The government, World Bank and state-owned EESL signed a $220 million loan agreement and an $80 million pact to push energy efficiency programme in India. To be implemented by EESL, the program will focus on the deployment of energy-saving measures in residential and public sectors strengthen the firm’s institutional capacity and enhance its access to commercial financing.
This program is expected to evade lifetime greenhouse gas excretion of 170 million tons of Carbon dioxide and help in avoiding an estimated 10 GW of additional generation capacity. This would be over 50 percent of the National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under the Paris Accord.
“The programme will help tackle the financing, awareness, technical and capacity barriers faced by new energy efficiency programs and support the UJALA and SLNP programs of the Government of India,” Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, said in the statement. He further 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 percent by 2030.”
Under the scheme, EESL will install 219 million LED bulbs and tube lights, 5.8 million ceiling fans and 7.2 million street lights, supplied by the private sector. “Building upon its experience of UJALA and SLNP, EESL is now expanding its initiatives to other energy efficiency measures,” said Ashok Sarkar, Senior Energy Specialist and World Bank’s Task Team Leader for the programme.
“This energy efficiency program for results will help India meet its NDC commitments and move further towards a more resource-efficient growth path,” said Hisham Abdo, Acting World Bank Country Director in India.
The $220 million loan from World Bank to EESL has a 5 year grace period and 19 years renewable period while the $80 million IBRD guarantee will moderately cover re-payment risks to commercial lenders or investors, to allow EESL to raise funds for its programme.