perform achieve and trade -...

Perform Achieve and Trade

A Low carbon Strategy for inclusive growth

in India

Marrakech

10th Nov 2016

Jens Burgtorf Head

Sectorprogramme Technology Cooperation in

the Energy Sector

World CO2 Emission Savings

20

25

30

35

40

45

2008 2015 2020 2025 2030 2035

Gt

42.6 Gt

35.4 Gt

21.7 Gt

Current Policies

Scenario

450 Scenario

New Policies

Scenario

13.7 Gt

7.1 Gt Efficiency 50%

Renewables 18%

Biofuels 4%

Nuclear 9%

CCS 20%

Share of cumulative abatement

between 2010-2035

New Policies Scenario is the central scenario in WEO-2010

• Assumes cautious implementation of recently announced commitments & plans

The 450 Scenario sets out an energy pathway consistent with the goal of limiting

increase in average temperature to 2OC

Source: WEO 2010

India – CO2 Emission Reduction

Efficiency 51%

Renewables 32%

Biofuels 1%

Nuclear 8%

CCS 8%

Share of cumulative abatement

between 2010-2035

India’s Installed Power Generation Capacity

Total Installed Capacity: 303 GW

Energy Profile - India

140

145

150

155

160

165

170

175

180

185

190

3

3,05

3,1

3,15

3,2

3,25

3,3

2004-05 2005-06 2006-07 2007-08 2008-09

Energy Intensity of industry sector (mtoe per Billion Rs. GDP)

Commercial energy consumption in Industry (in mtoe)

Energy Intensity -

Industrial Sector

GHG Emissions Across

Sectors

% Share of Clean Energy At 23%, share of green energy (including nuclear) in India’s total energy is

the highest-ever today, but if compared to other countries, its still a long

way to go

% SHARE OF CLEAN ENERGY IN TOTAL POWER GENERATION

Germany France US China India

99

%

72

%

40

%

32

%

23

% Source: BP Statistical Review of World Energy 2016, * data is for 2010 for solar energy

Macro indicators for future needs of India

Indicators Unit India in

2014

India in

2030

Population billion 1.2 1.5

Urban population million 377 (2011) 609

GDP USD trillion 2.04 (2016) 6.31

Per Capita GDP USD 1408 4205

Electricity Demand TWh 776 (2012) 2499

Per capita avg. annual

energy consumption

toe 0.6 (India) 1.88

(Global

average)

Energy Intensity gm oil

equivalent

per Rs. of

GDP

18.16

(2005)

15.02 (2012)

Aiming:

11.08

(2030)

Energy Intensity Continues To Decline

0

0,05

0,1

0,15

0,2

0,25

0,3

0,35

China India USA Germany Japan

kg

oe/2

005 U

S$ (

PP

P)

Energy Intensity

Year 2000 Year 2005 Year 2010 Year 2013

Perform Achieve and Trade Scheme (PAT)

PAT: Overview and Elements

Covers 478 Designated Consumer (DCs) in 8 energy intensive

industry and Gate to Gate boundary concept adopted.

Large variations in energy intensities of different units in

almost every sector

Key Goal: Mandate Specific Energy Consumption

improvement

Energy Intensity reduction target for each unit based on its

current efficiency in base line (2009-10)

Multi-cycle process – First PAT cycle till 2014-15

Design based on extensive consultations over 2010-12

2001 2014-

2015

Energy

Conservation

Act enacted

National Action

Plan on Climate

Change released

Sector studies

Commenced to

identify DCs Baseline data

collection begins

Financial outlay of over

US$20 million approved

National Mission for

Enhanced Energy

Efficiency (NMEEE)

Approved by

Ministry of Power

Nation wide Consultation

Workshops organised;

consultation

continues through 2012

NMEEE approved by

Prime Minister's Council

on Climate Change

Energy Conservation Act

amended to make provisions for

issue of energy saving

certificates, imposition of penalty

for non compliance and trading

Of ESCerts

Perform, Achieve and Trade

(PAT) scheme came into effect;

first compliance period begins

(2012-2015)

