Energy saving certificate market in India

Abstract

Now a days, the energy efficiency is gaining central stage in policy designs of a country to address issues of climate change and energy security. Adoption of energy efficiency has vast potential to use the energy at optimized cost and to use national energy resources in sustainable manner. Energy saving certification (ESCert) is a market based incentive mechanism to promote energy efficiency in systematic manner among defined energy users. Trading of energy saving certificate (ESCert) provides an opportunity to implement energy saving measures in cost effective and optimized manner. Challenges of a particular industry to implement energy efficiency measures at optimum cost can be overcame by the introduction of trading of certificate. This paper provides an overview of the market design of ESCert market in India.