The Energy Conservation (Energy Consumption Norms and Standards for Designated Consumers, Form, Time within which, and Manner of Preparation and Implementation of Scheme, Procedure for issue or purchase of Energy Saving Certificate and Value of Per Metric Tonne of Oil Equivalent of Energy Consumed) Rules, 2012

Published vide Notification No. G.S.R. 269(E), dated 30.3.2012

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Ministry of Power

G.S.R. 269(E). - In exercise of the powers conferred by clauses (f),(g), (k), (la) and (laa) of section 56, read with clauses (g) and (o) of section 14, sub-section (1) of section 14A and section 14B of the Energy Conservation Act, 2001 (52 of 2001), the Central Government hereby makes the following rules, namely :- 1. Short title and commencement. - (1) These rules may be called the Energy Conservation (Energy Consumption Norms and Standards for Designated Consumers, Form, Time within which, and Manner of Preparation and Implementation of Scheme, [Procedure for issue or purchase of Energy Saving Certificate] and Value of Per [Metric Tonne] of Oil Equivalent of Energy Consumed) Rules, 2012. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Definitions. - (1) In these rules, unless the context otherwise requires. (a) "Act" means the Energy Conservation Act, 2001;

[(aa) "accredited energy auditor" means the accredited energy auditor firm or company or other legal entity empaneled under sub-rule (5) of rule 9;]

(b) "baseline year" means the year in which the base level of energy consumption is used as a reference point for establishment and assessment of performance with regard to compliance of energy consumption norms and standards under rule 4 and rule 6 respectively;

(c) "certification" means the process of certifying the verification report or check verification report by the accredited energy auditor to the effect that the entitlement or requirement of energy savings certificate is quantified accurately in relation to compliance of energy consumption norms and standards by the designated consumer during the target year;

[(d) "check-verification" means an independent review and ex-post determination by the Bureau through the accredited energy auditor, of the energy consumption norms and standards achieved in the target year which have resulted from activities undertaken by the designated consumer with regard to compliance of the energy consumption norms and standards;

(da) "compliance period" means the period starting from the last date of submission of the performance assessment document in Form A and ending on the last date of submission of status of compliance to the concerned state designated agency with a copy to Bureau in Form D;]

(e) "cycle" means the period of three years available to a designated consumer to comply with the energy consumption norms and standards;

[(ea) "eligible entity" means any designated consumer registered with registry who has been issued, deemed to have been issued, entitled to purchase and such designated consumers who have just met their energy consumption norms and standards and desire to trade in energy saving certificates (ESCerts) for compliance with the energy consumption norms and standards specified under clauses (g) and (p) of section 14 of the Act.]

(f) "energy consumption norms and standards" means the specific energy consumption of the designated consumer for the specified year notified under clause (g) of section 14;

(g) "Form" means the form annexed to these rules;

[(ga) "Registry" means the agency designated by the Central Government under Central Electricity Regulatory Commission (Terms and Conditions for Dealing in Energy Saving Certificates) Regulations, 2016, for the purpose of participating in the sell and purchase of ESCerts on Power exchanges and to perform such other functions as assigned to it under the said regulation.]

(h) "Rules 2007" means the Energy Conservation (the form and manner for submission of report on the status of energy consumption by the designated consumers) Rules, 2007 notified in the Official Gazette vide number G.S.R. 174 (E), dated the 2nd March, 2007;

(i) "Rules 2008" means the Energy Conservation (Form and Manner and Time for Furnishing Information With Regard to Energy Consumed and Action Taken on Recommendations of Accredited Energy Auditor) Rules, 2008 notified in the Official Gazette vide number G.S.R. 486(E), dated the 26th June, 2008;

(j) "Schedule" means the Schedule annexed to these rules:

(k) "section" means a section of the Act;

[(l) "specific energy consumption (SEC)", for energy intensive industries and other establishments, -

(i) for industries: - Specific energy consumption means ratio of the net energy input into the boundary of designated consumers of Aluminium, Cement, Chlor-Alkali, Fertilizer, Iron and Steel, Pulp and Paper and Textile industries, to the total output of equivalent major product produced in the respective designated consumers’ boundary, calculated as per the following formula, namely: -

SEC = net energy input into the designated consumers' boundary total output of equivalent major product produced in the designated consumers' boundary

and expressed in terms of the metric tonne of oil equivalent (toe)/per unit of equivalent product; (ii) for thermal power stations: - Specific energy consumption or Net Heat Rate in relation to thermal power stations or Plants means the ratio of net energy input in to the designated consumers’ boundary in terms of kilo calorie (kcal) to the net generation in terms of kilo Watt hour (kWh) on bus bar taking in to account the effect of the auxiliary power consumption (APC) and expressed in terms of kcal per kWh, calculated as per the following formula, namely: -

Net Heat Rate = Gross Heat Rate [1 - APC (%)];

Where:

- Gross Heat Rate is the ratio of net energy input in kcal to gross generation in kWh;

- Auxiliary power consumption (APC) of thermal power stations/plant excluding energy consumption in percentage of colony;

(iii) for petroleum refineries sector: - Specific energy consumption for petroleum refinery sector shall be measured in MBN which means net energy and loss of the plant calculated in Million British Thermal Unit (MMBTU) per one thousand barrels (Mbbls) per Energy factor (NRGF) and expressed by the following formula, namely: -

MBN = MMBTU/Mbbls/NRGF

Where:

MMBTU: Net Energy and loss of the petroleum refinery unit calculated in MMBTU (Million British Thermal Units)

Mbbls : Crude processed in thousand barrels

NRGF : The NRG factor (NRGF) is the indicator of the level of complexity of a refinery and overall energy factor (dimensionless unit) calculated for the refinery based on the volume of feed in each unit and its corresponding energy factor;

(iv) for railways sector:

(a) zonal railways: - Specific energy consumption for zonal railways in passenger services and goods services are expressed as below:

(1) for diesel traction: Specific energy consumption is the ratio of diesel consumption in litre per thousand of gross tonne kilometrage and shall be expressed as following:

"Litre/1000GTKm"

(2) for electrical traction: Specific energy consumption is the ratio of electrical energy consumption in kWh per thousand of gross tonne kilometrage and shall be expressed as following:

"kWh/1000GTKm"

(b) production units: - Specific energy consumption is the ratio of kilo gram of oil equivalent (KgOE) to the number of equivalent units produced and shall be taken in terms of KgOE /number of equivalent units produced and shall be expressed in the following formula, namely: -

SEC = Total energy consumption in Kg of oil equivalent (KgOE) Total number of equivalent product produced

(v) for DISCOM sector: - Transmission and distribution loss in percentage shall be used to assess energy performance of electricity distribution companies and calculated as per the following formula, namely: -

Transmission and distribution loss (%) = {1-(Total energy billed/Net input energy)*100}

Where:

- Total energy billed (Million kWh) is the Net energy billed (adjusted for energy traded);

- Net input energy (Million kWh) is the energy received at distribution periphery after adjusting the transmission losses and energy traded.

(vi) for commercial building or establishments: - Specific energy consumption for building means the annual energy consumption expressed in terms of tonne of oil equivalent per thousand square meter of the area wherein energy is used and includes the location of buildings and shall be expressed by the following formula, namely: -

SEC = Annual energy consumption in tonne of oil equivalent (toe) Total built - up area excluding parking and storage (thousand square per meter)

and expressed in terms of toe / thousand square meter.

Where:

-storage is defined as storage of waste items.

(vii) for petrochemical sector: - Specific energy consumption is measured in net energy consumed in cracker unit and secondary units producing olefin products only per total equivalent production of olefin products and expressed in terms of the metric tonne of oil equivalent (toe)per unit of equivalent product;

SEC = Net energy consumed (toe) Equivalent quantity of olefin products produced in tonne]

[(la) "State designated agency" means the agency designated and notified by a State Government under clause (d) of section 15 of the Act;]

(m) "target year" means the year by which a designated consumer shall achieve compliance with the energy consumption norms and standards;.

(n) "verification" means a thorough and independent evaluation by the accredited energy auditor of the activities undertaken by the designated consumer for compliance with the energy consumption norms and standards in the target year compared to the energy consumption norms and standards in the baseline year and consequent entitlement or requirement of energy savings certificate;

(o) "year" means the financial year beginning on the 1st day of April and ending on the 31st day of March following.

(2) Words and expressions used herein and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act. 3. Establishment of energy consumption norms and standards. - (1) The Central Government, in consultation with the Bureau, shall establish, amend or rescind the energy consumption norms and standards for designated consumers as notified under clause (g) of section 14. (2) The energy consumption norms and standards shall be specific for every designated consumer and shall be determined as under:- [(a) where the energy audit of the designated consumers' plant has been completed, energy saving measures and action plan for their implementation has been finalized in consultation with the energy manager of the plant under regulations 4 and 5 of the Bureau of Energy Efficiency (Manner and Intervals of Time for Conduct of Energy Audit) Regulations, 2010, the energy consumptions norms and standard shall be determined taking into account the following factors, namely:-

(i) timely submission of energy audit report, Form 2 and Form 3 under the Energy Conservation (Form and Manner and Time for Furnishing Information with Regard to Energy Consumed and Action Taken on Recommendations of Accredited Energy Auditor) Rules, 2008;

(ii) data furnished in the said energy audit report, Forms 2 and 3;

(iii) average rate of reduction in specific energy consumption across all the designated consumers sectors' determined on the basis of Form 1 submitted under the Energy Conservation (the Form and Manner for Submission of Report on the Status of Energy Consumption by the Designated Consumers) Rules, 2007 and energy audit reports submitted under the Bureau of Energy Efficiency (Manner and Intervals of Time for Conduct of Energy Audit) Regulations, 2010; and

(iv) policy objectives of keeping the target of reducing the specific energy consumption a few percentage points above the average rate of reduction keeping in view the incentives provided through the issue of energy savings certificate to designated consumers who achieve beyond their targets in the target year;

(aa) for the globally best designated consumer sector(s) based on comparable international benchmark, the energy consumption norms and standards shall be determined by a technical committee constituted under sub-section (3) of section 8 of the Act by taking in to account the following factors, namely:-

(i) original equipment manufacturer (OEM) design document improvements;

(ii) published international journals and documents on industrial energy efficiency of respective sectors;

(iii) certification of global best designated consumer sector from respective sectoral world renowned institution;

(ab) for the designated consumer sector(s), other than sector(s) identified on the basis of clause (aa) above, the energy consumption norms and standards shall be determined by a technical committee constituted under sub-section (3) of section 8 of the Act through the application of the following equation:-

Weighted average per cent. energy consumption norms and standards for the non-global best designated consumer sectors= (Overall percentage of norms and standards for all designated consumer sectors of respective cycle × total energy consumption of all non-global best designated consumer sector(s) (toe)) + (1/3× (Energy Savings Certificates issued - Energy Savings Certificates to be purchased, for three previous cycles irrespective of sector));

(ac) the energy consumption norms and standards of the respective designated consumer, except designated consumers of thermal power plant sector, shall be determined with the approval of the technical committee constituted under sub-section (3) of section 8 of the Act as per the following conditions, and shall not be applicable for the first cycle of designated consumers, namely:-

(i) if the difference of specific energy consumption between lowest specific energy consumption of designated consumers and weighted average specific energy consumption of designated consumers for sub-sector is more than 25 per cent. the energy consumption norms and standards for the first 10 per cent. of designated consumers covered in such sub-sector provided that the total numbers of such designated consumers is more than or equal to 10 numbers shall be equal to the baseline specific energy consumption determined for the respective cycle;

(ii) If the difference of specific energy consumption between lowest specific energy consumption of designated consumers and weighted average specific energy consumption of designated consumers in a sub-sector is less than 25 percent.the energy consumption norms and standards for the first 10percent. designated consumers in a sector provided that the number of such designated consumers is more than or equal to 10 numbers in the a said sub-sector shall be determined based on any of the following alternative equations, namely:-

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers-per cent. Energy consumption norms and standards in previous cycle of designated consumer) ? 0 then; per cent. Energy consumption norms and standards for a designated consumers = per cent. Energy consumption norms and standards in current cycle of designated consumers - (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers- per cent. Energy consumption norms and standards in previous cycle of designated consumer); or

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer - per cent. Energy consumption norms and standards in previous cycle of designated consumer) < 0, the per cent. Energy consumption norms and standards shall be as per rule 3, sub-rule (2) excluding clause (ac)); or If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer - per cent. Energy consumption norms and standards in previous cycle of designated consumer) > per cent. Energy consumption norms and standards in current cycle of designated consumers, then, the energy consumption norms and standards shall be equal to the baseline specific energy consumption determined for the respective cycle;Provided that the energy consumption norms and standards for remaining designated consumers shall be as per clauses (a), (aa), and (ab) of this sub-rule;

(iii) the specific energy consumption referred to in sub-clause (i) and (ii) shall be Normalized for power mix with weighted average heat rate of respective designated consumer of sub-sector and product mix;

(iv) the energy consumption norms and standards for the most efficient designated consumer in a sub-sector having total numbers of designated consumers less than 10 numbers, shall be determined based on any one of the following alternative equations:-

if (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers-percent.Energy consumption norms and standards in previous cycle of designated consumer) ? 0 then per cent. Energy consumption norms and standards for a designated consumer = (per cent. Energy consumption norms and standards in current cycle of designated consumer) - (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer); or

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers-per cent. Energy consumption norms and standards in previous cycle of designated consumers) <0, then the per cent. Energy consumption norms and standards shall be as per clauses (a),(aa) and (ab) of this sub-rule;or if (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer) > per cent. Energy consumption norms and standards in current cycle of designated consumers, then the energy consumption norms and standards shall be equal to the baseline specific energy consumption determined for the respective cycle);]

(b) where energy audit of the designated consumers' plant has not been completed or undertaken, the energy consumption norms and standards shall be determined taking into account the following factors, namely :-

(i) average rate of reduction in specific energy consumption across all the designated consumer sectors determined on the basis of the analysis of data of [the latest three years that is available];

(ii) policy objectives of keeping the target of reducing the specific energy consumption a few percentage points above the average rate of reduction keeping in view the incentive provided through the issue of energy savings certificate.

[(c) for the globally best designated consumer sector(s) based on comparable international benchmark, the energy consumption norms and standards shall be determined by a technical committee constituted under sub-section (3) of section 8 of the Act by taking in to account the following factors, namely:-

(i) original equipment manufacturer (OEM) design document improvements;

(ii) published international journals and documents on industrial energy efficiency of respective sectors;

(iii) certification of global best designated consumer sector from respective sectoral world renowned institution;

(d) for the designated consumer sector(s), other than sector(s) identified on the basis of clause (aa) above, the energy consumption norms and standards shall be determined by a technical committee constituted under sub-section (3) of section 8 of the Act through the application of the following equation:-

Weighted average per cent. energy consumption norms and standards for the non-global best designated consumer sectors= [Overall per cent. of norms and standard for all designated consumer sectors of respective cycle × total energy consumption of all non-global best designated consumer sector(s) (toe)] + [1/3× (Energy Saving Certificates issued - Energy Saving Certificates to be purchased, for three previous cycles irrespective of sector)];

(e) the energy consumption norms and standards of the respective designated consumer,except designated consumers of thermal power plant sector,shall be determined with the approval of technical committee constituted under sub-section (3) of section 8 of the Act as per the following conditions, and shall not be applicable for the first cycle of designated consumers, namely:-

(i) If the difference of specific energy consumption between lowest specific energy consumption of designated consumers and weighted average specific energy consumption of designated consumers for sub-sector is more than 25 per cent. the energy consumption norms and standards for the first 10 per cent. of designated consumers covered in such sub-sector provided that the total numbers of such designated consumers is more than or equal to 10 numbers shall be equal to the baseline specific energy consumption determined for the respective cycle;

(ii) If the difference of specific energy consumption between lowest specific energy consumption of designated consumers and weighted average specific energy consumption of designated consumers in a sub-sector is less than 25 per cent. the energy consumption norms and standards for the first 10 per cent. designated consumers in a sector provided that the number of such designated consumers is more than or equal to 10 numbers in the a said sub-sector shall be determined based on any of the following alternative equations, namely:-

if (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers - per cent. Energy consumption norms and standards in previous cycle of designated consumer) ? 0; per cent. Energy consumption norms and standards for a designated consumers = per cent. Energy consumption norms and standards in current cycle of designated consumers - (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers - per cent. Energy consumption norms and standards in previous cycle of designated consumer); or

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer) < 0, then the per cent. Energy consumption norms and standards shall be as per clauses (b), (c) and (d) of this sub-rule; or if (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer) > per cent. Energy consumption norms and standards in current cycle of designated consumers, then the energy consumption norms and standards shall be equal to baseline specific energy consumption determined for the respective cycle provided that the Energy consumption norms and standards for remaining designated consumers shall be as per clause (b), (c) and (d) of this sub-rule;

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers-per cent. Energy consumption norms and standards in previous cycle of designated consumer) ≥ 0 then per cent. Energy consumption norms and standards for a designated consumer = (per cent. Energy consumption norms and standards in current cycle of designated consumer) - (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer); or

If (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumers-per cent. Energy consumption norms and standards in previous cycle of designated consumers) <0, then the per cent. Energy consumption norms and standards shall be as per clauses (b), (c) and (d) of this sub-rule; or if (Achieved per cent. Energy consumption norms and standards in the previous cycle of designated consumer-per cent. Energy consumption norms and standards in previous cycle of designated consumer) > per cent. Energy consumption norms and standards in current cycle of designated consumers, then the energy consumption norms and standards shall be equal to the baseline specific energy consumption determined for the respective cycle).]

(3) Where the energy consumption norms and standards have been determined in accordance with clause (a) or clause (b) of sub-rule (2), the said methodology shall not be reviewed after the commencement of the energy consumption norms and standard notified under clause (g) of section 14. (4) The designated consumers shall achieve compliance with the energy consumption norms and standards as notified under clause (g) of section 14 within a period of three years from the date of commencement of the said notification. 4. Procedure for establishment of energy consumption norms and standards. - (1) For the purpose of establishment of energy consumption norms and standards, the technical committee set up by the Bureau shall- (a) calculate specific energy consumption in the baseline year and projected specific energy consumption in the target year covering different forms of net energy going into the boundary of the designated consumers' plant and the products leaving it over the relevant cycle on a gate-to-gate basis;

(b) in calculating the net energy input to the plant -

(i) convert the calorific values of all forms of energy sources into a single unit, namely, ton of oil equivalent using the conversion formulae specified in the Government of India, Ministry of Power notification number S.O.394(E), dated the 12th March, 2007;

(ii) consider all forms of energy that is, electricity, solid fuel, liquid fuel, gaseous fuel, or any other form of energy imported into the plant for consumption as energy for production of output;

(iii) not take into account energy consumed in the colony attached to the plant, temporary or major construction work, and for outside transportation system or energy consumed through renewable energy sources not connected to the grid;

[Explanation. - For the purpose of sub-clause (iii), connected to the grid shall mean 'synchronized with the grid';] (iv) take into account the energy exported out of the designated consumers' boundary

[(v) the designated consumer shall ensure that the reported data are collected from metered sources;]

Provided that the said designated consumer shall give adequate reasons that it was not feasible to make adjustment for energy consumed in the colony, temporary or major construction work: Provided further that such designated consumer shall make necessary arrangements for disaggregation of data for energy consumption to ensure that actual energy consumed for production is considered in the next cycle: (vi) where more than one product is produced, select the main product produced or an equivalent product worked out from the product mix as per standard practice prevalent in the concerned designated consumers sector:

Provided that where the production of the said main product is stopped, the designated consumer shall inform the necessary details in that regard to the Bureau and the concerned state designated agency; (c) calculate the specific energy consumption for the baseline year as well as for the target year and normalize it by taking into account the capacity utilization, mix of grid and captive electricity, and any other factor [which affects specific energy consumption] as specified in the [Schedule I and Schedule II];

(d) calculate the annual specific energy consumption in the baseline year by verifying the data in the previous three years, year-wise, using the data submitted by the designated consumers', under Rules 2007 and if verified, under Rules 2008;

[* * *]

(f) calculate the specific energy consumption, production, capacity utilization, in the baseline year by taking the [data] of the previous three years in the first cycle and for subsequent cycles, the provisions of rule 14 shall apply;

(g) take into consideration the effect on capacity utilization or the [plant loading, factor] or average energy consumption in the target year on account of any of the following factors, namely :-

[(i) Force majeure;]

(ii) rioting or social unrest; or

(iii) major change in the Government policy including environmental standards; or

(iv) impact of market (shortage of raw material or sales) in any of the previous three years.

(2) The said technical committee shall prepare a report containing designated consumer-specific basis of methodology referred to in sub-rule 2 of rule 3, consultation with the designated consumers, and submit the said report to the Bureau. (3) The Bureau shall examine the report submitted under sub-rule (2) and finalize its report containing its recommendation regarding the energy consumption norms and standards for each designated consumers' plant. (4) The details regarding methodology used, formulas adopted, exceptions considered, principles adopted, for preparation of energy consumption norms and standards shall be as specified in the [Schedule I and Schedule II]. (5) The Bureau shall submit the report referred to in sub-rule (3) to the Central Government. (6) The Central Government after considering the said report shall by notification,- (a) establish and specify the energy consumption norms and standards for every designated consumers' plant under clause (g) of section 14;

(b) give direction to all designated consumers for compliance with the energy consumption norms and standards under clause (n) of section 14 and inform the Bureau and all the State designated agencies.

5. Form, manner and time for preparation of scheme for implementation of efficient use of energy and its conservation. - (1) Every designated consumer, within three months of the issue of notification under sub-rule (6) of rule 4 shall submit a scheme to State designated agency with a copy to Bureau, which may include - (a) action plan containing inter-alia, a brief description of identified energy saving measures to comply energy consumption norms and standards by the target year;

(b) the estimated cost of each identified energy saving measures;

(c) implementation plan to achieve energy consumption norms and standards through implementation of energy saving measures or through purchase of energy savings certificates.

6. Assessment of performance. - (1) Every designated consumer, within [four months] of the conclusion of the target year from the baseline year shall submit to the State designated agency, with a copy to the Bureau, the performance assessment document in Form 'A' covering the performance for the relevant cycle specifying the compliance with energy consumption norms and standards, duly verified together with certificate in [Form 'B' along with verification report] given by the accredited energy auditor and accompanied by the following documents, namely:- (a) copy of unique number of registration given to the designated consumer;

(b) proof of timely submission of reports in Form 1 under Rules 2007 for the previous three years;

(c) proof of timely submission of reports in Form I, [Form 2 and Form 3] under Rules 2008 along with copies thereof including the reports for the target year;

(d) details of energy savings measures implemented for compliance with the energy consumption norms and standards in [Form 2 and Form 3] of Rules 2008, for each year, covering the relevant cycle enclosing therewith, a brief about the year-wise energy savings measures, details of investment made, photographs in support of measures implemented in each year, if feasible, and percentage improvement in energy savings achieved in every year following the baseline year until the target year;

(e) details of energy consumption norms and standards of the designated consumers in the baseline year, achievement made in every year following the baseline year and upto the target year together with the opinion of the accredited energy auditor on the achievement of energy consumption norms and standards, entitlement or requirement of energy savings certificates along with the details of calculation and correctness of entitlement or requirement duly certified by the accredited energy auditor;

(f) name and particulars of the energy manager, his date of appointment, details of duties performed including initiatives undertaken for improvement in energy conservation and energy efficiency

[(1A) If the Central Government is of the opinion that it is necessary or expedient so to do in the public interest, it may, by order, in consultation with the Bureau and subject to such conditions as may be specified in the said order, extend the time specified in sub-rule (1) for submission of Performance assessment document by class of designated consumers, for a period not exceeding two months.] [* * *] (3) The accredited energy auditor shall independently evaluate each activity undertaken by the designated consumer for compliance with the energy consumption norms and standards and entitlement or requirement of energy savings certificate, to ensure that they meet with the requirements of these rules. (4) The accredited energy auditor, in order to assess the correctness of the information provided by the designated consumer regarding the compliance with energy consumption norms and standards shall- (a) apply standard auditing techniques;

(b) follow the rules and regulation framed under the Act;

[(ba) follow the guidelines issued by the Bureau from time to time;]

(d) make independent technical review of the opinion and decision of the verification team;

[(e) also take into consideration,

(iii) for ensuring compliance with the energy consumption norms and standards, the sector specific guidelines specified in the Schedule I and Schedule II to these rules;

(iv) the procedure for assessment which shall include but not limited to the following, -

(A) Document review, involving -

(i) review of data and its source, and information to verify the correctness, credibility and interpretation of presented information;

(ii) cross checks between information provided in the audit report and, if comparable information is available from sources other than those used in the audit report, the information from those other sources and independent background investigation;

(B) follow up action, involving-

(i) site visits, interviews with personal responsible in the designated consumers’ plant;

(ii) cross-check of information provided by interviewed personnel to ensure that no relevant information has been omitted or, over or under valued;

(iii) review of the application of formulae and calculations, and reporting of the findings in the verification report.]

(5) The accredited energy auditor shall report the results of his assessment in a verification report and the said report shall contain,- (a) the summary of the verification process, results of assessment and his opinion along with the supporting documents;

(b) the details of verification activities carried out in order to arrive at the conclusion and opinion, including the details captured during the verification process and conclusion relating to compliance with energy consumption norms and standards, increase or decrease in specific energy consumption with reference to the specific energy consumption in the baseline year;

(c) the record of interaction, if any, between the accredited energy auditor and the designated consumer as well as any change made in his assessment because of the clarifications, if any given by the designated consumer.

(6) If the accredited energy auditor records a positive opinion in his verification report, the Bureau shall consider that all the requirements with regard to the compliance with energy consumption norms and standards, entitlement about issue or liability to purchase energy savings certificate have been met. (7) After submission of duly verified Form 'A' by designated consumer, state designated agency may convey its comments, if any, on Form 'A' to the Bureau [within forty-five days] of the last date of submission of Form 'A'. [(8) The designated consumer shall make necessary arrangement for taking "as fired basis" samples from auto-sampler installed at solid fuel feeding points for the purpose of fuel sampling. (9) The designated consumer shall ensure that coal samples are picked up from the auto-sampler at least once in a month and get such samples tested at the internal lab of the designated consumer and external National Accreditation Board for Testing and Calibration Laboratories (NABL)accredited lab for Gross Calorific Value (GCV) and proximate analysis of coal. (10) The designated consumer shall ensure that coal samples are picked up from the auto-sampler at least once in a quarter and get the same sample tested at external National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited lab for ultimate analysis. (11) The State designated agency shall ensure that coal samples are picked up at random through an independent agency engaged by it from the auto-sampler and get the same sample tested at the internal lab of the designated consumer and external National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited lab for GCV and proximate analysis of coal.] 7. Procedure for monitoring and verification. - (1) The designated consumer in consultation with the accredited energy auditor, shall put in place transparent, independent and credible monitoring and verification arrangements for energy consumption and production based on the Bureau of Energy Efficiency (Manner and Intervals of Time for Conduct of Energy Audit [and the Guidelines issued by the Bureau from time to time] for compliance with the energy consumption norms and standard, and the said arrangements shall include,- (a) preparation and maintenance of quarterly data reports by the designated consumers-

(i) on the performance of the plant and production processes;

(ii) on the internal field audits of plant and production processes for the purpose of identification of factors inhibiting improvements in energy efficiency and conservation, and taking of measures to reduce energy consumption and to improve energy efficiency.

