Scaling Up Energy Efficiency in India

Energy Efficiency Services Limited(A JV company of PSUs of Ministry of Power, Govt of India)

Anil Kumar Gupta and Neelima Jain

17th June, 2015, New Delhi, India

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Energy efficiency measures in India offer the opportunity to reduce over 10% of India’s energy consumption

The regulatory/ policy measures and the market based energy efficiency investments together can reduce the electricity consumption by 122 billion units

2014-15 2015-16 2016-17 2017-18

Without Energy Efficiency In-vestments and Regulations

960.7 1027.523 1098.994 1175.436

With Energy Ef-ficiency Invest-ments and Reg-ulations

960.7 990.492953666667

1058.43093906667

1131.03177270667

925

975

1025

1075

1125

1175

All India Electricity Consumption in billion units

Bili

on

Un

its

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Scaling market based investments in appliances has the energy savings potential of 34 billion kWh in India

Market segment

YearScale of

deployment (no.)

Tentative investment

(USD million)

Annual Energy Savings

(million kWh)

GHG Emission Reductions

(tCO2)LED based

municipal street lighting

solutions

2015-16 1,740,000 142 245 239,6232016-17 1,914,000 157 269 263,586

2017-18 2,105,400 172 296 289,944

LED self ballasted lamps for households

2015-16 99,250,000 139 5523 5,412,7972016-17 109,175,000 153 6076 5,954,0772017-18 120,092,500 168 6683 6,549,485

BEE 5 star Ceiling Fans for

Households

2015-16 1,000,000 17 115 112,8962016-17 2,500,000 42 288 282,2402017-18 5,000,000 85 576 564,480

LED self ballasted tubular

lamps for households

2015-16 1,000,000 14 26 25,7252016-17 2,500,000 37 66 64,313

2017-18 5,000,000 74 131 128,625

Solar agriculture pumping

2015-16 500,000 2,343 2238 2,193,2402016-17 1,000,000 4,687 4476 4,386,4802017-18 1,500,000 7,031 6714 6,579,720

BEE 5 star air conditioners for

households

2015-16 100,000 15 79 77,1622016-17 200,000 31 157 154,3252017-18 500,000 78 394 385,811

Total (Cumulative) 15,394 34,352 33,664,528

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Energy Efficiency Services Limited

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:

o Domestic o Municipalitieso Agricultureo Buildingso 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

Replacement of 10 mln street lights and 200 mln conventional domestic lamps over next 2 years across India

Pipeline of $1.5 bln

Creating Energy Efficient India

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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

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Energy Efficient Street Lighting Programme

• 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

EESL’s Service Model

• 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

Case Study - Vizag

o Launched by Prime Minister on 5th January, 2015 for 100 cities – 390

MW of reduction in load expected

o Price of LEDs in Street lights in India has dropped by 35%.

o Demand for LED street lights to increase from 10,000 per annum to

200,000 per annum

IMPA

CT

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

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Domestic Efficient Lighting Programme

• 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

EESL’s Service Model

• 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

Case Study - AP

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Transparency in procurement and mass aggregation of bulbs has resulted in sharp drop in LED bulb prices

Lakh

Price Discovery

Lakh

Lakh LakhLakh

EESL Procurement process has been very successful in bringing down the price of bulbs by more than 70% in the last 6 months

Thank You

For more information contactnjain@eesl.co.inwww.eesl.co.in

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