Market-Led Energy Efficiency Transformation in India: A Deep Dive into the Perform, Achieve, Trade (PAT) Scheme

Abstract

To sustain the high economic growth trajectory of India, it becomes imperative that an adequate supply of energy is maintained over a long period. One such major initiatives is the thrust laid on energy efficiency interventions as a low hanging option for meeting the overarching energy and climate goals of the country. In this context, the present chapter focuses on analyzing market-based approaches for energy efficiency interventions, with specific thrust on the perform, achieve, and trade scheme. While mapping of energy efficiency policies points to the gradual transitioning from a regulatory regime to a market-based arrangement, analysis of the perform, achieve, trade scheme indicates that while the scheme is designed in a dynamic manner and has huge energy saving potential, lack of clarity at the policy level, and operational anomalies could generate dampening effects on future energy efficiency investments. Policy streamlining becomes much imperative for the successful implementation of this scheme.