(b) preparation and maintenance of yearly data reports by the designated consumers-

(i) on the performance of plant and production processes

(ii) on the outcome of internal field audits of plant and production processes identifying factors inhibiting improvements in energy efficiency and its conservation, and taking of measures to reduce energy consumption and improve energy efficiency and measures taken to improve the efficiency of the production processes during each year;

(iii) regarding a year-wise report on production achieved, energy consumed, and specific energy consumption achieved, specific energy consumption reduction achieved, measures adopted for energy conservation and quantity of energy saved;

(c) preparation and maintenance of the end of the cycle data reports on production achieved, energy consumed, specific energy consumption achieved, specific energy consumption reduction achieved, measures adopted for energy conservation and quantity of energy saved.

(2) All the activities undertaken by the designated consumers under these rules shall be scrutinized by the accredited energy auditor for the purpose of preparation of verification report and the designated consumer shall furnish the full and complete data, provide necessary documents and other facilities required by the accredited energy auditor for the purpose of performing the function of verification under these rules. 8. Check-verification. - (1) The Bureau may on its own, or on receipt of a complaint regarding any error or inconsistency or misrepresentation, within one year from the date of submission of the compliance report [* * *], shall initiate action for review of compliance report in accordance with the provision of [sub-rule (2) and (2A)]. [(2) Where the Bureau decides to undertake check-verification on its own, it shall appoint an accredited energy auditor, who has not performed the verification functions with respect to the concerned designated consumer, to conduct the check-verification and in any other case, the Bureau shall initiate action in accordance with the following procedure, namely:-] (a) a notice shall be issued to the designated consumer as well as to the accredited energy auditor who had submitted the verification report with a copy to relevant state designated agency, to provide comments in reply to the said notice [within two months] from the date of receipt of aforesaid notice;

(b) the comments furnished by the designated consumer and accredited energy auditor shall clearly state that-

(i) they stand by the compliance report and verification report submitted by them and submit a confirmation report giving point wise replies with necessary documents in response to the said notice; or

(ii) they accept the errors or inconsistencies or misrepresentation pointed out in the aforesaid notice and shall give detailed explanations in respect of each point in the notice and work out the impact of such errors or inconsistencies or misrepresentation on the submitted compliance report;

(c) within ten working days from the date of the receipt of the comments referred to in clause (b), Bureau shall after taking into consideration the said comments, decide to undertake or not to undertake review and the Bureau shall record the reasons in writing for its decision;

(d) where the Bureau, in consultation with state designated agency, decides to undertake review,

(i) it shall appoint an accredited energy auditor, who has not performed the verification functions with respect to the concerned designated consumer, to conduct the check-verification;

(ii) on a complaint, the said check-verification shall be carried out at the cost of the complainant;

(e) where the Bureau decides not to undertake the said review, the designated consumer, his accredited energy auditor, and the complainant shall be informed in that regard in writing.

[(2A) Where check-verification has been decided to be undertaken, it shall be competent for the State designated agency to supervise the completion of check-verification through its Inspecting Officer, who shall, if need be, may submit his inspection report under the Energy Conservation (Inspection), Rules, 2010 to the State designated agency, who shall take further necessary action under intimation to the Bureau.] (3) The check-verification process shall involve assessment to ensure that.- (a) the activities relating to the compliance with energy consumption norms and standards have been performed and the issue or purchase of energy savings certificate are in accordance with the provisions of these rules;

(b) the monitoring and verification process are in accordance with the provisions of [rule 7];

[(c) the details of the data and the activities referred to in rule 7 are evaluated and conclusion made that errors, omissions or misrepresentations or aggregation by way of errors, and sums thereof shall not exceed ±0.5 percent. which shall be the permissible error in terms of metric tonne of oil equivalent for the energy consumption norms and standards achieved by the activities or issue or purchase of energy savings certificate.]

(4) The said accredited energy auditor shall assess and verify that the activities performed by the designated consumer for compliance with the energy consumption norms and standards are in accordance with these rules, and the assessment and check-verification process shall involve- (a) a review of the documents as well as the on-site assessment referred to in rule 6 to verify that the activities performed to comply with the energy consumption norms and standards are in accordance with these rules and in case the aforesaid accredited energy auditor decides that it was not possible or appropriate to make a site visit, then he shall record reasons in writing in this regard;

(b) a review of both quantitative and qualitative information on the energy consumption norms and standards, the quantitative information comprising of the reported data in 'Form A', and the qualitative information comprising of information on internal management controls, calculation procedures, procedures for transfer of data, frequency of energy consumption norms and standards achieved every year following the baseline year until the target year, reports and review of internal field audit of calculations or data transfers;

(d) a review of any other information and documents relevant to or having a bearing on the activities performed under these rules;

(e) a review of the monitoring and verification process referred to in rule 7.

(5) The designated consumer shall furnish full and complete data, provide necessary documents and other facilities required by the accredited energy auditor for the purpose of performing the function of check-verification under these rules. (6) The accredited energy auditor in-charge of check-verification function shall report the results of his assessment in a check-verification report and the said report shall contain,- (a) the summary of the verification process, results of his assessment and his opinion along with the supporting documents;

(b) the details of check-verification activities carried out in order to arrive at the conclusion and opinion including the details captured during the verification process and conclusion relating to compliance with energy consumptions norms and standards, increase or decrease in specific energy consumption with reference to the specific energy consumption in the baseline year, entitlement about the issue or liability to purchase energy savings certificate.

(7) If the accredited energy auditor records in his check-verification report, a positive opinion, it shall be concluded that all the requirements with regard to the compliance with energy consumption norms and standards ans the issue or purchase or energy savings certificates have been met. (8) If the accredited energy auditor records in his check-verification report, a negative opinion, the effect of such opinion on the energy consumption norms and standards, issue or purchase of energy savings certificate the liability of the accredited energy auditor in giving the verification report and amount of the unfair gain gained by the designated consumer as a result of such verification report shall be calculated by the accredited energy auditor conducting the check-verification. (9) The accredited energy auditor in-charge of check-verification shall submit his report with due certification in Form 'C' to the Bureau and the concerned State Designated Agency. (10) Where the verification report given by the accredited energy auditor secures an unfair or undue gain due to the deficiencies or inconsistencies or errors or misrepresentation by the designated consumer, the quantum of such gain shall be calculated having regard to the following factors, namely- (a) the value of the amount payable by such designated consumer shall be as worked out in the verification report plus twenty-five per cent of such value because of unfair practice used by the said designated consumer for obtaining unfair advantage:

[(b) the amount of metric tonne of oil equivalent of energy on account of unfair gain identified due to check-verification and the price of the said amount of energy shall be calculated as per rule 16 based on the assessment year of the respective cycle.]

[(ba) the value of per metric tonne of oil equivalent of energy shall be taken from notified value of the respective target year under these rules;]

(11) The State designated agency may furnish its comments on the report within [one month] from the receipt of the report from the said accredited energy auditor and in case no comments are received from the concerned state designed agency, it shall be presumed that they have no comments to offer in the matter. (12) The Bureau after the expiry of ten days referred to in sub-rule (11), shall issue show cause notice to the designated consumer as well as to his accredited energy auditor specifying the deficiencies or inconsistencies or errors or misrepresentation noticed against the designated consumer and his accredited energy auditor. (13) The designated consumer as well as his accredited energy auditor shall submit their replies to the said show cause notice within a period of fifteen working days to the officer of the Bureau who has issued that show cause notice. (14) The Bureau after examining the said replies to the show cause notice referred to in sub-rule (13), shall forward the report to the concerned State designated agency specifying the following details for the purpose of initiating the penalty proceedings, namely:- (a) the number of energy savings certificates wrongfully obtained by the designated consumer on the basis of verification report found to be wrong and false on check-verification;

(b) the number of energy savings certificates which the designated consumer was liable to purchase for non-compliance with the energy consumption norms and standards as found in the check-verification report;

(d) the cost of check-verification.

(15) The State designated agency within two months from the date of the receipt of the report referred to in [sub-rule (14)] shall initiate- (a) action to recover from the designated consumer the loss to the Central Government by way of unfair gain to the designated consumer;

(b) penalty proceedings against the persons mentioned in the said report, under intimation to the Bureau;

(c) register complaint for such fraudulent unfair gain if designated consumer does not pay penalty and loss to the exchequer in the specified time mentioned in the penalty proceedings.

(16) Where the check-verification has been initiated on the basis of a complaint received by the Bureau, the cost of check-verification shall be borne by the complainant, in case it was found on check-verification that the designated consumer has submitted correct information in Form 'A'. (17) Where the check-verification has been initiated on the basis of a complaint received by the Bureau, the cost thereof shall be borne by the designated consumer in case it was found on check-verification that the designated consumer has submitted false and incorrect information in Form 'A'. 9. Procedure regarding compliance with energy consumption norms and standards and issue of energy savings certificate. - (1) A firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a company incorporated under the Companies Act, 1956 (1 of 1956) or any other legal entity competent to sue or to be sued or enter into contracts shall be entitled to undertake verification and check-verification regarding compliance with the energy consumption norms and standards and issue or purchase of energy savings certificate if it,- (a) has at least one accredited energy auditor whose name is included in the list of the accredited energy auditors maintained by the Bureau under regulation 7 of the Bureau of Energy Efficiency (Qualifications for Accredited Energy Auditors and Maintenance of their List) Regulations, 2010;

[(b) has at least three certified energy auditors certified by the Bureau;]

[(ba) has at least one sector expert with experience of more than ten years in the said sector applied for, if Accredited Energy Auditor has the required experience in a specific sector, the same shall be treated as sector specific experience;

(bb) The Empanelment of the AEA firm shall be sector specific based on the experience of sector experts engaged by the firm.]

(c) has adequate expertise of field studies including observations, probing skills, collection and generation of data, depth of technical knowledge and analytical abilities for undertaking verification and check-verification;

(d) has a minimum turnover of ten lakhs rupees per annum in at least one of the previous three years or in case of a newly formed organization, a net worth of ten lakhs rupees.

(2) The Bureau shall invite applications from the firms, companies and other legal entities to undertake the work of verification and check-verification for the purpose of preparing a panel of such firms, companies and other legal entities. (3) The applications referred to in sub-rule (2) shall be accompanied by a certificate of registration or incorporation as the case may be. [(4) The applications so received shall be scrutinised in accordance with the provisions of sub-rule(1) and interaction shall be held covering the duties, responsibilities and obligations specified in rule 10 having regard to their associates and sector experts, and a panel of eligible applicants shall be prepared which shall be displayed on the website of the Bureau.] (5) The selected applicants shall be issued a certificate of empanelment in support their selection to undertake the function of verification and check-verification as accredited energy auditor [and shall be renewed after every five years based on the extant provisions in force.] (6) A unique identification number shall be issued to the accredited energy auditors referred to in sub-rule (5). [(7)(a) The Bureau shall cancel the empanelment of the firm referred to in sub-rule (5), if it fails to comply with any of the provisions specified in the Act or in these rules during the course of performing the function of verification or check verification, and if such non-compliance is concomitant with - (i) any commission or omission amounting to professional misconducts; or

(ii) any misrepresentation of fact or data or reports on energy consumption; or

(iii) any act amounting to fraud; or

(iv) the empaneled firm fails to maintain its empaneled team in case in any of the team members has left the said firm and the resultant vacancy has not been filled within a period of three months from the date of the said vacancy:

Provided that no such cancellation shall be done by the Bureau without giving an opportunity of being heard to such firm. (b) Every such person borne on the strength of the firm, referred to in clause (a), who at the time of such non-compliance was in charge of, and was responsible to the said firm for the conduct of the business of that firm, the said firm as well as the said person who directly or indirectly helped the designated consumer in contravention of any of the provision of section 26 of the Act shall be deemed to have acted in contravention of the said provision and shall be liable to proceeded against for imposition of penalty specified in that section.

(c) The Bureau shall cancel the accreditation of Accredited energy auditor, certification of certified energy auditor or certified energy manager under the respective regulations, namely the Bureau of Energy Efficiency (Qualifications for Accredited Energy Auditors and Maintenance of their List) Regulations, 2010 and the Bureau of Energy Efficiency (Certification Procedures for Energy Managers) Regulations, 2010 if any of them was involved in any of the activities referred to clauses (a) and (b):

Provided that no such cancellation shall be done by the Bureau without giving an opportunity of being heard to such persons.] 10. Obligations of accredited energy auditor. - (1) For the work of verification or check verification, the accredited energy auditor shall constitute a team comprising of a team head and other members including experts: Provided that a person who was in the employment of a designated consumer within the previous four years, shall not be eligible to perform the work of verification or check-verification for such designated consumer; Provided further that any person or firm or company or other legal entity, who was involved in undertaking energy audit in any of the designated consumer within the previous four years, shall not be eligible to perform the work of verification or check-verification for such designated consumer. (2) The accredited energy auditor shall ensure that persons selected as team head and team members must be independent, impartial and free of potential conflict of interest in relation to activities likely to be assigned to them for verification or check-verification. (3) The accredited energy auditor shall have formal contractual conditions to ensure that each team member of verification and check-verification teams and technical experts act in an impartial and independent manner and free of potential conflict of interest. (4) The accredited energy auditor shall ensure that the team head, team members and experts prior to accepting the assignment inform him about any known, existing former or envisaged link to the activities likely to be undertaken by them regarding verification and check verification. (5) The accredited energy auditor must have documented system for determining the technical or financial competence needed to carry out the functions of verification and check-verification and in determining the capability of the persons referred to in sub-rule (2), the accredited energy auditor shall consider and record among other things the following aspects, namely:- (a) complexity of the activities likely to be undertaken;

(b) risks associated with each project activity;

(d) size and location of the designated consumer;

(e) type and amount of field work necessary for the verification or check-verification.

(6) The accredited energy auditor shall have documented system for preparing the plan for verification or check-verification functions and the said plan shall contain all the tasks required to be carried out in each type of activity, in terms of man days in respect of designated consumers for the purpose of verification and check-verification. (7) The names of the verification or check-verification team members and their bio-data shall be provided by the accredited energy auditor to the concerned designated consumer in advance. (8) The verification or check-verification team shall be provided by the accredited energy auditor with the concerned working documents indicating their full responsibilities with intimation to the concerned designated consumer. (9) The accredited energy auditor shall have documented procedure- (i) to integrate all aspects of verification or check-verification functions;

(ii) for dealing with the situations in which an activity undertaken for the purpose of compliance with the energy consumption norms and standards or issue of energy savings certificate shall not be acceptable as an activity for the said purposes.

(10) The accredited energy auditor shall conduct independent review of the opinion of verification or check-verification team and shall form an independent opinion and give necessary directions to the said team if required. (11) In preparing the verification and check-verification reports, the accredited energy auditor shall ensure transparency, independence and safeguard against conflict of interest. (12) The accredited energy auditor shall ensure the confidentiality of all information and data obtained or created during the verification or check verification report. (13) In assessing the compliance with the energy consumption norms and standards and issue of energy savings certificates, the accredited energy auditor shall follow the provisions of the Act, rules and regulations made thereunder. [(13A) Any deviation from rules 6, 7, 8 and rule 9, and required professional conduct for verification or check verification by accredited energy auditor shall attract action under the relevant provisions of the Bureau of Energy Efficiency (Qualifications for Accredited Energy Auditors and Maintenance of their List) Regulations, 2010.] (14) After completion of the check-verification, the accredited energy auditor shall submit the check-verification report, together with the certificate in Form-'C', to the Bureau. 11. Recommendation for issue of energy savings certificates. - (1) The Bureau on satisfying itself about the correctness of verification report, and check-verification report, wherever sought by it, send its recommendation under clause (aa) of sub-section (2) of section 13 to the Central Government, based on the claim raised by the designated consumer in Form 'A', within ten working days from the last date of submission of said Form 'A' by the concerned state designated agency, for [issue or to purchase] of energy savings certificates under section 14A and the recommendation shall specify. - (a) the exact number of energy savings certificates to be issued to the designated consumer and the entitlement for such energy savings certificates after determining by the following formula:

(i) for thermal power plant sector:

number of energy savings certificates = (heat rate notified for the target year - heat rate as achieved in the target year) x production in the baseline year in million kwh/l0

[(ia) for petroleum refinery sector :

Number of energy savings certificates = (MBN notified for the target year - MBN as achieved in the target year) × crude processed in the baseline year in thousand barrels x NRGF x 2.52 x 10-2;

(ib) for Railway sector :

(A) Zonal Railways (Traction)

a = (specific energy consumption (Diesel traction - passenger) notified for target year - specific energy consumption (diesel traction - passenger) as achieved in target year) x 1000 GTkm (diesel traction - passenger) of baseline year.

b = (specific energy consumption (Diesel traction - goods) notified for target year - specific energy consumption (diesel traction goods) as achieved in target year) x 1000 GTkm ([diesel traction - goods]) of baseline year.

c = (specific energy consumption (electrical traction - passenger) notified for target year - specific energy consumption (electrical traction - passenger) achieved in target year) x 1000 GTkm (electrical traction - passenger) of baseline year.

d = (specific energy consumption (electrical traction-goods) for target year - specific energy consumption (electrical traction-goods) achieved in target year) x 1000 GTkm (electrical traction-goods) of baseline year.

Then Energy Saving Certificates (ESCerts)=((a+b)/1022) + ((c+d)/11630)

[(B) for Production factories:

= Number of energy saving certificates [{SEC notified for target year - SEC achieved in target year} Xnumber of equivalent units produced in baseline year] 1000]

(ic) for Electricity Distribution Company sector

Number of energy savings certificates = (per cent % Transmission and Distribution Loss notified for the target year - per cent % Transmission & Distribution Loss as @ achieved in the target year)

(* Oil Equivalent Conversion Factor (OEC)) EC x 86 100] [(id) for Commercial Buildings or establishments:

Number of energy savings certificates =

{Specific energy consumption notified for the target year - Specific energy consumption achieved in the target year} X total built up area excluding parking and storage (thousand-meter square) in the baseline year.

(ie) for petrochemical sector:

Number of energy savings certificates =

{Specific energy consumption notified for the target year - Specific energy consumption achieved in the target year} X total equivalent production of olefin products in the baseline year.]

(ii) for other sectors:

number of energy savings certificates = (specific energy consumption notified for the target year - specific energy consumption as achieved in the target year) x production in the baseline year

(b) the identity of the concerned designated consumers;

(c) the certification that all the requirements for issue of energy savings certificates have been complied with, by the designated consumer and his entitlement has been certified in the verification report by the accredited energy auditor.

[(2) The designated consumer may seek issue of energy saving certificates based on performance achieved during the target year with respect to compliance with the energy consumption norms and standards, and the Bureau on satisfying itself about the correctness of verification report, and check-verification report, wherever sought by it, send its recommendations under clause (aa) of sub-section (2) of section 13 of the Act to the Central Government, based on the claim made by the designated consumer in Form 'A' for issue of energy saving certificates under section 14A of the Act.] (3) The total amount of energy savings certificates recommended under sub rule (2) shall be adjusted against the entitlement on conclusion of the target year as per the following formulae:- (A) for thermal power plant sector:

(i) energy savings certificate to be issued after year 1 = {[heat rate in the baseline year - (heat rate in the baseline year - heat rate notified for the target year) ÷ 3] - heat rate achieved in year 1} x 80% x production in million kwh in the baseline year/10;

(ii) adjusted heat rate after year 1 = heat rate notified for target year - (energy savings certificates issued in year 1 ÷ production in million kwh in the baseline year) x 10;

(iii) energy savings certificate to be issued after year 2 = {[heat rate in the baseline year - (heat rate in the baseline year - heat rate adjusted after year 1) x 2 ÷ 3] - heat rate achieved in year 2} x 80% x production in million unit in the baseline year/ 10;

(iv) adjusted heat rate after year 2 = heat rate adjusted after year 1 - (energy savings certificates issued in year 2 ÷ production in million in the baseline year) x 10

(v) energy savings certificate to be issued in the target year = {[heat rate in the baseline year - (heat rate in the baseline year - heat rate adjusted after year 2)] - heat rate achieved in the target year} x production in million kWh in the baseline year/ 10;

(vi) total number of energy savings certificates issued in the cycle = energy savings certificates issued in year 1 + energy savings certificates issued in year 2 + energy savings certificates issued in target year.

(B) for other sectors:

(i) energy savings certificate to be issued after year 1 = {[specific energy consumption in the baseline year - (specific energy consumption in the baseline year - specific energy consumption notified for the target year) ÷ 3] - specific energy consumption achieved in year 1} x 80% x production in the baseline year;

(ii) adjusted specific energy consumption after year 1 = specific energy consumption notified for target year - (energy savings certificates issued in year 1 ÷ production in the baseline year);

(iii) energy savings certificate to be issued after year 2 = {[specific energy consumption in the baseline year - (specific energy consumption in the baseline year - specific energy consumption adjusted after year 1) x 2 ÷ 3] - specific energy consumption achieved in year 2} x 80% x production in the baseline year;

(iv) adjusted specific energy consumption after year 2 = specific energy consumption adjusted after year 1 - (energy savings certificates issued in year 2 ÷ production in the baseline year)

(v) energy savings certificate to be issued in the target year = {[specific energy consumption in the baseline year - (specific energy consumption in the baseline year - specific energy consumption adjusted alter year 2)] - specific energy consumption achieved in the target year} x production in the baseline year;

12. Procedure for issue of energy savings certificate. - [(1) The Central Government, on the receipt of recommendation from the Bureau under rule 11, shall on satisfying itself in this regard, [issue or entitled to purchase] energy savings certificates of required value to the concerned designated consumer within forty-five days from the date of receipt of such recommendation from the Bureau.] (2) The energy savings certificate shall be issued in electronic form. [(3) The value of one energy savings certificate shall be equal to one metric tonne of oil equivalent of energy consumed and shall be rounded off to nearest whole number as per IS 2 : 1960.] (4) The designated consumer who has been issued energy savings certificates may sell them through the power exchange. [(5) The designated consumer who has been issued energy savings certificates during the current cycle may use them for the purpose of banking and the energy savings certificates issued shall remain valid till the completion of the compliance period of their next cycle.] [(6) The designated consumers may use the banked energy saving certificates, if any, referred to in sub-rule (5) for the purpose of compliance of the next cycle or may sell them to any other designated consumer for the compliance within the validity period.] [(6a) The designated consumer, - (i) whose specific energy consumption is more than the prescribed norm and standards shall be eligible to purchase the energy saving certificates to ensure compliance with the prescribed norms and standard specified under clause (g) and clause (p) of the section 14 of the Act;

(ii) who have achieved the energy consumption norms and standards but has not been issued energy saving certificates shall also be eligible to purchase energy saving certificates during the trading sessions for meeting their compliance of next compliance cycle.]

(7) The energy savings certificates purchased by a designated consumer for the purpose of compliance with the energy consumption norms and standards shall after their submission to the Bureau stand expired. [(8) The Central Electricity Regulatory Commission shall function as the Market Regulator to promote market for development of energy saving certificates (ESCerts) including trading on power exchange(s) and discharge such other functions as may be considered necessary for the purpose.] 13. Compliance of energy consumption norms and standards. - (1) The designated consumer for the purpose of achieving the compliance with the energy consumption norms and standards during the target year, in the relevant cycle shall take the following action and after completing the said action, furnish the status of compliance to the concerned state designated agency with a copy to the Bureau in Form 'D' [eight months from the last date of submission of Form 'A']. (a) by implementation of energy conservation and energy efficiency improvement measures or;

(b) where the measures implemented in terms of clause (a) are found inadequate for achieving compliance with the energy consumption norms and standards, the designated consumer shall purchase the energy savings certificates equivalent in full satisfaction of the shortfall in the energy consumption norms and standards worked out in terms of [metric tonne] of oil equivalent.

[(2) The designated consumer may use balanced energy saving certificates after the compliance, if any, for the purpose of banking and such banked energy saving certificates may be used for the compliance of the next cycle.] 14. Establishment of new baseline for next cycle. - The energy consumption norms and standards achieved by the designated consumer on the completion of the target year, as mentioned in the compliance report in [Form A and Form B] shall be the baseline for establishment of new plant specific energy consumption norms and standards for designated consumers for the next cycle. 15. Obligations of the designated consumers. - The designated consumers shall,- (a) for assessment of their performance for compliance with the energy consumption norms and standards, get the work of verification done through accredited energy auditors;

(b) take all measures including implementation of energy efficiency projects recommended by the accredited energy auditor and good practices prevalent or in use in the concerned industrial sector so as to achieve the optimum use of energy in their plant;

(c) furnish the full and complete data, provide necessary documents and other facilities required by the accredited energy auditor for the purpose of performing the function of verification and check-verification.

16. Specification of value of energy. - [(1) The value of per metric tonne of oil equivalent of energy consumed, as on the 1st day of April of the year for which value of energy is being specified, shall be determined by applying the following formula, namely:- P = Wc x Pc+Wo x Po+Wg x Pg + We x Pe Where,- P = price of one metric tonne of oil equivalent for the specified year (1toe); Pc = average price of delivered coal in terms of rupees per tonne of oil equivalent, from the data made available by the designated consumers for the last financial year; Po = average price of fuel oil in terms of rupees per tonne of oil equivalent from the data made available by the designated consumers for the last financial year; Pg = average price of gas in terms of rupees per tonne of oil equivalent from the data made available by the designated consumers for the last financial year; Pe = average price of electricity in terms of rupees per tonne of oil equivalent for industrial sector in the States of Chattisgarh, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu as specified by the respective State Electricity Regulatory Commission; all prices shall be as on the 1st day of April of the year for which value of energy is being specified. Weightage of coal (Wc) = amount of coal consumed across all designated consumers in the baseline year (in toe) total energy consumption across all designated consumers in the baseline year (in toe) Weightage of oil (Wo) = amount of oil consumed across all designated consumers in the baseline year (in toe) total energy consumption across all designated consumers in the baseline year (in toe) Weightage of gas (Wg) = amount of gas consumed across all designated consumers in the baseline year (in toe) total energy consumption across all designated consumers in the baseline year (in toe) Weightage of electricity (We) = amount of electricity consumed across all designated consumers in the baseline year (in toe) total energy consumption across all designated consumers in the baseline year (in toe)] (2) The value of per [metric tonne] of oil equivalent of energy consumed for the purpose of these rules shall be rupees 10154 for the year 2011-12. [(2A) The value of per metric tonne of oil equivalent of energy consumed for the purpose of these rules shall be ten thousand nine hundred and sixty eight rupees(Rs. 10968) for the year 2014-15 and shall be such as may be specified by the Central Government, by notification in the Official Gazette, for the succeeding target years.] (3) The value of per [metric tonne] of oil equivalent of energy consumed shall be reviewed every year for the purpose of sub-rule (2).

