Scaling Up Energy Efficiency in India: Opportunities and Impacts

EESL 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)

Energy efficiency measures in India offer the opportunity to reduce over 10% of India s energy consumption EESL All India Electricity Consumption in billion units 1200 1150 Bilion Units 1100 1050 1000 950 900 2014-15 2015-16 2016-17 2017-18 Without Energy Efficiency Investments and Regulations With Energy Efficiency Investments and Regulations 961 1028 1099 1175 961 990 1058 1131 The regulatory/ policy measures and the market based energy efficiency investments together can reduce the electricity consumption by 122 billion units WWW.EESL.CO.IN| 2

Scaling market based investments in appliances has the energy savings potential of 34 billion kWh in India EESL Scale of deployment (no.) 1,740,000 1,914,000 Tentative investment (USD million) 142 157 Annual Energy Savings (million kWh) 245 269 GHG Emission Reductions (tCO2) 239,623 263,586 Market segment Year 2015-16 2016-17 LED based municipal street lighting solutions 2017-18 2,105,400 172 296 289,944 LED self ballasted lamps for households BEE 5 star Ceiling Fans for Households LED self ballasted tubular lamps for households 2015-16 2016-17 2017-18 2015-16 2016-17 2017-18 2015-16 2016-17 99,250,000 109,175,000 120,092,500 1,000,000 2,500,000 5,000,000 1,000,000 2,500,000 139 153 168 17 42 85 14 37 5523 6076 6683 115 288 576 26 66 5,412,797 5,954,077 6,549,485 112,896 282,240 564,480 25,725 64,313 2017-18 5,000,000 74 131 128,625 2015-16 2016-17 2017-18 2015-16 2016-17 2017-18 500,000 1,000,000 1,500,000 100,000 200,000 500,000 2,343 4,687 7,031 15 31 78 15,394 2238 4476 6714 79 157 394 34,352 2,193,240 4,386,480 6,579,720 77,162 154,325 385,811 33,664,528 Solar agriculture pumping BEE 5 star air conditioners for households Total (Cumulative) WWW.EESL.CO.IN| 3

Energy Efficiency Services Limited Creating Energy Efficient India EESL Who we are.. What we do.. Key Achievements Promoted by Ministry of Power, Government of India Implement energy efficiency projects for Central and State Government Our projects have helped avoid capacity addition of 285 MW in 2014-15 100% company public owned Implement Demand Side Measures: o Domestic o Municipalities o Agriculture o Buildings o Industry Pipeline of 151 EE projects in Domestic Sector worth 160 mln USD Implemented street lighting project in India replaced 92,000 street lights in 6 weeks largest EE Governed by all rules and procedures of Government of India Implemented domestic efficient lighting project in replacement of 5 million conventional lamps in 4 months largest Board represented by Ministry of Power and Energy Efficiency (BEE) of Directors India Bureau of Authorized share capital of 95 Million USD EESL s LED programmes adopted as programmes that will cover 100 cities Pipeline of 240 projects in EE Street Light worth 800 mln USD Lineof credit from KfW & AFD. In process: ADB, KfW , and JICA Replacement of 10 mln street lights and 200 mln conventional domestic lamps over next 2 years across India Pipeline of $1.5 bln national WWW.EESL.CO.IN| 4

EESL 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 WWW.EESL.CO.IN| 5

EESL Energy Efficient Street Lighting Programme EESL s Service Model Case Study - Vizag 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 savings: 24 mln KWh Expected reduction of installed street light load: 3.9 MW 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 maintenance and replacements over project period Ensuring light levels as per the National Lighting Code energy to ensure 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 IMPACT WWW.EESL.CO.IN| 6

Snapshots from Vizag Street Light Project EESL 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

EESL 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 savings: 240 mln KWh energy WWW.EESL.CO.IN| 8

Transparency in procurement and mass aggregation of bulbs has resulted in sharp drop in LED bulb prices EESL Price Discovery Lakh Lakh Lakh Lakh Lakh EESL Procurement process has been very successful in bringing down the price of bulbs by more than 70% in the last 6 months WWW.EESL.CO.IN| 9

EESL Thank You For more information contact njain@eesl.co.in www.eesl.co.in WWW.EESL.CO.IN| 10