world bank -ctf -gef supported project · sidbi independent m&v agency lenders –participating...

World Bank -CTF -GEF Supported Project

Coal

44.1%

Oil

22.7%

Natural Gas

5.7%

Nuclear

1.2%

Hydro

1.6%

Geothermal,

Solar

0.5% Biofuels &

Waste

24.3%

Total Primary Energy Supply, 2013

(775 million toe)

Industry

33.9%

Transport

14.2%

Residential

34.6%

Commercial &

Public Service

3.9%

Agriculture

4.5%

Non Energy

Use

8.9%

Energy Consumption, 2013

179.3

18.9

4.9

0

50

100

150

200

Transformation

Losses (mtoe)

Domestic

Commercial

Industries

Public Lighting

Traction

Agriculture

Public Works

Others

Ele

ctri

city

Ge

ner

atio

nL

oss

es

26.59% 9.88% 34.89% 20.27%

1.14

%2

.07%

2.5

5%

2.6

2%

Electricity Consumption - 750 BU (2013-14)

Domestic Commercial Industry Agriculture Public Lighting Traction Public Works Misc

0

10

20

30

40

50

60

2011 2020 2030 2040 2050

Nuclear 8%

Renewables 30%

End-use fuel switching 10%

CCS 13%

End-use fuel and electricity

efficiency 38%

Gt CO2

fuel switching 1%

Power generation efficiency and

Energy efficiency is the most important driver to decarbonize

Source: IEA, ETP 2014-15

0.0100

0.0110

0.0120

0.0130

0.0140

0.0150

0.0160

0.0170

0.0180

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

En

erg

y I

nte

nsit

y (

kg

oe/

Rs)

Energy Intensity

India - Efficent Scenario India - BAU Scenario

Total Avoided Capacity – 28,600 MW Annual Fuel savings - 44 million toe

very few are active

no additional advantage / concession / rebate for ESCOs upon registration / empanelment

Not a PSL

not a core / thrust business area of most of banks / NBFCs

risky proposition

demonstration first

Limited capacity of ESCOs

first of its kind wherein CTF used contingent guarantee as a financing instrument

USD 25Mn USD 12Mn

USD 6Mn

PRSF

Risk Sharing Facility

SIDBI

Independent M&V Agency

Lenders – Participating Financial Institution (PFIs) and SIDBI (as a lender)

Access to Risk Sharing

Monitoring & Evaluation

Measurement & Verification

Host Entity (Municipalities, Large industries, MSMEs, and Commercial Buildings)

Technical Assistance

EESL

Energy Service Companies (ESCOs)

Participants in EE Lending

Eligible Host / Sector

• Large Industries (excluding TPP)

• MSMEs

• Municipalities

• Building

Eligible EE Loans

• To ESCO / Host falling in MSE category

• Min. 75% towards EE Investments

Eligible ESCOs

• BEE Empaneled

• Non-BEE empaneled subject to grading by external rating agency

Extent of Coverage

• 75% of loan

• Min. Loan – INR 10 lakh

• Max. Loan – INR 15 crore

• Max. Exposure to single ESCO – INR 45 crore (INR 40 crore – for Grade 5 ESCO)

Guarantee Tenure

• 5 Years or loan tenure, whichever is lower

Guarantee Fee

• Slab-wise and based on grading of ESCO (Max. 1% of the loan amount)

under progress

http://prsf.sidbi.in

under progress

4E Solutions

EESL: Development of a “Super ESCO” Model

http://www.ujala.gov.in; http://www.eeslindia.org/slnp/

• Energy Efficiency Services Limited (EESL) fills in the Gap in the Indian EE Market:• A multinational company – world leader in clean energy and

innovation, promoted by Ministry of Power, Government ofIndia

• Turnover of $ 1.5b by 2020 from $ 200 m last year• Investments in appliances, buildings, pumping and RESCO of $

5 b• Thrust on significantly enhancing international operations • Improving and innovating the sustainable EESL business

models to cover more sectors like SMEs, Industry

• EESL’s role as a “Super ESCO”:• Aggregation of Demand cost reduction affordability• QC and Benchmarking• Awareness Creation• Robust Distribution and Deemed Savings (on-bill, PAYG)• Strong M&V

310

203

149104

82 72 64 56 380

100

200

300

400

Jan

-13

Ap

r-13

Jul-

13

Oct

-13

Jan

-14

Ap

r-14

Jul-

14

Oct

-14

Jan

-15

Ap

r-15

Jul-

15

Oct

-15

Jan

-16

Ap

r-16

Jul-

16

Price reduction of LED bulbs

EESL Programs and Outcomes

• UJALA – LED Bulb Program – over 225 Mn LED bulbs distributed in 2 years – private sector sold 300 Mn in thesame time – market transformation in 2 years – LEDs most preferred lighting source

- 29 Bn KWh of energy, 23 Mn tons of CO2 every year and avoided peak capacity addition of over 5800 MW• Street Lights – About 2 Mn street lights replaced benefitting over 250 ULBs – total 4 Mn LED street lights out

of 14 Mn in the country – complete replacement by 2019- The energy savings of over 1 b KWh, GHG emission reduction of 1 m tons and avoided peak capacity of

over 200 MW• Fans/ LED Tubes – Started 4 months ago – 600,000 fans and 1.6 Mn LED tubes distributed

- Energy savings of over 70 Mn KWh, GHG emission reduction of 55,000 tons and avoided peak capacity of 45 MW

• Ag DSM – Agreement to replace 1.1 Mn agriculture pumps signed• Municipal Water/ Sewage Pumps – over 150 cities energy audit work started• Buildings – Agreements with large government facility owners signed – more than 2000 buildings beings

aggregated.

• Outcomes (of UJALA – LED Bulb Program):• Share of LEDs in Indian lighting market increased from less than 1% to 15% in 1 year• Retail prices reduced by 1/3rd in one year. Bulk prices reduced by over 80% in 2 years • Average price last year ~$ 5-7 – now between $ 1.5 - $ 4• Domestic manufacturing increased significantly• New jobs created – almost 25,000 in one year

http://prsf.sidbi.in

USD 2 Mn

20000 MWh/Yr 20000 tCO2 p.a

Guarantee issued to the projects covering diversified sectors / technologies viz.

Waste Heat Recovery System, VFD, EE measures in hospitals, etc. (despite LED is

the flavour of the season)

USD 2.7 Mn

Neeraj Verma, SIDBI, India (sidbi_prsf@sidbi.in; neerajverma@sidbi.in )

Mohit Khatri, EESL, India (mkhatri@eesl.co.in )

Ashok Sarkar, World Bank (asarkar@worldbank.org )