February 16, 2024

What is PAT scheme

The Perform, Achieve and Trade (PAT) Scheme is an innovative initiative introduced by the Indian government to promote energy efficiency and reduce greenhouse gas emissions in energy-intensive industries. The scheme was launched in 2012 as part of the National Mission for Enhanced Energy Efficiency (NMEEE) under the National Action Plan on Climate Change (NAPCC). The PAT Scheme aims to encourage industries to achieve specific energy consumption targets and rewards them for exceeding these targets through the trading of energy savings certificates.

Key Takeaways

  • The PAT Scheme is a government initiative aimed at promoting energy efficiency and reducing carbon emissions in industries.
  • Energy auditing is a crucial step in identifying areas of energy wastage and implementing measures to improve energy efficiency.
  • An energy auditor plays a key role in conducting energy audits and recommending energy-saving measures to industries.
  • Conducting a power audit can lead to significant cost savings, improved energy efficiency, and reduced carbon emissions.
  • The PAT Scheme provides a framework for industries to improve their energy efficiency and reduce their carbon footprint, with eligibility criteria, implementation processes, and monitoring and reporting requirements in place.

Understanding Energy Auditing

Energy auditing is a systematic process of assessing and analyzing energy consumption patterns in a facility or organization. It involves the identification of energy-saving opportunities and the development of strategies to improve energy efficiency. energy audits are essential for businesses to understand their energy consumption patterns, identify areas of wastage, and implement measures to reduce energy consumption and costs.

There are three main types of energy audits: preliminary audits, detailed audits, and investment-grade audits. Preliminary audits provide a broad overview of energy consumption patterns and identify potential areas for improvement. Detailed audits involve a more in-depth analysis of energy consumption, including the use of data loggers and monitoring equipment. Investment-grade audits are conducted when an organization is considering implementing large-scale energy efficiency projects and require a detailed financial analysis.

The Role of an Energy Auditor

Energy auditors play a crucial role in helping organizations identify energy-saving opportunities and develop strategies to improve energy efficiency. They are responsible for conducting energy audits, analyzing data, and providing recommendations for energy-saving measures. Energy auditors need to have a strong understanding of energy systems, equipment, and technologies, as well as knowledge of relevant regulations and standards.

To become an energy auditor, individuals need to have a background in engineering or a related field. They also need to acquire specific qualifications such as Certified Energy Manager (CEM) or Certified Energy Auditor (CEA) certifications. In addition to technical knowledge, energy auditors need to have excellent analytical and problem-solving skills, as well as the ability to communicate effectively with clients and stakeholders.

Benefits of Conducting a Power Audit

Conducting a power audit can bring numerous benefits to organizations. Firstly, it can lead to a significant reduction in energy consumption and costs. By identifying areas of wastage and implementing energy-saving measures, organizations can achieve substantial energy savings, resulting in lower utility bills and improved financial performance.

Secondly, power audits can help improve energy efficiency. By analyzing energy consumption patterns and identifying inefficiencies, organizations can implement measures to optimize energy use and reduce waste. This not only reduces energy consumption but also improves the overall operational efficiency of the organization.

Lastly, conducting a power audit has environmental benefits. By reducing energy consumption, organizations can lower their carbon footprint and contribute to mitigating climate change. Energy efficiency measures also often result in reduced emissions of air pollutants, leading to improved air quality and public health.

PAT Scheme and Energy Efficiency

The PAT Scheme plays a crucial role in promoting energy efficiency in India. By setting specific energy consumption targets for industries, the scheme incentivizes them to improve their energy efficiency performance. The scheme encourages industries to adopt energy-efficient technologies and practices, invest in renewable energy sources, and implement measures to reduce energy consumption.

Energy efficiency is essential for achieving sustainable development. It helps reduce dependence on fossil fuels, conserve natural resources, and mitigate climate change. Energy-efficient industries are more competitive and resilient, as they are better able to adapt to changing market conditions and regulatory requirements.

Key Features of the PAT Scheme

The PAT Scheme has several key features that make it an effective tool for promoting energy efficiency. Firstly, it has a target setting and achievement mechanism. Industries covered under the scheme are assigned specific energy consumption targets based on their historical performance. These targets are set for a specific period, usually three years, and industries are required to achieve these targets to avoid penalties.

Secondly, the scheme allows for the trading of energy savings certificates. Industries that exceed their energy consumption targets can earn energy savings certificates, which can be traded in a market-based mechanism. This allows industries that are unable to achieve their targets to purchase certificates from those that have exceeded their targets, creating a financial incentive for energy efficiency.

