trading of escerts on power exchanges - indian … · registered with a depository system registry...
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www.iexindia.com
Trading of ESCerts on Power Exchanges
www.iexindia.com
NAPCC
National Solar Mission
National Mission for Enhanced Energy Efficiency (NMEEE)
Perform, Achieve, Trade (PAT)
Market Transformation for energy efficiency
Energy Efficiency Financing Platform
Framework for Energy Efficient Economic Development
National Mission on Sustainable Habitat
National Water Mission
National mission for sustaining the Himalayan Ecosystem
National Mission for a Green India
National Mission for Sustainable Growth
National Mission for Strategic Knowledge for climate
Genesis of PAT scheme - NAPCCNational Action Plan on Climate Change
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BEE
MoP
State Designated
Agency
Energy Auditor
Power Exchange
Designated Consumer
Stakeholders under the PAT scheme
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PAT Sector wise Energy Consumption and Targets under Cycle – 1 ( 2012 – 2015)
Specific Energy Consumption (SEC) = net energy input into
the designated consumers boundary / Total qty of output
exported from the designated consumers’ boundary
Sr # Sector # of DCs in Cycle 1 Targets under Cycle – 1
(million TOE)
1 Aluminium 10 0.456
2 Cement 85 0.816
3 Chlor-Alkali 22 0.054
4 Fertilizer 29 0.478
5 Iron & Steel 67 1.486
6 Pulp & Paper 31 0.119
7 Textile 90 0.066
8 Thermal Power Plants 144 3.211
Total 478 6.686
Source: BEE
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• Baseline Specific energy consumption (SEC)
• Target SEC
Set Targets
• Under achievement
• Over achievement
Monitoring and Verification • Market based
trading on Power exchanges
Trading of Escerts
Reward over achiever
Penalize under performer
MARKET BASED MECHANISM
PAT is a market based mechanism designed to enhance energy efficiency
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Power Exchanges will provide the trading platform for ESCerts
Saving Target
Baseline SEC
Target SEC
Achieved SEC
Scenario 1
Scenario 2
Compliance
Issued Escerts
Purchase Escerts
Penalty
Energy Saving Certificates (ESCerts) issued by Ministry of Power/BEE
1 ESCert = 1 ton of oil equivalent of (toe) energy saving achieved by
the designated consumer, over and above the target savings.
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ESCert Snapshot
• MandatoryCompliance
• Designated ConsumersTarget Entities
• Industries not achieving targetBuyers
• Industries achieving beyond targetSellers
• 6.6 million toe for 1st CycleTarget
• Cap and TradeMechanism
• 3 yrsPhase Cycle
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ESCert Snapshot
• 1 ESCert = 1 MTOE (Metric Tonne of Oil Equivalent
ESCerts
• Power Exchange only*Trading Platform
• To be finalized (Once a month)*Trading Frequency
• Double Sided Closed Auction*Price Determination
• As per Energy Conservation Act, 2001 (Link with market value of oil equivalent)
Penalty
• Allowed for two consecutive cycles*Banking
• 3 Years for DCsCompliance Period
* proposed
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ESCerts: Proposed Exchange Trading Mechanism
ESCerts will be held in electronic form
Registered with a depository
System Registry would maintain record of all transactions
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ESCerts: Proposed Exchange Trading Mechanism
IEX would be a one stop shop for buying and selling:
1. ESCerts
2. Renewable Energy Certificates
3. Electricity
DCs would have choice of becoming a member on the
exchange or client of the member of the exchange
Financial settlement will be through electronic bank interfaces
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ESCert Proposed Exchange Trading Mechanism
Seller Buyer
IEX
Bank A/c
Deposit fund for trading
Confirm Margin Requirement
Sub
mits B
id fo
r tradin
g
Bids are accumulated
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ESCert Proposed Exchange Trading Mechanism
Seller Buyer
Participants
IEX
Bank A/c
MCV & MCP calculated post bidding session
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ESCert Proposed Exchange Trading Mechanism
Seller Buyer
Participants
IEX
Bank A/c
Invoice/ Credit Note
FinancialSettlement
through Bank A/c ESCerts
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Why Electricity Exchanges for ESCerts
Transparent & efficient platform
Electronically accessible market place
Well established spot market for electricity & RECs
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Thank You !!!www.iexindia.com