Energy Audit Means the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption.

Objectives of Energy audit:

• To achieve and maintain optimum energy procurement and utilization, throughout the organization.
• To minimize energy costs/waste without affecting production and quality.
• To minimize environmental effects

Mandatory Energy Audit (BEE- PAT Compliance)

BEE is authorized by the Government to implement and monitor the regulation under the ECA and support the Designated Consumers. Perform, Achieve and Trade (PAT) is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy intensive large industries and facilities, through certification on energy savings that could be traded. Targets for improvements in energy efficiency are set under section 14 of the Energy Conservation Act, 2001 in a manner that reflects fuel usage and the economic effort involved. The Government, in March 2007 notified units in nine industrial sectors, namely aluminium, cement, chlor-alkali, fertilizers, iron and steel pulp and paper, railways, textiles and thermal power plants, as Designated Consumers (Dcs).