[Form-A]

[See rule 6 (1)]

Performance Assessment Document

(To be filled by designated consumer)

1.	Name of designated consumer
2.	Registration number
3.	Sector
4.	Sub-sector
5.	Accredited Energy Auditor
a	Name of the Empaneled Accredited Energy Auditor Firm
b	Registration number of Firm
6.	List of documents submitted (Attach a copy self attested by Energy Manager and counter signed by Accredited Energy Auditor)
a.	Baseline data				Submitted/Not submitted		Date of submission
b.	Form 1 of Rules, 2007 or Rules, 2008 ( ) Specify the year in the bracket				Submitted/Not submitted		Date of submission
c.	Form 1 of Rules, 2007 or Rules, 2008 ( ) Specify the year in the bracket				Submitted/Not submitted		Date of submission
d.	Form 1 of Rules, 2007 or Rules, 2008 ( ) Specify the year in the bracket				Submitted/Not submitted		Date of submission
e.	Form 2 of Rules, 2008				Submitted/Not submitted		Date of submission
f.	Form 3 of Rules, 2008				Submitted/Not submitted		Date of submission
7.	Specific energy consumption
a.	Specific energy consumption (baseline) as notified						toe/tonne or Net Heat Rate, kcal/kWh or Energy Performance Index, as specified for a particular sector
b.	Production (baseline) as notified						Tonne or Million kWh
c.	Target specific energy consumption (SEC) as Notified						Toe/ tonne or Net Heat Rate, kcal/kWh or Energy Performance Index, as specified for a particular sector
d.	Difference of Baseline specific energy consumption (SEC) and Target specific energy consumption (SEC) as notified						Toe/ tonne or Net Heat Rate, kcal/ kWh or Energy Performance Index, as specified for a particular sector (a-c)
e.	Normalized specific energy consumption (Achieved in the target year)						Toe/ tonne or Net Heat Rate, kcal/ kWh or Energy Performance Index, as specified for a particular sector
f.	Energy savings certificates to be issued or deficit						Nos [(c-e)xb] or [(ce) xb]/ 10
8.	Energy Efficiency Project implemented during current cycle (Mention cycle period: …………………….)
S. No	Project	Year of Implementation	Annual Energy Savings in Lakh kWh	Annual Energy Saving in toe*	Annual Energy consumption (before) in toe	Annual Energy consumption (after) in toe	Energy cost (Rs. per kWh or toe)	Investment (Rs. crores)
a.
b.
c.
d.
e.
f.

* Please indicate the weighted average Gross Calorific Value (GCV) of coal considered for calculation of toe : ........ kcal/kg.

Note 1: Form A may be filled in accordance with the following guidelines, namely:-

Guidelines

1. Name of designated consumer: As per notification under clause (g) of section 14.2. Registration No: As provided by Bureau of Energy Efficiency3. Sector: As specified in Form 1 of Rules, 2007 or Rules, 2008.4. Sub-sector: As specified in Form 1 of Rules, 2007 or Rules, 2008.5. Name of accredited energy auditor: As selected by designated consumer from list of accredited energy auditor empaneled by Bureau of Energy Efficiency.6. List of documents submitted:

(a) Baseline data: Submitted to Bureau of Energy Efficiency for Target Calculations

(b) Form 1 of Rules, 2007 or Rules, 2008 mention the year ( ): As per filing, attach acknowledgement of submission i.e. after completion of 1st year after notification

(c) Form 1 of Rules, 2007 or Rules, 2008.mention the year ( ): As per filing, attach acknowledgment of submission i.e. after completion of 2nd year after notification

(d) Form 1 of Rules, 2007 or Rules, 2008.mention the year ( ): As per filing, attach acknowledgment of submission i.e. after completion of target year

(e) Form 2 of Rules 2008: As per filing, attach acknowledgment of submission

(f) Form 3 of Rules 2008: As per filing, attach acknowledgment of submission

7. Specific energy consumption (SEC)

(a) Specific energy consumption (Baseline): As notified by Government of India as aforesaid.

(b) Production (Baseline): As notified by Government of India as aforesaid.

(d) Normalized specific energy consumption (Achieved): Normalized specific energy consumption (Achieved) in the target year from Form 1 of Rules, 2007 and Rules, 2008.

(e) Energy savings certificates: Calculate as per formulae provided in the rule 11.Enter +ve value if energy savings certificates to be issued to designated consumer or enter -ve value in case recommended for purchase of energy savings certificates

8. Project implemented during current cycle: Energy efficiency projects implemented by designated consumers during last three years. Attach photograph of energy savings projects implemented.

Undertaking

I/ We undertake that the information supplied in this Performance Assessment Document is accurate to the best of my knowledge and if any of the information supplied is found to be incorrect and such information result into loss to the Central Government or State Government or any of the authority under them or any other person affected, I/we undertake to indemnify such loss.I/ We agree to extend necessary assistance in case of any inquiry to be made in the matter.

Signature

Name

Designation

For and behalf of

Name of the Firm/ Company/ Organization

SEAL of the Firm/ Company/ Organization

Form B

[See rule 6(1)]

Certificate of Verification.

M/s ____________________ the accredited energy auditor,[(Name of the Empaneled Accredited Energy Auditor Firm)]have undertaken a thorough independent evaluation of the activities undertaken by M/s. ___________ ,a designated consumer for compliance with the energy consumption norms and standards specified under the Government of India Ministry of Power notification number ____________, dated the _____________ during the target year compared to the baseline year and consequent entitlement or requirement of energy savings certificates and certify that-

(a) the verification of the data collection in relation to energy consumed and specific energy consumption per unit of production in the baseline year and in the target year in Form 1 under Rules 2007 or Rules 2008, has been carried out diligently and truthfully;

(b) the verification of the identified energy efficiency measures, and the progress of their implementation given in [Form 2 and Form 3] under Rules 2008 has been carried out diligently and truthfully;

(c) the verification of the compliance with energy consumption norms and standards during the target year has been carried out diligently and truthfully;

(d) the verification of the total amount of energy saved, year-wise, after the baseline year and until target year or otherwise and request made by the designated consumer, the entitlement of __________ (Nos) energy savings certificate (s) required to be issued or purchased by him have been carried out diligently and truthfully;

(e) all reasonable professional skill, care, and diligence have been taken in verifying the various verification activities, findings and conclusions, documents, reports, preparing the documents including the performance assessment document in Form 'A' and verification report and the contents thereof are a true representation of the facts.

Signature Name of accredited energy auditor for verification Designation:

Form C

[See rule 8(9) and 10(14)]

Certificate of Check - Verification

[M/s] ____________ the accredited energy auditor [(Name of the Empaneled Accredited Energy Auditor Firm)], have undertaken a through independent evaluation of the activities undertaken by M/s. _________ ,a designated consumer for compliance to the energy consumption norms and standards specified under the Government of India Ministry of Power notification numbers ___________, dated the _____________ dating the target year compared to the baseline year and consequent entitlement or requirement of energy savings certificates, mentioned in the Performance Assessment Document in Form 'A' and compliance of energy consumption norms and standard document in Form 'D' and certify that-

(a) the check-verification of the data collection in relation to energy consumed and specific energy consumption per unit of production in the baseline year and in the target year in Form 1 under Rules 2007 or Rules 2008, has been carried out diligently and truthfully;

(b) the check-verification of the identified energy efficiency measures, and the progress of their implementation given in [Form 2 and Form 3] under Rules 2008 has been carried out diligently and truthfully;

(c) the check-verification of the compliance with energy consumption norms and standards during the target year has been carried out diligently and truthfully;

(d) the check-verification of the total amount of energy saved, year-wise, after the baseline year and until target year or otherwise and request made by the designated consumer, the entitlement of ___________ (Nos) energy savings certificate (s) required to be issued or purchased by him have been carried out diligently and truthfully;

(e) all reasonable professional skill, care, and diligence have been taken in check-verifying the various verification activities, findings and conclusions, documents, reports, preparing the documents including the information given in the Performance Assessment Document in Form 'A' and verification report submitted by the accredited energy auditor appointed by the designated consumer .............................. for verification and the contents thereof are a true representation of the facts.

Signature Name of accredited energy auditor for verification Designation: [Name of the Empaneled Accredited Energy Auditor Firm:]

Form-D

[(See rule 13 and 14)]

Compliance of Energy Consumption Norms and Standard Document

(To be filled in designated consumer)

1.	Name of designated consumer

2.	Registration number
3.	Sector
4.	Sub-sector
5.	List of documents submitted
a.	Performance Assessment Document (Form 'A')	Submitted/ Not submitted	Date of submission
6.	Compliance
a.	Energy Savings Certificates		Issued/ Recommended for purchase
b.	Energy Savings Certificates submitted for compliance		If recommended for purchase
c.	Balance Energy Savings Certificates		Nos

Note 1: Form D may be filled in accordance with the following guidelines:-

Guidelines

1. Name of designated consumer: As per notification from Government of India (Gol) under clause (g) of section 142. Registration number: As per E-filing[3. Sector: As specified in Form - A4. Sub-sector: As specified in Form-A.]

Sector	Basis for Sub-sector	Sub-sector
Thermal Power Plant	Fuel Based	Coal, Gas, Oil
Cement	Process Based	Dry, Wet
Iron and Steel	Operation Based	Integrated Sponge Iron
Fertilizer	Feedstock Based	Natural Gas, Naptha
Aluminum	Product Based	Refinery Smelter
Pulp and Paper	Raw Material Based	Wood, Agro, Recycled Fibre
Textile	Operation Based	Spinning Processing Composite, Fiber yarn
Chlor-Alkali	Technology based	Membrane cell, Mercury

5. List of Documents submitted:

(a) Performance assessment document: Submitted to Bureau of Energy Efficiency for issue of energy savings certificates.

6. Compliance

(a) Energy savings certificates: Enter +ve value if energy savings certificates issued to designated consumer or enter -ve value in case recommended for purchase of energy savings certificates

(b) Energy savings certificates submitted for compliance: If designated consumer is recommended for purchase of energy savings certificates, then enter value of energy savings certificates submitted by designated consumer for compliance of energy consumption norms and standards saving target of designated consumer.

(c) Balance energy savings certificates: Numbers of energy savings certificates balance. If balance is Zero than DC is in accordance for compliance of energy saving target and if balance is -ve than DC will be recommended for penalty.

Undertaking

I/We undertake that the information supplied in compliance with energy consumption and standard documents in this Form 'D' is accurate to the best of my/our knowledge and if any of the information supplied is found to be incorrect and such information result into loss to the Central Government or State Government or any of the authority under them or any other person affected, I/we undertake to indemnify such loss.I/we agree to extend necessary assistance in case of any enquiry is made in the matter

Signature Name Designation For and behalf of Name of the Firm/Company/Organization Seal of the Firm/Company/Organization

[Schedule I]

[See rules 2(j) and 4(4)]

1. Determination of specific energy consumption.-

1.1. Specific energy consumption (See rule 2(l))

(a) The specific energy consumption (SEC) gives the indication of efficient utilization of different sources of energy in a plant operational boundary to produce one unit of product, which is defined as the ratio of total energy input to plant boundary and the quantity of products produced and specific energy consumption of an industry shall be calculated based on Gate-to-Gate concept with the following formula:-

Specific Energy Consumption =

Net energy input into the designated consumers' boundary

Total quantity of output exported from the designated consumers' boundary

and expressed in terms of the metric ton of oil equivalent (toe)/per unit of product;

Note: For first cycle, value to be rounded to three decimal places except for cement sector and refinery sector for which value to be rounded to four decimal places. For second cycle, the value to be rounded to four decimal places except for thermal plant sector, electricity distribution companies and railways sector for which value to be rounded to two decimal places.

Table 1: Definition of product to calculate specific energy consumption

Sector	Main product	Unit
Cement	Cement	Tonne
Fertilizer	Urea	Tonne
Iron and Steel (Integrated)	Crude Steel	Tonne
Iron and Steel (Sponge Iron)	Sponge Iron	Tonne
Aluminum (Refinery)	Alumina	Tonne
Aluminum (Smelter)	Molten Aluminum	Tonne
Aluminum (Integrated)	Molten Aluminum	Tonne
Pulp and Paper (Pulping)	Pulp	Tonne
Pulp and Paper (Only Paper Making)	Paper	Tonne
Pulp and Paper (Pulp and Paper)	Paper	Tonne
Textile (Spinning)	Yarn	Kg
Textile (Composite)	Yarn/ Fabric	Kg
Textile (Fibre)	Fibre	Kg
Textile (Processing)	Fabric	Kg
Chlor-Alkali	Equivalent Caustic Soda	Tonne
Power Plant	Electricity	Million kWh
Petroleum Refineries	Crude/ Petroleum Products	Thousands BBLs
Railways-Traction	Transportation	GTKM
Railways – Production Factories	Locomotives/ Coaches/ Wheels etc.	Numbers
Electricity Distribution Companies	Electricity	Million kWh

1.2. Gate-to-Gate designated consumer boundary (sector-specific)

(a) As the specific energy consumption (SEC) is calculated on a Gate-to-Gate concept, the entire designated consumers' plant boundary shall be selected in such a manner that the total energy input and the above products defined in Table 1 are fully captured.

(b) Once the designated consumers' boundary has been fixed, the same boundary shall be considered for entire cycle, and any change in the said boundary such as capacity expansion, merger of two plants, division of operation etc. shall be duly intimated to the Bureau of Energy Efficiency.

Case -I: All energy purchased and consumed:-

Electricity is purchased from the grid

Case -II: Electricity partially generated by diesel generating (DG) set, other energy purchased and consumed:-
Electricity is purchased from the grid and generated by DG set

Case -III: Electricity generated by captive power plant and other energy purchased and consumed, electricity partially sold to grid:-
Electricity is generated by coal based captive power plant, partially sold to grid-

Case -IV: Electricity generated by captive power plant (CPP), other energy purchased and consumed, electricity partially sold to grid from captive power plant:-
Electricity is generated by coal based captive power plant, partially sold to grid and captive power plant is in separate boundary-

Case -V: Energy purchased and consumed, electricity and heat partially generated through co-generation plant

Electricity and heat are generated by co-generation Plant-

Case-VI: Energy purchased and consumed, heat energy partially met by waste or by-product of the process-

1.3. Methodology for calculating baseline specific energy consumption for cycle 2012-13 to 2014-15.-

(a) During the first cycle designated consumer having more than five years life, data for the previous three years, namely, 2007-08, 2008-09, 2009-10 shall be considered provided the capacity Utilization is uniform. Normalization, in a suitable statistical approach, shall be done in case of abnormality in capacity utilization in any of the aforesaid three year (s).

(b) During the first cycle designated consumer having more than five years life and less than three years data has been reported, the same shall be considered provided the capacity utilization is uniform and if the capacity utilization is abnormally low in any of the aforesaid three year(s), the same shall not be considered.

(c) During the first cycle, designated consumer having less than five years life and less than three years data has been reported, the available year's data shall be considered provided the capacity utilization is uniform. If the capacity utilization is abnormally low in any of the year(s), the same shall not be considered.

(d) During the first cycle, in case of new designated consumer, the data shall be considered for those years where the capacity utilization is greater than seventy percent (70%) and if only one year data is reported, the same shall be considered irrespective of the capacity utilization.

(e) In the next cycle, baseline specific energy consumption shall be calculated in accordance with the provisions of rule 14.

(f) few additional sector specific information like process technology, process flow, raw material, product mix etc. shall also be collected.

(g) All forms of energy shall be converted into a single form i.e. metric ton of oil equivalent (toe) by the use of standard engineering conversion formula and the following general guiding principle shall be used in this regard:-

(i) The reported gross calorific value (GCV) of fuels by the designated consumer shall be considered for estimating the equivalent thermal energy.

(ii) If gross calorific value (GCV) is not reported, then the values mentioned in the Government of India, Ministry of Power, notification number S.O 394(E), dated the 12th March, 2007 shall be considered. Any other information as required shall be taken from standard industrial practice.

(iii) The equivalent thermal energy of the electricity supplied to the grid shall be deducted from the total energy input to the designated consumers' boundary. The following expression shall be used:-

a. Equivalent thermal energy (kcal) = Electricity supplied to grid (kWh) x national average heat rate in kcal/kWh in the baseline year.

b. National average heat rate in year 2009-10 was 2717 kcal/kWh.

(iv) Total energy input to the designated consumers' boundary shall be estimated with the following expression:-

(a) Energy input (toe) =

Fuel consumed quantity (kg) x gross calorific value (kcal/kg)

10^7

(v) Once the total energy input to the designated consumers' boundary is estimated, the specific energy consumption shall be calculated by dividing the product quantity.

1.4. Methodology proposed for calculating baseline specific energy consumption for subsequent cycles beyond 2014-15, where baseline specific energy consumption is not available as per rule 14.

(a) During the first cycle of designated consumer having more than three years life, data for the previous three years shall be considered.

(b) During the first cycle of designated consumer having more than three years life and less than three years data has been reported, the same shall be considered.

(c) During the first cycle of designated consumer having less than three years life and less than three years data has been reported, the available year's data shall be considered.

(d) During the first cycle of designated consumer, the data shall be considered for those years where the capacity utilization is greater than seventy percent (70%) and if only one year data is reported, the same shall be considered provided the capacity Utilization is greater than seventy percent (70%) and if capacity Utilization is less than 70% for all reported years, average of all these years shall be considered.

(e) Baseline Specific Energy Consumption shall be calculated based on the last financial year data, if any conditions mentioned in clause (a) or (b) or (c) and conditions mentioned in clause(d) are satisfied for the last financial year. In case, conditions are not satisfied for the last financial year, average of all those years where above mentioned conditions are satisfied shall be considered for calculating baseline specific energy consumption.

(f) The Capacity Utilization referred to in this rule is the ratio of actual production(s) per unit of time, to maximum potential installed or established production capacity per unit time of a unit/major process of plant/establishment for the operating period(s).

(g) The Capacity Utilization and Plant Loading Factor shall be calculated as per following equations:

(i) Capacity Utilization: Capacity Utilization % (CU %) = (C1 x ICU1+C2 x ICU2+.......Cn x ICUn)*100/(C1+C2+....Cn);

Where: ICU1...n = (P 1..n x 8760)/(Hr1..n x C 1..n)

C 1..n = Installed or Established Production capacity in tonne per annum for 1..nth product

P 1...n = Actual Production in tonne per anuum for 1..nth product

Hr1..n = Nos of operating hours in hours per annum for 1..nth product

ICU 1..n = Intermediate Capacity utilization of 1..nth product for the operating period

(ii) Plant Loading Factor: The plant loading factor for a unit referred to in the said rule is defined as the ratio of total generation (MU) to the maximum available generating potential (MU) for the period under review.

Plant Loading Factor (%) =

G1xULF1 + G2xULF2 + ... ... ... GnxULFa

G1 + G2 + ... ... Gn

Where:

G1,2...n = Generation (MU) for Unit #1,2..n

ULF 1,2...n = Unit Loading Factor for Unit #1,2..n

For Individual Unit 1, 2,...n

Unit Loading Factor, (ULF1,2..n) (%) =

Average Operating Load in MW

x 100

Average Operating Load in MW =

Energy generated during the period in MU X 1000

(H - h)

C = Capacity of individual Unit in MW

H = Total No. of operating hours in a year (8760 hrs)

h = Total non-operating hours (hrs)

Total non-operating hours = Forced Outage (FO), Planned Maintenance (PM), Fuel Unavailability, etc.

Thus, the Plant Loading Factor is the percentage ratio of Plant Load Factor (PLF) and Plant Availability Factor (PAF) on bar.

(h) In the next cycle, baseline specific energy consumption shall be calculated in accordance with the provisions of rule 14.

(i) few additional sector specific information like process technology, process flow, raw material, product mix etc. shall also be collected.

(j) All forms of energy shall be converted into a single form i.e. metric ton of oil equivalent (toe) by the use of standard engineering conversion formula and the following general guiding principle shall be used in this regard:-

(i) The reported gross calorific value (GCV) of fuels by the designated consumer shall be considered for estimating the equivalent thermal energy.

Equivalent thermal energy (kcal)=Electricity supplied to grid(kWh) x net heat rate of captive power plant or weighted heat rate of other power generation such as cogeneration etc.

(iv) Total energy input to the designated consumers' boundary shall be estimated with the following expression:-

Energy input (toe) =

Fuel consumed quantity (kg) x gross calorific value (kcal/kg)

107

(v) Once the total energy input to the designated consumers' boundary is estimated, the specific energy consumption shall be calculated by dividing the product quantity.

1.5. Procedure for Normalization of specific energy consumption.-

(a) Variable factors as described in rule 4 may affect the energy consumption and 'Normalization Factors' shall be considered in those cases. The reported specific energy consumption(SEC) shall be Normalized after incorporating the Normalization factor.

Normalized specific energy consumption = f (Reported SEC, Normalization factors).

(b) The specific energy consumption shall be Normalized, during baseline and target periods, based on statistical procedures.

(c) The Normalization procedure is proposed to be applied if the capacity utilization or Plant Loading Factor decreases from the baseline condition. It shall be applied only if capacity utilization or Plant Loading Factor has deviated from Baseline year due to uncontrollable factors described in rule 4, and duly declared by the designated consumer with authentic proof.

(d) The Normalization shall be done by performing a statistical analysis of the specific energy consumption and production data by-

(i) plotting the production versus energy consumption curves;

(ii) performing statistical analysis to represent the relationship between the production and energy consumption;

(iii) extrapolating the above relationship to generate capacity utilization versus energy consumption and capacity utilization versus specific energy consumption data for a suitable range of capacity utilization values;

(iv) the average capacity utilization shall be used to identify the corresponding specific energy consumption value;

(v) the Normalized specific energy consumption shall be the value as computed in the previous step.

(e) The "capacity utilization" referred to in clauses (c) to (d) shall be replaced by "Plant Loading Factor" in case of designated consumers in the thermal power plant sector.

(f) The above calculation determines the normalized specific energy consumption for the designated consumers.

1.6. Validation of fuel quality tested from external and internal labs and reproducibility of same samples:

(a) The mean of the results of duplicate determinations carried out in each of two laboratories on representative portions taken from the same sample at the last stage of sample preparation, should not differ by more than 71.7 kcal/kg as per ISO 1928:1995(E)

(b) If the difference in GCV from internal and external lab test report is greater than 71.7 kcal/kg, the difference will be added to the gross calorific value (GCV) of the test result obtained in DC's lab for that particular month.

2. Thermal power plant sector.-

2.1. The designated consumers for the thermal power plant sector shall be grouped based on the fuel used and they are as under:-

2.2. The energy consumption norms and standards for power stations shall be specified in terms of specific percentage of their present deviation of net operating heat rate, based on the average of previous three years, namely, 2007-08, 2008-09, 2009-10 for the first cycle, and for cycles thereafter in accordance with the provision of rule 14 from the net design heat rate. The power stations shall be grouped into various bands according to their present deviations, of operating heat rate from design heat rate and for power stations with higher deviations the energy consumption norms and standards shall be established at lower level and shall be grouped taking into account percentage deviation as under:-

Deviation in net station heat rate from design net heat rate	Reduction target for percentage deviation in the net station heat rate
Upto five per cent.	Ten per cent (10%)
More than five per cent and upto ten percent	Seventeen per cent. (17%)
More than ten per cent. and upto twenty percent	Twenty-one per cent. (21%)
More than twenty per cent.	Twenty-four per cent. (24%)

2.3. For the subsequent cycle, various bands according to this deviations and conditions as per rule 3 may be formulated and applied with the approval of technical committee.

2.4. Correction factor considered for effect on heat rate due to coal quality: Average "ash", moisture, and gross calorific value for the previous three years in case of baseline for first cycle and as per rule 14 for consequent cycles and specified year in case of target year, shall be taken into account for the baseline year and correction factor shall be worked out based on the following boiler efficiency formula:-

Boiler Efficiency =

92.5 -

[50 * A + 630 (M + 9 H)]

G.C.V

Where,-

A= Ash percentage in coal

M= Moisture percentage in coal

H= Hydrogen percentage in coal

G.C.V= Gross calorific value in kcal/kg

Station heat rate (Kcal/kWh) = Turbine heat rate/Boiler efficiency

3. Cement sector.-

3.1. For establishment of energy consumption norms and standards for designated consumers in the cement sector, the designated consumers shall be grouped based on similar major output or product with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated consumers which shall be grouped as under:-

3.2. Equivalent major grade of cement production.-The various product mixes shall be converted in to equivalent major grade of cement product by the designated consumer by using the following formulae:-

(i) Conversion of Ordinary Portland Cement (OPC) production equivalent to major product

Equivalent major product =

OPC produced (Lakh tonne) X Conversion factor of OPC

Conversion factor of major product

[Lakh tonne]

(ii) Conversion of Portland Pozzolana (PPC) production equivalent to major product

Equivalent major product =

PPC produced (Lakhtonne) X Conversion factor of PPC

Conversion factor of major product

[Lakh tonne]

(iii) Conversion of Portland Slag Cement (PSC) or any other variety of cement production equivalent to major product

Equivalent major product =

PSC or any other variety cement produced Lakh tonne X Conversion factor of PSC or any other variety cement

Conversion factor of major product

[Lakh tonne]

(iv) Conversion of total exported clinker to major product

Equivalent major product =

Total exported clinker (Lakh tonne)

Conversion factor of major product

[Lakh tonne]

(v) Conversion of total imported clinker to major product

Equivalent major product =

Total imported clinker (Lakh tonne)

Conversion factor of major product

[Lakh tonne]

(vi) Total equivalent major product of cement

It can be arrived at by summing up all the different grades of cements equivalent to major product calculated above:

Total Equivalent major product of Cement = [a(i) +a( ii) +a(iii) + a(iv)] [Lakh tonne]

Note: S.no. a (v) is already accounted in major product.

