy intensive industries under
the Act and now it is proposed to notify them as a DC.
A DC need to-
Appoint or designate certified energy manager
Submit Annual Energy consumption return
Get energy audit conducted by an accredited energy auditor
Implement techno-economic viable recommendations
5
Comply with energy consumption norms and standards
 NATIONAL MISSION FOR
ENHANCED ENERGY EFFICIENCY (NMEEE)

The National Action Plan on Climate Change

was released by Prime Minister of India in
June 2008
The Action Plan Outlines 8 Missions
including National Mission for Enhanced
Energy Efficiency (NMEEE)
The basic objective of the NMEEE mission is
to ensure a sustainable growth by an
approximate mix of 4 Es, namely-Energy,
Efficiency, Equity and Environment and
unlock energy efficiency opportunities
through market based mechanisms.6
NMEEE Four Initiatives

Energy Intensive Stimulate Funding

Industries for ESCOs

Targets for Mandatory

Energy Saving

PAT EEFP

NMEEE
MTE FEEE
E D Fiscal
Energy Efficient Instrument for EE
Appliances
BLY Partial Risk Guarantee Fund
SEEP (PRGF)
DSM Venture Capital Fund (VCF)
Public Procurement
7
 Perform, Achieve & Trade (PAT)

The key goal of the PAT scheme under National Mission

for Energy Efficiency (NMEEE) is to mandate specific
energy efficiency improvements for the most energy
intensive industries.
The scheme builds on the large variation in energy
intensities of different units in almost every sector
The energy intensity reduction target mandated for each
unit is dependent on its current efficiency : the reduction
target is less for those who are more efficient, and is
higher for the currently less-efficient units.
The design of PAT is the result of extensive consultations
with different stakeholders, which have contributed to its
robustness and simplicity.

8
 PAT Scheme Cycle -I

Covers 478 designated consumers in 8 sectors, consuming about 165

million toe energy.
National Target = 6.686 million toe at the end of 1st PAT Cycle ( by 2014-15)
Reducing India's CO2 emissions by 24 million tons / year in 2014-15.

-Achievement > Target E-Scerts

-Achievement < Target Purchase E-Scerts / Penalty

The Energy Savings Certificates (ESCerts) so issued will be tradable on

two power exchanges (Indian Energy Exchange and Power Exchange
India).
The direct benefit for the participating industries in this period is
reductions in input costs related to energy of approximately US$ 1250
million.
Total EE Projects planned in 2012-15: 2057
Total anticipated investment : US$ 3095 million

9
 National Target of Energy Saving among all Sectors

Apportioned
Annual
Energy
No. of Energy Share
S.NO Reduction
Sector Identified Consumpti Consumpti
. For PAT
DCs on (Million on (%)
Cycle-1
toe)
(Million toe)
Power
1
(Thermal) 144 104.56 63.38% 3.211
2 Iron & Steel 67 25.32 15.35% 1.486
3 Cement 85 15.01 9.10% 0.815
4 Aluminium 10 7.71 4.67% 0.456
5 Fertilizer 29 8.20 4.97% 0.478
Paper &
6
Pulp 31 2.09 1.27% 0.119
7 Textile 90 1.20 0.73% 0.066
8 Chlor- Alkali 22 0.88 0.53% 0.054
Total 478 164.97 100.00% 6.686
Sectoral Share in Energy Saving Target (%)
(2012-15)

11
 Gate-to-gate concept

SEC is calculated on a Gate-to-Gate concept, the definition of

plant boundary plays an important role.
All forms of Energy Plant Boundary
Electricity
(KWH)
FO (Ltr)

Product (Kg)
NG (SCM) PROCESS

E Coal (KG)
P
Others (KG or
Ltr)

SEC = E / P

Baseline SEC
SEC

Reduction in SEC
Target SEC

Year 1 Year 2 Year 3

13
Concept of Target, Compliance, ESCerts & Penalty

Issued Escerts Penalty

Baseline
SEC

Saving
Target Achieved SEC
Compliance

Target
SEC

Purchase
Escerts

Scenario 1 Scenario 2
14
Institutional Structure

EmAEA
 Why DISCOMs ?

