Energy Efficiency Services Limited (EESL)
- Posted By
10Pointer
- Categories
Economy
- Published
27th Feb, 2020
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Context
- Government-backed Energy Efficiency Services Limited (EESL) has now completed 10 years of scaling up energy efficiency programmes in India and globally.
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What is EESL?
- Energy Efficiency Services Limited (EESL) is a Super-Energy Service Company (ESCO), which enables consumers, industries and governments to effectively manage their energy needs through energy efficient technologies.
- EESL is implementing the world’s largest non-subsidised energy efficiency portfolio across sectors like lighting, buildings, e-mobility, smart metering and agriculture at a scale which no organization has been able to achieve.
- EESL focuses on solution-driven innovation with no subsidy or capital expenditure (CAPEX).
- It is able to do so using its Pay-As-You-Save (PAYS) model, which obviates the need for any upfront capital investment by the consumer.
- The entire investment by EESL is recovered through monetised energy savings over a scheduled project period.
- EESL is promoted by the Ministry of Power Government of India as a Joint Venture of four reputed public-sector undertakings - NTPC Limited, Power Finance Corporation Limited, REC Limited, and POWERGRID Corporation of India Limited.
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What are the objectives of EESL?
- To carry out and promote the business of Energy Efficiency and climate change including manufacture and supply of energy efficiency services and products.
- To provide consultancy services in the field of Clean Development Mechanism (CDM) projects, carbon markets, demand side management, energy efficiency, climate change and related areas.
- To act as resource center in the field of Energy Efficiency and take up the activities of Capacity Building, Training and other related activities.
- To carry out such other activities as offered by the Central Govt., Bureau of Energy Efficiency or any other agency related to Energy Efficiency and Climate Change.
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What EESL has done for us?
- Energy Efficiency Services Limited (EESL) has successfully installed 10 lakh smart meters across India, under the Government of India's Smart Meter National Programme (SMNP).
- These smart meters, operational in Uttar Pradesh, Delhi, Haryana, and Bihar, aim to bring efficiency in the distribution system leading to better service delivery.
- Under the Buildings Energy Efficiency Programme (BEEP), EESL has completed projects in 10,344 buildings including Railway Stations and Airports.
- Implementing Agriculture Demand Side Management (AgDSM), EESL has installed over 73,800 no. of pumps in the state of Andhra Pradesh and Uttar Pradesh.
- Under the National Emobility Programme, to date, 1,510 e-cars have been deployed/under For charging e-cars, 300 AC & 170 DC Captive chargers have also been commissioned and 68 public charging points are currently operational in Delhi NCR.
- EESL spearheaded and implemented the Government of India's zero-subsidy Unnat Jyoti by Affordable LEDs for All (UJALA) programme by distributing LED bulbs and Street Lighting National Programme (SLNP) by retrofitting streetlights with LEDs.
- Today, UJALA is the world's largest domestic lighting project and SLNP is the world's largest streetlight replacement programme.
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Why EESL has been called the Harbinger of Change?
- It has replaced 10.6 mn street lights in just about 12 months. Working on a model that has resulted in 36 crores LED bulbs being distributed by it and 80 cr. Bulbs being sold through trade leading to a reduction in emissions of almost around 80 mn tonnes of CO2 equivalent".
- Established in 2009 to unlock the potential of energy efficiency, initiatives implemented by EESL have cumulatively led to energy savings of over 58 billion kWh and a reduction of over 46 million tonnes of greenhouse gas (GHG) emissions across the globe.
- In its 10 years, EESL has had exponential growth, with offices spread across India, UK, Middle East, South Asia, and South-East Asia.
- EESL's revenue has grown at a Compounded Annual Growth Rate (CAGR) of 114.96 percent from INR 26 crore in FY 2013-14 to INR 2565 crore in FY 2018-19.
- With its rapid growth, EESL now aims to become an INR 10,000-crore company in the next three years.
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What was announced during the meeting?
- At a function to mark 10 years of EESL, the Minister announced the commissioning of 100 MW cumulative capacity decentralized solar power plants connected to agriculture feeders. The capacity of these solar power plants, in each substation, ranges from 0.5 MW to 10 MW.
- The decentralized solar plants cater to the requirements of farmers connected to the respective agriculture feeder daily, by means of reliable day time electricity.
- The Power Minister launched the dashboards of Smart Meter National Programme (SMNP), National Electric Mobility Programme and solar initiatives to transparently monitor the real-time progress of the programs and its impact.
- An integrated mobile application – EK EESL- where all the dashboards of all the programs being implemented by EESL will be accessible and anyone can monitor their real-time progress was also launched.
- EESL and Provincial Energy Authority, Ministry of Interior, Royal Thai Government exchanged a MoU during the event for long-term cooperation and collaboration to advance the implementation and deployment of energy efficiency measures at SMEs in Thailand.
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Which programmes are being implemented by EESL?
- Unnat Jyoti by Affordable LEDs for All (UJALA): Launched in 2015, the Unnat Jyoti by Affordable LEDs for All (UJALA), in a short span of three years, has emerged as the world’s largest domestic lighting programme. Developed to address India’s high cost of electrification and high emissions from inefficient lighting, UJALA’s success lies in its inimitable strategic approach to energy efficiency.
- Street Lighting National Programme (SLNP): To bring in mass-scale transformation, EESL has adopted a unique strategy by joining hands with states, municipal bodies and Urban Local Bodies (ULBs). Under the programme, EESL replaces the conventional street lights with LEDs at its own costs, with no upfront investment by the municipalities, thereby making their adoption even more attractive.