3.3. Calculation for Gate to Gate specific energy consumption (SEC)

(i) Total thermal energy consumption

Total thermal energy consumption is to be calculated as:-

Total thermal energy consumption= [Fuel consumed (Lakh ton) X Gross calorific value of respected fuel (kcal/kg) X 100] [Million kcal];

(ii) Total electrical energy consumption

Total electrical energy consumption is to be calculated as:-

Total electrical energy consumption= [{(Total electricity purchased from grid (Lakh kWh) X 860(kcal/kWh)-electricity exported to grid (Lakh kWh) X 2717 (kcal/kWh)}/10] [Million kcal];

Where: - 2717 kcal/kWh is national average heat rate.

(iii) Notional/ Normalization energy for imported electricity from grid

Notional energy for imported electricity= [Imported electricity (lakh kWh) x (3208-860) (kcal/kWh)] /10 [Million kcal];

Where: - 3208 kcal/kWh is weighted average heat rate of all designated consumers in cement sector.

(iv) Notional/ Normalization energy Required for grinding of exported clinker.

It is calculated by using following formula:

Notional energy required = {Total exported clinker to major product (Lakh tonne) x Electrical SEC of cement grinding (kWh/ton of cement) x Weighted average heat rate (kcal/kWh)}/10 [Million kcal];

Where: - Weighted average heat rate (kcal/kWh) = [{Imported electricity (Lakh kWh) X 3208 (kcal/kWh)} + {diesel generation (lakh kWh) x diesel generator heat rate (kcal/kWh)} + {Captive power plant generation (lakh kWh) x Captive power plant heat rate (kcal/kWh)}] / [Imported electricity (Lakh kWh) +diesel generation (Lakh kWh) +Captive power plant generation (Lakh kWh)];

(v) Notional/ Normalization energy required for clinkerisation of imported clinker

It is calculated by using following formula:

Notional energy required = [Total clinker imported (Lakh tonne) x {Thermal SEC of clinkerization kcal/kg clinker) x 1000+electrical SEC of clinkerization (kWh/tonne of clinker) x Weighted average heat rate (kcal/kWh)}/10] [Million kcal];

(vi) Gate to Gate (GtG) energy consumption

GtG energy consumption = [b(i) +b(ii) +b(iii) +b(iv) +b(v) ] [Million kcal]

(vii) Gate to Gate (GtG) specific energy consumption

GtG SEC =

GtG energy consumption (Million kCal)

Total equivalent major product of cement (Lakh tonne) X 100

[kcal/kg of equivalent cement]

4. Aluminum sector.-

4.1. For establishment of energy consumption norms and standards for designated consumers in the Aluminum sector, the designated consumers shall be grouped based on similar major output or product with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated consumers which shall be grouped as under:-

5. Iron and Steel sector.-

5.1. For Establishment of Energy consumption norms and standards in the Iron and Steel sector, the designated consumers are grouped based on similar characteristics with the available data to arrive at a logical and acceptable spread of specific Energy consumption among the designated consumers which may be grouped as under:-

5.2. The entire sector can be sub-divided in the following eight sub-sectors as detailed below:

5.3. Integrated Steel Plant

(A) Integrated Steel Plant. - The energy indices of the major integrated steel plants captured from the annual reports and reported during the baseline audits have been taken for the below calculations. The Gate to Gate Specific Energy Consumption may be calculated as follows-

Gate to Gate Specific Energy Consumption (SEC) = toe/tonne of crude steel

As regards the total energy consumed in plant for these major integrated steel plants,the following formula can be given-Total Energy Consumed in PlantTotal Energy Consumption (Mkcal) = [Total Thermal Energy (Mkcal) +{Purchased Electricity from Grid (MkWh) *grid Heat Rate (kcal/kWh)} - {Exported Electricity to grid (MkWh) X Captive Power Plant Heat Rate kcal/kWh}].Where,

Total Thermal Energy (Mkcal) = [Fuel Quantity used (tonne) X Gross Calorific Value of Fuel (kcal/kg)]/1000

5.4. Sponge Iron

(B) Sponge Iron. - for this sub sector only those plants are considered which are standalone sponge Iron plants with no downstream products. The gate to gate SEC may be given as follows:

Gate to Gate Specific Energy Consumption (toe/ tonne) = Total Energy Consumption (toe) / Production of Sponge Iron (tonne)

5.5. Sponge Iron with Steel Melting Shop

(C) Sponge Iron with Steel Melting Shop. - for this sub sector those plants are considered which are sponge Iron plants with SMS (Steel Melting Shop). The gate to gate SEC may be given as follows:

In this Group first we convert sponge iron to Steel melting shop and again equivalent Steel Melting Shop to sponge iron as follows:

Specific Energy Consumption of Coal for sponge Iron = Tonne of Coal Consumption/Tonne of sponge iron

Electrical Specific Energy Consumption for sponge Iron = kWh/Tonne of Sponge Iron.

Thermal Specific Energy Consumption for Sponge Iron = {(Tonne/Tonne X Gross Calorific Value of Coal)+(kWh/tonne)XCPP Heat Rate kcal/kWh)}

Electrical Specific Energy Consumption for Steel Melting Shop = kWh/tonne of Steel Melting Shop.

Steel Melting Shop Equivalent to Sponge Iron Production= [{(kWH/tonne) XCPP Heat Rate} X Production of Steel melting shop] / (Total Specific Energy Consumption of Sponge Iron)

Total Equivalent Sponge Iron Production (tonne) = Production of Sponge Iron (tonne) + Steel Melting Shop production equivalent to sponge iron (tonne)

(Gate to Gate SEC) Gate to Gate Specific Energy Consumption (Mkcal/tonne) = Total Energy consumed (Mkcal)/ Total Equivalent Sponge Iron Production (tonne)

5.6. Sponge Iron with Steel Melting shops and other

(D) Sponge Iron with Steel Melting Shop and others. - for this sub sector those plants are considered which are sponge Iron plants with SMS (Steel Melting Shop) and other products like Ferro Manganese, Silicon Manganese, Pig Iron etc. . The gate to gate SEC may be given as follows:

In this sub-sector first we convert equivalent Steel melting shop to Sponge Iron and thereafter equivalent Ferro Alloy is converted to sponge Iron by given formulae.

Equivalent Ferro Alloy Manganese to Sponge Iron = [{Electrical Specific energy consumption (SEC) of Ferro Manganese (kWh/tonne) x Heat Rate} x Production of Ferro Alloy Ferro Manganese} / (Total Specific Energy Consumption of Sponge Iron)

Equivalent Ferro Alloy Sponge Iron Manganese to Sponge Iron = [{Electrical Specific energy consumption (SEC) of Sponge iron Manganese (kWh/tonne) X Heat Rate} X production of Ferro Alloy Sponge iron Manganese}/(Total Specific Energy Consumption of Sponge Iron)

(Pig Iron to Sponge Iron) Equivalent Pig Iron to Sponge Iron = [{Electrical SEC of Pig Iron (kWh/tonne) X CPP Heat Rate} X production of Ferro Alloy Pig Iron} / (Total Specific Energy Consumption of Sponge Iron)

(Total Sponge Iron) Total Equivalent Sponge Iron Production = Total energy Sponge Iron +Ferro Manganese to Sponge Iron + Sponge Iron Manganese to Sponge Iron + Pig Iron to Sponge Iron

GtG SEC, Gate to Gate Specific Energy Consumption = Total Energy consumed/ Total Equivalent Sponge Iron Production

5.7. Ferro Alloy

(E) Ferro Alloy. - In this Group we have converted all products as regards equivalent to Ferro alloy (Silicon Manganese) by given formula-

Equivalent Ferro Alloy Manganese to Ferro Alloy Silicon manganese

Manganese = (Electrical Specific energy consumption (SEC) of Ferro Manganese * Production of Ferro Manganese)/ Electrical Specific energy consumption (SEC) of silicon Manganese)

Equivalent Ferro alloy silicon Manganese to Ferro Alloy silicon manganese = (Electrical SEC of silicon Manganese * Production of silicon manganese)/ Electrical SEC of Silicon Manganese)

Equivalent Ferro Chrome to Ferro Alloy silicon manganese Manganese = (Electrical SEC of Ferro Chrome X Production of Ferro Chrome)/ Electrical SEC of Silicon Manganese)

Equivalent Pig Iron to Ferro Alloy silicon manganese Manganese = (Electrical SEC of Pig Iron X Production of Pig Iron)/ Electrical SEC of silicon Manganese)

Total Equivalent Ferro Alloy Silicon Manganese Production = (Ferro Manganese to Ferro silicon Manganese) +(Fe Sponge iron Manganese equivalent to Ferro silicon manganese) +(Ferro Chrome equivalent to Ferro silicon manganese) + (Pig Iron to Ferro silicon manganese)

Gate to Gate Specific Energy Consumption =Total Energy consumption (Mkcal))/ Total Equivalent Ferro Alloy silicon manganese Production

5.8. Ferro Chrome

(F) Ferro Chrome:-The Gate to Gate Specific energy consumption (SEC) for this sub-sector is given as follows-

Gate to Gate Specific Energy Consumption of Ferro Chrome =Total Energy Consumption (Mkcal)/Total Ferro Chrome Production (Tonne).

5.9. Mini Blast Furnace

(G) Mini Blast Furnace. - The G to G Specific energy consumption (SEC) for this sub-sector is given as follows

Gate to Gate Specific Energy Consumption of Mini Blast Furnace =Total Energy Consumption (Mkcal)/Total Production (Tonne).

5.10. Steel Processing Unit

(H) Steel Processing Units:- This sub-sector contributes towards the many such steel processing plants like rerolling, wire drawing, cold rolling, hot rolling etc.

The Gate to Gate Specific energy consumption (SEC) for this sub-sector is given as follows-

Gate to Gate Specific Energy Consumption of Steel Processing Unit = Total Energy Consumption (Mkcal)/ Total Production of Steel Processing Unit (Tonne).

6. Chlor-Alkali sector.-

6.1. For establishment of energy consumption norms and standards in the Chlor-Alkali sector, the designated consumers shall be grouped based on similar characteristics with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated consumers which may be grouped as under:-

6.2. Correction factors developed for variability:

a. Product Mix:

Caustic Soda	1.0 of Equivalent Caustic Soda
Liquefied Chlorine (T)	0.0615 of Equivalent Caustic Soda
Compressed Hydrogen (Lac NM3)	13.889 of Equivalent Caustic Soda
Solid Flakes (T)	0.219 of Equivalent Caustic Soda

Note: Above Product mix shall be applicable in first cycle only.

b. All the products in plant boundary shall be converted into Equivalent Caustic Soda w.r.t. specific energy consumption of respective products.

c. Membrane and Electrode Life. - 60 kWh/tonne per year is added into specific energy consumption in the baseline year for each plant. For example:

Addition of 60 kWh per year: 60 kWh x 860 kcal (In case of Non CPP plants) x 3 years / 10^7 MTOE/tonne

Addition of 60 kWh per year: 60 kWh x 2717kCal (In case of CPP plants) x 3 years / 10^7 MTOE/tonne

Note: Above shall be applicable in first cycle only.

d. Notional/Normalization Energy for imported electricity from Grid

Notional energy for imported electricity = [Imported electricity (lakh kWh) x (3394-860) (kcal/kWh)]/10[Million kcal]

Where: - 3394 kCal/kWh is weighted average heat rate of all designated consumers in Chlor-Alkali sector

7. Pulp and Paper sector.-

7.1. For establishment of energy consumption norms and standards in the Pulp and Paper sector, the designated consumers shall be grouped based on similar characteristics with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated consumers and the following guidelines shall be applied to group the designated consumers based on similarity in input raw material and product output on the basis of availability of consistent data:-

(i) The input raw materials are Wood, Agro and Recycled Fibre (RCF);

(ii) The process outputs are of Chemical Pulping, Chemi-mechanical Pulping and 100% market pulping

(iii) The product output of specialty paper, non-specialty paper and newsprint.

7.2. The groups made for Pulp and Paper sector under are: -

8. Textile sector.-

8.1. For establishment of energy consumption norms and standards in the Textile sector, the designated consumers shall be based on similar characteristics with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated and the group made are as under:-

8.2. The designated consumers whose production is measured in meters of cloth, the average grams per square meter (GSM) as 125 and average width as 44 inches shall be assumed for weight calculations.

9. Fertilizer sector.-

9.1. In Fertilizer Sector, for manufacturing of Urea fertilizer, out of total energy consumed at designated consumer plant boundary, stoichiometric energy of 2.53 [Gcal/MT] Urea is contained in urea product and goes out as such. Thus, the net energy utilized in urea manufacture is total energy input at designated consumers' boundary reduced by 2.53 [Gcal/MT] Urea. The figure is worked out by considering heat energy of ammonia as 4.46 [Gcal/MT] Ammonia and specific consumption 0.567 MT of Ammonia / MT Urea.

10. Petroleum Refinery:-

10.1. In Petroleum Refinery sector, the process includes up gradation of undesirable components of the crude oil into more valuable products, such as gasoline, diesel, and jet fuel and other low value by-products, such as fuel oils and lubricants. Specific energy consumption may not be a appropriate indicator of the energy performance of the refineries as it does not account for differences in complexities, output slates, or type of crude processed. The energy performance of refineries is expressed in terms of specific energy consumption, measured in [Million British Thermal Units (BTU) per one thousand barrel per Energy Factor (MMBTU/Mbbls/NRGF)]. This unit, commonly referred to as MBN, was developed by the Centre for High Technology, Ministry of Petroleum & Natural Gas to provide a basis for comparing energy performance of refineries of different configurations and accounting of the throughput of secondary units.

10.2. "MBN" means Million British Thermal Units (BTU) per Thousand barrel of crude processed per Energy Factor (NRGF), calculated as per the following formula adopted by CHT:

MBN = Energy consumption (Million BTU) / crude throughput in Thousand Barrels / NRGF

[10.3. The NRG factor (NRGF) is the indicator of the level of complexity of a refinery and overall energy factor (dimensionless unit) shall be calculated for the refinery based on the volume of feed in each unit and its corresponding energy factor.]

11. Railway Sector. - For establishment of energy consumption norms and standards in the Railway sector, the designated consumers shall be grouped based on similar characteristics with the available data to arrive at a logical and acceptable spread of specific energy consumption among the designated consumers which may be grouped as under:-

(a) Zonal Railways. - Each zonal railway provides transport services for both passenger and goods. The energy input for the mentioned services is in the form of diesel or electricity. In view of the above scenario specific fuel consumption or specific energy consumption of zonal railways for services (both passenger and Goods) shall be taken in terms of Diesel (L/1000GTKM) and Electrical Energy (kWh/1000GTKm). Four performance metrics are identified for each zonal Railway as shown below:-

Zonal Railway (Traction)
Diesel		Electrical
Passenger (L/1000GTKm)	Goods (L/1000GTKm)	Passenger (kWh/1000GTKm)	Goods (kWh/1000GTKm)

Note:-

1. For conversion calorific value of diesel shall be: 11840 kcal/Kg and density: 0.8263 Kg/litre

2. 1kWh shall be equivalent to 860 kcal.

For calculating specific fuel consumption or specific energy consumption for a specific service (passenger or goods), the total amount of fuel input in liters or kWh shall be divided by the total gross tonne kilometrage in thousand's for the respective service.

[(b) Production Units: - Production units of Indian Railways manufacture variety of products like Locomotives, coaches, wheels, axles etc. Specific Fuel Consumption or Specific Energy Consumption of production units of Indian Railways shall be taken in terms of KgOE / number of equivalent unit product produced. For production units manufacturing more than one variety of product under same category, equivalent number of units will be taken to calculate specific energy consumption or specific fuel consumption (for example under category of coach there may be both AC and Non-AC coaches having different energy demand hence they will be converted into equalised units to measure specific energy consumption).]

(c) Workshops: - Specific Fuel Consumption or Specific Energy Consumption of Workshops units of Indian Railways shall be taken in terms of KgOE / units worked upon or maintained. For Workshop Units maintaining or working upon more than one variety of product under same category, equalized no of units will be taken to calculate SEC or SFC (for ex under category of coach there can be both AC and Non AC coaches having different energy demands hence they will be converted into equalized units to measure specific energy consumption).

12. Electricity Distribution Company:- Transmission & Distribution (T&D) loss in percentage will be a sole parameter to assess energy performance of electricity distribution companies under PAT scheme, calculated as per the following formula:

T&D loss (Million kWh) = Net Input Energy (Million kWh) - Net sale of energy (Million kWh)

Net Input Energy (Million kWh) = Total input energy (adjusted for transmission losses and energy traded)

Net sale of Energy (MkWh) = Total energy sold (adjusted for energy traded)

[13. Petrochemical sector: -Petrochemical sector include petrochemical units having gas crackers, Naphtha crackers or both which include only olefin units producing products like LDPE, LLDPE, HDPE, PP, PVC/VCM, Glycols, etc. inside the plant boundary.Specific energy consumption for petrochemical sector is measured in net energy consumed in cracker unit and secondary units producing olefin products only per total equivalent olefin product production quantity.

(i) Net energy consumed is the total thermal energy and electrical energy consumed in terms of kilo calorie (kcal) in following units and related utility units:

(a) Cracker unit along with associated units i.e. Butadiene extraction unit, Benzene extraction unit, C4 Hydrogenation unit, Pyrolysis Gasoline Hydrogenation unit;

(b) Polyolefin units (LLDPE/HDPE/LDPE/PP);

(d) VCM/PVC;

(e) Butene - 1;

Note: - Energy consumption of both units i.e. VCM unit and PVC unit to be added in total energy consumption.

(ii) Equivalent quantity of olefin products produced in tonne includes following products for calculating the total quantity of final products produced:

(a) liner low density Polyethylene (LLDPE)

(b) equivalent ethylene of Glycols, following expression may be used for conversion Equivalent Ethylene of Ethylene Oxide = Eq. E.O X ((28/44)/0.85=0.7486)

Where:

• Eq. MEG of DEG (DEG to MEG)= DEG production x (62/106)

• Eq. MEG of TEG (TEG to MEG)= TEG production x (62/150)

• Eq.MEG of Mixed Glycol (Mixed Glycol to MEG) = Mixed Glycol Production X (62/ Molecular weight of Mixed Glycol)

• Eq MEG= MEG + [Eq. MEG of DEG (DEG to MEG )]+ [Eq. MEG of TEG (TEG to MEG)]

• Eq Ethylene Oxide (EO) = Sale Quantity of E.O + [Tot. Eq. MEG quantity X (44/62])

• (0.85 selectivity considered)

(d) low density polyethylene (LDPE)

(e) equivalent ethylene of Vinyl Chloride Monomer (VCM)/Polyvinyl Chloride (PVC), following expression may be used for conversion:

Eq. Ethylene of PVC= [Actual production of PVC - actual production of PVC] X (35.5/62.5);

Eq. Ethylene of VCM = [Actual production of VCM – Actual production of VCM] X (35.5/62.5);

(f) Polypropylene;

(g) Butadiene;

(h) Benzene.]

[Schedule II]

[See rules 2(j) and 4(4)]

Normalization Equations. - During Monitoring & Verification phase, the accredited auditors would verify the results from all activities that occurred during the assessment year and include the contributions from all existing relevant variables: the total amount of energy consumed, electricity generated and sold by a designated consumer; the volume of different products produced while taking into the account of intermediary products; and any other defined factors which could have caused a change in the operating conditions between the baseline and the target years and affected the specific energy consumption. These conditions leads to determination of the performance change resulting from specific selected activities and conditions as distinct from the effect of certain variables and thus calls for Normalization; which were well conceived in the sector specific supporting pro-forma for Form I of rules, 2007 or rules, 2008.The equations for calculating normalization in all the sectors have been developed to homogenize and fix the formulae in the assessment year. This will regulate the calculation in the pro-forma through minimum effort. These equations have been comprehended through examples in the sector specific Normalization Documents for better understanding. In order to stream line the process of M&V, these equations have been accumulated in one place for all the sectors.

1. Sa1 Aluminum: Refinery and Smelter

Normalization factors for the following areas have been developed in Aluminum Sector1.1. Fuel Quality in Captive Power Plant (CPP) and Combined Heat and Power Generation (Co-Gen)1.2. Low Pant Load Factor (PLF) in CPP1.3. Smelter Capacity Utilization1.4. Bauxite Quality1.5. Carbon Anode (Import & Export)1.6. Product Mix (Equivalent product)1.7. Power Mix (Import & Export from/to the grid and self-generation from the captive power plant)1.8. Normalization Others

1.8.1. Start/Stop

1.8.2. Environmental Concern (Additional Environmental Equipment requirement due to major change in government policy on Environment)

1.8.3. Biomass/Alternate Fuel Unavailability

1.8.4. Construction Phase or Project Activities

1.8.5. Addition of New Line/Unit (In Process & Power Generation)

1.8.6. Unforeseen Circumstances

1.8.7. Renewable Energy

1.9. Gate to Gate Specific Energy Consumption1.10. Normalized Gate to Gate Specific Energy Consumption1.1. Fuel Quality in CPP and Co-Gen. - The Boiler Efficiency will be calculated for the baseline as well as assessment year with the help of Coal analysis constituents like Gross Calorific Value (GCV), per cent Ash, per cent Moisture, per cent Hydrogen (H) and Boiler Efficiency Equation provided to calculate the Boiler efficiency.Hence, by keeping the Turbine heat rate constant for both the years, the CPP heat hate will be calculated for the respective year. The Thermal Energy for the difference in heat rate of CPP will be deducted from the total energy consumption of the plant as under:1.1.1. Notional Energy for fuel quality in CPP & Co. - Gen (toe) = (Total National energy for Coal Quality deterioration to be sub rated w.e.t fuel quality (Million kcal))/101.1.2. Total National energy for Coal Quality deterioration to be subtracted w.r.t. fuel quality (Million kcal) = Energy to be subtracted w.r.t. Fuel Quality in Co. Gen (Million Kcal) + Energy to be subtracted w.r.t. Fuel Quality in CPP (Million Kcal)1.1.3. Energy to be subtracted w.r.t. fuel quality in CPP (Million kcal) = (Difference in CPP Heat rate from BY to AY (kcal/kWh) X CPP Generation (lakh kWh)/101.1.4. Difference CPP Heat rate from BY to AY (kcal/kWh) = Actual CPP Heat Rate BY (kcal/kWh)

1.1.5. CPP Heat Rate due to Fuel Quality in AY (kcal/kWh) =

Actual CPP Heat Rate for DY (kcal/kWh)

Boiler efficiency for AY (%)

1.1.6. Boiler efficiency for BY =

Σ ¹⁰ _n=1 [(U#n Capacity (MW) X U#n Boiler Efficiency for BY)]

Σ ¹⁰ _n=1 [U#n Capacity (MW)]

[Lakh tonne]

1.1.7. Boiler efficiency for AY =

Σ ¹⁰ _n=1 [(U#n Capacity (MW) X U#n Boiler Efficiency for AY)]

Σ ¹⁰ _n=1 [U#n Capacity (MW)]

[Lakh tonne]

1.1.8. Boiler efficiency for AY and BY (U#1, 2.......10)

Individual Boiler efficiency =

92.5 - {50 * A + 630 * (M + 9 * H)}

GCV of Coal

Where,GCV = Gross Calorific value (Kcal/ Kg)M = Moisture (in %)H = Hydrogen (in %)A = Ash (in %)1.1.9. Energy to be subtracted w.r.t. Fuel Quality in Co-Gen (Million kcal) = [Difference in Specific Steam from BY to AY (kcal/kg) X {(Steam Generation at Boiler 6 to 10 (Tonnes) X Weighted Percentage of Coal Energy Used in steam Generation (Co - Gen Boilers))}]/10001.1.10. Difference in Specific Steam from BY to AY (kcal/kg of steam) = Normalized Specific Energy Consumption for Steam Generation (kcal/kg of steam) - Weighted Average Specific Steam Consumption (kcal/kg of steam)

1.1.11. Normalized Specific Energy Consumption for Steam Generation (kcal/kg of steam) =

Weighted Average Specific Steam Consumption (kcal/kg of steam) X Boiler Efficiency for BY

Boiler Efficiency for AY

1.1.12. Weighted Average Specific Steam Consumption = ((Specific Energy Consumption for Steam Generation in Cogen Boiler 1 to 5 X Steam Generation at Boiler 1 to 5) + (Specific Energy Consumption for Steam Generation in Cogen Boiler 6 to 10 X Steam Generation at Boiler 6 to 10))/(Steam Generation at Boiler 1 to 5 + Steam Generation at Boiler 6 to 10)

1.1.13. Indian Boiler Efficiency =

92.5 - (50 - A + 630 (M + 9 + H))

CCV of Coal

Where, -GCV = Gross Calorific value (Kcal/ Kg)M = Moisture (in %)H = Hydrogen (in %)A = Ash (in %)1.2. Low PLF Compensation in CPP. - Due to decreased loading, the Plant load Factor (PLF) will be worsened and affects the unit heat rate. The comparison between baseline year and assessment year will be carried out based on the following calculation.Notional Energy for PLF in CPP (toe) = (Total Notional Energy to be subtracted due to Low PLF (Million kcal))/ 101.2.1. Total Notional Energy to be subtracted due to Low PLF (Million kcal) + Energy to be subtracted in U # 2 for AY (Million kcal) + .......1.2.2. Energy to be subtracted per unit = (Difference of THR between AY and BY (kcal/ kWh) X Gross Unit Generation (Lakh Unit))/101.2.3. Difference of Turbine Heat Rate between AY and BY = Normalized Design Turbine Heat rate due to external factor for AY - Normalized Design Turbine Heat rate due to external factor for BY1.2.4. Normalized Design Turbine due to external factor (kcal/kWh) for BY and AY = ((Design Turbine Heat Rate after Curve correction and difference correction (kcal/kwh) X Average Operating hours Low ULF) + (Design Turbine Heat Rate @ 100% Load (OEM)(kcal/kwh) X Operating hours at full load))/Total Operating hours in year as per Unit Availability factor1.2.5. Design Turbine Heat Rate after Curve correction and difference correction = Turbine Heat Rate as per Load Vs Heat Rate Equation due to external factor X {(1 + % Difference between Design Turbine Heat Rate and Design Curve or HBD Turbine Heat rate)/100}1.2.6. Turbine Heat Rate as per Load Vs Heat Rate Equation due to external factor (kcal/kwh) = ax² - bx + cWhere,-a = Equation Constant 1b = Equation Constant 2c = Equation Constant 3x = Average Operating Load (MW) caused by low ULF due to external factor1.2.7. Percentage Difference between Design Turbine Heat Rate and Design Curve or HBD Turbine Heat rate = ({Design Turbine Heat Rate @ 100% Load (OEM)(kcal/kwh)} X 100)/ (Design Turbine Heat Rate @ 100% Load (OEM)(kcal/kwh))1.2.8. Total Operating hours in year as per Unit Availability factor = 8760 X Plant Availability Factor1.2.9. Plant Availability Factor = (8760 - [Forces Outage or Unavailability (hrs) - Planned Maintenance Outage or Planned Unavailability])/ 87601.3. Smelter Capacity Utilization

