48224-002: Demand-Side Energy Efficiency Sector Project | Asian Development Bank

India: Demand-Side Energy Efficiency Sector Project

Sovereign (Public) Project | 48224-002 Status: Active

The Asian Development Bank (ADB) will provide a loan to Energy Efficiency Services Limited (EESL), to be guaranteed by the Government of India, to support demand-side energy efficiency investments in several Indian states. EESL was set up as a government-owned energy services company (ESCO) to facilitate energy efficiency investments, including work designing, implementing, monitoring and investing in energy efficiency projects. ADB's loan will cover high-priority areas under EESL's ESCO business namely through use of: (i) more efficient light-emitting diode (LED) municipal street lighting equipped with remote operating technology; (ii) more efficient domestic lighting through replacement of incandescent lights with LEDs; and (iii) more energy efficient agricultural water pumps. EESL estimates that energy savings of 80% can be achieved in the domestic lighting programs and 30% can be achieved with more efficient pumps.

Project Details

Project Officer
Acharya, Jiwan S. South Asia Department Request for information
Country
  • India
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Demand-Side Energy Efficiency Sector Project
Project Number 48224-002
Country India
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Loan 3436-IND: Demand-Side Energy Efficiency Sector Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Energy efficiency and conservation

Gender Equity and Mainstreaming Some gender elements
Description The Asian Development Bank (ADB) will provide a loan to Energy Efficiency Services Limited (EESL), to be guaranteed by the Government of India, to support demand-side energy efficiency investments in several Indian states. EESL was set up as a government-owned energy services company (ESCO) to facilitate energy efficiency investments, including work designing, implementing, monitoring and investing in energy efficiency projects. ADB's loan will cover high-priority areas under EESL's ESCO business namely through use of: (i) more efficient light-emitting diode (LED) municipal street lighting equipped with remote operating technology; (ii) more efficient domestic lighting through replacement of incandescent lights with LEDs; and (iii) more energy efficient agricultural water pumps. EESL estimates that energy savings of 80% can be achieved in the domestic lighting programs and 30% can be achieved with more efficient pumps. Savings will result in lower electricity bills for consumers, peak power shaving, and reduced commercial losses for distribution companies. The project will also demonstrate the potential for energy efficiency achievements and scalability of the ESCO model for realizing energy savings in India.
Project Rationale and Linkage to Country/Regional Strategy The government has determined that increased end-use efficiency is critical to contain energy demand without jeopardizing growth. In 2015, the government pledged to reduce the energy intensity of its economy by 33%-35% below 2005 levels by 2030. A recent ADB report suggested that achieving an intermediate target of 20%-25% energy intensity reduction by 2022 will require investing approximately $68 billion in efficiency measures. But realizing the potential of energy efficiency in India faces several barriers: (i) regulatory challenges as electricity is subsidized and energy efficiency programs are voluntary; (ii) institutional challenges as capacity to support needed scaling of energy efficiency is limited; (iii) financing the up-front costs can be high for energy efficiency technologies, but project sizes are small from a lender's perspective, and returns may be difficult to analyze; and (iv) limited understanding of energy efficiency technologies and associated benefits limit the uptake.
Impact

Market for energy-efficient technologies expanded (National Mission for Enhanced Energy Efficiency)

Emissions intensity of economy reduced (India''s intended nationally determined contribution to the United Nations Framework Convention on Climate Change)

Project Outcome
Description of Outcome End-use energy efficiency in project areas increased
Progress Toward Outcome Implementation is ongoing.
Implementation Progress
Description of Project Outputs

Efficiency of street lighting in one or more municipalities in eligible states (including Goa, Maharashtra, Rajasthan, and Telangana) enhanced

Efficiency of bulbs, tube lights, and electric fans in households and institutions in utility service areas in eligible states (including Andhra Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh) enhanced

Efficiency of agricultural water pumps in utility service areas in eligible states (including Andhra Pradesh, Karnataka, Maharashtra, and Rajasthan) improved

Status of Implementation Progress (Outputs, Activities, and Issues)

Streetlight package awarded in October 2017.