2008 2009 2010 2011 2012

Base line Studies completed,

Draft PAT Rules prepared

and feed back sought on draft targets

Assessment year of

First PAT Cycle

THERMAL

POWER

STATIONS

IRON & STEEL

CEMENT

FERTILIZER

PULP&PAPER

ALUMINIUM

CHLOR-ALKALI

TEXTILE

HIGHLIGHTS DCs

Typical PAT Cycle

11

DC

Notification

Data

Collection &

Verification

Consultation Ministerial

Technical

Committee &

Notification

Implement -

ation

Achievement

Verification &

ESCert

Trading

Minimum

Energy

Consumption

Notification.

Say 30000 toe

for cement

11 Sectors

notified so far

Data

Collection &

3rd party

verification for

Baseline

Data collected

from 1000

plus

industries

With

Industries,

Associations,

Ministries,

Research

Bodies etc.

250 Plus

consultation

meeting/work

shops/visits

70 TCM to

discuss

Targets,

Saving

potential &

international

practices

PAT1: 31.3.12

478 units

PAT2: 30.3.16

621 units

PAT3: 31.3.17

(Proposed)

3 Year cycle

for each PAT

Cycle

PAT1: 2012-15

PAT2: 2016-19

PAT3: 2017-20

Verification by

Accredited

Energy

Auditors &

Trading

427 industries

verified for

PAT1

PAT Cycle

Mechanism

Trading

Exchange

Ba

se

SE

C

Ta

rge

t S

EC

Ach

iev

ed

SE

C

Base S

EC

Ta

rge

t S

EC

Ac

hie

ve

d S

EC

Ba

se

SE

C

Ta

rge

t S

EC

Ach

ieved

SE

C

Ba

se

SE

C

Ta

rge

t S

EC

Ac

hie

ve

d S

EC

ESCert Issued ESCert

Purchased

Non Compliance Trading Not

Required

Co

mp

lie

d

Co

mp

lie

d

Co

mp

lied

Penalty

Imposed

1

SEC (Specific Energy Consumption): Energy Consumed per unit production

IV III

II I

PAT 1– Targets & Achievements

1

S. No

Sector No of DCs

Annual Energy

Consumption (Million toe)

Target Reduction

(Mtoe)

Actual Savings (Mtoe)

