Industry can now trade Energy Savings Certificate on Power Exchanges

Energy-efficient units can sell these certificates to those that couldn't meet energy saving targets

Energy Savings Certificates, introduced in 2013 by the Bureau of Energy Efficiency (BEE), have received the regulator’s nod for being traded on a separate market platform. BEE in 2013 launched tradable certificates for industries which achieved energy efficiency standards. Titled ‘Perform, achieve and trade’, the scheme aimed at major sectors such as thermal power generation, cement, fertiliser, aluminium, iron and steel, pulp and paper. These cover 65 per cent of the electricity consumed by industries.

These industries were given targets for reducing energy consumption. Over-achievement by a certain commercial unit is converted into tradable 'Energy Savings Certificate' at the end of