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Market instrument for the first fuel and its role in decarbonizing Indian industrial production

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  • Giri, Prashant
  • Sharma, Tarun

Abstract

India introduced Perform, Achieve, and Trade (PAT) scheme in 2012; it assigns targets to energy-intensive industries with estimated energy savings of 11–16% to enhance energy efficiency and allows energy-saving certificates trading. We qualitatively review India's energy efficiency policy landscape, including the institutional structure, operational trajectory, and outcomes of the PAT scheme's completed cycles. We identify four research themes: 1) Industry-wise specific energy consumption correlation with various factors of the industrial sector under PAT should be identified; 2) PAT scheme impact on aluminium, chlor alkali, textile, etc. Lacks exploration; 3) Realistic baseline target setting should be done for designated consumers under PAT scheme, and 4) machine learning based monitoring and verification for PAT scheme is still nascent but appears promising. We find a lack of ambition in the targets, which are easily met and could harm future investments in energy efficiency.

Suggested Citation

  • Giri, Prashant & Sharma, Tarun, 2024. "Market instrument for the first fuel and its role in decarbonizing Indian industrial production," Energy Policy, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:enepol:v:190:y:2024:i:c:s0301421524001599
    DOI: 10.1016/j.enpol.2024.114139
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