Energy intensive industry listed under the EC Act

High Energy consumption and Energy losses
Poor financial health
Significant potential for energy savings
High variation in T&D losses among various
DISCOMs
Average country level Energy losses are
significantly higher than world average

17
Background- Distribution Sector
Distribution sector is a crucial link in the value chain of the
Electricity sector.
Total No. of Distribution utilities are 83 and 20 state
distribution utilities have achieved corporatisation or have
unbundled.
Total purchase and sales of electricity in the year 2013-14
was 828,386 MU & 742,459 MU and T&D losses were
193,750 MU.
All India level, loss of electricity due to T&D has decreased
from 33.98% during 2001-02 to 23.04% during 2012-13.
Aggregate Technical & Commercial (AT&C) losses were
25.38% during 2012-13.
Physical losses of energy: losses above international norms
due to technical reasons or due to non-technical factors.
Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
18
 What will be the metrics ?

Transmission &
Distribution losses
monitoring at DISCOM
level or State level
AT & C losses monitored
at DISCOM level
Any other ?

19
Comparison of T&D losses of India with some
other countries

More than 10% difference

Source: Electric power transmission and distribution losses (% of output), The World Bank 20
T&D losses of state utilities (2008-
a. T & D losses of state utilities
2014) b. T & D losses by states

70 30

60 25

50
46.36 20
40
15 above 30%
30
T&D losses (%) No. of states 15%-30%
10 Below 15%
20 20.68

10 12.08
5

0
0

Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission

21
 States with high and low T&D
losses (%)
Top 5 states with high T&D losses in (%)
80%
61%
60%
46% 43%
38% 38% 39%
40% 31% 29% 27% 26%
20%

0%
Jammu & Kashmir Bihar Jharkhand Uttar Pradesh Madhya Pradesh

Bottom 5 states with low T&D losses in (%)

20% 16.3% 18.2%

16.4% 17.9%
16.5% 18.2%
17.9%
15.4%
15% 12.1%
11.1%
10%
5%
0%

2008-09 2013-14
Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
22
Benchmark targets & Monetary
Savings Minimum Maximum
System Element Power Losses (%)
Step-up transformer & EHV Transmission system 0.5% 1.0%
Transformation to intermediate voltage level 1.5% 3.0%
Transmission system and step-down to sub- 2.0% 4.5%
transmission voltage level
Distribution lines & service connections 3.0% 7.0%
Total 7.0% 15.5%

Source: A Review of Losses in Distribution Sector and Minimization Techniques, International Journal of Advanced Research in Electrical,
Electronics and Instrumentation Engineering

Savings potential by reduction of losses

Percentage of Present T&D losses 20.68%
T&D losses (in MkWh) 193,750 MkWh
Target for improvement in 5 years 50% (Bring losses down to
10% of total)
Energy Savings (MkWh) 93,690 MkWh
Cost Savings (in Rs. Crore) @ Rs. 5/unit 46,845 Rs. Crore

Source; Negawatt makes a Watt, Energy Efficiency Opportunities in India, PGCIL

23
 Threshold limit

The Threshold limit of DISCOMs based on the

AT&C loss is 1000 MU/ 86,000 TOE
The cumulative addition of AT&C loss above the
threshold limit covers 44 DISCOMs

24
 AT&C losses of DISCOMs
250000

Cumulative addition of AT&C loss (in MkWh) of DISCOMs for FY 2012-13

200000

Cumulative addition of AT& C loss (MkWh)

