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Energy Efficiency Services Limited (EESL), IndiaCreating an Energy Efficient World….

Energy Efficiency Services Limited

India

Role of Aggregation in reducing price of Pumps and

LED Bulbs-Lesson for ISA


Energy Efficiency Services Limited (EESL) – Who We Are

• A state-owned public Energy Service Company (ESCO) under Ministry of Power

• Established in the year 2009

• 100% share holding with Public Sector Enterprises

• Board of Directors represented by Ministry of Power and Bureau of Energy Efficiency (BEE)

• NTPC Limited (India’s Largest Power Generating Company |

Market Cap as on March 2016 – US $15.5 billion)

• Rural Electrification Corporation Limited (India’s Leading

Public Infrastructure Finance Company in power sector |

Market Cap as on March 2016 – US $2.4 billion)

• Power Finance Corporation Limited (India’s financial

institution& back bone of Indian Power Sector | Market Cap

as on March 2016 – US $3.1 billion

• Power Grid Corporation of India Limited (India’s Largest

Power Transmission Company | Market Cap as on March

2016 – US $10.7 billion

EESL is a JV of four Public Sector Enterprises of Ministry of Power, Govt. of India


What we do How we do

• Implement energy efficiency projects for

Central and State Governments and other

Organisations

• Implement Demand Side Measures:

• Domestic

• Municipalities

• Agriculture

• Buildings

• Industry

Two Business Models:-

1. On Bill ‘Financing’ Model (OBF)-

• Intervention directly with consumers – LEDs, Fans,ACs, etc.

• Consumers (for LED bulbs and Fans) pay upfrontcost OR EMIs through their electricity bill for 1-2years.

2. ESCO ‘Service’ Model-

• Programs like Street Light, Buildings,Agriculture/Solar (Pumps) with DISCOMs, ULBs

• Payments from savings in energy and maintenancecost.

Common Characteristics under BOTH Models: Aggregation of demand and supply (Aggregator Model).

No subsidy by Government ; Entire upfront investment by EESL.

Turnkey execution from conceptualizing till execution of Energy Efficiency (EE) Project.

No cost and manpower resources from beneficiaries such as Utilities/ Municipal bodies/ State.


EESL Strength & Role

• EESL has a contribution of 72 million USD from its promoter companies and additional credit line of

250 million Euro from KfW (German Development Bank), 50 million Euro from AFD and 200 million

USD from ADB for the implementation of energy efficiency programmes in India.

• Turnover of the Company for FY 2015-16 has increased by ten times as compared to its previous

financial year

• For FY 2016-17, turnover had increased by two times as compared to its previous financial year.

• Development of Industry

• Conceptualizing of Project• Framework Development

• Organizing Industry Meets and work in tandem to plug the loophole in project

• Implementation and Maintaining the project.

• Aggregation of demand and supply helps creating an environment and designing a system which

allows easy matching of price and specification.


Achievements• UJALA

• EESL has distributed over 231.6 Mn 9W LED bulbs resulting in estimated energy savings of about 30.143 BU per

year and GHG emission reduction of 24 million tCO2 per year.

• Street Lights

• EESL has installed over 2.1 Mn LED street lights resulting in estimated energy savings of about 1.41 BU per year

and GHG emission reduction of 0.97 million tCO2 per year.

• AJAY

• Under this programme, EESL will install 300,000 nos of Solar Street lights

• MEEP

• Replacement of inefficient municipal and sewerage pump sets in 500 AMRUT cities. Potential for avoidance of 4.8

BU with estimated reduction of 3.9 mtCO2 emissions per annum.


Achievements• AgDSM

• Executed programme in 4 states

• Replacement of 100,000 nos of Energy efficient Agricultural pump sets in AP and 30,000 nos in

Rajasthan underway

• Solar PV mini grids

• Grid connected Solar PV based Agricultural pump sets. Sale of power to DISCOMs. Revenue to farmers

on monthly basis

• Signed MoU with AP and UP State Govt’s. Under Phase 1:– 10,000 out of 100,000 in AP and 10,000 in

UP. Concept note, Feasibility study, DPRs were submitted.

• Other State to follow: Haryana, Chattisgarh, Punjab, Gujarat


Market Aggregation – Outcomes (LED Bulbs)

•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 ~$ 1-$ 1.5 – now between $ 0.6 - $ 0.8

•Domestic manufacturing increased significantly

•New jobs created – almost 25,000 in one year

310

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Price reduction of LED Bulbs

Price


Market Aggregation – Outcomes (Street Lights and Pumps)

•Decrease in per Lumen Cost and Increase in Lumens per Wattage (Chip Efficacy)•Due to repeat demand and economies of scale manufacturer’s realize lower PER UNIT COST.•Domestic manufacturing increased significantly•Thrust on improving the efficiency of product.

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

Price Trend and Luminousity

Lumens Per wattage Price Per wattage

638 USD606 USD

576 USD

439 USD

Price Reduction in 5HP rating PUMP SET


REASON FOR SUCCESS

Quick Turn Around Time

Payment Guarantee

Front Face shall be

EESL in project

Zero Project Risk to ULB/ Utility.

Transparent and

Effective Procurement

Aggregation of demand and

creating environment for ‘Pull’

marketing of project.


Lesson for ISA

• Aggregation of demand.

• Standardizing process and templates.

• Mechanism for Dispute Resolution.

• Standard and Codes as per individual country.

• Quality and Availability of Power.

• Study and Research about terrain and demographic profile of individual country.

• Socio-Economic Study of citizens.


Contact Us:

Energy Efficiency Services Limited

A-13, IWAI Building

4th Floor, Sector - 1

Noida – 201301, Uttar Pradesh, India

e-mail: [email protected]

www.eeslindia.org

Phone: +91 120 490 8000 Fax: +91 120 4908099

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