2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines

1. 1
INTRODUCTION TO INDIA’S PUBLIC SUPER ESCO MODEL -
Energy Efficiency Services Limited (EESL)
25th November 2022
Presented By:
Mr. Abhishek Gupta
Head – International Business
2nd Clean Energy Finance and Investment Consultation Workshop

2. Strong Parentage of Promoter Companies
Company Overview
Established in 2009, under National Mission for Enhanced
Energy Efficiency (NMEEE)
Footprints in U.A.E, UK, Saudi Arabia, Maldives, Malaysia,
Bangladesh, Vietnam
17.66%
15.68% 33.33%
Promoters
shareholding
in
EESL
A public Energy Service Company (ESCO) under Ministry of
Power, Govt. of India
Preferred Implementation Partner for Multilateral financial
institutions – World Bank, AFD, ADB, KFW, etc.
Energy Savings from EESL’s interventions – Over 57 billion kWh
per year with Avoided peak demand of more than 11,200 MW
GHG reduction - More than 45 million tonnes of CO2 per year
Estimated Monetary Savings of USD 3.2 Billion
“EESL is World’s Largest Super ESCO, promoted by
PSUs & Global Financial Institutions”
33.33%
OVERVIEW
OVERVIEW

3. EESL’s Business Model
Pay-As-You-Save
Leverage economies of scale through bulk procurement
Demonstrated
Savings
Zero-Subsidy,
Zero-Capex
Commercially
viable with low
ownership costs
Mitigate risks to
investment
Demand-
Driven
Aggregation
Operations
transparent with
outcomes in public
domain
EESL’S BUSINESS MODEL
EESL’S BUSINESS MODEL

4. National Smart Meter Programme
Installed
• 28.39 Mn Smart Meters
• Installed in Uttar Pradesh, Delhi,
Haryana, Bihar, Rajasthan and Andaman
Unnat Jyoti by Affordable
LEDs for All (UJALA)
Distributed
• LEDS – 368.60 Mn
• Tube lights -72.18 Mn
• Energy Efficient Fans -23.59 Mn
• Distribution – PAN India
Street Lighting National Programme
(SLNP)
Installed
• 12.50 Mn LED street lights in ULBs and Gram
Panchayats across India
• Installed in 1615 Urban Local Bodies (ULB’s)
Estimated energy savings of 8.46
billion kWh per year
Reduction in commercial losses,
Enhanced revenues of DISCOMs
Building Energy Efficiency
Programme (BEEP)
• Total Upgraded Buildings - Airports, Railways,
Banks - 11,715 Nos.
• Work-in-Progress – 747 Nos.
• Major - Lighting and Air-conditioning systems
Energy saving potential to the tune
of up to 30-50%
National Motor Replacement
Program (NMRP)
• Under this program we are offering IE3
motors
• Ranging from 1HP to 100 HP to the
Industries
• Total IE3 motors deployed – 5280 Nos.
Consultancy Business
• Providing Consultancy for Street
Lighting – Saudi Arabia
• Consultancy Business – OECC Japan
for District Cooling and JICA – Net
Zero Energy Building
Estimated energy savings of
48.39 billion kWh per year
NATIONAL PROGRAMMES

5. Decentralized Solar Power
Plant Programme
• Commissioned – 200 MW
• Agreement Signed – 800 MW
• Target – 8 GW
Standalone plant where the power
generated could be fed locally to
11KV agricultural feeders
Agriculture Demand Side Management
(AgDSM)
• Replacing old pumps with BEE 5 star rated pumps.
• Total installed Pumps – 81,173 Nos.
• State covered/to be covered - Andhra Pradesh U.P.,
Maharashtra, Gujarat, Haryana, J & K, Madhya
Pradesh, Punjab, Jharkhand, Karnataka and Rajasthan
A min. of 30% reduction in energy
consumption with smart control panels
Atal Jyoti Yojna (AJAY)
• Total installed solar LED street
lights - 0.27 Mn
• Effective solution for Electrically
Isolated locations
Solar Study Lamps
• Total solar study lamps
distributed – 6.1 Mn
• Helping children in far flung areas
Super Efficient Air Conditioner
• Deployed SEACs:- 2,936
• 15% more efficient than 5 star ACs in
the market
• Cost of cooling reduces upto 50%
GEF
• Targeted beneficiaries industries:- 400
• Reduction CO2 emission:- 0.080 MT.
• Technologies to be deployed:- 30-35
• Cluster to be identified:-10
Energy Saving:- 956184 GJ/Year
NATIONAL PROGRAMMES

6. • Helped the country in generating employment for ~50,000 people and empowering change in
people’s lives
• Promoting Domestic Manufacturing – “Make in India”.
• Taking Energy Efficiency at scale to household level.
• Promoting Start-ups and small industries in India.
• Helping MSME’s to adopt Energy Efficiency.
• Inclusive growth in Rural Areas by EE Interventions
• Pioneers and Enablers in E-Mobility in India by Innovative Leasing Model.
• Galvanised the adoption of Public Transport by discovering most competitive prices for EV Leasing the
World.
• Providing access to Quality Electricity to the Farmers and reducing subsidy burden of Govt.
• Avoided HV & EHV capacity installation through distributed generation.
• Lighting up the Streets of India – 1.25 Cr.
6
Protagonist – Innovative EESL’s Business Model

7. Barriers in adoption of EE
•Policy
POLICY
• SUBSIDIZED ENERGY
SECTOR
• LOW ENERGY PRICES
• LACK OF INCENTIVES FOR EE
ADOPTION
•Financial
FINANCIAL
• HIGH UPFRONT COST
• ACCESS TO AFFORDABLE
FINANCE
• LACK OF INNOVATIVE FINANCING
MECHANISMS
• LOW ENERGY COST MAKES IT
UNATTRACTIVE (LONG PAYBACK
PERIOD)
•T
echnical
TECHNICAL
• LIMITED SECTOR-SPECIFIC
TECHNICAL EXPERTISE
• LIMITED TECHNOLOGY
DEMONSTRATIONS
• LIMITED AVAILABILITY OF EETECH
& SERVICES OF ADVANCED AND
SMART EE TECHNOLOGIES
•Institutional INSTITUTIONAL
• UNDERDEVELOPED OR
ABSENT ESCO MARKET
• LACK OF CAPACITY TO
IMPLEMENT EE
• LACK OF M&V FRAMEWORK &
PROTOCOLS
•Social
SOCIAL
7
• LACK OF AWARENESS
• LACK OF BUY-IN FROM
SME OWNERS
• EEIS PERCEIVED AS
EXPENSIVE
Barriers in Adoption of EE

8. Solutions provided by
EESL (Super ESCO)
•T
echnical and Management
Consultancy
•Market based mechanisms Reduced cost of EE
Tech
Improved technical
awareness
Technology
standardization
• Assist in Policy formulation
• DPR Report Preparation
Policy
•Finance
Finance
Revolvingfund
Policy to establish
national level ESCO
SUPER
ESCO
Tech.
Demo
Growth of small ESCOs,
Last mile service
Technical
Expertise
Demand
Agg.
Fiscal policies
incentivizingEE
Industry
Adoption
of EE
Access to finance
Generationand T&D benefits
On-bill financing
DSM
•Demand side management
8

9. Barriers in adoption of EE
THANK YOU