Scaling Up Energy Efficiency in India Anil Kumar Gupta and Neelima Jain 17th June, 2015, New Delhi, India Energy Efficiency Services Limited (A JV company of PSUs of Ministry of Power, Govt of India)

Energy efficiency measures in India offer the opportunity to reduce over 10% of India’s energy consumption Enable financing for PPP projects at reasonable rates The regulatory/ policy measures and the market based energy efficiency investments together can reduce the electricity consumption by 122 billion units

Scaling market based investments in appliances has the energy savings potential of 34 billion kWh in India Market segment Year Scale of deployment (no.) Tentative investment (USD million) Annual Energy Savings (million kWh) GHG Emission Reductions (tCO2) LED based municipal street lighting solutions 2015-16 1,740,000 142 245 239,623 2016-17 1,914,000 157 269 263,586 2017-18 2,105,400 172 296 289,944 LED self ballasted lamps for households 99,250,000 139 5523 5,412,797 109,175,000 153 6076 5,954,077 120,092,500 168 6683 6,549,485 BEE 5 star Ceiling Fans for Households 1,000,000 17 115 112,896 2,500,000 42 288 282,240 5,000,000 85 576 564,480 LED self ballasted tubular lamps for households 14 26 25,725 37 66 64,313 74 131 128,625 Solar agriculture pumping 500,000 2,343 2238 2,193,240 4,687 4476 4,386,480 1,500,000 7,031 6714 6,579,720 BEE 5 star air conditioners for households 100,000 15 79 77,162 200,000 31 154,325 78 394 385,811 Total (Cumulative) 15,394 34,352 33,664,528 Enable financing for PPP projects at reasonable rates

Energy Efficiency Services Limited Creating Energy Efficient India Who we are.. What we do.. Key Achievements Promoted by Ministry of Power, Government of India 100% public owned company Governed by all rules and procedures of Government of India Board of Directors represented by Ministry of Power and Bureau of Energy Efficiency (BEE) Authorized share capital of 95 Million USD Line of credit from KfW & AFD. In process: ADB, KfW , and JICA Implement energy efficiency projects for Central and State Government Implement Demand Side Measures: Domestic Municipalities Agriculture Buildings Industry Pipeline of 151 EE projects in Domestic Sector worth 160 mln USD Pipeline of 240 projects in EE Street Light worth 800 mln USD Our projects have helped avoid capacity addition of 285 MW in 2014-15 Implemented largest EE street lighting project in India – replaced 92,000 street lights in 6 weeks Implemented largest domestic efficient lighting project in India – replacement of 5 million conventional lamps in 4 months EESL’s LED programmes adopted as national programmes that will cover 100 cities Enable financing for PPP projects at reasonable rates Replacement of 10 mln street lights and 200 mln conventional domestic lamps over next 2 years across India Pipeline of $1.5 bln

EESL – Replicable Business Models Aggregating demand to bring economies of scale Strong Public Private Partnership (PPP) model Deemed savings approach – demonstration of energy savings upfront Third party investments in efficient equipments by EESL Monetization of energy savings Turnkey implementation by EESL including performance and warranties Awareness and outreach in project areas Risk mitigation – technical risk through back to back arrangement with suppliers. Financial risk – BG, ESCROW and Revolving LCs – Approval by regulatory bodies, State govt guarantees drive down costs to make efficiency affordable

Energy Efficient Street Lighting Programme EESL’s Service Model Case Study - Vizag EESL invests in replacement of conventional street lights with energy efficient LED street lights Technology demo with validation to arrive at energy savings Monetize energy savings to pay for upfront investment Strong SLA to ensure maintenance and replacements over project period Ensuring light levels as per the National Lighting Code No of street lights replaced in Vizag : 90,000 Actual capital investment : 1 mln USD Estimated cost savings every year: 0.5 mln USD Expected annual energy savings: 24 mln KWh Expected reduction of installed street light load: 3.9 MW EESL annual payments by ULBs from savings in energy and maintenance cost – no additional revenue costs to Nagar Nigams Service level agreement to ensure 95% uptime of lights, automated controls and free replacement warranty for 7 years Minimum 50% energy savings guaranteed Launched by Prime Minister on 5th January, 2015 – to cover 100 cities in 2 years Focus on affordable home lighting and conversion of street lights EESL business model to be used – no or low upfront cost and repayments over a period of time Launched by Prime Minister on 5th January, 2015 for 100 cities – 390 MW of reduction in load expected Price of LEDs in Street lights in India has dropped by 35%. Demand for LED street lights to increase from 10,000 per annum to 200,000 per annum IMPACT

Snapshots from Vizag Street Light Project Energy savings of about 55% - automatic controls being installed and savings to increase further Light level improvement by 70-100% High levels of public satisfaction

Domestic Efficient Lighting Programme EESL’s Service Model Case Study - AP First high cost barrier – providing LEDs at 2 cents against a market price of $6-7 Monetise energy savings to pay for upfront investment Aggregating demand – 70 % reduction in prices No of ICLs replaced : 4.5 Mln Actual capital investment : 1.4 mln USD Estimated cost savings every year: 1.09 mln USD Expected annual energy savings: 240 mln KWh EESL annual payments by ULBs from savings in energy and maintenance cost – no additional revenue costs to Nagar Nigams Service level agreement to ensure 95% uptime of lights, automated controls and free replacement warranty for 7 years Minimum 50% energy savings guaranteed Launched by Prime Minister on 5th January, 2015 – to cover 100 cities in 2 years Focus on affordable home lighting and conversion of street lights EESL business model to be used – no or low upfront cost and repayments over a period of time

Transparency in procurement and mass aggregation of bulbs has resulted in sharp drop in LED bulb prices Price Discovery Lakh Lakh Lakh Lakh Lakh . It is noteworthy to mention that the LED bulbs are sold at Rs.400-500 in the open market. EESL process has been very successful in the past and the prices of LED bulbs have reduced by more than 65% in the last 6-8 months as a result thereof EESL Procurement process has been very successful in bringing down the price of bulbs by more than 70% in the last 6 months

For more information contact Thank You For more information contact njain@eesl.co.in www.eesl.co.in