EESL launches a $454 million project in partnership with the Global Environment Facility
Recognising India’s efforts towards a low emission-economy and focusing on energy efficiency programs, the Global Environment Facility (GEF) has now partnered with Energy Efficiency Services Limited (EESL) for the project ‘Creating and Sustaining Markets for Energy Efficiency’. The project will receive a composite funding of $454 million comprised of the GEF grant of $20 million and Co-financing of $434 million in the form of loans and equity, including a USD 200 million loan from the Asian Development Bank. EESL further proposes ‘Energy Efficiency Revolving Fund’ (EERF) for sustainable funding mechanism of energy efficiency projects.
The GEF project further brings together many technical and financing partners including United Nations Environment (UN Environment), Asian Development Bank (ADB) and Kreditanstalt für Wiederaufbau (KfW), which aims to mitigate 60 million tons of CO2eq (carbon dioxide equivalent), that will enable a total direct energy savings of 38.3 million GJ (1 GJ = 277.778 kWh) by 2022 and 137.5 million GJ by 2032.
The project is aimed at scaling up energy efficiency efforts to achieve country’s INDC goals. The funding will boost four of EESL’s existing technologies involving street lighting, domestic lighting, five-star rated ceiling fans and agricultural pumps. Additionally, the funding will help EESL diversify its portfolio across three new technologies such as super-efficient ceiling fans, Tri-generation and Smart Grids/Meters.
EESL also has its sights set on district cooling systems which can reduce energy demand for cooling by up to 50%. EESL has partnered with UN Environment’s District Energy in Cities Initiative, which has already identified $600 million of projects across five cities in India.
Saurabh Kumar, Managing Director, EESL, said, “Today is a momentous occasion for India. We are not only walking the talk by implementing the world’s largest energy efficiency programs, but have also gained global recognition and participation in our commitment. Global partnerships such as these will accelerate our efforts in mitigating climate change and provide hope for a better future for the coming generations.”