National Mission on Enhanced Energy Efficiency (NMEEE) is one of the eight missions which form India’s National Action Plan on Climate Change (NAPCC), formulated in the year 2008.The objective of this mission is to unlock energy efficiency opportunities through market based approach. Perform, Achieve and Trade (PAT) is one of the components of NMEEE. This is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded with those plants who were under achievers of their targets. Fourth Trading Session of Energy Saving Certificates (ESCerts) was held on 17th October, 2017 in which 45 Designated Consumers (DC) participated. The Market Clearing Price (MCP) was discovered at INR 800 per ESCerts and the Market Clearing Volume (MCP) was determined as 40,148.

1. ESCert Trading Analysis Bicon Consultants
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ESCerts Trading- 4th Session dated 17th October, 2017
Background:
National Mission on Enhanced Energy Efficiency (NMEEE) is one of the eight missions which form
India’s National Action Plan on Climate Change (NAPCC), formulated in the year 2008. The
objective of this mission is to unlock energy efficiency opportunities through market based
approach.
Perform, Achieve and Trade (PAT) is one of the components of NMEEE. This is a regulatory
instrument to reduce specific energy consumption in energy intensive industries, with an
associated market based mechanism to enhance the cost effectiveness through certification of
excess energy saving which can be traded with those plants who were under achievers of their
targets.
Facts of ESCerts for 4th Trading Session:
The fourth ESCerts trading session was held on 17th of October 2017, in which 45 Designated
Consumers (DC) participated. The Market Clearing Price (MCP) was discovered at INR 800 per
ESCerts and the Market Clearing Volume (MCP) was determined as 40,148.
Results for 4th Trading Phase of ESCerts
Particulars INR
Sell Bids (ESCerts) 3,81,443
Purchase Bids (ESCerts) 40,538
Trade Volume (ESCerts) 40,148
Price Discovered (Rs/ ESCerts) 800
No of Participants 45
The first cycle of PAT was concluded in March 2015. The Ministry of Power issued approximately
38.24 lacs to the DCs and 14.23 lacs ESCerts are expected to be purchased.
The DCs have contributed to the success of PAT cycle I and this cycle has witnessed an energy
saving of 8.67 Mtoe (Million Tonne of Oil Equivalent) against the targeted energy saving of 6.886
Mtoe which is about 30% more than the target. This energy saving is equivalent to 31 million
tonnes of CO2 emission reduction and monetary savings of INR 37,685 crores which encouraged
investment of INR 2,45,00 crores ESCerts trade statistics. Total DCs registered with registry till
date is 212 and total DCs whose application is under process for approval from registry is 81.

2. ESCert Trading Analysis Bicon Consultants
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Figure 1: Sell bid share of ESCerts
The above figure depicts that 89% of the total sell bid ESCerts were quoted above MCP. Approx
11% of the ESCerts got cleared in the fourth trading session held on 17th October, 2017. In the
previous session approx 87% of the total sell bid ESCerts were quoted above MCP and approx
13% of the ESCerts got cleared in the third trading session held on 10th October, 2017.
Figure 5: No of ESCerts Sell Bid vs Price of ESCerts
In case of sell bids, around 34% of total sell bids were bided above INR 5000 in comparison to
38% in the second session.
11%
89%
Sell Bid Share of ESCerts for 4th Session
Below MCP
Above MCP
0
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20000
30000
40000
50000
60000
70000
80000
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SellBids
Price of ESCerts
Sell Bid (No of ESCerts)

3. ESCert Trading Analysis Bicon Consultants
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Figure 2: Purchase bid share of ESCerts
Around 99 % of the total purchase bids were cleared and only 1% of the purchase bids were
quoted above the clearing price. In the previous session 67 % of the total purchase bids were
cleared and 33% of the purchase bids were quoted above the clearing price.
Figure 6: No of ESCerts Buy Bids vs Price of ESCerts
Out of total purchase bids of 40,538 around 99 % of the ESCerts were quoted above the clearing
price of INR 1000.
99%
1%
Purchase Bid Share of ESCerts for 4th Session
Below MCP
Above MCP
0
5000
10000
15000
20000
25000
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1100 800
BuyBid
Price of EScerts
Buy Bid (No of ESCerts)

4. ESCert Trading Analysis Bicon Consultants
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Comparison between Fourth Trading Sessions:
Total sell bids increased by 10% in comparison to 3rd session, whereas for 3rd trading session
purchase bid of the ESCerts rose up by nearly 48% in comparison to 2nd session.
A total of 1,17,425 no.s of ESCerts were cleared over four phases of trading.
Figure 3: Comparison between Four Trading Session
Total purchase bid and cleared volume of the ESCerts decreased by 37% and 7% approx in the
fourth trading session in compare to 3rd session. Whereas for the 3rd trading session purchase bid
of the ESCerts rose up by 24% approx and the cleared volume rose up by 85% approx in
comparison to the 2nd session.
Figure 4: Statistics of ESCerts
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
Sell Bids (ESCerts) Purchase Bids (ESCerts) Cleared Volume (ESCerts)
1st Trading Phase 2nd Trading Phase 3rd Trading Phase 4th Tradng Phase
91.7%
8.3%
Statistics of ESCerts after 4th Session
Remaining
ESCerts
Traded ESCerts

5. ESCert Trading Analysis Bicon Consultants
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About 8.3% of the total ESCerts to be purchased were traded over the fourth trading session.
Remaining 13.4 Lacs of ESCerts are expected to be traded over eleven number of trading session
by the compliance period of 31st Dec, 2017.
Disclaimer: The analysis is based on certain assumptions. This reported is intended for prescribed
users. Bicon will not be liable for use of the analysis and decisions based on this analysis.