Webinar: Perform, Achieve, and Trade (PAT) – An Innovative Programme to Promote Industrial Energy Efficiency
Speaker: Dr. Ajay Mathur TERI, India
Ajay Mathur is Director General of TERI – The Energy & Resources Institute, and a member of the Prime Minister’s Council on Climate Change.
He was Director General of the Bureau of Energy Efficiency in the Government of India from 2006 till February, 2016, and responsible for bringing energy efficiency into our homes, offices, and factories, through initiatives such as the star labelling programme for appliances, the Energy Conservation Building Code, and the Perform, Achieve and Trade programme for energy-intensive industries.
Dr. Mathur was earlier with TERI from 1986 to 2000, and then headed the Climate Change Team of World Bank in Washington DC. He was President of Suzlon Energy Limited, also headed the interim Secretariat of the Green Climate Fund.
He has been a key Indian climate-change negotiator, and was also the Indian spokesperson at the 2015 climate negotiations at Paris. He is a global leader on technological approaches to address climate change; recently, he joined the global group of industrial, financial and think-tank leaders to co-chair an Energy Transitions Commission which will suggest ways for companies and countries to move towards climate-friendly energy futures.
Enhanced energy efficiency in industrial sector is a challenge inasmuch as it competes for investment with new production capacity. However, it is also an opportunity since it enables higher productivity and greater competitiveness. The Perform, Achieve, and Trade (PAT) programme in India focuses on monetary reductions in specific energy consumption (SEC) of production units in energy intensive industrial sectors. In order to address issues of equity and inclusiveness, the programmes included all energy intensive plants in selected sectors, even the most energy efficient ones. However, the SEC reduction target was less for plants that are already more efficient. Further, third-party verification and issuance of certification for excess savings (more than the target) help in achieving transparency and enabling greater effort. The target savings were over-achieved by about one-third in the first cycle, and subsequently second and third cycles have been launched.
- Active participation by industry is essential in order to ensure their partnership and continued participation.
- Exceptions and deviations will always occur; it is necessary to integrate a mechanism to address these in the programme itself.
- Third-party verification helps deliver credibility both within the industry, and in the public policy space.
- Outreach and recognition of outstanding performance builds sustainability.
- Asymmetric information makes it difficult to “allocate” targets; a mechanism that rewards overachievement is necessary to enable best-possible performance.