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Trading of ESCerts on Power Exchanges

Trading of ESCerts on Power Exchanges . Genesis of PAT . scheme . -. NAPCC. National . Action Plan on Climate Change. Stakeholders under the PAT scheme. PAT Sector wise Energy Consumption and Targets under Cycle – 1 ( 2012 – 2015).

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Trading of ESCerts on Power Exchanges

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  1. Trading of ESCerts on Power Exchanges

  2. Genesis of PAT scheme - NAPCC National Action Plan on Climate Change

  3. Stakeholders under the PAT scheme

  4. 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 Source: BEE

  5. PAT is a market based mechanism designed to enhance energy efficiency MARKET BASED MECHANISM

  6. Power Exchanges will provide the trading platform for ESCerts • 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. Penalty Baseline SEC Issued Escerts Achieved SEC Saving Target Compliance Target SEC Purchase Escerts Scenario 1 Scenario 2

  7. ESCert Snapshot • Compliance • Mandatory • Target Entities • Designated Consumers • Buyers • Industries not achieving target • Sellers • Industries achieving beyond target • 6.6 million toe for 1st Cycle • Target • Mechanism • Cap and Trade • 3 yrs • Phase Cycle

  8. ESCert Snapshot • 1 ESCert = 1 MTOE (Metric Tonne of Oil Equivalent • ESCerts • Trading Platform • Power Exchange only • 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 • Compliance Period • 3 Years for DCs

  9. ESCerts: Exchange Trading Mechanism ESCerts will be held in electronic form R egistered with a depository System Registry would maintain record of all transactions

  10. ESCerts: Exchange Trading Mechanism • IEX would be a one stop shop for buying and selling: • ESCerts • Renewable Energy Certificates • 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

  11. ESCert Exchange Trading Mechanism IEX Invoice/ Credit Note Confirm Margin Requirement Bids are accumulated FinancialSettlement through Bank A/c MCV & MCP calculated post bidding session Bank A/c ESCerts Submits Bid for trading Deposit fund for trading Seller Buyer Participants

  12. Why Electricity Exchanges for ESCerts Transparent & efficient platform Electronically accessible market place Well established spot market for electricity & RECs

  13. Thank You !!! www.iexindia.com Promoters: Joint Equity Partners: Technology :

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