Lastly, the PAT Scheme has penalties for non-compliance. Industries that fail to achieve their energy consumption targets are subject to penalties, which can include fines or other regulatory measures. This ensures that industries take the scheme seriously and make genuine efforts to improve their energy efficiency performance.

Eligibility Criteria for Participation in the PAT Scheme

The PAT Scheme covers a wide range of energy-intensive industries, including thermal power plants, cement plants, steel plants, and fertilizer plants. The eligibility criteria for participation in the scheme are based on the energy consumption of these industries. Industries with an annual energy consumption of more than 30,000 metric tons of oil equivalent (MTOE) are eligible to participate in the scheme.

Implementation Process of the PAT Scheme

The implementation process of the PAT Scheme involves several steps. Firstly, industries need to register with the Bureau of Energy Efficiency (BEE), which is responsible for implementing the scheme. Once registered, industries need to conduct a baseline energy audit to establish their current energy consumption levels and identify areas for improvement.

Based on the baseline audit, industries need to develop an Energy Conservation Plan (ECP) that outlines the measures they will implement to achieve their energy consumption targets. The ECP needs to be approved by the BEE before implementation.

After implementing the ECP, industries need to conduct regular monitoring and reporting of their energy consumption and savings. This data is used to assess compliance with the scheme’s targets and determine eligibility for earning or trading energy savings certificates.

Monitoring and Reporting Requirements of the PAT Scheme

The PAT Scheme has specific requirements for monitoring and reporting energy consumption and savings. Industries are required to install energy meters and data loggers to monitor their energy consumption in real-time. They also need to maintain records of their energy consumption and savings, which need to be submitted to the BEE on a regular basis.

Non-compliance with the monitoring and reporting requirements can have serious consequences. Industries that fail to submit accurate and timely data may be subject to penalties, including fines or disqualification from participating in the scheme. Therefore, it is essential for industries to invest in robust monitoring and reporting systems to ensure compliance with the scheme’s requirements.

Impact of the PAT Scheme on Energy Conservation and Cost Savings

The PAT Scheme has had a significant impact on energy conservation and cost savings in India. Several industries that have participated in the scheme have achieved substantial energy savings and cost reductions. For example, a cement plant in Rajasthan achieved energy savings of 2.5% in the first year of participating in the scheme, resulting in cost savings of Rs 1.5 crore.

The potential for energy conservation and cost savings through the PAT Scheme is enormous. According to estimates by the BEE, the scheme has the potential to save around 6.6 million metric tons of oil equivalent (MTOE) of energy by 2020, resulting in cost savings of Rs 22,000 crore.

In conclusion, the PAT Scheme is a crucial initiative for promoting energy efficiency and reducing greenhouse gas emissions in India’s energy-intensive industries. The scheme incentivizes industries to improve their energy efficiency performance through target setting, trading of energy savings certificates, and penalties for non-compliance. By participating in the scheme, industries can achieve significant energy savings, reduce costs, and contribute to sustainable development. It is essential for industries to take advantage of this opportunity and actively participate in the PAT Scheme to reap its benefits.

If you’re interested in learning more about energy audits, you might also find our article on “Understanding the Different Types of Thermography Audits” helpful. This article explores the various types of thermography audits and how they can be used to identify energy inefficiencies and potential hazards in buildings. Check it out here.


What is PAT scheme?

PAT scheme stands for Portable Appliance Testing scheme. It is a process of testing electrical appliances to ensure their safety for use.

Why is PAT scheme important?

PAT scheme is important because it helps to prevent electrical accidents caused by faulty appliances. It ensures that electrical appliances are safe for use and reduces the risk of electrical fires and electric shocks.

Who can carry out PAT testing?

PAT testing can be carried out by a competent person who has the necessary knowledge and skills to perform the tests. This can be an in-house electrician or an external contractor.

What appliances need to be tested under PAT scheme?

All electrical appliances that are used in the workplace or public areas need to be tested under PAT scheme. This includes items such as computers, printers, kettles, microwaves, and power tools.

How often should PAT testing be carried out?

The frequency of PAT testing depends on the type of appliance and how often it is used. Generally, appliances that are used frequently should be tested more often than those that are used less frequently. A risk assessment should be carried out to determine the appropriate testing frequency.

What happens during PAT testing?

During PAT testing, the appliance is visually inspected for any damage or defects. It is then tested using a range of electrical tests to ensure that it is safe for use. The results of the tests are recorded and a pass or fail label is attached to the appliance.