CONTENTS EXECUTIVE SUMMARY 1 1. INTRODUCTION 9 1.1. Context 9 1.2. The program chosen for policy analysis: Perform Achieve and Trade (PAT) 10 1.3. Defining Energy Policy Analysis 11 1.4. Need for study 12 1.5. Study Framework 12 2. ENERGY SCENARIO IN INDIA 17 2.1. Overview 17 2.2. Electricity Sub-sector 18 3. ENERGY EFFICIENCY 21 3.1. From Sources to Services 21 3.2. Classification of Energy Efficiency Measures 21 3.3. Technical and Economic Potential of Energy Efficiency Measures 22 3.4. Macro-economic Impacts of Energy Efficiency Measures 22 3.5. The Importance of Energy Efficiency Improvements on Power Sector Investments 23 3.6. Requirement of efficient coal and gas Power Plants 24 3.7. Energy Efficiency &DSM Scheme Design 24 3.8. Efficiency 25 3.9 Various Types of Efficiencies dealing With the Power plants And Other Related Parameters 27 4. PERFORM ACHIEVE AND TRADE (PAT) FRAMEWORK 29 4.1. Background: National Action Plan on Climate Change 29 4.2. National Mission for Enhanced Energy Efficiency (NMEEE) 29 4.3. NMEEE's strategy 29 4.4. NMEEE's Initiatives 30 4.5. Steps in the Perform Achieve and Trade (PAT) Scheme 33 4.6. The guiding principles for PAT mechanism: 33 4.7. Legal Framework 34 4.8. Designated Consumers 34 4.9. First cycle of PAT scheme: 2011-12 to 2013-14 36 4.10. Establishment of Baseline SEC 37 4.11. Target Setting 39 4.12. Measurement & Verification 41 4.13. Energy Saving Certificates & Trading 41 4.14. Protocols to promote trading of ESCerts 42 5. INTERNATIONAL EXPERIENCE 45 5.1. Performance Indicators & Monitoring 45 5.2. Survey of International trading and energy efficiency schemes 45 5.3. Lessons learnt from these international schemes: 48 6. DATA COLLECTION AND ANALYSIS 51 6.1. Legal Framework 51 6.2. Data Collection 52 6.3. Data Analysis 53 6.4. Step-wise Analysis and Results 55 7. CONCLUSIONS 85 BIBLIOGRAPHY 87 APPENDIX I