150000

100000

50000

No. of DISCOMs
25
 AT&C losses of DISCOMs
Utility Utility
Sl. No. AT&C losses (MkWh) Sl. No. AT&C losses (MkWh)
1 MSEDCL 21474 29 HESCOM 2139
2 TANGEDCO 13845 30 NESCO 1998
3 WBSEDCL 10173 31 KSEB 1945
4 Poorv VVN 8397 32 APDCL 1807
5 DVVN 7918 33 CHESCOM 1783
6 Pash VVN 7904 34 BSES Rajdhani 1703
7 PSPCL 7726 35 APNPDCL 1461
8 PGVCL 7470 36 SESCO 1446
9 J&K PDD 6774 37 SBPDCL 1411
10 UHBVNL 6525 38 DGVCL 1333
11 MVVN 6025 39 GESCOM 1291
12 APCPDCL 5440 40 APEPDCL 1258
13 BESCOM 5433 41 MGVCL 1206
14 DHBVNL 5206 42 KESCO 1181
15 CSPDCL 5156 43 BSES Yamuna 1136
16 MP Paschim Kshetra VVCL 5019 44 TPDDL 1036
17 JSEB 4957 45 HPSEB Ltd. 791
18 MP Purv Kshetra VVCL 4867 46 NBPDCL 764
19 JVVNL 4311 47 MESCOM 623
20 MP Madhya Kshetra VVCL 4308 48 Goa PD 477
21 BSEB 4130 49 Manipur PD 468
22 CESU 3228 50 MePDCL 424
23 JDVVNL 3155 51 Nagaland PD 377
24 AVVNL 2975 52 Arunachal PD 335
25 WESCO 2675 53 TSECL 317
26 UGVCL 2548 54 Puducherry PD 260
27 Ut PCL 2501 55 Sikkim PD 199
APSPDCL 26PD
Mizoram
28 2347 56 111
What will be the approach to set
the targets ?

27
Approach 1: Grouping of states based
25.00%
on losses 21.10%
19.70%
20.00% 19.20%
18.10% 17.90%
16.40% 16.40% 16.50% 17.10%
14.70% 14.90% 15.40% 15.20%
15.00% 13.50%
11.30% 12.10%
10.00%

5.00%

0.00%
2009-10 2013-14
40.00%
36.60%
35.00% 34.00%
32.00%
29.40%
30.00% 28.10%
26.40% 25.90%
24.50% 25.20% 24.70% 23.80%
25.00% 23.40% 23.90%
21.40% 21.60% 21.90% 22.00%
19.60% 19.80% 20.40%
20.00% 18.30% 18.30% 18.80%
18.00%

15.00%

10.00%

5.00%

0.00%
2009-10 2013-14

Source: Annual report 2013-14, The working of state power utilities and electricity departments,28
Planning commission
The Planning commission
Approach 1: Grouping of states based on
losses
70.00%

63.00%

60.00%

51.30%
50.00%
45.80% 46%

42%
40.00% 38.30%38%
37.00% 36.50%37%
35.30%
31.10% 31%
29%
30.00% 27% 28%

20.00%

10.00%

0.00%

2009-10 2013-14

Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
29
Approach 2: Individual targets based on past
performance
States 2009-10 2013-14 Difference in
reduction of T&D loss
(%) (from 2009-10 to
2013-14)
Manipur 45.80% 28% 18%
Jammu & Kashmir 63% 46% 17%
Chhattisgarh 32% 19.80% 12.20%
Madhya Pradesh 36.60% 25.90% 10.70%
Meghalaya 34% 23.90% 10.10%
Arunachal Pradesh 51.30% 41.90% 9%
Mizoram 37% 29.20% 8%
Rajasthan 29.40% 21.60% 7.80%
Maharashtra 25.20% 18.80% 6.40%
Sikkim 21.10% 14.90% 6.20%
Uttarkhand 24.50% 18.30% 6.20%
Haryana 26.40% 20.40% 6.00%
Assam 28.10% 23.40% 4.70%
Jharkhand 35.30% 31% 4%

Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
30
 Approach 2: Targets based on past
performance
States 2009-10 2013-14 Difference in reduction
of T&D loss (%) (from
2009-10 to 2013-14)

Uttar Pradesh 31.10% 27% 4%

Punjab 19.70% 16.40% 3.30%
Karnataka 21.40% 18.30% 3.10%
Tripura 24.70% 21.90% 2.80%
Andhra Pradesh 18.10% 15.40% 2.70%
Kerala 19.20% 16.50% 2.70%
Himachal Pradesh 14.70% 12.10% 2.60%
Pondicherry 13.50% 11.30% 2.20%
West Bengal 23.80% 22.00% 1.80%
Bihar 38.30% 38% 0%
Gujarat 17.10% 17.90% -0.80%
Nagaland 36.50% 37.40% -1%
Goa 15.20% 16.40% -1.20%
Tamil Nadu 18% 19.60% -1.60%

Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
31
 Next Steps
Notification of Electricity Distribution Companies

as a Designated Consumers

Finalization of metrics for DISCOMs

Measurement process for the finalized metric

Approach and methods for target setting

Identification of parameters for normalization

Source: Annual report 2013-14, The working of state power utilities and electricity departments, Planning commission
The Planning commission
32
 How ? - Plan of Activities
Sl Time
Activity Details
No. Frame
1 Notification of DCs Aug end
2 Consultation with stakeholders via workshop June Mid
Technical Committee formation/Normalization
3 Committee formation Aug end
Performa design/design of Form 1 with
stakeholders and normalization parameters
4 (Testing of form1 with units) Sep mid
Finalization of normalization parameters by Expert
5 Committee Dec end
6 Workshop after finalizing Form 1 (data) Sep end
7 Data collection/verification by 3rd party/agency Nov end
Draft target setting methodology & approach by
8 expert Nov mid
9 Finalizing point 8 by committee Nov End
31st March
10 Notification of SEC targets 16

33
 Visit us at
www.bee-india.nic.in

34
 Threshold limit for Discoms
The Threshold limit of DISCOMs is based on the
Energy Purchase (MUs)
The cumulative addition of the Energy purchase
is taken for all the 59 DISCOMs.
47 DISCOMs qualify as the Designated
consumer which falls above the threshold limit
of 3500 MU/ 3,01,000 TOE of energy purchase.

35
 Threshold limit for the DISCOMs
900000
Cumulative addition of Energy Purchase (MU's) for FY 2012-13
800000

700000

600000

500000

Energy Purchase (MU's)

400000

300000

200000

100000

No. of Distribution Comapanies

36
 Energy Energy
Purchase(MU's) Sl Purchase(MU's) for
for the FY 2012- No. Utility the FY 2012-13)
Sl No. Utility 13) 31 HESCOM 10,470
1 MSEDCL 99,068 32 MGVCL 10,232
2 TANGEDCO 44,109
33 JSEB 10,147
3 APCPDCL 35,328
34 BSES Yamuna 9,321
4 WBSEDCL 34,112
35 BSEB 8,018
5 PGVCL 29,387
36 HPSEB Ltd. 7,957
6 BESCOM 27,834
37 CESU 7,402
7 Pash VVN 23,674
8 CSPDCL 22,147 38 Reliance Power-Mumbai 7,334
9 JVVNL 21,878 39 GESCOM 7,064
10 UGVCL 20,765 40 Tata Power- Mumbai 6,919
11 DHBVNL 20,523 41 WESCO 6,391
12 UHBVNL 19,591 42 CHESCOM 6,118
13 PSPCL 19,086 43 APDCL 6,040
14 APSPDCL 18,418 44 NESCO 5,045
15 MP Paschim Kshetra VVCL 17,824 45 BEST-Mumbai 4,914
16 JDVVNL 17,625 46 MESCOM 4,280
17 DVVN 17,331 47 Goa PD 3,651
18 Poorv VVN 16,034 48 SBPDCL 3,326
19 AVVNL 15,840 49 Puducherry PD 3,197
20 MP Madhya Kshetra VVCL 15,110 50 KESCO 3,140
21 KSEB 14,917 51 SESCO 2,930
22 MP Purv Kshetra VVCL 14,782
52 NBPDCL 1,923
23 DGVCL 13,765
53 MePDCL 1,759
24 BSES Rajdhani 13,621
54 Sikkim PD 823
25 MVVN 13,147
55 Manipur PD 645
26 APEPDCL 12,709
27 APNPDCL 12,493 56 Arunachal PD 594
28 J&K PDD 11,752 57 Nagaland PD 507
29 Ut PCL 11,092 58 TSECL 37 430
30 TPDDL 11,045 59 Mizoram PD 407
National Action Plan on Climate Change