% Increase

1 Aluminium 10 7.71 0.46 0.73 59%

2 Cement 85 15 0.82 1.44 76%

3 Chlor- Alkali 22 0.88 0.05 0.13 100%

4 Fertilizer 29 8.2 0.48 0.83 73%

5 Iron & Steel 67 25.3 1.49 2.1 41%

6 Paper & Pulp 31 2.09 0.12 0.26 117%

7 Textile 90 1.2 0.07 0.12 71%

8 Thermal Power

Plant 144 105 3.21 3.06 -5%

Total 478 165.38 6.686 8.67 29%

Impacts – PAT 1

1

8.67 mtoe

5635 MW

6600 rakes of

coal

1.25% of

India’s total primary

energy supply

32 million

tonnes of CO2

reduction

1.93% of

India’s emissions

Skill

Development

Capacity

building: 5000+

Engineers and

operators

13718 Energy

Auditors &

Managers

219

Accreditation

Energy

Savings of

5.2 Billion €

Encouraged

investments for

energy efficient

technologies

for

manufacturing

in India

2.9 Billion €

invested

PAT-II Overview and Status

Sr No

Sector Notified Nos

Energy Consum

ption

Old DCs

Nos Energy

Consumption Target

2018-19

Old New

1 Aluminium 10 7.71 10 12 10.66 0.57

2 Cement 85 15.01 84 111 21.43 1.12

3 Chlor- Alkali 22 0.88 21 24 1.77 0.101

4 Fertilizer 29 8.2 29 37 8.25 0.45

5 Iron & Steel 67 25.32 62 71 40.44 2.14

6 Paper & Pulp 31 2.09 25 29 2.68 0.15

7 Textile 90 1.2 85 99 1.48 0.087

8 Thermal Power

Plant 144 104.56 132 154 120.16 3.13

9 Refinery 18 18.50 1.10

10 Railways 22 1.39 0.033

11 Discom 44

Total

478 164.97 448 621 226.76 8.869

6%

13%

1%

5%

24%

2% 1%

35%

13%

0%

Saving Target PAT II Aluminium

Cement

Chlor- Alkali

Fertilizer

Iron & Steel

Paper & Pulp

Textile

Thermal Power Plant Refinery

Impacts – PAT 2

1

6

17.5 mtoe

11407 MW

13500 rakes

of coal

2.09% of

India’s total primary

energy supply

60 million

tonnes of CO2

reduction

3-4% of

India’s emissions

Skill

Development

Capacity

building:

12000+

Engineers and

operators

15000 Energy

Auditors &

Managers

500

Accreditation

Energy

Savings of

6.6 Billion €

Encouraged

investments for

energy efficient

technologies

for

manufacturing

in India

3 Billion €

to be

invested

CO2 mitigation by 2020 from Industries

Total CO2 reduction by 85 million tonnes of CO2 from all 13 sectors

Energy

consumption

Coverage up to

70%

8,67 10,94

13,21 16,21

20,84 24,14 30,35

38,29

46,24

56,74

72,94

84,49

2015 2016 2017 2018 2019 2020

CO2 Mitigation by 2020

Cumulative Saving in mtoe Expected CO2 mitigation in mtCO2 178%

Cumulative CO2

mitigation: 329

mtCO2

PAT II and Beyond (Rolling Cycle)

478

BY:2007-10

AY:2014-15

621

BY:2014-15

AY:2018-19

PI PII

230 +

2

Sectors

(1500-

2000)

BY:2015-16

AY:2019-20

PIII

2012 2016 2017

Left

Over in

existing

sector

+

New

Sectors

BY:2016-17

AY:2020-21

PIV

2018

Left

Over in

existing

sector

+

New

Sectors

BY:2017-18

AY:2021-22

PV

2019

621+Left

Over in

existing

sector

+

New

Sectors

BY:2018-19

AY:2022-23

PVI

2020

230+Left

Over in

existing

sector

+

New

Sectors

BY:2019-20

AY:2023-24

PVII

2021

Share of 5 PAT industrial Sector in CO2 Emission {Power, Steel, Cement, Fertilizer, Aluminium}

57,80%

42,20% Share of 5 Industrial Sectors Covered under PAT

Remaining

CO2 Emission in Million Tonnes (2008-09)

Head Emission (in MT)

Total 1500

Share of 5 Sectors 867

Projected

53,70%


Remaining


59,21%


Remaining


Emission (in MT)

Total 2800-3400


Emission (in MT)

Total 4000-5670


Visions for PAT

Vision Document

Trust Building

Strong Measurement and Monitoring System

No Monitoring and Verification

Standard Operating

Procedure (SOPs)

PAT Cycle SOPs for all sectors

Baseline and Target Setting Methodology

Online Filing

Direct Entry of Data in pro-forma through PATNet

Development of Strong data base

Direct measurement and Entry from Field

Instruments >> No need of BL verification and M&V

Financial Platform

Gap Funding through Accelerated Depreciation

Tax Incentives for Energy Efficient

Equipment/Technology/Process >> Study initiated

Development of ESCO model before final

implementation

Mobile-app

Mobil App for PAT Industries

Real time Application

India’s NDC

India Intended Nationally Determined Contribution (INDC) in response to COP decision will reduce the emission intensity of its GDP by 33-35% by 2030 from 2005.

The emission intensity of our GDP has decreased by 12%

between 2005 and 2010.

To achieve 40% cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030.

Thank you for your patient listening

Questions?

Jens Burgtorf Head

Sector Programme on Technology Cooperation in the Energy Sector

Friedrich-Ebert-Allee 40

53113 Bonn, Germany

M [email protected]

Data & Slides provided by Vikash Ranjan

Indo-German Energy Programme

New Delhi, India

[email protected]

mailto:[email protected]

mailto:[email protected]

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