Notional Energy for Smelter capacity =

Electrical Energy to be deducted due to lower capacity utilization (Million kcal)

1.3.1. Electrical Energy to be deducted due to lower capacity utilization = Total Electrical Energy to be deducted due to lower capacity utilization (Million kWh) X Weighted Heat Rate (kcal.kWh)1.3.2. Total Electrical Energy to be deducted due to lower capacity utilization (Million kWh) = Electrical Energy to be deducted due to lower capacity utilization for AY of Line 1 + Electrical Energy to be deducted due to lower capacity utilization for AY of Line 2 + ................. Line 10

1.3.3. Electrical Energy to be deducted due to lower capacity utilization (Million kWh) =

Notional Specific Energy Consumption (kwh/ Ton) X Production (Tonne)

1000000

1.3.4. Notional Specific Energy Consumption (kwh/ Ton) = SEC Design at CU % for AY - SEC Design at CU % for BYWhereSEC = Specific Energy ConsumptionCU = Capacity Utilization

SEC Design at CU % (kwh/ton) =

Capacity Utilization

+ K2

Where, -

K1 = Constant 1 =

(Design Bus Bar Voltage Drop (DnEV) + No of Pots/ Potline (NOPP) X Dead pot voltage (DPV) X 298000}

{No. of Pots/ Potline (NOPP) X Current Efficiency of Pots(CE)}

K2 = Constant 2 =

Design Pot Voltage Drop (DnPV) - Dead pot voltage (DPV) X 2980

Current Efficiency of Pots(CE)

Capacity Utilization (%) =

No. of operating Pot (NOP) X 100

No. of Pots/ Pot-line (NOPP)

1.4. Bauxite Quality. - Due to deterioration of bauxite quality (moisture, TAA, Fe, mud) , the thermal energy should be normalized in the assessment year based on the following calculation:-

1.4.1. Notional energy to be subtracted in (Million kCal) =

Notional energy for moisture (kcal/ tonne) X hydrate alumina production (tonne) in AY

1000000

1.4.2. Notional energy for moisture (kcal/ tonne) =

Excess steam (tonne/tonne) X Actual steam enthalpy (kcal/ kg) in AY X 1000

Boiler efficiency (%) in AY

1.4.3. Excess steam (Tonne/ Tonne) =

Excess moisture (tonne) + Excess wash water (tonne)

Steam Economy (t/t)

1.4.4. Excess Moisture (Tonne) = (SBC_AY - SBC_BY) X MB_AYWhere,-SBC_AY - Specific bauxite factor (Bauxite Tonne/ alumina Tonne) for AYSBC_BY - Specific bauxite factor (Bauxite Tonne/ alumina Tonne) for BYMB_AY - Moisture content in Bauxite (%) for AY1.4.5. Excess Moisture (Tonne) = wash water (Tonne) for AY - wash water (Tonne) for BY1.4.6. Wash water for AY (Tonne) = SBC_AY X (100 - MB_AY)% X MF_AY X WW_AYWhere,-SBC_AY - Specific bauxite factor (Bauxite Tonne/ alumina Tonne) in assessment yearMB_AY - Moisture content in Bauxite (%) in assessment yearMF_AY - Mud Factor (Tonne of mud / Tonne of Bauxite)WW_AY - Tonne of wash water required for cleaning one Tonne of mud (Tonne of wash water/Tonne of mud)1.4.7. Wash water for BY (Tonne) = SBCBY X (100 - MBBY)% X MFBY X WWBYWhere,-SBC_BY - Specific bauxite factor (Bauxite Tonne/ alumina Tonne) in assessment yearMB_BY - Moisture content in Bauxite (%) in assessment yearMF_BY - Mud Factor (Tonne of mud/ Tonne of Bauxite)WW_BY - Tonne of wash water required for cleaning one Tonne of mud (Tonne of wash water/ Tonne of mud)

1.4.8. Mud Factor (Tonne of (mad/ Tonne) of Bauxite) for AY and BY =

Fe in Bauxite(%)

Fe in Mud (%)

1.4.9. Specific Bauxite factor (Bauxite Tonne/ alumina in tonnes) = 1/ (TAA X (100 - MB) X OR)Where,-TAA - Total Available Alumina in Bauxite (%)MB - Moisture content in Bauxite (%)OR - Overall Recovery from Bauxite (%)1.5. Carbon Anode (Import and Export)1.5.1. Notional energy to be subtracted for carbon anode import and export (Million kcal) for AY = Net energy for carbon anode import and export for AY (Million kcal) - Net energy for carbon anode import and export for BY (Million kcal)1.5.2. Net Energy for carbon anode Export in AY and BY (Million kcal) = Notional energy for carbon anode exported (million kcal) - Notional energy for carbon anode imported (million kcal) 1.5.3. Notional energy for carbon anode imported (million kcal) = SEC of carbon anode Production (Million kcal/ Tonne) X Total Carbon anode imported (Tonne)1.5.4. Notional energy for carbon anode exported (million kcal) = SEC of carbon anode Production (Million kcal/ Tonne) X Total Carbon anode exported (Tonne)1.5.5. Total Carbon anode imported (Tonne) = Imported Carbon anode (tonne) - Carbon anode stock (tonne)1.5.6. Total Carbon anode exported (Tonne) = Exported Carbon anode (tonne) - Carbon anode stock (tonne)1.5.7. Carbon anode stock (tonne) = Closing carbon anode stock (tonne) - opening carbon anode stock1.6. Product Mix (Equivalent Product). - The baseline year product energy factor (Energy Factor) will be maintained for equivalent major product in the assessment year.

(i) Equivalent production (In Major Product) in the Baseline Year (BY) will be

EqMP_BY =PP1_BY + (PP2_BY * EFP2_BY) + (PP3_BY*EFP3_BY)Major Product: Product 1 in the baseline year (Tonnes)WhereEqMP_BY = Total equivalent product in Major Product in BY (Tonne)PP1_BY = Total Product 1 production in BY (Tonne)PP2_BY = Total Product 2 production in BY (Tonne)EFP2_BY = Product 2 energy factor with respect to Product 1 in BYPP3_BY = Total Product 3 production in BY (Tonne)EFP3_BY = Product 3 energy factor with respect to Product 1 in BYBY= Baseline Year(Note: Any addition in series or parallel product will attract the same fraction and to be included in the above equation asPPi_BY x EFPi_BY)The Energy factor for the baseline will be calculated asEFP2_BY = SECP2_BY/SECP1_BYEFP3_BY = SECP3BY/SECP1_BY......EFPi_BY = SECPi_BY/SECP1_BYWhere,-EFP2_BY = Product 2 energy factor with respect to Product 1 in BYEFP3_BY = Product 3 energy factor with respect to Product 1 in BYEFPi_BY = Product ith energy factor with respect to Product 1 in BYSECP1_BY = Specific Energy Consumption of Product 1 in BYSECP2_BY = Specific Energy Consumption of Product 2 in BYSECP3_BY = Specific Energy Consumption of Product 3 in BYSECPi_BY = Specific Energy Consumption of Product ith in BY

(ii) Condition 1, No new product is introduced in the assessment year i.e., if PPi_BY≠ 0 and PPi_AY≠ 0 then Equivalent production (In Major Product) in the Assessment Year (AY) will be

EqMP_AY=PP1_AY+ (PP2_AY* EFP2_BY) + (PP3_AY* EFP3_BY)Major Product: Product 1 in the baseline year (Tonnes) and will remain same in the assessment yearWhere,-EqMP_AY= Total equivalent product in Major Product in AY (Tonne)PP1_AY= Total Product 1 production in AY (Tonne)PP2_AY= Total Product 2 production in AY (Tonne)EFP2_BY= Product 2 energy factor with respect to Product 1 in BYPP3_AY= Total Product 3 production in AY (Tonne)EFP3_BY= Product 3 energy factor with respect to Product 1 in BYAY= Assessment Year

(iii) Condition 2, Due to introduction of new product in the assessment year, the production of new introduced product in the baseline year will be 0 i.e., if PPi_BY=0 and PPi_AY≠ 0 then

Equivalent production (In Major Product) in the Assessment Year (AY) with 4th new introduced product will beEqMP_AY=PP1_AY+ (PP2_AY* EFP2_BY) + (PP3_AY* EFP3_BY) + (PP3_AY* EFP4_AY)Major Product: Product 1 in the baseline year (Tonnes) and will remain same in the assessment yearWhere,-PP4_AY= Total Product 4 production in AY (Tonne)EFP4_AY= Product 4 energy factor with respect to Product 1 in AYEFP4_AY= SECP4_AY/ SECP1_BYAY= Assessment Year1.6.1. Refinery1.6.1.1. Equivalent Product with major product as Standard Calcined Alumina. - All products other than Standard Calcined Alumina are converted to the Equivalent Standard Calcined Alumina in baseline as well as assessment year

(i) Total Equivalent Standard Calcined Alumina Production (Tonne) in the baseline year = SCA_BY+EqSHC_BY+EqSHM_BY+EqSHMd_BY+ EqSCAC_BY+ EqSCAM_BY+ EqSCAMd_BY

(ii) Total Equivalent Standard Calcined Alumina Production (Tonne) in the assessment year = SCA_AY+EqSHC_AY+EqSHM_AY+EqSHMd_AY+ EqSCAC_AY+ EqSCAM_AY+EqSCAMd_AY

Where,-SCA =Standard Calcined Alumina (t) as Major ProductEqSHA =Equivalent Standard Hydrate Alumina Production (t)EqSHC = Equivalent Special Hydrate Course Production (t)EqSHM = Equivalent Special Hydrate Microfined Production (t)EqSHMd = Equivalent Special Hydrate Milled Production (t)EqSCAC = Equivalent Special Calcined Alumina Course Production (t)EqSCAM = Equivalent Special Calcined Alumina Microfined Production (t)EqSCAMd = Equivalent Special Calcined Alumina Milled Production (t)BY = Baseline YearAY =Assessment Year1.6.1.2. Equivalent Major Product. - Calcined Alumina for Baseline year

(i) Special Calcined Alumina Milled (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAMd_BY= SCAMdP_BYx EFSCAMd_BYWhere,-SCAMdP_BY=Special Calcined Alumina Milled Production (t)EFSCAMd_BY=Energy Factor Special Calcined Alumina Milled

(ii) Special Calcined Alumina Micro fined (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAM_BY= SCAMP_BYx EFSCAM_BYWhere,-SCAMP_BY= Calcined Alumina Micro fined Production (t)EFSCAM_BY= Energy Factor Special Calcined Alumina Micro fined

(iii) Special Calcined Alumina Course (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAC_BY= SCACP_BYx EFSCAC_BYWhere,-SCACP_BY=Calcined Alumina Course Production (t)EFSCAC_BY=Energy Factor Special Calcined Alumina course

(iv) Special Hydrate Milled (Tonne) to Equivalent Major Product- Calcined Alumina

EqSHMd_BY= SHMdP_BYx EFSHMd_BYWhere,-SHMdP_BY=Special Hydrate Milled Production (t)EFSHMd_BY=Energy Factor Special Hydrate Milled

(v) Special Hydrate Micro fined (Tonne) to Equivalent Major Product- Calcined Alumina

EqSHM_BY= SHMP_BYx EFSHM_BYWhere,-SHMP_BY=Special Hydrate Micro fined Production (t)EFSHM_BY= Energy Factor Special Hydrate Micro fined(vi) Special Hydrate Course (Tonne) to Equivalent Major Product- Calcined AluminaEqSHC_BY= SHCP_BYx EFSHC_BYWhere,-SHCP_BY=Special Hydrate Course Production (t)EFSHC_BY= Energy Factor Special Hydrate Course

(vii) Standard Hydrate Alumina (Tonne) to Equivalent Major Product- Calcined Alumina

EqSHA_BY= SHAP_BYx EFSHA_BYWhere,-SHAP_BY=Standard Hydrate Alumina Production (t)EFSHA_BY=Energy Factor Standard Hydrate Alumina1.6.1.3. Energy Factors

(i) Special Calcined Alumina Milled

EFSCAMd_BY= SECSCAMd_BY/ SECSCA_BYWhere,-SECSCAMd_BY= Specific Energy Consumption Special Calcined Alumina Milled (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)

(ii) Special Calcined Alumina Microfined

EFSCAM_BY= SECSCAM_BY/ SECSCA_BYWhere,-SECSCAM_BY= Specific Energy Consumption Special Calcined Alumina Microfined (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/ Calcined Alumina (Million kcal/ Tonne)

(iii) Special Calcined Alumina course

EFSCAC_BY= SECSCAC_BY/ SECSCA_BYWhere,-SECSCAC_BY= Specific Energy Consumption Special Calcined Alumina Course (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)(iv) Special Hydrate MilledEFSHMd_BY= SECSHMd_BY/ SECSCA_BYWhere,-SECSHMd_BY= Specific Energy Consumption Special Hydrate Milled (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)

(v) Special Hydrate Micro-fined

EFSHM_BY= SECSHM_BY/ SECSCA_BYWhere,-SECSHM_BY= Specific Energy Consumption Special HydrateMicrofined (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)

(vi) Special Hydrate Course to Calcined Alumina

EFSHC_BY= SECSHC_BY/ SECSCA_BYWhere,-SECSHC_BY= Specific Energy Consumption Special Hydrate Course (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)

(vii) Standard Hydrate Alumina into Calcined Alumina

EFSHA_BY= SECSHA_BY/ SECSCA_BYWhere,-SECSHA_BY= Specific Energy Consumption Standard Hydrate Alumina (Million kcal/Tonne)SECSCA_BY= Specific Energy Consumption Standard/Calcined Alumina (Million kcal/Tonne)1.6.1.4. Equivalent Major Product- Calcined Alumina for Assessment year

(i) Special Calcined Alumina Milled (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAMd_AY= SCAMdP_AYx EFSCAMd_AYWhere,-SCAMdP_AY= Special Calcined Alumina Milled Production (t)EFSCAMd_AY= Energy Factor Special Calcined Alumina Milled = EFSCAMd_AY

(ii) Special Calcined Alumina Microfined (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAM_AY= SCAMP_AYx EFSCAM_AYWhere,-SCAMP_AY= Calcined Alumina Micro-fined Production (t)EFSCAM_AY= Energy Factor Special Calcined Alumina Micro-fined = EFSCAM_BY

(iii) Special Calcined Alumina Course (Tonne) to Equivalent Major Product- Calcined Alumina

EqSCAC_AY= SCACP_AYx EFSCAC_AYWhere,-SCACP_AY= Calcined Alumina Course Production (t)EFSCAC_AY= Energy Factor Special Calcined Alumina course = EFSCACBY

(iv) Special Hydrate Milled (Tonne) to Equivalent Major Product- Calcined Alumina

EqSHMd_AY= SHMdP_AYx EFSHMd_AYWhere,-SHMdP_AY= Special Hydrate Milled Production (t)EFSHMd_AY= Energy Factor Special Hydrate Milled = EFSHMd_BY

(v) Special Hydrate Micro fined (Tonne) to Equivalent Major Product- Calcined Alumina

EqSHM_AY= SHMP_AYx EFSHM_AYWhere,-SHMP_AY= Special Hydrate Micro fined Production (t)EFSHM_AY= Energy Factor Special Hydrate Micro fined = EFSHMBY(vi) Special Hydrate Course (Tonne) to Equivalent Major Product- Calcined AluminaEqSHC_AY= SHCP_AYx EFSHC_AYWhere,-SHCP_AY= Special Hydrate Course Production (t)EFSHC_AY= Energy Factor Special Hydrate Course = EFSHCBY(vii) Standard Hydrate Alumina (Tonne) to Equivalent Major Product- Calcined AluminaEqSHA_AY= SHAP_AYx EFSHA_AYWhere,-SHAP_AY=Standard Hydrate Alumina Production (t)EFSHA_AY= Energy Factor Standard Hydrate Alumina = EFSHA_BY

Note: For Assessment year, the Energy factor of baseline will be used to calculate the Equivalent product for respective product. However, any introduction of new product in the assessment year will draw the SEC of the newly introduced product into the Energy factor and equivalent product is to be calculated accordingly. Thus, the Numerator SEC of the above calculation of energy factor of baseline will change to SEC of the respective product in the assessment year as

EFPi_AY= SECPi_AY/ SECP1_BY. Rest of the calculation remain same.1.6.2. Smelter1.6.2.1. Equivalent Product with major product as Molten Aluminum. - All products other than Molten Aluminum are converted to the Equivalent Molten Aluminum in baseline as well as assessment year

(i) Total Equivalent Molten Aluminum Production (Tonne) in the baseline year = MA_BY+ EqBi_BY+ EqIn_BY+ EqBa_BY+ EqPF_BY+ EqWiR_BY+ EqSt_BY+ EqOp_BY

(ii) Total Equivalent Molten Aluminum Production (Tonne) in the assessment year = MABY + EqBi_AY+ EqIn_AY+ EqBa_AY+ EqPF_AY+ EqWiR_AY+ EqSt_AY+ EqOp_AY

Where,MA = Molten Aluminum Production (t) as Major ProductEqBi = Equivalent Billet production (t)EqIn = Equivalent Ingots production (t)EqBi = Equivalent Bars production (t)EqPF = Equivalent Primary Foundry production (t)EqWiR = Equivalent Wire Rods production (t)EqSt = Equivalent Strips production (t)EqOp = Equivalent Others Product production (t)BY = Baseline YearAY =Assessment Year1.6.2.2. Equivalent Product- Molten Aluminum for Baseline year(i) Others Product to Equivalent molten aluminum product (Tonne)

EqOp_BY= OpP_BYx EFOP_BY

Where,-OpP_BY=Other Products Production (t)EFOP_BY= Energy factor of other product

(ii) Strips to Equivalent molten aluminum product (Tonne)

EqSt_BY= StP_BYx EFSt_BYWhere,-StP_BY= strips production (t)EFSt_BY= Energy factor of Strips

(iii) Wire rods to Equivalent molten aluminum product (Tonne)

EqWiR_BY= WiRP_BYx EFWiR_BYWhere,-WiRP_BY= Total Wire rod Production (t)EFWiR_BY= Energy factor of wire rods

(iv) Primary foundry to Equivalent molten aluminum product(Tonne)

EqPF_BY= PFP_BYX EFPF_BYWhere,-PFP_BY= Primary foundry alloys production (t)EFPF_BY= Energy factor of primary foundry

(v) Bars to Equivalent molten aluminum product (Tonne)

EqBa_BY= BaP_BYx EFBa_BYWhere,-BaP_BY= Total Bars production (t)EFBa_BY= Energy factor of Bars

(vi) Ingots to Equivalent molten aluminum product (Tonne)

EqIn_BY= InP_BYx EFIn_BYWhere,-InP_BY= Ingot Production (t)EFIn_BY= Energy factor of ingots

(vii) Billet to Equivalent molten aluminum product

EqBi_BY= BiP_BYx EFBi_BYWhere,-BiP_BY= Billet Production (t)EFBi_BY= Energy factor of Billet1.6.2.3. Energy Factors

(i) Other Product

EFOP_BY= SECOP_BY/ SECMA_BYWhere,-SECOP_BY= SEC of Other Products (if any) after Molten Aluminum (Million kcal/Tonne)SECMA_BY= SEC of Molten Aluminum (Million kcal/Tonne)

(ii) Stips

EFSt_BY= SECSt_BY/ SECMA_BYWhere,-SECSt_BY= SEC of Strips (Million kcal/Tonne)SECMA_BY= SEC of Molten Aluminum (Million kcal/Tonne)

(iii) Wire Rods

EFWiR_BY= SECWiR_BY/ SECMA_BYWhere,-SECWiR_BY= SEC of wire Rods (Million kcal/Tonne)SECMABY =SEC of Molten Aluminum (Million kcal/Tonne)

(iv) Primary Foundry

EFPF_BY= SECPF_BY/ SECMA_BYWhere,-SECPF_BY= SEC of Primary Foundry Alloys(Million kcal/Tonne)SECMA_BY= SEC of Molten Aluminum (Million kcal/Tonne)

(v) Bars

EFBa_BY= SECBa_BY/ SECMA_BYWhere,-ECBa_BY= SEC of Bars (Million kcal/Tonne)SECMABY =SEC of Molten Aluminum (Million kcal/Tonne)

(vi) Ingots

EFIn_BY= SECIn_BY/ SECMA_BYWhere,-SECIn_BY= SEC of Ingot (Million kcal/Tonne)SECMABY =SEC of Molten Aluminum (Million kcal/Tonne)

(vii) Billet

EFBi_BY= SECBi_BY/ SECMA_BYWhere,-SECBi_BY= SEC of Billet (Million kcal/Tonne)SECMA_BY= SEC of Molten Aluminum (Million kcal/Tonne)1.6.2.4. Equivalent Product- Molten Aluminum for Assessment year

(i) Others Product to Equivalent molten aluminum product (Tonne)

EqOp_AY= OpP_AYx EFOP_AYWhere,-OpP_AY= Other Products Production (t)EFOP_AY= Energy factor of other product = EFOP_BY

(ii) Strips to Equivalent molten Aluminum product (Tonne)

EqSt_AY= StP_AYx EFSt_AYWhere,-StP_AY= strips production (t)EFSt_AY= Energy factor of Strips = EFSt_BY

(iii) Wire rods to Equivalent molten Aluminum product (Tonne)

EqWiR_AY= WiRP_AYx EFWiR_AYWhere,-WiRP_AY= Total Wire rod Production (t)EFWiR_AY= Energy factor of wire rods= EFWiR_BY(iv) Primary foundry to Equivalent molten Aluminum product(Tonne)EqPF_AY= PFP_AYX EFPF_AYWhere,-PFP_AY= Primary foundry alloys production (t)EFPF_AY= Energy factor of primary foundry = EFPFBY

(v) Bars to Equivalent molten Aluminum product (Tonne)

EqBa_AY= BaP_AYx EFBa_AYWhere,-BaP_AY= Total Bars production (t)EFBa_AY= Energy factor of Bars = EFBa_BY

(vi) Ingots to Equivalent molten Aluminum product (Tonne)

EqIn_AY= InP_AYx EFIn_AYWhere,-InP_AY= Ingot Production (t)EFInAY =Energy factor of ingots = EFInBY(vii) Billet to Equivalent molten aluminum productEqBi_AY= BiP_AYx EFBi_AYWhere,-BiP_AY= Billet Production (t)EFBi_AY= Energy factor of Billet= EFBi_BY

EFPi_AY= SECPi_AY/ SECP1_BY. Rest of the calculation remains same.1.7. Power Mix

(a) Power Mix Normalization for Power Sources

The baseline year power mix ratio will be maintained for Assessment year for Power Source and import. The Normalized weighted heat rate calculated from the baseline year Power mix ratio will be compared with the assessment year Weighted Heat Rate and the Notional energy will be deducted from the Total energy assessed.The Thermal Energy difference of electricity consumed in plant in baseline year and electricity consumed in plant during assessment year shall be subtracted from the total energy, considering the same % of power sources consumed in the baseline year.However, any efficiency increase (i.e. reduction in Heat Rate) in Assessment year in any of the power sources will give benefit to the plant.Notional Energy to be subtracted from the total Energy of Plant in the assessment year is calculated as

(i) Energy Correction for all power source in the assessment year [Million kcal]= TECPS_AYx (A-WHR_AY- N-WHR_AY)

Where,-TECPS_AY: Total energy consumption from all the Power sources (Grid, CPP, DG etc) for AY in Million kwhA-WHR_AY: Actual Weighted Heat Rate for the Assessment Year in kcal/kwhN-WHR_AY: Normalized Weighted Heat Rate for the Assessment Year in kcal/kwh

(ii) Normalized Weighted Heat Rate for Assessment year (kcal/kwh):

N-WHR_AY= A x (D/G) + B x (E/G) + C x (F/G)Where,-A: Grid Heat Rate for Assessment year (AY) in kcal/kwhB: CPP Heat Rate for AY in kcal/kwhC: DG Heat Rate for AY in kcal/kwhD: Grid Energy consumption for Base Line Year (BY) in Million kwhE: CPP Energy consumption for BY in Million kwhF: DG Energy consumption for BY in Million kwhG: Energy Consumed from all Power sources (Grid, CPP, DG) for BY in Million kwh(Note: Any addition in the power source will attract the same fraction to be included in the above equation as PSiHR_AYx (PSiEC_BY/TEC_BY)PSiHR_AY= Power Source (ith) Heat rate for AY in kcal/kwhPSiEC_BY= Power Source (ith) Energy Consumption for BY in Million kWhTEC_BY= Total Energy consumption for BY in Million kWhThe Electricity Consumption from WHR is not being considered for Power Mix Normalization)

(b) Power Mix Normalization for Power Export. - Net Heat Rate of CPP to be considered for export of Power from CPP instead of 2717 kCal/kWh. Actual CPP heat rate would be considered for the net increase in the export of power from the baseline. The exported Energy will be normalized in the assessment year as per following calculation

(iii) Notional energy for Power export to be subtracted in the assessment year [Million kcal] =(EXP_AY- EXP_BY) * [{(GHR_AY/ (1-APC_AY/ 100)} - 2717)]/ 10

