The Comprehensive Guide to India’s PAT Scheme and its Impacts

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India has always been at the forefront of energy conservation, a commitment evident in the establishment of the Perform Achieve and Trade (PAT) scheme. Instituted under the Bureau of Energy Efficiency’s oversight, this programme is an innovative approach to ensure energy efficiency across different industrial sectors. This article delves into the intricacies of the PAT scheme, highlighting its cycles, achievements, and the benefits reaped by the nation.

PAT Scheme: A Pillar of the NMEEE

The PAT Scheme is an integral component of the National Mission for Enhanced Energy Efficiency (NMEEE), a part of the expansive National Action Plan on Climate Change (NAPCC) introduced by the Indian government in 2008. It serves as a regulatory tool aimed at diminishing specific energy consumption in the country’s energy-intensive sectors.

What sets PAT apart is its foundation on a market-based mechanism. The main goal is to enhance energy efficiency within the major energy-consuming sectors by promoting the rapid adoption of both efficient and low-carbon technologies.


PAT cycles trading results, overview of the key statistics and outcomes for each PAT cycle, showcasing the progress and achievements in energy savings and GHG emissions reduction.

PAT CycleTotal DCsSectors IncludedBaseline Energy ConsumptionTargeted Energy ReductionAchieved Energy SavingsExcess Energy SavingsGHG Emission Reduction (CO2 eq.)ESCerts Issued to Over AchieversPurchase Compliance for Shortfall
Cycle-14788 sectorsApprox. 164 million toe6.685 million toe8.67 million toe1.985 million toe31 million tons3.825 million1.42 million
Cycle-262111 sectorsN/A12.13 million toe14.08 million toe4.57 million toe66.1 million tons5.7 million3.66 million
Cycle-31166 sectorsN/A1.06 million toeN/AN/AApprox. 3 million tonsN/AN/A
Cycle-41098 sectorsN/A0.6998 million toeN/AN/AApprox. 2 million tonsN/AN/A
Cycle-5110Various15.244 million TOEN/A0.5130 million TOEN/AN/AN/AN/A
Cycle-61356 sectors23.298 million TOEN/A1.277 million TOEN/AN/AN/AN/A

Broadening Horizons: The Six Cycles of PAT

By April 2020, the PAT scheme has unveiled six cycles, encompassing a whopping 1073 industries spread across 13 pivotal industrial and service sectors. Together, they account for roughly 50% of India’s primary energy consumption.

PAT Cycle-1: Setting the Stage

The maiden cycle of PAT, which culminated in 2015, incorporated 478 units or Designated Consumers (DCs). These came from eight principal energy-intensive sectors like Aluminium, Cement, Chlor-Alkali, and Iron & Steel, to name a few. Their combined baseline energy consumption was approximately 164 million toe. This cycle successfully achieved energy savings in excess of its target, with a notable reduction in GHG emissions.

PAT Cycle-2: Expanding Frontiers

The subsequent cycle, spanning from 2016-2019, introduced three new sectors – DISCOMS, Railways, and Refineries, in addition to the original eight. With a target to slash energy consumption by 12.13 million toe, this cycle envisioned a reduction of around 66.1 million tonnes of CO2 emissions.

PAT Cycle-3: The Rolling Cycle

Beginning on 31st March 2017, the third cycle was founded on a rolling cycle approach. Encompassing 116 DCs from six sectors, this cycle aimed for a total savings of about 1.06 million tonnes of oil equivalent, translating to approximately a 3 million tonnes CO2 reduction.

PAT Cycle-4: Incorporating Diversity

The fourth cycle, with its baseline year in 2016-17, added Petrochemicals and Commercial Buildings to the mix, thus widening the scope of the PAT scheme. Notably, within the Commercial Building sector, hotels emerged as the potential designated consumer sub-sector. Overall, the cycle’s goal was to curtail CO2 emissions by about 2 million tonnes.

PAT Cycle-5: Furthering the Mission

Commencing from 1st April 2019, the fifth cycle maintained its focus on the existing sectors like Aluminium, Iron & Steel, and Thermal Power Plant. With a cumulative energy consumption of these DCs being around 15.244 million TOE, they were set to achieve energy savings of about 0.5130 million TOE.

PAT Cycle-6: The Latest Chapter

Starting from 1st April 2020, the most recent cycle, PAT Cycle-VI, included 135 DCs from sectors such as Cement, Iron and Steel, and Petroleum Refinery. A highlight of this cycle was the separate notification of cement grinding units as a cement sub-sector. The cycle’s objective was to realize energy savings of approximately 1.277 million TOE.

Final Thoughts

The PAT scheme stands as a testament to India’s unwavering dedication to energy efficiency and a sustainable future. By channelling efforts towards sectors with high energy consumption, it strives to bring about a transformative change in the nation’s energy landscape. Moreover, the positive results from each cycle underscore the scheme’s effectiveness, promising a greener future for all.