Energy Efficiency Services Limited

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Energy Efficiency Services Limited (EESL)
EESL.jpg
Country India
Ministry Ministry of Power (India)
Key people

R. K. Singh

Rajeev Sharma(Chairman)[1]
Launched 10 December 2009; 8 years ago (2009-12-10)
Website www.eeslindia.org

Energy Efficiency Services Limited (EESL) is an energy service company (ESCO) of the Government of India and is the world's largest public ESCO. It is 100% government owned, a joint venture of state-owned NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID. EESL was formed under India's Ministry of Power to facilitate energy efficiency projects. Innovative business and implementation models can significantly reduce consumption and costs. EESL also acts as the resource centre for capacity building of state electricity distribution companies, electricity regulatory commissions (ERCs), state-designated agencies (SDAs), upcoming ESCOs, financial institutions, etc.

It is backed by and promoters, and has net worth of over INR 2.144 billion. India's energy efficiency market is estimated at US$12 billion.

Projects and achievements[edit]

EESL implemented 10 energy efficiency projects during the financial year 2014-2015, with an investment of Rs.147 crores. This saved 285 MW or 96.36 MU and reduces carbon-dioxide emission by 77 million kg per year. EESL says it makes energy efficiency accessible, affordable and safer.

  1. Its programs distributed over 33.66 crore LED light bulbs and replaced 64 lakh street lights with LED lights on 13 August 2018.
  2. They increased India’s share of the world's LEDs from 0.1% in 2013-2014 to 12% in 2015-2016.
  3. EESL has the largest energy efficiency portfolio in the world.
  4. It created 40,000 jobs directly and 25,000 indirectly
  5. It is one of the fastest-growing companies in India – 10 fold growth in one year

Projects include Unnat Joyti by Affordable LEDs for All (UJALA), Street Light National Programme, National Energy Efficient fan distribution programme, Efficient Buildings programme. EESL is also implementing the world’s largest agricultural demand-side management programme, by distributing efficient smart-controlled pumps to farmers free of cost, to allow remote operation and monitoring (such as via SMS).

EESL's procurement model transformed LED light bulb production, and decreased prices to one-tenth in 2 years.

EESL projects will receive $454 million funding from Global Environment Facility (GEF - an international partnership of 183 countries), international development banks, United Nations agencies and international non-governmental organisations (NGOs).

UJALA LED bulbs[edit]

EESL aggregated demand and distributed LED bulbs in bulk, thus reducing costs by more than 80% – from Rs.310 (February 2014) to Rs.65 (April 2017, without taxes). The cost reduction was passed to consumers, making LED and energy efficient appliances an affordable for all. Average prices of LED bulbs under UJALA vary between Rs.60-70 (subject to various state taxes) with a 3-year warranty.

The UJALA scheme, which started with distribution of LED bulbs has now expanded to include variety of energy efficient products like fans, tube-light and air conditioners, etc. With a network in 24 states, EESL distributed more than 22.7 crore energy efficient LED bulbs, saving up to 29,510 mn KWh, 2.3 crore tones of CO2 emission and Rs 11,804 Crore per year. This also reduced peak demand by 5,908 MW. EESL plans to replace 77 crore inefficient bulbs by LED bulbs by March 2019. This would reduce load in the country by 20,000 MW and save of 10,000 crore kWh per year. Consumers would save Rs. 40,000 crore every year, after an average tariff of Rs. 4 per kWh.

EESL procurements conform to BIS specification IS 16102 Part 1 and Part 2: 2012 for self-ballast lamps. Further, these bulbs carry a 3-year free replacement warranty against technical defects. At the bidding stage, the prospective bidders are required to provide, along with their bid documents, the test reports from National Accreditation Board of Laboratories (NABL) accredited labs. At the distribution stage, EESL picks up samples of LED bulbs at each place where the distribution is taking place and from the manufacturing facility in a random manner and gets it tested at NABL accredited labs.

UJALA efficient fans[edit]

Energy Efficiency Services limited (EESL) has launched the National Energy Efficient Fan Programme (NEEFP) to promote efficient use of energy by increasing the use of energy efficient appliances at the residential level.

Most households in India are cooled by fans, and less than 10% of households have air conditioning. The average rating of the fans installed and sold in the market is between 75-80W, whereas energy efficient fans provide the same level of comfort at about 45-50W. Considering that almost 30 million fans are sold every year, the potential to reduce demand is significant. Replacing the country's 35 crore inefficient ceiling fans in with BEE 5-Star-rated ceiling fans could save 47 billion KWh and reduce load by over 12,250 MW.