Where,-GHR_AY: CPP Gross Heat Rate for AY in kcal/kwhEXP_AY: Exported Electrical Energy in AY in Lakh kwhEXP_BY: Exported Electrical Energy in BY in Lakh kwhAPC_AY: Auxiliary Power Consumption for AY in %1.8. Other Normalizations1.8.1. Start/Stop. - The Normalization takes place in the assessment year due to Cold start or Hot stop major section like calciner in Aluminum refinery. The additional Thermal and electrical Energy to be deducted after taking care of energy used in the production during these period in the assessment year as compared to the baseline year. The energy is to be excluded from the input energy as calculated belowAdditional Notional Electrical and Thermal Energy consumed due to Calciner/Major section start/stop (due to external factor) [Million kcal] = Electrical and Thermal Energy consumed due to Calciner/Major section start/stop (due to external factor) in the assessment year - Electrical and Thermal Energy consumed due to Calciner/Major section start/stop (due to external factor) in the baseline yearElectrical and Thermal Energy consumed due to Calciner/Major section start/stop (due to external factor) in the assessment year [Million kcal] = {Calciner/ Major Section Hot to Cold stop due to external factor (Electrical Energy Consumption) in assessment year (Lakh kWh) + Calciner/ Major Section Cold to Hot start due to external factors taking production into account (Electrical Energy Consumption) in assessment year (Lakh kWh)} xWeighted Heat Rate (kcal/kwh)/10 + Calciner/Major Section Cold to Hot start due to external factors taking production into account (Thermal Energy Consumption) in the assessment year (Million kcal)Electrical and Thermal Energy consumed due to Calciner/Major section start/stop (due to external factor) in the baseline year [Million kcal] = {Calciner/ Major Section Hot to Cold stop due to external factor (Electrical Energy Consumption) in baseline year (Lakh kWh) + Calciner/ Major Section Cold to Hot start due to external factors taking production into account (Electrical Energy Consumption) in baseline year (Lakh kWh)} x Weighted Heat Rate (kcal/kwh)/10 + Calciner/Major Section Cold to Hot start due to external factors taking production into account (Thermal Energy Consumption) in the baseline year (Million kcal)1.8.2. Environmental Concern. - Additional Environmental Equipment requirement due to major change in government policy on EnvironmentThe Normalization takes place in the assessment year for additional Equipment's Energy Consumption only if there is major change in government policy on Environment Standard. The Energy will be normalized for additional Energy consumption details from Energy meters. This is to be excluded from the input energy as calculated belowNotional Thermal Energy to be deducted in the assessment year due to Environmental Concern [Million kcal] = Additional Electrical Energy Consumed (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10+ Additional Thermal Energy Consumed (Million kcal)1.8.3. Biomass/ Alternate Fuel Unavailability w.r.t Baseline Year. - The Normalization for Unavailability for Biomass or Alternate Fuel is applied in the baseline year. The energy contained by the fossil fuel replacement will be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Biomass/Alternate Fuel Unavailability [Million kcal] = FFB_AYGCVB_BY/1000 + FFSA_AYx GCVSA_BY/ 1000 + FFB_AYx GCVLA_BY/ 1000Where,-FFB_AY= Biomass replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVB_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)FFSA_AY= Solid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVSA_BY: Gross Calorific Value of Solid Alternate Fuel in Baseline Year (kcal/kg)FFB_AY= Liquid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVLA_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)1.8.4. Construction Phase or Project Activities. - The energy consumed during construction phase or project activities are non-productive energy and hence will be subtracted in the assessment year. The energy consumed by the equipment till commissioning will also be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Construction Phase or Project Activities [Million kcal] = Electrical Energy Consumed due to commissioning of Equipment (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10+ Thermal Energy Consumed due to commissioning of Equipment (Million kcal)1.8.5. Addition of New Line/Unit (In Process and Power Generation). - In case a DC commissions a new line/production unit before or during the assessment/target year, the production and energy consumption of new unit will be considered in the total plant energy consumption and production volumes once the Capacity Utilization of that line has touched / increased over 70 per cent. However, the energy consumption and production volume will not be included till it attains 70 per cent.of Capacity Utilization. Energy consumed and production made (if any) during any project activity during the assessment year, will be subtracted from the total energy and production in the Assessment year. Similarly, the same methodology is applied on a new unit installation for power generation (CPP) within the plant boundary.The Energy reduction will take place in the assessment year for addition of new line/unit Normalization as per following calculation:

(i) Thermal Energy Consumed due to commissioning of New process Line/Unit till it attains 70 percent of Capacity Utilization to be subtracted in assessment year (Million kcal) = (Electrical Energy Consumed due to commissioning of New process Line/Unit till it attains 70 percent. of Capacity Utilization (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Process Line/Unit till it attains 70 percent. of Capacity Utilization (Million kcal)

The Production during commissioning of New Process Line/Unit will be subtracted from the total production of plant and added in the import of intermediary product (Calcined Alumina for Refinery, Molten Alumina for Smelter and Integrated Plant))

(ii) Thermal Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation to be subtracted in the assessment year (Million kCal) = (Electrical Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation (Million kcal)

(iii) Thermal Energy to be added in the assessment year for Power generation of a line /unit till it attains 70 percent.of Capacity Utilization (Million kcal)=Net Electricity Generation till new Line/Unit attains 70 percent. Capacity Utilization (Lakh kWh) x Weighted Heat Rate (kcal/kwh)/10

Where,-AY: Assessment Year1.8.6. Unforeseen Circumstances. - The Normalization is required for Energy system of a plant, if the situation influences the Energy Consumption, which cannot be controlled by Plant Management and is termed as unforeseen circumstances. The Energy consumed due to unforeseen circumstances to be deducted in the assessment year

(i) Thermal Energy consumed due to unforeseen (Million kcal) = (Electrical Energy to be Normalized in AY x Weighted Average Heat rate in AY (kcal/kWh)/10) + Thermal Energy to be Normalized (Million kcal)

1.8.7. Renewable Energy. - The quantity of exported power ( partially or fully) on which Renewable Energy Certificates have been earned by Designated Consumer in the assessment year under Renewable Energy Certificates (REC) mechanism shall be treated as Exported power and Normalization will apply. However, the normalized power export or deemed injection will not qualify for issue of Energy Saving Certificates under Perform, Achieve &Trade (PAT) Scheme.The quantity of exported power (partially or fully) from Renewable energy which has been sold at a preferential tariff by the Designated consumer in the assessment year under Renewable Energy Certificates (REC) mechanism shall be treated as Exported power. However, the normalized power export will not qualify for issue of Energy Saving Certificates under Perform, Achieve & Trade (PAT) Scheme.

(i) Target Saving to be achieved (Perform, Achieve & Trade (PAT) obligation) (Tonne of Oil Equivalent(TOE)) = Equivalent Major Product Output as per PAT scheme Notification (Tonnes) in BY x Target Saving to be achieved (PAT obligation) (TOE/Te)

(ii) Target Saving achieved in assessment year (TOE)= [Gate to Gate Specific Energy Consumption in BY (TOE/Te)-normalized Gate to Gate Specific Energy Consumption in AY (TOE/Te)] x Equivalent Major Product Output in Tonnes as per PAT scheme Notification (Tonnes)

(iii) Additional Saving achieved (After PAT obligation) (TOE) = Target Saving Achieved in AY (TOE) - Target Saving to be achieved (PAT obligation) in BY (TOE)

A. Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year = 0

(iv) Thermal energy conversion for REC and Preferential tariff (Million kcal)= [Quantum of Renewable Energy Certificates (REC) obtained as a Renewal Energy Generator (Solar & Non-Solar)(MWh) + Quantum of Energy sold under preferential tariff (MWh)] x 2717/1000

(a) Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year ? 0

(v) Thermal energy conversion for REC and Preferential tariff (TOE)= [Quantum of Renewable Energy Certificates (REC) obtained as a Renewal Energy Generator (Solar & Non-Solar)(MWh) + Quantum of Energy sold under preferential tariff (MWh)] x Steam Turbine Net Heat Rate in AY (kcal/kwh)/10000

(vi) If, Additional Saving achieved (After PAT obligation) (TOEl)<= 0,

1. Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) = 0,

(vii) If, Additional Saving achieved (After PAT obligation) (TOEl)>0, and Thermal energy conversion for REC and Preferential tariff (TOE)>Additional Saving achieved (After PAT obligation) (TOE) then

1. Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) =Additional Saving achieved (After PAT obligation) (TOE)

(viii) If, Additional Saving achieved (After PAT obligation) (TOE)>0, and Thermal energy conversion for REC and Preferential tariff (TOE)< Additional Saving achieved (After PAT obligation) (Million kcal) then

1. Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) =Thermal energy conversion for REC and Preferential tariff (TOE)

1.9. Gate to Gate Specific Energy Consumption1.9.1. Refinery Process Gate to Gate Specific Energy Consumption for BY and AY

Gate to Gate SEC of equivalent Calcined alumina (TOE/ Tone) =

Total Notional Energy Consumed (TOE)

Total equivalent calcined alumina production (Tonne)

1.9.1.1. Total Notional Energy Consumed considering Intermediary product Import and Export with stock difference in BY and AYTotal Notional energy consumed (TOE) for BY and AY =Total energy consumed (Million kcal)/10 - Notional energy exported for hydrate alumina (Million kcal)/10+ Notional energy for imported hydrate alumina (Million kcal)/10 -Energy consumed by By products (Million kcal)/10

(i) Notional energy for exported hydrate alumina (Million kcal) for BY and AY = SECSHA * TSHAEx

Where,-SECSHA = Specific Energy Consumption of Standard Hydrate Alumina for BY and AY (Million kcal/Tonne)TSGAEx = Total Standard Hydrate Alumina Export for BY and AY (Tonne)

a. Total Standard Hydrate Alumina Export for BY and AY (if Hydrate Alumina Stock >0) = Actual Hydrate Alumina Export (Tonne) + Hydrate Alumina Stock difference (Tonne)

b. Hydrate Alumina Stock difference for BY and AY Closing Hydrate Alumina Stock (Tonne) - Opening Hydrate Alumina Stock (Tonne)

c. Total Standard Hydrate Alumina Export for BY and AY (if Hydrate Alumina Stock <0) = Actual Hydrate Alumina Export

(ii) Notional energy for imported hydrate alumina (Million kcal) for BY and AY = SECSHA * TSHAIm

Where,-SECSHA = Specific Energy Consumption of Standard Hydrate Alumina for BY and AY (Million kcal/Tonne)TSGAIm = Total Standard Hydrate Alumina Import for BY and AY (Tonne)

a. Total Standard Hydrate Alumina Import for BY and AY (if Hydrate Alumina Stock <0) = Actual Hydrate Alumina Import (Tonne) - Hydrate Alumina Stock difference (Tonne)

b. Hydrate Alumina Stock difference for BY and AY Closing Hydrate Alumina Stock (Tonne) - Opening Hydrate Alumina Stock (Tonne)

c. Total Standard Hydrate Alumina Import for BY and AY (if Hydrate Alumina Stock >0) = Actual Hydrate Alumina Import

1.9.2. Smelter Process

Gate to Gate SEC of equivalent Molten Aluminum (TOE/ Tone) =

Total Notional Energy Consumed (TOE)

Total equivalent Molten Aluminum production (Tonne)

1.9.2.1. Total Notional Energy Consumed considering Intermediary product Import and Export with stock difference in BY and AYTotal Notional energy consumed (TOE) = Total energy consumed (Million kCal)/10- Notional energy exported calcined alumina for integrated process (Million kcal)/10+ Notional energy imported calcined alumina for integrated process (Million kcal)/ 10

(i) Notional energy for exported calcined alumina (Million kcal) for BY and AY = SECCA * TCAEx

Where,-SECCA = Specific Energy Consumption of Calcined Alumina for BY and AY (Million kcal/Tonne)TCAEx = Total Calcined Alumina Export for BY and AY (Tonne)

(a) Total Calcined Alumina Export for BY and AY (if Calcined Alumina Stock >0) = Actual Calcined Alumina Export (Tonne) + Calcined Alumina Stock difference (Tonne)

(b) Calcined Stock difference for BY and AY Closing Calcined Alumina Stock (Tonne) - Opening Calcined Alumina Stock (Tonne)

(ii) Notional energy for imported calcined alumina (Million kcal) for BY and AY = SECCA * TCAIm

Where,-SECCA = Specific Energy Consumption of Calcined Alumina for BY and AY (Million kcal/Tonne)TCAIm = Total Calcined Alumina Import for BY and AY (Tonne)

(a) Total Calcined Alumina Import for BY and AY (if Calcined Alumina Stock <0) = Actual Calcined Alumina Import (Tonne) - Calcined Alumina Stock difference (Tonne)

(b) Calcined Stock difference for BY and AY Closing Calcined Alumina Stock (Tonne) - Opening Calcined Alumina Stock (Tonne)

1.10. Normalized Gate to Gate Specific Energy Consumption

Gate to Gate SEC of equivalent Molten Aluminum (TOE/ Tone) =

Total Notional Energy Consumed (TOE)

Total equivalent Molten Aluminum production (Tonne)

Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year =

Normalized Total Energy Consumption after REC Compliance (TOE)

Total equivalent production (Tonnes)

i. Normalized Total Energy Consumption in the assessment year (TOE) = Total Energy Consumption in the assessment year(TOE)- Notional Energy for Bauxite Quality(TOE)- Notional Energy for fuel quality in CPP & Co-Gen(TOE) - Notional Energy for PLF in CPP(TOE)- Notional Energy for Power Mix(TOE)-Notional Energy for Carbon Anode production(TOE)- Notional Energy for Smelter capacity Utilization(TOE)-Notional Energy for others (Environmental Concern+ Biomass/Alternate Fuel Availability+ Project Activities+ NewLine/Unit Commissioning+ Unforeseen Circumstances) (TOE) - Energy for Power generation of a line /unit till it attains 70 per cent. of Capacity Utilization

ii. Normalized Total Energy Consumption after REC compliance in the assessment year (Million kcal) = Normalized Total Energy Consumption in the assessment year (Million kcal)+ Renewable Energy Certificates Compliance under PAT Scheme (Million kcal)

iii. Baseline Normalization (TOE/tonne) = Gate to Gate Specific Energy Consumption in Baseline year (TOE/tonne) - Notified Specific Energy Consumption in Baseline Year (TOE/tonne)

iv. Normalized GtG SEC after SEC compliance Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year = Total Equivalent Production (Tonnes) - Baseline Normalization (TOE/ Tonne)

2. Sa2 Aluminum: Aluminum Cold Sheet

Normalization factors for the following areas have been developed in Aluminum Cold Sheet Sector.2.1. Product Mix (Equivalent product)2.2. Import product Normalization2.3. Other Normalizations

2.3.1. Environmental Concern (Additional Environmental Equipment requirement due to major change in Government policy on Environment)

2.3.2. Biomass/Alternate Fuel Unavailability

2.3.3. Construction Phase or Project Activities

2.3.4. Addition of New Line/Unit (In Process and Power Generation)

2.3.5. Unforeseen Circumstances

2.3.6. Renewable Energy

2.4. Gate to Gate Specific Energy Consumption2.5. Normalized Gate to Gate Specific Energy Consumption2.1. Product Mix (Equivalent Product). - The baseline year product mix ratio will be maintained for Assessment year for equivalent major product. The equivalent major product is calculated from the baseline year product mix ratio will be compared with the both baseline year and assessment year production

2.1.1. Total Equivalent Product Cold Sheet. - All products v.i.z Alloy Ingot, Rolling Ingot, Hot Rolled product, different Cold rolled products etc other than major product shall be converted to equivalent major product.

Equivalent major product = ∑ PGCVSA_i: Gross Calorific Value of Solid Alternate Fuel in Baseline Year (kcal/kg) x CF_iConversion factor CF_i = SEC_i ÷ SEC_MWhere,-P_i = Tonnage of Product iSEC_i = SEC of Product i in Baseline yearSEC_M = SEC of Product M in Baseline yearThe conversion factor will be kept same in assessment year as of baseline year

2.1.1.1. Total Equivalent Product Cold Sheet _BY (Tonne) = AIMP | RIMP | HRCMP | CSMP

Where,-AIMP = Alloy Ingot to Major Product (Tonne)RIMP = Rolling Ingot to Major Product (Tonne)HRCMP = Hot Rolled to Major Product (Tonne)CSMP = Cold Sheet to Major Product (Tonne)

2.1.1.2. Total Equivalent Product Cold Sheet AY (Tonne) =AIMP + RIMP + HRCMP + CSMP

Where,-AIMP = Alloy Ingot to Major Product (Tonne)RIMP = Rolling Ingot to Major Product (Tonne)HRCMP = Hot Rolled to Major Product (Tonne)CSMP = Cold Sheet to Major Product (Tonne)2.1.2. Equivalent Product

2.1.2.1. Cold Sheet to major Product: CSMP_{(BY/ AY)} = CSCF X CRC

Where,-CSCF = Cold Sheet to major Product-Conversion FactorCRC = Cold Rolled Coil (Tonne)

2.1.2.2. Hot Rolled Coil to major Product (HRCMP)

(a) Hot Rolled Coil to major Product: HRCMP _BY = HRCFF X THRCEx

Where,-HRCCF = Hot Rolled Coil to major Product-Conversion FactorTHRCEx = Total Hot Rolled Coil Export (Tonne)

(b) Hot Rolled Coil to major Product HRCMPAY = _AY= HRCFF X THRCEx

Where,-HRCCF = Hot Rolled Coil to major Product-Conversion FactorTHRCEx = Total Hot Rolled Coil Export (Tonne)

2.1.2.3. Rolling Ingot to major Product

(a) Rolling Ingot to major Product RIMP_BY = RICF X TRIEx

Where,-RICF =Rolling Ingot to major Product-Conversion factorTRIEx =Total Rolling Ingot (RI) Export (Tonne)

(b) Rolling Ingot to major Product RIMP_AY = RICF X TRIEx

Where,-RICF = Rolling Ingot to major Product-Conversion factorTRIEx = Rolling Ingot Export (Tonne)

2.1.2.4. Alloy Ingot to major Product

(a) Alloy Ingot to major Product AIMP_BY = AICF X TAIEP

Where,-AICF = Alloy Ingot to major Product-Conversion factorTAIEEx = Total Alloy Ingot (AI) Export (Tonne)

(b) Alloy Ingot to major Product AIMP_AY = AICF X TAIEx

Where,-AICF = Alloy Ingot to major Product-Conversion factorTAIEx = Alloy Ingot Export (Tonne)2.1.3. Conversion Factor for Minor to Major Product

2.1.3.1. Cold Sheet to major Product Conversion Factor

(a) Cold Sheet to major Product CSCF_(BY) = CSSECBY/ SECMPBY

Where,-CSSECBY = Cold Sheet-Specific Energy Consumption (Million kcal/Tonne) for BYSECMP BY = Specific Energy Consumption of Major Product (Million kcal/Tonne) for BYBY = Baseline Year

(b) Cold Sheet to major Product_(AY) = CSSECBY/ SECMPBY

Where,-CSSECBY = Major product-Specific Energy Consumption (Million kcal/Tonne)SECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne)

2.1.3.2. Hot Rolled Coil to major Product Conversion Factor

(a) Hot Rolled Coil to major Product HRCCF_(BY) = HRCSEBY/ SECMPBY

Where,-HRCSECBY = Hot Rolled Coil-Specific Energy Consumption (Million kcal/Tonne) in BYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BY

(b) If Hot Rolled Coil Production in BY= 0, then

Hot Rolled Coil to major Product HRCCF_(AY) = HRCSEAY/ SECMPBY

Hot Rolled Coil to major Product HRCCF_(AY) = HRCSEBY/ SECMPBYWhere,-HRCSECBY = Hot Rolled Coil-Specific Energy Consumption (Million kcal/Tonne) in BYHRCSECAY = Hot Rolled Coil-Specific Energy Consumption (Million kcal/Tonne) in AYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BY

2.1.3.3. Rolling Ingot to major Product Conversion Factor

(a) Rolling Ingot to major Product RICF_(BY) = RISECBY/ SECMPBY

Where,-RISECBY = Rolling Ingot-Specific Energy Consumption (Million kcal/Tonne) in BYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BY

(b) If Hot Rolling Ingot Production in BY = 0, then

Rolling Ingot to major Product RICF_(AY) = RISECAY/ SECMPBY

Rolling Ingot to major Product RICF_(AY) = RISECBY/ SECMPBYWhere,-RISECBY = Rolling Ingot-Specific Energy Consumption (Million kcal/Tonne) in BYRISECAY = Rolling Ingot-Specific Energy Consumption (Million kcal/Tonne) in AYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BY

2.1.3.4. Alloy Ingot to major Product Conversion Factor

(a) Alloy Ingot to major Product AICF_(BY) = AISECBY/ SECMPBY

Where,-AISECBY = Alloy Ingot-Specific Energy Consumption (Million kcal/Tonne) in BYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BY

(b) If Alloy Ingot Production in BY = 0, then

Alloy Ingot to major Product AICF_(AY) = AISECAY/ SECMPBY

Alloy Ingot to major Product AICF_(AY) = AISECBY/ SECMPBYWhere,-AISECBY = Alloy Ingot-Specific Energy Consumption (Million kcal/Tonne) in BYAISECAY = Alloy Ingot-Specific Energy Consumption (Million kcal/Tonne) in AYSECMPBY = Specific Energy Consumption of Major Product (Million kcal/Tonne) in BYAY = Assessment YearBY = Baseline Year2.1.4. Major Product

2.1.4.1. SEC of Major Product = SECMP

Where,-SECMP = Specific Energy Consumption of Major Product (Million kcal/Tonne)

2.1.4.2. Major Product = CRC

Where,-CRC = Cold Rolled Coil Production (Tonne)2.1.5. Specific Energy Consumption up to per ton of product for BY and AY

2.1.5.1. Major product (Million kcal/Tonne)CRCSEC = RISP + HRCSP + CRCSP

Where,-AISP = Alloy Ingot -SEC for per tonne of product (Million kcal/Tonne)RISP = Rolling Ingot- SEC for per tonne of product (Million kcal/Tonne)HRCSP = Hot Rolled Coil- SEC for per tonne of product (Million kcal/Tonne)CRCSP = Cold Rolled Coil-SEC for per tonne of product (Million kcal/Tonne)

2.1.5.2. Hot Rolled Coil (Million kcal/Tonne) HRCSEC = RISP +HRCSP

2.1.5.3. Rolling Ingot (Million kcal/Tonne) RISEC= RISP

Where,-RISP = SEC of Rolling Ingot (Recycling + Remelting Furnace) per tonne of product (Million kcal/Tonne)= [(Thermal Energy for Alloy Ingot + Thermal Energy for Rolling Ingot-Thermal Energy for Alloy Ingot Production)/Rolling Ingot Production ]+ [(Electrical Energy for Alloy Ingot + Electrical Energy for Rolling Ingot-Electrical Energy for Alloy Ingot Production)/Rolling Ingot Production ]

2.1.5.4. Alloy Ingot (Million kcal/Tonne) AISEC = AISP

Where,-AISP = Alloy Ingot -SEC for per tonne of product (Million kcal/Tonne)2.1.6. Stock and Stock difference

2.1.6.1. Cold Rolled Coil (CRC)

If Stock Difference > 0, Total Cold Rolled Coil (CRC) Export (T) = Export (T)+ Stock Difference (T)If Stock Difference < 0, Total Cold Rolled Coil (CRC) Import (T) = Import (T) - Stock Difference (T)Stock Difference (T) = Closing Stock (T)-Opening Stock (T)

2.1.6.2. Hot Rolled Coil (HRC)

If Stock Difference > 0, Total Hot Rolled Coil (HRC) Export (T)= Export (T) +Stock Difference (T)If Stock Difference < 0, Total Hot Rolled Coil (HRC) Import (T)= Import (T) -Stock Difference (T)Stock Difference (T) = Closing Stock (T)-Opening Stock (T)

2.1.6.3. Rolling Ingot (RI)

If Stock Difference > 0, Total Rolling Ingot (RI) Export (T)= Export (T) +Stock Difference (T)If Stock Difference < 0, Total Rolling Ingot (RI) Import (T)= Import (T) -Stock Difference (T)Stock Difference (T) = Closing Stock (T)-Opening Stock (T)

2.1.6.4. Alloy Ingot (AI)

If Stock Difference > 0, Total Alloy Ingot (AI) Export (T)= Export (T) +Stock Difference (T)If Stock Difference < 0, Total Alloy Ingot (AI) Import (T)= Import (T) -Stock Difference (T)Stock Difference (T) = Closing Stock (T)-Opening Stock (T)2.2. Import Product Normalization

2.2.1. Notional Energy for Import to be added in the baseline and assessment year(Million kcal) = IEAI + IERI + IEHRC + IECRC

Where,-IEAI = Import Energy for Alloy ingot (Million kcal)IERI = Import Energy for Rolling ingot (Million kcal)IEHRC = Import Energy for Hot Rolled Coil (Million kcal)IECRC = Import Energy for Cold Rolled Coil (Million kcal)

2.2.2. Notional Energy for Import

2.2.2.1. Import Energy for Cold Rolled Coil (Million kcal) IECRC for BY and AY = CSSEC X TCRCIm

Where,-CSSEC = SEC up to Cold Sheet Production (Million kcal/Tonne)TCRCIm = Total Cold Rolled Coil Import (Tonne)

2.2.2.2. Import Energy for Hot Rolled Coil (Million kcal) = SECHRC X THRCIm

Where,-HRCSEC = SEC up to Hot Rolled Coil Production (Million kcal/ Tonne)THRCIm = Total Hot Rolled Coil Import (Tonne)

2.2.2.3. Import Energy for Rolling ingot (Million kcal) = SECRI X TRIIm

Where,-RISEC = SEC up to Rolling ingot Production (Million kcal/Tonne)TRIIm = Total Rolling ingot Import (Tonne)

2.2.2.4. Import Energy for Alloy ingot(Million kcal) = SECAI X TAIIm

Where,-AISEC = SEC up to Alloy Ingot Production (Million kcal/Tonne)TAIIm = Total Alloy Ingot Import (Tonne)2.3. Other Normalizations

2.3.1. Environmental Concern. - Additional Environmental Equipment requirement due to major change in government policy on Environment

The Normalization takes place in the assessment year for additional Equipment's Energy Consumption only if there is major change in government policy on Environment Standard. The Energy will be normalized for additional Energy consumption details from Energy meters. This is to be excluded from the input energy as calculated belowNotional Thermal Energy to be deducted in the assessment year due to Environmental Concern [Million kcal] = Additional Electrical Energy Consumed (Lakh kWh) x Weighted Heat Rate (kcal/kWh)/10+ Additional Thermal Energy Consumed (Million kcal)

2.3.2. Biomass/ Alternate Fuel Unavailability w.r.t Baseline Year. - The Normalization for Unavailability for Biomass or Alternate Fuel is applied in the baseline year. The energy contained by the fossil fuel replacement will be deducted in the assessment year

Notional Thermal Energy to be deducted in the assessment year due to Biomass/Alternate Fuel Unavailability [Million kcal] = FFB_AY GCVB_BY/ 1000 + FFSA_AY x GCVSA_BY/ 1000 + FFLA_AY x GCVLA_BY/ 1000Where.-FFB_AY = Biomass replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVB_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)FFSA_AY = Solid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVSA_BY: Gross Calorific Value of Solid Alternate Fuel in Baseline Year (kcal/kg)FFLA_AY = Liquid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVLA_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)

2.3.3. Construction Phase or Project Activities. - The energy consumed during construction phase or project activities are non-productive energy and hence will be subtracted in the assessment year. The energy consumed by the equipment till commissioning will also be deducted in the assessment year

Notional Thermal Energy to be deducted in the assessment year due to Construction Phase or Project Activities [Million kcal]= Electrical Energy Consumed due to commissioning of Equipment (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10+ Thermal Energy Consumed due to commissioning of Equipment (Million kcal)

2.3.4. Addition of New Line/Unit (In Process and Power Generation) In case a DC commissions a new line/production unit before or during the assessment/target year, the production and energy consumption of new unit will be considered in the total plant energy consumption and production volumes once the Capacity Utilization of that line has touched / increased over 70 percent. However, the energy consumption and production volume will not be included till it attains 70 percent.of Capacity Utilization. Energy consumed and production made (if any) during any project activity during the assessment year, will be subtracted from the total energy and production in the Assessment year.

