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 Name||Demand-Side Energy Efficiency Sector Project|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|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.|
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)
|Description of Outcome||End-use energy efficiency in project areas increased|
|Progress Toward Outcome||Implementation is ongoing.|
|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.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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|
Energy Efficiency Services Limited
A-13, IWAU Building, 4th Floor Sector-1, Noida - 201301 Uttar Pradesh
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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||110.07||0.00||55%|
|Cofinancing||0.00||30 Sep 2016||59.79||0.00||30%|
|Status of Covenants|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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.
|Title||Document Type||Document Date|
|Demand-Side Energy Efficiency Investment Project: Environmental Assessment and Review Framework||Environmental Assessment and Review Framework||Jul 2016|
|Demand-Side Energy Efficiency Investment Project: Resettlement Framework||Resettlement Frameworks||Jul 2016|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB to Fund Millions of Energy-Efficient LED Lights, Pumps across IndiaA new $200 million ADB loan will finance installation of millions of energy-efficient lights in streets and homes and energy-efficient water pumps in farms across India.
|Tender Title||Type||Status||Posting Date||Deadline|
|Loan No. 3436-IND: Demand-Side Energy Efficiency Sector Project [EESL/2017-18/ICB/ SLNP-1718]||Invitation for Bids||Closed||09 Jun 2017||22 Aug 2017|
|IND: Demand Side Energy Efficiency Sector Project||Advance Notice||Archived||09 Aug 2016|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||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|
|Title||Document Type||Document Date|
|Demand-Side Energy Efficiency Investment Project: Procurement Plan||Procurement Plans||May 2016|