PAT – Perform Achieve and Trade – a Regulation of Government of India Seeks to regulate energy usage in your organization – mandates by statute improvement in energy efficiency Immediately impacts 8 sectors of the Indian Economy Notified on 30th March,2012

1. PAT Advisory and ESCerts Trading
Energy service offering for DCs under Perform, Achieve and Trade Mechanism

2. About PAT
• PAT – Perform Achieve and Trade – a Regulation of Government of India
• Seeks to regulate energy usage in your organization – mandates by statute
improvement in energy efficiency
• Immediately impacts 8 sectors of the Indian Economy
• Notified on 30th March,2012

3. PAT – what is at stake?
• The units under PAT have been identified as a Designated Consumer as per Energy
Conservation Act 2001
• As per PAT rules such units will have to reduce their SEC (specific energy consumption)
by 2014-2015.
• Govt. of India has already notified a SEC target for the unit.
• The organization has to plan energy reduction measures, finance the implementation of
measures to reach the target.
• Shortfalls will attract penalty. Surplus can lead to financial upside.

4. Elements in PAT
There are 5 important elements in PAT which we need to understand……….
Principle
and
Motivation
Baseline/Targets
Liabilities/Penal
ties/Upsides
Documentation
and Reporting
reqmts
Audits and
checks

5. PAT Approach for DCs
Internal Organizational Functions
CxOs - Financial
and Strategy
Officers
Internal Energy/
Environment
Officers
Operational in
charges
• Needs understanding of financial
exposure and opportunity
• Strategy, Plan and capital provisioning
• Collecting and Providing energy data points
• Providing energy insights into processes
• Preparing CapEx plan
• Own Apportioned Departmental SEC
improvement plans
• Deployment of SEC improvement measures
External Assistance and Support
Strategic advisory
support
for integrated pursuit
of climate/energy
opportunities
Compliance support
filing, preparation of
forms, design document
etc.
Managing engagement
with verifier, scheme
administrator
Market support
Sourcing climate & PAT
finance, Trading
ESCerts
Our PAT Advisory and ESCerts trading service provide the external assistance and
support to help a DC achieve optimal PAT performance

6. Steps Required
• Goal setting: To be undertaken by DC based on PAT targets
• Reduction phase: cycle wide leading to the target year
• Trading phase: at the end of financial year (s)
• Linked benefits assessment for collateral advantage
– Is there any significant collateral energy/environment commodity generation which
can be obtained from the measures which are to be deployed?
– Can the collateral energy/environment commodities be leveraged for raising the
required capital for the interventions?

7. PAT – requires optimal performance planning
Pay Penalty
Manage Shortfall
EScert
Procurement
Comply
Exceed Target
Transact (trade)
and realize Value
To comply - is the overarching goal
Business Considerations – May make DC settle for shortfall or aim for excess. Minimizing
the impact of shortfall and maximizing the impact of excess is desirable.
For optimal performance – weighing various options from financial, technical and
regulatory perspective is essential

8. Advantage RSM GC
• RSM GC’s knowledge of PAT rules, climate and energy finance, energy and
environment commodity domain, how energy & environment commodity markets
have evolved – will aid you in optimal performance planning under PAT.
• Valuable insights gained by RSM GC through servicing PAT DCs – can assist other
DCs in jumpstarting and guiding their PAT process
• ESCert is an energy commodity and RSM GC specializes in climate, energy and
environmental commodities
• RSM GC is a leading player in CDM, REC and understands well the interplay of PAT
with these mechanisms. By identifying REC, CER opportunity General Carbon can
help you increase the returns out of the capital that you deploy for PAT.

9. Experience in RSM GC for PAT
• Advising clients on PAT since inception – presently advising DCs in 4 industry sectors
• Identified and developed more than 50 energy/energy efficiency projects under UN
mechanism.
• More than 80 Men Years experience in:
Energy Monitoring – Electrical, Thermal Energy Audit Identification of Clean and EE technology
• Executed more than 60 major projects (Energy/EE)
• Contributed to EE improvement from 12GCal/ton to less than 6.5GCal/ton of crude steel
• Contributed to achievement of over 300Million GCal saving

10. Domain Competence (Process, Technology etc.)
RSM GC is well placed to quickly grasp DC’s domain specifics – as it has competent
personnel who have extensively engaged in the following:
• Worked with technology aspects of : Power Generators, Iron & Steel, Other Metal
Industries, Paper & Pulp, Cement, Fertilizers, Infrastructure, Distillery, Municipal
projects, Textiles etc.
• Analyzed technically and financially issues related to clean technology, energy
saving/energy efficiency, sustainable development initiatives of clients
• Have experts, trained and certified energy auditor, engineers – who understand
electrical and thermal energy aspects

11. Experience . Expertise .Value
Clients of Energy and Sustainability Service Offerings

12. Some more clients…..
12

13. PAT Current Client Engagements
Thermal Power plants
Iron and Steel
Textile
Paper
Service items include
• Review of baseline assessment
• Measurement and Verification plan
• Review of energy systems
• Review of energy saving measures
• Preparing Energy Road Map
• Risk assessment and mitigation plan
• Proposed normalization strategy
• Sub unit level analysis of energy performance
• Audit and Audit Review
• Management Insight to assist CxO
• Market insight and ESCert trading

14. Cycle of Action under PAT and RSM GC’s Services

15. Service Insight
Advisory Services - highlights
• Assessment of target and recommended action plan – for gap
Advisory
Services
• Strategic
Assistance
analysis
• Assessment of expected SEC through planned interventions
• Preparation of scheme document
Transaction
Services
• Preparation of 1st year and 2nd year PAD (form A) for issuance
• Preparation of end of cycle PAD (form A)
• Assistance during verification
– End of cycle verification/all 3 verification
• Assistance in obtaining issuance of ESCert

16. Service Insight
Advisory
Services
Transaction Services - highlights
• Assistance in trading ESCerts through
– Trading platform
– Bilateral trade
• Assistance in mid cycle sale of ESCert as allowed
under PAT rules
Transaction
Services
• ESCert trading
• Assistance in availing finance through funds that are
likely to come up to support PAT type initiatives
• Help develop the right strategy for leveraging ESCert,
REC etc. fungibility when that is introduced.

17. Case Study – RSM GC’s Success Stories
Case Study 1 –Sector : Power
•RSM GC studied the DC’s processes and
unearthed verification risks which could
have extinguished the potential ESCerts.
•The practice of monitoring important PAT
parameters was not adequate for PAT
requirements. RSM GC advised the DC on
the impending risks. Corrections have
been initiated by the DC.
•Issues related to PAT procedural
requirements were identified by General
Carbon which otherwise would have
resulted in non-compliance.
Case Sector 2 -Sector: Iron and Steel
•RSM GC’s assessment has resulted in reestimation of the baseline. Corrections
have been initiated.
•Risks and opportunities have been recalibrated.
•The DC, based on RSM GC’s input, has
initiated communication with BEE.

18. Contact us
Mr. Anupam Das Purkayastha
Director
Phone :+91 22 2266 3201/3301
Mobile :+91 9029002980
Email : anupam.das@general-carbon.com
Mr. R.P.Sharma
Director
Phone :+91 22 2266 3201/3301
Mobile :+91 98180 49505
Email : rajendra.sharma@general-carbon.com

19. Thank you