Renewable Energy Certificate and Perform, Achieve, Trade mechanisms to enhance the energy security for India

The Renewable Energy Certificate and Perform Achieve Trade mechanisms in India are designed to target energy generation and saving, respectively, in line with Clean Development Mechanism implemented by United Nations Framework Convention on Climate Change. The Renewable Energy Certificate System is a voluntary regulation in India for renewable energy generators and is designed for effective implementation of inter‐state transactions by introducing the Renewable Purchase Obligation regulation for consumers and a flexible trading platform for transactions across the country. Another initiative, the Perform Achieve Trade scheme, is an enhanced energy efficiency trading mechanism based on consumption targets that require large energy user sectors to improve efficiency by 1–2% per year. The Perform Achieve Trade programme has introduced mechanisms for the identification of industry sector, designated customer, specific energy consumption and target setting. The Perform Achieve Trade design issues are in test phase in the first cycle of the scheme which will run from 2012 to 2015. This paper discusses key design issues about boundary and target setting for Renewable Energy Certificate and Perform Achieve Trade energy saving certificate (ESCert) A data sharing and trading mechanism for Perform Achieve Trade is also proposed for review and coordination among regulator, designated consumers and traders in the market.