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India secures ample financing to scale-up energy efficiency programme

The government of India, the Energy Efficiency Services Limited (EESL) and the World Bank have signed a $220 million loan agreement and a $80 million guarantee agreement for the India’s Energy Efficiency Scale-Up Programme.

The programme, to be implemented by the state-owned EESL, will help scale up the deployment of energy saving measures in residential and public sectors, strengthen EESL’s institutional capacity, and enhance its access to commercial financing.

“The Programme will help tackle the financing, awareness, technical and capacity barriers faced by new energy efficiency programmes and support the UJALA programme [the Unnat Jyoti by Affordable LEDs for All] of the Government of India,” said Sameer Kumar Khare, joint secretary in the Department of Economic Affairs and Ministry of Finance.

Khare added: “This is one of the several steps being taken by the Government of India to meet its climate change commitments to reduce carbon intensity by 33-35% by 2030.”

The investments under the programme are expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2, and contribute to avoiding an estimated 10GW of additional generation capacity.

This would be over 50% of the National Mission for Enhanced Energy Efficiency target of 19.6GW indicated in India’s Nationally Determined Contributions (NDCs) under the Paris Accord. Read more: India scaling up local EV battery production

The key components of the operation include:

  • Creating sustainable markets for LED lights and energy efficient ceiling fans;
  • Facilitating well-structured and scalable investments in public street lighting;
  • Developing sustainable business models for emerging market segments such as super-efficient air conditioning and agricultural water pumping systems;
  • And strengthening the institutional capacity of EESL.

Moreover, the programme will help to increase private sector participation in energy efficiency, including through private sector energy service companies.

Under the programme, EESL will deploy 219 million LED bulbs and tube lights, 5.8 million ceiling fans, and 7.2 million street lights, which will be supplied by private sector manufacturers and suppliers.

India energy efficiency programme

Demand for energy end-use appliances and equipment like lighting, ceiling fans, air conditioners, refrigerators, agricultural pumps, and industrial motors is projected to grow significantly in India.

So far, through the “Unnat Jyoti by Affordable LEDs for All” (UJALA) programme, EESL has already deployed more than 295 million LED bulbs, resulting in avoiding over 7,500MW of new electricity generation capacity and bringing a significant drop in retail prices of high quality LED lightbulbs.

The India Energy Efficiency Scale-Up Programme will help EESL expand UJALA’s deployment of efficient ceiling fans, LED street lights and LED tube lights, along with its already-successful LED bulbs procurement and distribution.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.