- Buildings Energy Efficient Programme: EESL’s Buildings Energy Efficiency Programme offers a uniquely designed solution for buildings of the government, industry, and institutions to implement and retrofit energy efficient appliances and systems at affordable prices. The aim is to bring energy efficiency solutions to 20,000 large government and private buildings by 2020.
- Electric Vehicles: Understanding the potential of EVs in addressing India’s aims for an energy-ready and environmentally sustainable future, the Indian government launched the National Electric Mobility Mission Plan (NEMMP) in 2013 with a target to bring 60 to 70 lakh EVs to Indian roads by 2020 and is committed to achieve 30% e-mobility by 2030. By establishing a substantial presence for EVs, their affordability, and supporting charging infrastructure, EESL is working to trigger an industrial and consumer switch to EVs.
- Agriculture Demand Side Management (AgDSM) Programme: EESL is implementing the world’s largest Agricultural Demand Side Management (AgDSM) programme. Under the programme, inefficient agricultural pump sets are replaced with BEE 5 star-rated energy efficient pump sets. AgDSM implantation can reduce peak demand, and, ultimately, the total energy consumption in the agriculture sector.
- Energy Efficient ACs: With the goal of integrating energy efficiency into India’s cooling sector, Energy Efficiency Services Limited (EESL) has initiated a first of its kind, Super-Efficient AC programme. Consumers will be able to buy the superior Super-Efficient Air Conditioners distributed by EESL at prices that are comparable to the most energy-efficient ACs in the market. The new ACs will use 100% copper coil and additional anti-rust coating, enhancing product longevity.
- Smart Meter National Programme: Enabling India to achieve this imperative is the smart grid, the first step of which, is the creation of Advanced Metering Infrastructure. A new range of ‘smart meters’ can bring efficiency to how India manages its electricity, by checking data-entry errors and billing efficiencies, and cutting the costs of manual meter reading through web-based monitoring system. With its pioneering role in India’s energy efficiency journey, EESL’s Smart Meter National Programme (SMNP) is working to eventually replace 25 crore conventional meters with smart meters across India.
- Solar AgDSM: EESL is working to provide reliable solar power supply to agricultural pump sets by setting up solar mini-grids. Solar powered PV pump sets can be used to irrigate the farms during the day time, thereby reducing dependence on diesel fuel. We will finance, design, install, own, and operate solar PV pumping on farms. The renewable solution will make it possible for farmers to receive considerable revenue on a monthly basis by selling the excess power to the grid for a period of 25 years.
- Municipal Energy Efficient Programme (MEEP): EESL will replace inefficient pumps in public water works and sewerage systems at no upfront cost to the municipal bodies. As per their proven method, the investment will be recovered from the savings in energy costs.
- Trigeneration: Trigeneration is the simultaneous process of cooling, heating and power generation from only one fuel input. Typically, gas-fired generators are used to produce electricity. The byproduct is waste heat, which is then directed to absorption chillers and boilers for space cooling, hot water and related purposes. India’s growing access to natural gas, a typical input for trigeneration systems and the cleanest burning hydrocarbon, will greatly enable wider adoption of trigeneration.
- Solar Study Lamp Scheme: Solar study lamps, another application of solar energy, India’s strongest renewable energy pathway, provides an ideal solution for the goal of ensuring India’s students have access to lighting in the evening hours for their studies.
- Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE): As a risk-sharing mechanism, PRGFEE provides commercial financial institutions with a partial coverage of risk exposure against loans issued for energy efficiency projects, and directly supports financing of Energy Efficiency (EE) projects by:
- Addressing the credit risks and barriers to structuring the transactions
- Engaging Financial Institutions and building their capacity to finance EE projects on a commercially sustainable basis.
- Providing risk cover of upto 50% of debt in an energy efficiency project.
- In July 2015, BEE appointed the consortium of Energy Efficiency Services Limited (EESL), REC Power Distribution Company Limited (RECPDCL) and Rural Electrification Corporation (REC) as the Implementing Agency for PRGFEE.
Quick Recap
- Energy Efficiency Services Limited (EESL)—setup in 2009—completed 10 years.
- EESL is a JV of 4 PSUs—NTPC Ltd., PFC Ltd., REC Ltd. and POWERGRID Corporation of India and works under Ministry of Power.
- EESL aims to create market innovations with a solutions-driven approach through its Zero-Subsidy, Zero-Capex, and Pay-As-You-Save (PAYS) novel business model.
- EESL has offices across India, UK, Middle East, South Asia, and South-East Asia.
- EK EESL—mobile app—dashboards of all the programs being implemented by EESL will be accessible.
- SLNP—EESL replaces the conventional street lights with LEDs at its own costs—world’s largest streetlight replacement programme.
- UJALA scheme—launched in 2015—to address India’s high cost of electrification and high emissions—world’s largest domestic lighting project.
- BEEP—to bring energy efficiency solutions to 20,000 large government and private buildings by 2020.
- NEMMP—launched in 2013—target to bring 60 to 70 lakh EVs to Indian roads by 2020 and committed to achieve 30% e-mobility by 2030.
- AgDSM Programme—world’s largest Agricultural Demand Side Management (AgDSM) programme—inefficient agricultural pump sets are replaced with BEE 5 star-rated energy efficient pump sets.
- Energy Efficient ACs—first of its kind, Super-Efficient AC programme—new ACs will use 100% copper coil and additional anti-rust coating.
- Smart Meter National Programme—to eventually replace 25 crore conventional meters with smart meters across India.
- MEEP—replace inefficient pumps in public water works and sewerage systems at no upfront cost.
- Trigeneration—simultaneous process of cooling, heating and power generation from only one fuel input.
- PRGFEE—provides commercial financial institutions with a partial coverage of risk exposure against loans issued for energy efficiency projects, and directly supports financing of Energy Efficiency (EE) projects.
