1. 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)

2. 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

3. 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
1,740,000
142
245
239,623
1,914,000
157
269
263,586
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

4. 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
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

5. 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

6. 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

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

8. 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

9. 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 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

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