Similarly, the same methodology is applied on a new unit installation for power generation (CPP) within the plant boundary.The Energy reduction will take place in the assessment year for addition of new line/unit Normalization as per following calculation

(i) Thermal Energy Consumed due to commissioning of New process Line/Unit till it attains 70 percent. of Capacity Utilization to be subtracted in assessment year (Million kcal) = (Electrical Energy Consumed due to commissioning of New process Line/Unit till it attains 70 percent. of Capacity Utilization (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Process Line/Unit till it attains 70 percent. of Capacity Utilization (Million kcal) The Production during commissioning of New Process Line/Unit is to be subtracted from the total production of respective plant and added in the import of intermediary product.

(ii) Thermal Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation to be subtracted in the assessment year (Million kcal) = (Electrical Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Line/Unit till it attains 70percent. of Capacity Utilization in Power generation (Million kcal)

(iii) Thermal Energy to be added in the assessment year for Power generation of a line /unit till it attains 70 percent.of Capacity Utilization (Million kcal)= Net Electricity Generation till new Line/Unit attains 70 percent. Capacity Utilization (Lakh kWh) x Weighted Heat Rate (kcal/kWh)/10

Where,-AY: Assessment Year2.3.5. Unforeseen Circumstances. - The Normalization is required for Energy system of a plant, if the situation influences the Energy Consumption, which cannot be controlled by Plant Management and is termed as Unforeseen Circumstances. The Energy consumed due to unforeseen circumstances to be deducted in the assessment yearThermal Energy consumed due to unforeseen (Million kcal) = (Electrical Energy to be normalized in AY x Weighted Average Heat rate in AY (kcal/kWh)/10) + Thermal Energy to be normalized (Million kcal)2.3.6. Renewable Energy. - The quantity of exported power (partially or fully) on which Renewable Energy Certificates have been earned by Designated Consumer in the assessment year under Renewable Energy Certificates (REC) mechanism shall be treated as Exported power and Normalization will apply. However, the normalized power export or deemed injection will not qualify for issue of Energy Saving Certificates under PAT Scheme.The quantity of exported power (partially or fully) from Renewable energy which has been sold at a preferential tariff by the Designated consumer in the assessment year under Renewable Energy Certificates (REC) mechanism shall be treated as Exported power. However, the normalized power export will not qualify for issue of Energy Saving Certificates under Perform, Achieve and Trade (PAT) Scheme.

2.3.6.1. Target Saving to be achieved (PAT obligation) (Million kcal) = Equivalent Major Product Output as per PAT scheme Notification (Tonnes) in BY x Target Saving to be achieved (PAT obligation) (TOE/Te) x 10

2.3.6.2. Target Saving achieved in assessment year (Million kcal)= [Gate to Gate Specific Energy Consumption in BY (TOE/Te)-normalized Gate to Gate Specific Energy Consumption in AY (TOE/Te)] x Equivalent Major Product Output in Tonnes as per PAT scheme Notification (Tonnes) x10

2.3.6.3. Additional Saving achieved (After PAT obligation) (Million kcal) = Target Saving Achieved in AY (Million kcal) - Target saving to be achieved (PAT obligation) in BY (Million kcal)

Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year = 0

2.3.6.4. Thermal energy conversion for REC and Preferential tariff (Million kcal)= [Quantum of Renewable Energy Certificates (REC) obtained as a Renewal Energy Generator (Solar & Non-Solar)(MWh) + Quantum of Energy sold under preferential tariff (MWh)] x 2717 kcal/kwh /1000

Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year ? 0

2.3.6.5. Thermal energy conversion for REC and Preferential tariff (Million kcal) = [Quantum of Renewable Energy Certificates (REC) obtained as a Renewal Energy Generator (Solar & Non-Solar)(MWh) + Quantum of Energy sold under preferential tariff (MWh)] x Steam Turbine Net Heat Rate in AY (kcal/kwh)/1000

2.3.6.5.1. If, Additional Saving achieved (After PAT obligation) (Million kcal) <= 0,

Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) = 0,

2.3.6.5.2. If, Additional Saving achieved (After PAT obligation) (Million kcal) >0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) >Additional Saving achieved (After PAT obligation) (Million kcal) then,

Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) = Additional Saving achieved (After PAT obligation) (Million kcal)

2.3.6.5.3. If, Additional Saving achieved (After PAT obligation) (Million kcal) >0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) < Additional Saving achieved (After PAT obligation) (Million kcal) then,

2.4.1. Cold Sheet Process

Gate to Gate SEC of equivalent cold sheet (TOE/ Tone) = (Total Notional Energy Consumed (TOE))/ (Total equivalent Cold Sheet production (tonne))Total Notional energy consumed (TOE) = (Total energy consumed (million kcal)+ Notional energy imported product (million kcal))/ 102.5. normalized Gate to Gate Specific Energy Consumption

Gate to Gate Specific Energy Consumption in Baseline year =

Total Energy Consumption (TOE)

Total equivalent production (Tonnes)

Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year = Normalized Total Energy Consumption after REC Compliance (TOE)/ (Total Equivalent Production (Tonnes))

2.5.1. Normalized Total Energy Consumption in the assessment year (TOE) = Total Energy Consumption in the assessment year(TOE) - Notional Energy for others (Environmental Concern+ Biomass/Alternate Fuel Availability+ Project Activities+ New Line/Unit Commissioning+ Unforeseen Circumstances) (TOE) - Energy for Power generation of a line /unit till it attains 70% of Capacity Utilization

2.5.2. Normalized Total Energy Consumption after REC compliance in the assessment year (Million kcal) = Normalized Total Energy Consumption in the assessment year (Million kcal)+ Energy equivalent to Renewable Energy Certificates Compliance under PAT Scheme (Million kcal)

2.5.3. Baseline Normalization (TOE/tonne) = Gate to Gate Specific Energy Consumption in Baseline year (TOE/tonne) - Notified Specific Energy Consumption in Baseline Year (TOE/tonne)

2.5.4. Normalized GtG SEC after SEC compliance

Normalized Gate to Gate Specific Energy Consumption after REC compliance in assessment year

Normalized Total Energy Consumption after REC compliance (TOE)

Total equivalent production (Tonnes)

- Baseline Normalization (TOE/ tonne)

3. Sb Cement Sector

Normalization factors for the following areas have been developed in Cement Sector:3.1. Capacity Utilization

3.1.1. Decrease in Kiln Heat rate due to external factor

i. Availability of Fuel/ Raw Material

3.1.2. Kiln Start/ Stop

ii. Natural Calamity/ Rioting/ Social Unrest/ Labor Strike/ Lockouts

3.2. Product Mix & Intermediary Product3.3. Fuel Mix (Pet Coke Utilization in Kiln)3.4. Power Mix (Imported & Exported from/ to the grid and self-generation from the captive power plant)3.5. Fuel Quality in Captive Power Plant (CPP)3.6. Low Plant Load Factor in CPP3.7. Other Normalizations

3.7.1. Environmental Concern (Additional Environmental Equipment requirement due to major change in government policy on Environment)

3.7.2. Biomass/Alternate Fuel Unavailability

3.7.3. Construction Phase or Project Activities

3.7.4. Addition of New Line/Unit (In Process & Power Generation)

3.7.5. Unforeseen Circumstances

3.7.6. Renewable Energy

3.8. Gate to Gate Specific Energy Consumption3.9. Normalized Gate to Gate Specific Energy Consumption3.1 Capacity Utilization:

(a) Decrease in Kiln Heat Rate due to external factor: Availability of Fuel/Raw material

(i) Normalization of Thermal SEC (Kiln Heat Rate) up to Clinkerisation. - Thermal energy due to loss in kiln TPH, normalized in the assessment year for Kiln Heat Rate is to be calculated as:-

Notional Thermal energy reduction due to loss in Kiln TPH w.r.t. Kiln Heat Rate [Million kcal] = [Kiln Heat Rate in AY (kcal/kg)-Kiln Heat Rate in BY (kcal/kg)] x Clinker Production in AY (Tonnes)/1000Where,-[Kiln Heat rate in AY - Kiln Heat rate in BY]= 0.4673 x (TPH_BY - TPH _AY)AY = Assessment yearBY = Baseline YearTPH_BY) = Tonnes per hour of kiln in the baseline yearTPH_AY) = Tonnes per hour of kiln in the assessment yearKiln Heat Rate = Total Thermal Energy consumed in kiln (kcal)/ Clinker Production (kg), in kcal/kg

(ii) Normalization of Electrical SEC up to Clinkerisation. - Thermal energy due to loss in kiln TPH, normalized in the assessment year for Kiln specific power consumption (SPC) is to be calculated as:-

Notional thermal energy reduction due to loss in kiln TPH w.r.t. kiln SPC [Million kcal] = [Kiln SPC in AY (kwh/ Ton)- Kiln SPC in BY(kwh/ Ton)] x Clinker Production of Kiln in AY (Tonnes) X Weighted Heat Rate (kcal/ kwh)/ 10^6Where,-[KilnSPC in AY- Kiln SPC in BY]= 0.0943 x (TPH _BY - TPH _AY)AY = Assessment yearBY = Baseline YearTPH= Tonnes per hourSPC= Specific Power Consumption in kwh/TonThe above formulae stand for individual kiln. However, the notional thermal energy for Normalization on Kiln Rate and Kiln SPC will be calculated for all the installed kiln of plant and added to get the Net notional thermal energy reduction figure.

(b) Kiln Start/Stop due to external factor

(i) Thermal energy due to additional Cold Start in assessment year of Kiln w.r.t. the baseline year, normalized in the assessment year for Kiln thermal energy consumption is to be calculated as:-

Notional Energy to be subtracted w.r.t. additional Kiln Cold startup for Thermal Energy Consumption [Million kcal] = (0.1829 x Kiln TPH in AY + 197.41) x [Nos of Cold Startup in AY (Nos) - Nos of Cold Startup in BY (Nos)]Where,-AY = Assessment yearBY = Baseline YearTPH= Tonnes per hour

(ii) Normalization of Kiln Cold Start due to external factor for Electrical energy consumption Electrical energy due to additional Cold Start in assessment year of Kiln w.r.t. the baseline year, normalized in the assessment year for Kiln electrical energy consumption is to be calculated as:-

Notional Energy to be subtracted w.r.t. additional Kiln Cold startup for Electrical Energy Consumption [Million kcal] = [Electrical Energy Consumption for Cold start in AY (Lakh kwh)- Electrical Energy Consumption for Cold start in BY (Lakh kwh)] x Weighted Heat Rate (kcal/kwh)/10Where,-AY = Assessment yearBY = Baseline Year

(iii) Normalization of Kiln Hot to Cold Stop due to external factor for Electrical energy consumption Electrical energy due to additional Hot to Cold Stop in assessment year of Kiln w.r.t. the baseline year, normalized in the assessment year for Kiln electrical energy consumption is to be calculated as:-

(a) Normalization Condition

(i) Baseline Major Product shall be considered as major product of Assessment year.

(ii) The difference of Energy between Actual Cement production Vs Equivalent Cement production from Baseline year will be added in total energy in the assessment year after negating Clinker Export

(iii) Notional Energy for Clinker produced due to Additive Change or Change in Clinker Factor will be deducted from total energy

(iv) Baseline Clinker Factor shall be considered as Clinker Factor of Assessment year for making equivalent Cement i.e. the baseline clinker factor is to be divided after getting the actual cement (Cement produced will be multiplied by assessment year clinker factor) for making equivalent cement produced

(v) If the OPC Clinker factor =0 in the baseline year, then the OPC Clinker factor of assessment year will be used in the baseline year otherwise, baseline year OPC Clinker Factor exist. The vice-versa is applicable in the assessment year

(vi) If the PPC/PSC/Others production in the baseline year or assessment year=0, then PPC/PSC/Others clinker factor will become zero otherwise the existing Clinker factor of respective type of cement persist.

(b) Grinding Energy Normalization. - The difference of grinding Energy between Actual Production Vs Equivalent Cement Production of Baseline and Assessment year will be subtracted in total energy in the assessment year considering Clinker Export also as per following equation

Notional Energy for Grinding (Million kcal) = {[(ECP_BY - RCP_BY -ECPExC_BY) x CSPC_BY x WHR_BY] - [(ECP_AY - RCP_AY - CPExC_AY) x CSPC_AY x WHR_AY]}/ 10Where,-ECP_AY = Equivalent Major Cement production in assessment year in TonnesRCP_AY = Reported cement production in assessment year in TonnesCSPC_AY = Electrical SEC of cement grinding (kWh/Ton of cement) for assessment yearWHR_AY = Weighted average CPP Heat/Grid Heat Rate (kcal/kWh) in the assessment yearECP_BY = Equivalent Major Cement production in baseline year in TonnesRCP_BY = Reported cement production in baseline year in TonnesCSPC_BY = Electrical SEC of cement grinding (kWh/Tone of cement) for baseline yearWHR_BY = Weighted average CPP/Grid Heat Rate (kcal/kWh) for baseline yearECPExC_AY = Equivalent major Cement production from Exported Clinker in assessment year in TonnesECPExC_BY = Equivalent major Cement production from Exported Clinker in baseline year in Tonnes

(c) Product Mix Additives. - The following formulae will be applied for calculating the Notional Energy for Clinker Produced due to change in Additives/ Clinker Factor. The notional energy corrections calculated will be subtracted from the total energy in the assessment year

Notional Thermal Energy for Clinker Produced due to change in Additives/Clinker Factor [Million kcal]= ClPcf x [KTHR_AY x 1000 + KSPC_AY x WHR_AY +]/ 10ClPcf = Clinker produced due to change in Additives / Clinker Factor (Lakh Ton)KSPC_AY = Kiln Specific Power Consumption (Electrical SEC up to Clinkerisation) (kwh/ton of Clinker) in the assessment yearWHR_AY = Weighted average CPP/Grid/DG Heat Rate (kcal/kWh) in the assessment yearKTHR_AY = Thermal SEC of Clinker in the assessment year (kcal/kg of clinker)Where,-ClPcf = ClPcf1 + ClPcf2

i. ClPcf1: Clinker produced due to change in Additives/ Clinker Factor (Lakh Ton) for PPC = PPCPr_AY x {(OPCCF_AY - PPCCF_AY)-(OPCCF_BY- PPCCF_BY)}

Where,-PPCPr_AY = PPC Production in the assessment year (lakh Ton)OPCCF_AY = OPC Clinker factor in the assessment yearPPCCF_AY = PPC Clinker Factor in the assessment yearOPCCF_BY = OPC Clinker factor in the baseline yearPPCCF_BY = PPC Clinker Factor in the baseline year

ii. ClPcf2: Clinker produced due to change in Additives/Clinker Factor (Lakh Ton) for PSC/Others = PSCOPr_AY x

{(OPCCF_AY - PSCOCF_AY)-(OPCCF_BY - PSCOCF_BY)}Where,-PSCOPr_AY = PSC/Others Production in the assessment year (lakh Ton)OPCCF_AY = OPC Clinker factor in the assessment yearPSCOCF_AY = PSC/Others Clinker Factor in the assessment yearOPCCF_BY = OPC Clinker factor in the baseline yearPSCOCF_BY = PSC/Others Clinker Factor in the baseline year3.3. Fuel Mix (Pet Coke Utilization in Kiln). - Normalization factor for %age PETCOKE usage in cement kilns is to compensate for the change in heat rate and Electrical SEC (specific power consumption) due to variation in usage of Petcoke in the kiln from the baseline. Kiln Heat Rate & Electrical SEC Normalization for higher or lower % of Pet-Coke Consumption will take place in Assessment year w.r.t. Baseline Year.The Normalization will be used for Kiln heat rate and kiln Specific Power Consumption (SPC) is calculated as per following equation Notional Thermal Energy to be deducted in the assessment year due to % use of Petcoke consumption in the kiln [Million kcal] = (N - KHR_AY - KHR_BY) x Total Clinker Production in Lakh Tonnes x 100 + (NKSPC_AY - KSPC_BY)) x Total Clinker Production in Lakh Tonnes x WHR_AY/ 10

i. Petcoke Utilization in Kiln: Normalization of Thermal SEC (Kiln Heat Rate)

normalized Kiln Heat rate with Petcoke consumption in assessment year [kcal/kg of clinker]N - KHR_AY = KHR_BY + 0.0954 x (% PC Cons_AY - % PC Cons_BY)Where,-N-KHR_AY = normalized Kiln Heat rate with effect of Petcoke consumption in assessment year in kcal/kg of clinkerKHR_BY = Total Thermal Energy consumed in kiln/Clinker Production in kg, kcal/kg of clinker in the baseline yearPC Cons_AY = Petro-coke Consumption in assessment year in %PC Cons_BY = Petro-coke Consumption in baseline year in %AY = Assessment yearBY = Baseline YearTPH = Tonnes per hourWHR_AY = Weighted Heat Rate in assessment year

ii. Petcoke Utilization in Kiln: Normalization of Electrical SEC (Specific Power Consumption)

normalized Electrical SEC up to clinkering in assessment year [kwh/ton of clinker]N - KSPC_AY = KSPC_BY + 0.022 x (% PC Cons_AY - % PC Cons_BY)Where,-N-KSPC_AY = Normalized Kiln Specific Power Consumption with effect of Petcoke consumption up to clinkerisation in the assessment year in kwh/ton of clinkerKSPC_BY = Kiln Specific Power Consumption up to clinkerisation in the baseline year in kwh/ton of clinkerPC Cons_AY = Petro-coke Consumption in assessment year in %PC Cons_BY = Petro-coke Consumption in baseline year in %AY = Assessment yearBY = Baseline Year3.4. Power Mix

(a) Power Mix Normalization for Power Sources. - The baseline year power mix ratio will be maintained for Assessment year for Power Source and import. The Normalized weighted heat rate calculated from the baseline year Power mix ratio will be compared with the assessment year Weighted Heat Rate and the Notional energy will be deducted from the Total energy assessed

The Thermal Energy difference of electricity consumed in plant in baseline year and electricity consumed in plant during assessment year shall be subtracted from the total energy, considering the same % of power sources consumed in the baseline year.However, any efficiency increase (i.e. reduction in Heat Rate) in Assessment year in any of the power sources will give benefit to the plantNotional Energy to be subtracted from the total Energy of Plant in the assessment year for Power Mix Normalization is calculated as

i. Energy Correction for all power source in the assessment year [Million kcal] = TECPS_AY x (A - WHR_AY - N - WHR_AY)

Where,-TECPS_AY: Total energy consumption from all the Power sources (Grid, CPP, DG etc) forAY in Million kwhA-WHR_AY: Actual Weighted Heat Rate for the Assessment Year in kcal/kwhN-WHR_AY: Normalized Weighted Heat Rate for the Assessment Year in kcal/kwh

ii. Normalized Weighted Heat Rate for Assessment year (kcal/kwh): N - WHR_AY = A x (D/G)+B x (E/G)+C x (F/G)

Where,-A: Grid Heat Rate for Assessment year (AY) in kcal/kwhB: CPP Heat Rate for AY in kcal/kwhC: DG Heat Rate for AY in kcal/kwhD: Grid Energy consumption for Base Line Year (BY) in Million kwhE: CPP Energy consumption for BY in Million kwhF: DG Energy consumption for BY in Million kwhG: Energy Consumed from all Power sources (Grid, CPP, DG) for BY in Million kwh

(Note: Any addition in the power source will attract the same fraction to be included in the above equation as PSiHR_AY x (PSiEC_BY/ TEC_BY)

PSiHR_AY = Power Source (ith) Heat rate for AY in kcal/kwhPSiEC_BY = Power Source (ith) Energy Consumption for BY in Million kwhTEC_BY = Total Energy consumption for BY in Million kwhThe Electricity Consumption from WHR is not being considered for Power Mix Normalization)

Notional energy for Power export to be subtracted in the assessment year [Million kcal] = (EXP_AY - EXP_BY)*[{(GHR_AY/ (1-APC_AY/ 100)} - 2717)]/ 10Where,-GHR_AY: CPP Gross Heat Rate for AY in kcal/kwhEXP_AY: Exported Electrical Energy in AY in Lakh kWhEXP_BY: Exported Electrical Energy in BY in Lakh kWhAPC_BY: Auxiliary Power Consumption for AY in percent3.5. Fuel Quality in Captive Power Plant. - The Boiler Efficiency will be calculated for the baseline as well as assessment year with the help of Coal analysis constituents like GCV, %Ash, %Moisture, %H and Boiler Efficiency Equation provided to calculate the Boiler efficiency.Hence, by keeping the Turbine heat rate constant for both the years, the CPP heat hate will be calculated for the respective year. The Thermal Energy for the difference in heat rate of CPP will be deducted from the total energy consumption of the plant

(i) Notional Thermal Energy to be deducted in the assessment year [Million kcal] = [CPP Heat Rate in AY (kcal/kwh)-Actual CPP Heat Rate in BY (kcal/kwh)] x CPP Generation in AY (Lakh kwh)/10

(ii) CPP Heat Rate in AY= CPP Heat Rate in BY x (Boiler Efficiency in BY/Boiler Efficiency in AY)

(iii) Boiler Efficiency in BY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for baseline Year)

(iv) Boiler Efficiency in AY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for assessment Year)

Where,-A: Ash in %M = Moisture in %H = Hydrogen in %GCV: Coal Gross Calorific Value in kcal/kwhAY = Assessment yearBY = Baseline YearCPP = Captive Power PlantTHR = Turbine Heat Rate3.6. Low PLF compensation in CPP. - Due to decreased loading, the Plant load Factor (PLF) will be worsened and affects the unit heat rate. The comparison between baseline year and assessment year will be carried out through characteristics curve of Load Vs Heat rate for correction factor.Normalization is required to compensate for the change in heat rate of CPP due to variation in PLF from the baseline.The Thermal Energy reduction due to low PLF in CPP is calculated as below:-

(i) Notional Thermal Energy deducted in the assessment year from the total energy consumption of the plant [Million kcal] = Gross Generation in Lakh kwh x [Actual Gross Heat Rate in AY (kcal/kwh)-Normalized Gross Heat Rate in AY (kcal/kwh)]

(ii) Normalized Gross Heat Rate in AY [kcal/kwh]= Actual Gross Heat Rate in AY (kcal/kwh) x (1- % Decrease on % increase in Heat Rate from baseline in AY due to external factor)/100]

(iii) % Decrease on % increase in Heat Rate from baseline in AY due to external factor [%] = [% Increase in Heat Rate in AY - % Increase in Heat Rate in BY] x % Decrease in PLF in Assessment Year due to external factor in %

(iv) % Increase in Heat Rate at PLF of Baseline Year = =0.0016 x ( %Loading BY)^2- 0.3815 x %Loading BY +21.959

(v) % Increase in the Heat Rate at PLF of Assessment Year = 0.0016 x (%Loading _AY) ^2-0.3815 x %Loading _AY + 21.959

Where,-AY: Assessment YearBY = Baseline Year%Loading EXP_BY = Percentage Loading (PLF) in Baseline Year%Loading _AY = Percentage Loading (PLF) in Assessment Year3.7. Other Normalizations3.7.1. Environmental Concern. - Additional Environmental Equipment requirement due to major change in government policy on EnvironmentThe Normalization takes place in the assessment year for additional Equipment's Energy Consumption only if there is major change in government policy on Environment Standard. The Energy will be normalized for additional Energy consumption details from Energy meters. This is to be excluded from the input energy as calculated belowNotional Thermal Energy to be deducted in the assessment year due to Environmental Concern [Million kcal] = Additional Electrical Energy Consumed (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10 + Additional Thermal Energy Consumed (Million kcal)3.7.2. Alternate Fuel Unavailability w.r.t Baseline Year. - The normalization for Unavailability for Biomass or Alternate Fuel is applied in the baseline year. The energy contained by the fossil fuel replacement will be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Biomass/ Alternate Fuel Unavailability [Million kcal] = FFB_AY GCVB_BY/ 1000 + FFSA_AY x GCVSA_BY/ 1000 + FFLA_AY x GCVLA_BY/ 1000Where,-FFB_AY = Biomass replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVB_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)FFSA_AY = Solid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVSA_BY: Gross Calorific Value of Solid Alternate Fuel in Baseline Year (kcal/kg)FFLA_AY = Liquid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVLA_BY: Gross Calorific Value of Biomass in Baseline Year (kcal/kg)3.7.3. Construction Phase or Project Activities. - The energy consumed during construction phase or project activities are non-productive energy and hence will be subtracted in the assessment year. The energy consumed by the equipment till commissioning will also be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Construction Phase or Project Activities [Million kcal]= Electrical Energy Consumed due to commissioning of Equipment (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10+ Thermal Energy Consumed due to commissioning of Equipment (Million kcal)3.7.4. Addition of New Line/Unit (In Process and Power Generation) In case a DC commissions a new line/production unit before or during the assessment/target year, the production and energy consumption of new unit will be considered in the total plant energy consumption and production volumes once the Capacity Utilization of that line has touched / increased over 70percent. However, the energy consumption and production volume will not be included till it attains 70 percent.of Capacity Utilization. Energy consumed and production made (if any) during any project activity during the assessment year, will be subtracted from the total energy and production in the Assessment year. Similarly, the same methodology is applied on a new unit installation for power generation (CPP) within the plant boundary.The Energy reduction will take place in the assessment year for addition of new line/unit Normalization as per following calculation

(i) Thermal Energy Consumed due to commissioning of New process Line/Unit till it attains 70 per cent. of Capacity Utilization to be subtracted in assessment year (Million kcal) = (Electrical Energy Consumed due to commissioning of New process Line/Unit till it attains 70 percent. of Capacity Utilization (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Process Line/Unit till it attains 70 percent. of Capacity Utilization (Million kcal) The Production during commissioning of New Process Line/Unit is to be subtracted from the total production (Clinker) of plant and added in the import of intermediary product (Clinker)

(ii) Thermal Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70percent. of Capacity Utilization in Power generation to be subtracted in the assessment year (Million kcal) = (Electrical Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Line/Unit till it attains 70 percent. of Capacity Utilization in Power generation (Million kcal)

(iii) Thermal Energy to be added in the assessment year for Power generation of a line /unit till it attains 70percent.of Capacity Utilization (Million kcal)= Net Electricity Generation till new Line/Unit attains 70 percent. Capacity Utilization (Lakh kWh) x Weighted Heat Rate (kcal/kwh)/10

Where,-AY: Assessment Year3.7.5. Unforeseen Circumstances. - The Normalization is required for Energy system of a plant, if the situation influences the Energy Consumption, which cannot be controlled by Plant Management and is termed as Unforeseen Circumstances. The Energy consumed due to unforeseen circumstances to be deducted in the assessment year as under:Thermal Energy consumed due to unforeseen (Million kcal) = (Electrical Energy to be Normalized in AY x Weighted Average Heat rate in AY (kcal/kWh)/10) + Thermal Energy to be Normalized (Million kcal)3.7.6. Renewable Energy. - (a) The quantity of exported power (partially or fully) on which Renewable Energy Certificates have been earned by Designated Consumer in the assessment year under REC mechanism shall be treated as Exported power and normalization will apply. However, the normalized power export or deemed injection will not qualify for issue of Energy Saving Certificates under PAT Scheme.