Bids on agricultural pumps cancelled as negotiation with states on the Memorandum of Understanding could not be completed on time.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services It is unknown whether any project implementation consultants would be hired under this loan. If so, quality- and cost-based selection (QCBS) with a quality-cost ratio of 90:10 will be used. The consultants will be engaged in accordance with Guidelines on the Use of Consultants (April 2013, as amended from time to time)
Procurement Energy Efficiency Services Limited (EESL) will serve as the executing agency and will implement all subprojects under the ADB loan. ADB assistance will be used to support municipal, domestic and agricultural energy efficiency projects already identified by EESL. A project director within EESL will oversee implementation of projects under the ADB loan and GEF grant will coordinate the individual subprojects across all municipalities and distribution companies and ensure compliance with ADB requirements.
Responsible ADB Officer Acharya, Jiwan S.
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Energy Efficiency Services Limited
[email protected]
A-13, IWAU Building, 4th Floor Sector-1, Noida - 201301 Uttar Pradesh
Timetable
Concept Clearance 26 Feb 2016
Fact Finding 17 May 2016 to 26 May 2016
MRM 18 Jul 2016
Approval 30 Sep 2016
Last Review Mission -
Last PDS Update 25 Sep 2018

Loan 3436-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2016 30 Mar 2017 16 Jun 2017 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 400.00 Cumulative Contract Awards
ADB 200.00 30 Sep 2016 110.44 0.00 55%
Counterpart 200.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2016 59.79 0.00 30%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Partly satisfactory - -

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 3436-IND: Demand-Side Energy Efficiency Sector Project [EESL/2017-18/ICB/ SLNP-1718] Invitation for Bids Closed 09 Jun 2017 22 Aug 2017
IND: Demand Side Energy Efficiency Sector Project Advance Notice Archived 09 Aug 2016

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LED STREET LIGHTS (EESL/2017-18/COA-17183127) Loan 3436 09 Jan 2018 OSRAM LIGHTING PVT. LTD IFFCO SURENDER JAKHAD BHAWAN, 1ST FLOOR, PLOT #3 SECTOR-32 GURGAON-122001 HARYANA INDIA Energy Efficiency Services Limited SUPPLY OF GOODS 4,894,082.00 4,850,624.00
LED STREET LIGHTS (EESL/2017-18/COA 1718317) Loan 3436 09 Jan 2018 M/S SURYA ROSHINI LTD PADMA TOWER-1, RAJENDRA PLACE NEW DELHI - 110008 INDIA Energy Efficiency Services Limited SUPPLY OF GOODS 11,526,719.00 11,424,366.00
DESIGN, MANUFACTURE, SUPPLY, TESTING, SUPPLY AND 7 YEARS WARRANTY OF LED STREET LIGHTS AND OTHER RELATED WORKS UNDER PAN INDIA-SLNP Loan 3436 04 Jan 2018 JACQUAR & CO. PVT. LTD. PLOT NO. 3, SECTOR M 11, IMT MANESAR GURGAON-122050 INDIA Energy Efficiency Services Limited SUPPLY OF GOODS 29,275,142.00 29,272,170.00
LED STREET LIGHTS (EESL/2017-18/COA-1718315) Loan 3436 13 Dec 2017 PHILIPS LIGHTING INDIA LIMITED C-46, SECTOR 57, NOIDA-201301 INDIA Energy Efficiency Services Limited SUPPLY OF GOODS 50,827,234.00 50,827,234.00
LED STREET LIGHTS (EESL/2017-18/COA-1718316) Loan 3436 13 Dec 2017 M/S POLYCAB WIRES PVT LTD 771, MOGUL LANE, MAHIM (W) MUMBAI-400016 INDIA Energy Efficiency Services Limited SUPPLY OF GOODS 10,646,647.00 10,646,647.00

Procurement Plan