Under the National Energy Efficient Fan Programme, EESL provides BEE 5 Star rated ceiling fans which are 30% more energy efficient than conventional fans. Fans will be sold for Rs. 1,150 per fan. EESL has distributed 6.2 lakh energy efficient fans under this scheme which will save 2.4 lakh kWh and Rs 8.2 lakh per day to the consumers. The price difference is Rs. 500 which is the primary reason for its low penetration, along with the lack of awareness. With the usage of these energy efficient fans it is estimated that consumer’s electricity bills will reduce by about Rs. 700-730 per year, and recover the extra cost in less than 2 years.

UJALA LED Tube Lights[edit]

Tube lights are a vital light source in residential and commercial usage. Thus after LED bulbs, UJALA expanded to include affordable LED tube lights. The government of India launched distribution of 20W LED tubes lights which are 50% more energy efficient than conventional 40W tube lights. LED tube lights now sell to consumers for Rs. 230 each while their market price of Rs 400-600.

EESL distributed 16.5 lakh LED tube lights under this scheme, saving 7.2 crore kWh and Rs 24 crore per year to consumers.

Street lights[edit]

EESL provides a service to enable municipalities to replace conventional street lights with LEDs at no upfront cost. The cost difference is paid back through the municipalities through energy savings. The Street Lighting National Programme (SLNP) aims to replace 3.5 crore conventional street lights with smart and energy efficient LED street lights by March, 2019.

For the programme, the total connected load of street lights across the country of around 3400 MW, can be reduced to 1400 MW, saving 9 billion KWh and Rs. 5,500 crore to municipalities annually. Use of LEDs in public lighting can save more than 50% of energy consumption. A total of 19.6 lakh LED street lights were already replaced, saving 7.5 lakh kWh per day, avoid capacity of 68.5 MW and reducing 627 t of CO2.

Agriculture demand side management[edit]

In the power sector, agricultural demand-side management (AgDSM) is the set of activities, methodologies, awareness, policy and technologies, that influence farmer behavior and changes their consumption patterns.

The objective of the AgDSM programme is to reduce peak demand, and total energy consumption of agriculture. The program is to replace inefficient agricultural pump sets for BEE star-energy-efficient pump sets to reduce the energy consumption. It has been experienced that the simple payback period in these projects is 2–3 years and project duration is 4–5 years.

Atal Jyoti Yojna[edit]

Ministry of New and Renewable Energy (MNRE) has launched the “Atal Jyoti Yojna” (AJAY) project to install solar street lights in areas with inadequate power supply in Uttar Pradesh, Assam, Bihar, Jharkhand and Odisha by March 2018. AJAY is being implemented to fulfill the government’s pledge to satisfy the basic energy needs of Indians. The lights will be installed in rural, semi-urban and urban areas to ensure light in major roads, markets, public conveniences etc., and improve safety.

Municipal demand-side management[edit]

EESL identified a great potential to tap the municipal demand-side management (MuDSM) in India which includes replacing the inefficient pump sets in the municipalities with efficient ones.

This is expected save 25% to 40% in power consumption of the ULBs, and at least 3000 MUs of energy (based on the data that public water works in India consumes more than 12000 MUs), and avoid the need for an additional capacity of 500 MW.

The Energy audit and Energy Conservation Measures in Public Water Works & Sewerage Systems are reforms under the Ministry of Urban Development's Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Considering this, EESL signed a memorandum of understanding with the Ministry of Urban Development for undertaking the reform across India, to be implemented in 500 smart cities and 100 AMRUT cities. Agreement has been signed with Chhattisgarh, Odisha, Assam, Rajasthan, Uttar Pradesh, Chandigarh, Jharkhand, Telangana and Andhra Pradesh for IGEA (Investment grade energy audits).

Solar agricultural pump-sets[edit]

India has about 30 million agricultural pumps installed, nearly 10 million of which are diesel-based and remaining are grid connected. However, due to unreliable grid supply and increasing diesel prices, solar water pumping system offers immense opportunities to replace conventional pumps. Most solar pumps in India are subsidized, but even subsidized pumps are unaffordable to small farmers due to their high upfront cost comparied to diesel and electric pumps.

EESL intends to provide a reliable source of agricultural pumps via solar mini grids. With such grids, farmers could receive considerable revenue by selling the excess power to the grid over 25 years. Benefits to farmers include social emancipation and contribution to society by water conservation.

Creating and Sustaining Markets for Energy Efficiency project[edit]

EESL partnered with the Global Environment Facility (GEF) for the project Creating and Sustaining Markets for Energy Efficiency, focusing on energy efficiency programmes, and aiming to mitigate CO2 emissions by 60 million tonnes.

This is one of the largest funding by GEF so far. The project will receive a composite funding of $454 million, consisting of a $20-million grant from GEF and $434 million in loans and equity from other financiers, including a $200 million loan from the Asian Development Bank (ADB).

EESL further proposed an Energy Efficiency Revolving Fund for sustainable funding of energy efficiency projects in India.

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