(b) The quantity of exported power (partially or fully) from Renewable energy which has been sold at a preferential tariff by the Designated consumer in the assessment year under REC mechanism shall be treated as Exported power. However, the normalized power export will not qualify for issue of Energy Saving Certificates under PAT Scheme.

(i) Target Saving to be achieved (PAT obligation) (Million kcal) = Equivalent Major Product Output as per PAT scheme Notification (Tonnes) in BY x Target Saving to be achieved (PAT obligation) (TOE/Te) x 10

(ii) Target Saving achieved in assessment year (Million kcal)= [Gate to Gate Specific Energy Consumption in BY (TOE/Te)-Normalized Gate to Gate Specific Energy Consumption in AY (TOE/Te)] x Equivalent Major Product Output in Tonnes as per PAT scheme Notification (Tonnes) x10

(iii) Additional Saving achieved (After PAT obligation) (Million kcal) = Target Saving Achieved in AY (Million kcal) - Target Saving to be achieved (PAT obligation) in BY (Million kcal)

[A] Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year = 0

[B] Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year ≠ 0

a. If, Additional Saving achieved (After PAT obligation) (Million kcal) <= 0,

b. If, Additional Saving achieved (After PAT obligation) (Million kcal) > 0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) > Additional Saving achieved (After PAT obligation) (Million kcal) then

c. If, Additional Saving achieved (After PAT obligation) (Million kcal) >0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) < Additional Saving achieved (After PAT obligation) (Million kcal) then

3.8 Gate to Gate Specific Energy Consumption

Gate to Gate Specific Energy Consumption in Baseline year =

Total Energy Consumption (Million kcal)

Total equivalent production (Tonnes)

3.9. Normalized Gate to Gate Specific Energy Consumption

Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year =

Normalized Total Energy Consumption after REC Compliance (Million kcal)

Total equivalent production (Tonnes)

(a) Total Energy Consumption in the assessment year (Million kcal)= Total Thermal Energy Used in Power Generation (Million kcal) + Total Thermal Energy Used in Process (Million kcal) + {(Total Electricity purchased from grid (Lakh kWh) X 860)-Electricity exported (Lakh kWh) X National Heat Rate - 2717 kcal/kWh}/10]

(b) Normalized Total Energy Consumption in the assessment year (Million kcal) = Total Energy Consumption in the assessment year- Notional Energy Consumption for low capacity Utilization (Million kcal)- Notional Energy Consumption for Product Mix (Million kcal) - Notional Energy Consumption for Petcoke utilization (Million kcal)- Notional Energy Consumption for Power Mix (Million kcal)- Notional Energy Consumption for Coal Quality (Million kcal) - Notional Energy Consumption for Low CPP PLF(Million kcal)- Notional Energy Consumption for Other Normalizations (Environmental Concern + Biomass/ Alternate Fuel Availability + Project Activities + NewLine/ Unit Commissioning+ Unforeseen Circumstances) (Million kcal) + Energy for Power generation of a line/ unit till it attains 70% of Capacity Utilization (Million kcal)

(c) Normalized Total Energy Consumption after REC compliance in the assessment year (Million kcal) = Normalized Total Energy Consumption in the assessment year (Million kcal) + Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (Million kcal)

(d) Normalized Gate to Gate Specific Energy Consumption after REC Compliance (kcal/kg equivalent of Cement)

Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year = (Normalized Total Energy Consumption after REC Compliance (Million kacl))/ (Total Equivalent Production (Lakh Tonnes) x 100)

(e) Normalized Gate to Gate Specific Energy Consumption after REC Compliance (toe/Te of Cement) =Normalized Gate to Gate Specific Energy Consumption after REC Compliance (kcal/kg of Cement)/ 10000

(f) Baseline Normalization (toe/ tonne) = Gate to Gate Specific Energy Consumption in Baseline year (toe/ tonne) - Notified Specific Energy Consumption in Baseline Year (toe/ tonne)

(g) Normalized Gate to Gate Specific Energy Consumption after REC compliance

Normalized Gate to Gate Specific Energy Consumption after REC Compliance in assessment year (TOE/ Tonne)

Normalized Total Energy Consumption after REC Compliance (Million kcal)

Total equivalent production (Tonnes) x 10

- Baseline Normalization (toe/ tonne)

4. Sc Chlor-Alkali

Normalization factors for the following areas have been developed in Chlor-Alkali Sector.1. Power Mix (Import & Export from/to the grid and self-generation from the captive power plant)2. Fuel Quality in Captive Power Plant& Combined Heat and Power Generation (Co-Gen)3. Low Plant Load Factor in CPP4. Hydrogen Mix (consideration for reducing venting of Hydrogen)5. Other Normalizations

(i) Environmental Concern(Additional Environmental Equipment requirement due to major change in government policy on Environment)

(ii) Biomass/Alternate Fuel Unavailability

(iii) Construction Phase or Project Activities

(iv) Addition of New Line/Unit (In Process & Power Generation)

(v) Unforeseen Circumstances

(vi) Renewable Energy

6. Gate to Gate Specific Energy Consumption7. Normalized Gate to Gate Specific Energy Consumption4.1. Power Mix4.1.1. Power Mix Normalization for Power Sources. - The baseline year power mix ratio will be maintained for Assessment year for Power Source and import. The Normalized weighted heat rate calculated from the baseline year Power mix ratio will be compared with the assessment year Weighted Heat Rate and the Notional energy will be deducted from the Total energy assessed.The Thermal Energy difference of electricity consumed in plant in baseline year and electricity consumed in plant during assessment year shall be subtracted from the total energy, considering the same % of power sources consumed in the baseline year.However, any efficiency increase (i.e. reduction in Heat Rate) in Assessment year in any of the power sources will give benefit to the plantNotional Energy to be subtracted from the total Energy of Plant in the assessment year is calculated as Energy Correction for all power source in the assessment year [Million kcal]= TECPS_AY x (A-WHR_AY - N-WHR_AY)Where,-TECPS_AY: Total energy consumption from all the Power sources (Grid, CPP, DG etc) for AY in Million kwhA-WHR_AY: Actual Weighted Heat Rate for the Assessment Year in kcal/kwhN-WHR_AY: Normalized Weighted Heat Rate for the Assessment Year in kcal/kwh

i. Normalized Weighted Heat Rate for Assessment year (kcal/kwh):

N-WHR_AY = A x (D/G)+B x (E/G)+C x (F/G)

Where,-A: Grid Heat Rate for Assessment year (AY) in kcal/kwhB: CPP Heat Rate for AY in kcal/kwhC: DG Heat Rate for AY in kcal/kwhD: Grid Energy consumption for Base Line Year (BY) in Million kWhE: CPP Energy consumption for BY in Million kWhF: DG Energy consumption for BY in Million kWhG: Energy Consumed from all Power sources (Grid, CPP, DG) for BY in Million kwh

(Note: Any addition in the power source will attract the same fraction to be included in the above equation as PSiHR_AY x (PSiEC_BY/TEC_BY)

PSiHR_AY = Power Source (ith) Heat rate for AY in kcal/ kWhPSiEC_BY = Power Source (ith) Energy Consumption for BY in Million kWhTEC_BY = Total Energy consumption for BY in Million kWhThe Electricity Consumption from WHR is not being considered for Power Mix Normalization)4.1.2. Power Mix Normalization for Power Export. - Net Generation Heat of captive Power Sources of Plant to be considered for export of Power from Captive Power Sources instead of 2717 kcal/kWh. Actual Generation Net heat rate would be considered for the net increase in the export of power from the baseline. The exported Energy will be normalized in the assessment year as per following calculationNotional energy for Power export to be subtracted in the assessment year [Million kcal] = (EXP_AY -EXP_BY)*[{(GnNHR_AY) - 2717}]/10Where,-GnNHR_AY: Generation Net Heat Rate for AY in kcal/kwhEXP_AY: Exported Electrical Energy in AY in Lakh kwhEXP_BY: Exported Electrical Energy in BY in Lakh kwh4.2. Fuel Quality for CPP and Co-gen

(a) Coal Quality for CPP. - The Boiler Efficiency will be calculated for the baseline as well as assessment year with the help of Coal analysis constituents like GCV, %Ash, %Moisture, %H and Boiler Efficiency Equation provided to calculate the Boiler efficiency.

Hence, by keeping the Turbine heat rate constant for both the years, the CPP heat hate will be calculated for the respective year. The Thermal Energy for the difference in heat rate of CPP will be deducted from the total energy consumption of the plant

(i) Notional Thermal Energy to be deducted in the assessment year [Million kcal] = [CPP Heat Rate in AY (kcal/kwh)-Actual CPP Heat Rate in BY (kcal/kwh)] x CPP Generation in AY (Lakh kwh)/10

(ii) CPP Heat Rate in AY= CPP Heat Rate in BY x (Boiler Efficiency in BY/Boiler Efficiency in AY)

(iii) Boiler Efficiency in BY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for baseline Year)

(iv) Boiler Efficiency in AY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for assessment Year)

Where,-A = Ash in %M = Moisture in %H = Hydrogen in %GCV = Coal Gross Calorific Value in kcal/kwhAY = Assessment yearBY = Baseline YearCPP = Captive Power PlantTHR = Turbine Heat Rate

(b) Coal Quality for Cogen. - (i) Boiler efficiency in baseline year = 92.5-[{50xA+630 (M+9H) } /GCV]

(ii) Boiler efficiency in assessment year = 92.5-[{50xA+630 (M+9H)} /GCV]

(iii) Weighted Percentage of Coal Energy Used in steam Generation (Process Boiler) in BY (Factor) = Σ⁵_n=1{(Operating Capacity of Boilers used for Steam generation in TPH x Percentage of Coal Energy Used in steam Generation in the boilers for Steam generation in %) / Σ⁵_n=1 Operating Capacity of Boilers used for Steam generation (TPH)}

(iv) Weighted Percentage of Coal Energy Used in steam Generation (Process Boiler) in AY (Factor) = Σ⁵_n=1 {(Operating Capacity of Boilers used for Steam generation in TPH x Percentage of Coal Energy Used in steam Generation in the boilers for Steam generation in %) / Σ⁵_n=1 Operating Capacity of Boilers used for Steam generation (TPH)}

(v) Weighted Percentage of Coal Energy Used in steam Generation (Co-Gen Boiler) in BY = Σ¹⁰_n=6 {(Operating Capacity of Boilers used for Steam generation in TPH x Percentage of Coal Energy Used in steam Generation in the boilers for Steam generation in %) / Σ¹⁰_n=6 Operating Capacity of Boilers used for Steam generation (TPH)}

(vi) Weighted Percentage of Coal Energy Used in steam Generation (Co-Gen Boiler) in AY = Σ¹⁰_n=6{(Operating Capacity of Boilers used for Steam generation in TPH x Percentage of Coal Energy Used in steam Generation in the boilers for Steam generation in %) / Σ¹⁰_n=6 Operating Capacity of Boilers used for Steam generation (TPH)}

(vii) Weighted Average Specific Steam Consumption in BY & AY (kCal/kg of Steam)= Σ⁵_n=1(Total Steam Generation at Process Boiler (Tonnes) x Specific Energy Consumption for Steam Generation in Process Boilers (kcal/kg of steam) + Σ¹⁰_n=6 (Total Steam Generation at Co-Gen Boiler(Tonnes) x Specific Energy Consumption for Steam Generation in Co-Gen Boiler (kcal/kg of steam)} / Σ¹⁰_n=1 Total Steam generation at all process & Cogen boilers

(viii) Normalized Specific Energy Consumption for Steam Generation (kCal/kg of Steam) = Weighted Average Specific Steam Consumption in BY x (Boiler efficiency in BY (%)/Boiler Efficiency in AY (%))

(ix) Difference in Specific Steam from BY to AY (kCal/kg of Steam) = Normalized Specific Energy Consumption for Steam Generation in AY (kcal/kg of steam)-Weighted Average Specific Steam Consumption in BY (kcal/kg of steam)

(x) Energy to be subtracted w.r.t. Fuel Quality in Co-Gen (Million kCal) = Difference in Specific Steam from BY to AY (kcal/kg of steam)x {(Total Steam Generation of all Process Boilers in AY (Tonnes) x Weighted Percentage of Coal Energy Used in steam Generation (Process Boiler) in AY)+( Total Steam Generation at Co-Gen Boiler in AY (Tonnes) x Weighted Percentage of Coal Energy Used in steam Generation (Co-Gen Boiler) in AY)}/1000

Where,-A = Ash in %M = Moisture in %H = Hydrogen in %GCV = Coal Gross Calorific Value in kcal/kwhAY = Assessment yearBY = Baseline YearCPP = Captive Power PlantTPH = Tonnes Per Hour4.3. Hydrogen MixNormalization for Hydrogen mix (consideration of reducing venting of Hydrogen). - Chlor-Alkali industry is having abundant of hydrogen as their by-product in the process of making Casutic Soda Lye and is being used as fuel by many DCs which is a good practice. Normalization factor is developed to reduce wastage of hydrogen which can be used as a fuel in the plant. Here under are the formulae discussed for Hydrogen Normalization:

Case-I: This formulae will get trigger once percentage of Hydrogen vented is lesser than the minimum value of percentage of Hydrogen vented in any base year/target year of any PAT cycles.

(i) Energy to be subtracted from total Energy Consumption (in toe) = [(% of Hydrogen vented in baseline year of hydrogen venting- % of Hydrogen vented in assessment year) x Stoichiometric Hydrogen x 3050 x 10^5] - [(% of Hydrogen used for production/others in base year) - (% of Hydrogen used for production/others in assessment year) x Stoichiometric Hydrogen x 3050 x 10^5] / 10^7.

(ii) % Hydrogen vented in baseline of hydrogen venting = Min % of Hydrogen venting i.e. (Hydrogen vented/ Stoichiometric Hydrogen) in any of base/target year of all PAT cycles.

(iii) % Hydrogen vented in assessment year = % of Hydrogen venting i.e. (Hydrogen vented/ Stoichiometric Hydrogen) in the assessment year of respective PAT ycle. Stoichiometric Hydrogen (Lac NM3) = Caustic soda in baseline year (ton) x 280 / 10^5

(iv) % Hydrogen used for production/other in baseline year = (hydrogen used production / stoichiometric hydrogen) in base year of respective PAT cycle.

(v) % Hydrogen used for production/other in assessment year = (hydrogen used production / stoichiometric hydrogen) in assessment year of respective PAT cycle.

Case II: If, percentage (%) of product and other in the assessment period becomes lesser than the % of product & other of the base year then:

(ii) % Hydrogen vented in baseline of hydrogen venting = Min % of Hydrogen venting i.e. (Hydrogen vented/ Stoichiometric Hydrogen) in any of base/target year of all PAT cycles.

(iii) % Hydrogen vented in assessment year = % of Hydrogen venting i.e. (Hydrogen vented/ Stoichiometric Hydrogen) in the assessment year of respective PAT ycle.

(iv) Stoichiometric Hydrogen (Lac NM3) = Caustic soda in baseline year (ton) x 280 / 10^5

4.4. Low PLF compensation in CPP. - Due to decreased loading, the Plant load Factor (PLF) will be worsened and affects the unit heat rate. The comparison between baseline year and assessment year will be carried out through characteristics curve of Load Vs Heat rate for correction factor.Normalization is required to compensate for the change in heat rate of CPP due to variation in PLF from the baseline.The Thermal Energy reduction due to low PLF in CPP is calculated as below:-

(i) Notional Thermal Energy reduction from the total energy consumption of the plant [Million kcal] = Total Generation in Lakh kwh x Actual Gross Heat Rate in AY (kcal/kwh)-Normalized Gross Heat Rate in AY (kcal/kwh)]

(ii) Normalized Gross Heat Rate in AY [kcal/kwh]= Actual Gross Heat Rate in AY (kcal/kwh) x (1- % increase in Heat Rate from Design Heat Rate in AY due to external factor/100)

(iii) % increase in Heat Rate from Design Heat Rate in AY due to external factor = (% increase in Heat Rate in AY - % increase in Heat Rate in BY) x loss in PLF from Assessment Year due to external factor in %/100

(iv) % increase in Heat Rate from Design Heat Rate in Baseline Year = =0.0016 x( %Loading BY)^2-0.3815 x %Loading_BY +21.959

(v) % increase in the Heat Rate from Design Heat Rate in Assessment Year = =0.0016 x( %Loading_AY)^2-0.3815 x %Loading_AY + 21.959

Where,-AY = Assessment YearBY = Baseline Year%Loading_BY = Percentage Loading in Baseline Year%Loading_AY = Percentage Loading in Assessment Year4.5. Normalization Others.4.5.1. Environmental Concern. - Additional Environmental Equipment requirement due to major change in government policy on Environment The Normalization takes place in the assessment year for additional Equipment's Energy Consumption only if there is major change in government policy on Environment Standard. The Energy will be normalized for additional Energy consumption details from Energy meters. This is to be excluded from the input energy as calculated belowNotional Thermal Energy to be deducted in the assessment year due to Environmental Concern [Million kcal] = Additional Electrical Energy Consumed (Lakh kWh) x Weighted Heat Rate (kcal/kwh)/10+ Additional Thermal Energy Consumed (Million kcal)4.5.2. Biomass/ Alternate Fuel Unavailability w.r.t Baseline Year. - The Normalization for Unavailability for Biomass or Alternate Fuel is applied in the baseline year. The energy contained by the fossil fuel replacement will be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Biomass/Alternate Fuel Unavailability [Million kcal] = FFB_AY GCVB_BY /1000 + FFSA_AY x GCVSA_BY/1000 + FFB_AY x GCVLA_BY/ 1000Where,-FFB_AY= Biomass replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVB_BY= Gross Calorific Value of Biomass in Baseline Year (kcal/kg)FFSA_AY= Solid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVSA_BY= Gross Calorific Value of Solid Alternate Fuel in Baseline Year (kcal/kg)FFB_AY= Liquid Alternate Fuel replacement with Fossil fuel due to un-availability used in the process in Assessment Year (Tonnes)GCVLA_BY= Gross Calorific Value of Biomass in Baseline Year (kcal/kg)4.5.3. Construction Phase or Project Activities. - The energy consumed during construction phase or project activities are non-productive energy and hence will be subtracted in the assessment year. The energy consumed by the equipment till commissioning will also be deducted in the assessment yearNotional Thermal Energy to be deducted in the assessment year due to Construction Phase or Project Activities [Million kcal]= Electrical Energy Consumed due to commissioning of Equipment (Lakh kwh) x Weighted Heat Rate (kcal/kwh)/10+ Thermal Energy Consumed due to commissioning of Equipment (Million kcal)4.5.4. Addition of New Line/Unit (In Process and Power Generation). - In case a DC commissions a new line/production unit before or during the assessment/target year, the production and energy consumption of new unit will be considered in the total plant energy consumption and production volumes once the Capacity Utilization of that line has touched/ increased over 70%. However, the energy consumption and production volume will not be included till it attains 70% of Capacity Utilization. Energy consumed and production made (if any) during any project activity during the assessment year, will be subtracted from the total energy and production in the Assessment year. Similarly, the same methodology is applied on a new unit installation for power generation (CPP) within the plant boundary.

(i) Thermal Energy Consumed due to commissioning of New process Line/Unit till it attains 70 per cent. of Capacity Utilization to be subtracted in assessment year (Million kCal) = (Electrical Energy Consumed due to commissioning of New process Line/Unit till it attains 70 per cent. of Capacity Utilization (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Process Line/Unit till it attains 70 per cent of Capacity Utilization (Million kcal)

The Production during commissioning of New Process Line/Unit will be subtracted from the total production of plant.

(ii) Thermal Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 per cent of Capacity Utilization in Power generation to be subtracted in the assessment year (Million kcal) = (Electrical Energy Consumed from external source due to commissioning of New Line/Unit till it attains 70 per cent of Capacity Utilization in Power generation (Lakh kWh) x Weighted Average Heat rate in AY (kcal/kwh)/10) + Thermal Energy Consumed due to commissioning of New Line/Unit till it attains 70 per cent of Capacity Utilization in Power generation (Million kcal)

(iii) Steam Generation till new Line/Unit attains 70 per cent. Capacity Utilization (CPP/Co-Gen) to be added in the assessment year (Million kCal) = {(Steam Generation till new Line/Unit attains 70 per cent. Capacity Utilization (Tonne) * Steam specific energy consumption (kcal/kg of steam)}/1000

(iv) Thermal Energy to be added in the assessment year for Power generation of a line /unit till it attains 70 per cent. of Capacity Utilization (Million kcal)= Net Electricity Generation till new Line/Unit attains 70 per cent. Capacity Utilization (Lakh kWh) x Weighted Heat Rate (kcal/kwh)/10

Where,-AY= Assessment Year4.5.5. Unforeseen Circumstances. - The Normalization is required for Energy system of a plant, if the situation influences the Energy Consumption, which cannot be controlled by Plant Management and is termed as Unforeseen Circumstances. The Energy consumed due to unforeseen circumstances to be deducted in the assessment yearThermal Energy consumed due to unforeseen (Million kcal) = (Electrical Energy to be Normalized in AY x Weighted Average Heat rate in AY (kcal/kWh)/10) + Thermal Energy to be Normalized (Million kcal)4.5.6. Renewable Energy. - The quantity of exported power (partially or fully) on which Renewable Energy Certificates have been earned by Designated Consumer in the assessment year under REC mechanism shall be treated as Exported power and Normalization will apply. However, the normalized power export or deemed injection will not qualify for issue of Energy Saving Certificates under PAT Scheme.The quantity of exported power (partially or fully) from Renewable energy which has been sold at a preferential tariff by the Designated consumer in the assessment year under REC mechanism shall be treated as Exported power. However, the normalized power export will not qualify for issue of Energy Saving Certificates under PAT Scheme.

(iii) Additional Saving achieved (After PAT obligation) (Million kcal) = Target Saving Achieved in AY (Million kcal) - Target Saving to be achieved (PAT obligation) in BY (Million kcal)

(a) Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year = 0

Thermal energy conversion for REC and Preferential tariff (Million kcal)= [Quantum of Renewable Energy Certificates (REC) obtained as a Renewal Energy Generator (Solar & Non- Solar)(MWh) + Quantum of Energy sold under preferential tariff (MWh)] x 2717/1000

(b) Thermal Energy Conversion for REC and Preferential Tariff, if Steam Turbine Heat Rate in assessment year ≠ 0

Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) = 0,

(d) If, Additional Saving achieved (After PAT obligation) (Million kcal) >0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) >Additional Saving achieved (After PAT obligation) (Million kcal) then

Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) = Additional Saving achieved (After PAT obligation) (Million kcal)

(e) If, Additional Saving achieved (After PAT obligation) (Million kcal) >0, and Thermal energy conversion for REC and Preferential tariff (Million kcal) < Additional Saving achieved (After PAT obligation) (Million kcal) then

Thermal Energy to be normalized for REC and preferential tariff power sell under REC mechanism (TOE) =Thermal energy conversion for REC and Preferential tariff (Million kcal)4.6. Gate to Gate Specific Energy Consumption. - Gate to Gate Specific Energy Consumption in Baseline YearTECPS_AY: Total energy consumption from all the Power sources (Grid, CPP, DG etc) for AY in Million kwhA-WHR_AY: Actual Weighted Heat Rate for the Assessment Year in kcal/kwhN-WHR_AY: Normalized Weighted Heat Rate for the Assessment Year in kcal/kwh

i. Normalized Weighted Heat Rate for Assessment year (kcal/kwh):

N-WHR_AY = A x (D/G)+B x (E/G)+C x (F/G)

Where,-A: Grid Heat Rate for Assessment year (AY) in kcal/kwhB: CPP Heat Rate for AY in kcal/kwhC: DG Heat Rate for AY in kcal/kwhD: Grid Energy consumption for Base Line Year (BY) in Million kWhE: CPP Energy consumption for BY in Million kWhF: DG Energy consumption for BY in Million kWhG: Energy Consumed from all Power sources (Grid, CPP, DG) for BY in Million kwh

(Note: Any addition in the power source will attract the same fraction to be included in the above equation as PSiHR_AY x (PSiEC_BY/TEC_BY)

(i) Notional Thermal Energy to be deducted in the assessment year [Million kcal] = [CPP Heat Rate in AY (kcal/kwh)-Actual CPP Heat Rate in BY (kcal/kwh)] x CPP Generation in AY (Lakh kwh)/10

(ii) CPP Heat Rate in AY= CPP Heat Rate in BY x (Boiler Efficiency in BY/Boiler Efficiency in AY)

(iii) Boiler Efficiency in BY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for baseline Year)

(iv) Boiler Efficiency in AY= 92.5-[{50xA+630 (M+9H) } /GCV] (Values are for assessment Year)

Where,-A= Ash in %M = Moisture in %H = Hydrogen in %GCV = Coal Gross Calorific Value in kcal/kwhAY = Assessment yearBY = Baseline YearCPP = Captive Power PlantTHR = Turbine Heat Rate

(b) Coal Quality for Cogen. - (i) Boiler efficiency in baseline year = 92.5-[{50xA+630 (M+9H) } /GCV]

(ii) Boiler efficiency in assessment year = 92.5-[{50xA+630 (M+9H)} /GCV]

(viii) Normalized Specific Energy Consumption for Steam Generation (kCal/kg of Steam) = Weighted Average Specific Steam Consumption in BY x (Boiler efficiency in BY (%)/Boiler Efficiency in AY (%))

Where,-A= Ash in %M = Moisture in %H = Hydrogen in %GCV= Coal Gross Calorific Value in kcal/kwhAY = Assessment yearBY = Baseline YearCPP = Captive Power PlantTPH = Tonnes Per Hour4.3. Hydrogen MixNormalization for Hydrogen mix (consideration of reducing venting of Hydrogen). - Chlor-Alkali industry is having abundant of hydrogen as their by-product in the process of making Caustic Soda Lye and is being used as fuel by many DCs which is a good practice. Normalization factor is developed to reduce wastage of hydrogen which can be used as a fuel in the plant. Here under are the formulae discussed for Hydrogen Normalization: