India : Demand-Side Energy Efficiency Sector Project

Sovereign Project | 48224-002

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 Name
Demand-Side Energy Efficiency Sector Project
Project Number
48224-002
Country / Economy
  • India
Project Status
Closed
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Loan 3436-IND: Demand-Side Energy Efficiency Sector Project
Source Amount
Ordinary capital resources US$ 200.00 million
Grant 0605-IND: Demand Side Energy Efficiency Sector Project " Additional Financing
Source Amount
Global Environment Facility Grant US$ 13.00 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
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
The outcome has been achieved.

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 electric bulbs, fans, motors, air conditioners and chargers for electric vehicles in utility service areas in eligible states (including Andhra Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh) enhanced

Pilot subprojects covering energy efficiency technologies new to the Indian market completed

Status of Implementation Progress (Outputs, Activities, and Issues)
All outputs have been achieved. Output1: 4.41 million energy efficient streetlights have been installed.(Achieved). Output 2: 69.6 million LED lamps, ceiling fans and LED tube lights, air conditioners, electric motors and chargers for electric vehicles installed (Achieved). Output 3: four subprojects have been implemented (Achieved).
Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
No impact.
Involuntary Resettlement
No impact.
Indigenous Peoples
No impact.

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
The consultants have been engaged in accordance with Guidelines on the Use of Consultants (April 2013, as amended from time to time) to support EESL for implementation of project.
Procurement
Energy Efficiency Services Limited (EESL) serves as the executing agency and has implemented all subprojects under the ADB loan. ADB assistance has been used to support municipal, domestic and agricultural energy efficiency projects already identified by EESL. A project director within EESL oversight the implementation of projects under the ADB loan and GEF grant has coordinated the individual subprojects across all municipalities and distribution companies and ensure compliance with ADB requirements.

Contact

Responsible ADB Officer
Jung, Choon Sik
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Energy Efficiency Services Limited

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 Jan 2023

Funding

Grant 0605-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2018 11 Nov 2018 22 Jan 2019 30 Jun 2021 31 Dec 2022 30 Jun 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 13.00
ADB 0.00
Counterpart 0.00
Cofinancing 13.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jan 2024 0.00 10.06 100%
Cumulative Disbursements 17 Jan 2024 0.00 10.06 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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 30 Jun 2022 23 Dec 2022
Financing Plan
  Total (Amount in US$ million)
Project Cost 400.00
ADB 200.00
Counterpart 200.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jan 2024 134.53 0.00 100%
Cumulative Disbursements 17 Jan 2024 134.53 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - 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.

The Access to Information Policy (AIP) 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.

Title Document Type Document Date
Demand-Side Energy Efficiency Sector Project: Audited Project Financial Statements (April 2020-March 2021) Audited Project Financial Statements Dec 2021
Demand-Side Energy Efficiency Sector Project: Audited Project Financial Statements (April 2019-March 2020) Audited Project Financial Statements Mar 2021
Demand-Side Energy Efficiency Sector Project: Audited Project Financial Statements (1 April 2018-31 March 2019) Audited Project Financial Statements Dec 2019
Amendment to the Loan Agreement for Loan 3436-IND: Demand-Side Energy Efficiency Sector Project Loan Agreement (Ordinary Resources) Jul 2019
Demand-Side Energy Efficiency Sector Project: Gender Action Framework Gender Action Plans Apr 2019
Demand-Side Energy Efficiency Investment Project: Procurement Plan Procurement Plans Mar 2019
Demand-Side Energy Efficiency Sector Project: Audited Project Financial Statements (1 April 2017-31 March 2018 ) Audited Project Financial Statements Feb 2019
Grant Agreement (Global Environment Facility Grant) for Grant 0605-IND: Demand-Side Energy Efficiency Sector Project – Additional Financing Grant Agreement Nov 2018
Loan Agreement (Ordinary Operations) for Loan 3436-IND: Demand-Side Energy Efficiency Sector Project Loan Agreement (Ordinary Resources) Mar 2017
Guarantee Agreement (Ordinary Operations) for Loan 3436-IND: Demand-Side Energy Efficiency Sector Project Guarantee Agreements Mar 2017
Demand-Side Energy Efficiency Investment Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2016
Demand-Side Energy Efficiency Investment Project: Project Administration Manual Project/Program Administration Manual Sep 2016
Demand-Side Energy Efficiency Investment Project: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Feb 2016
Demand-Side Energy Efficiency Investment Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Feb 2016
Demand Side Energy Efficiency Investment Project: Project Data Sheet (हिन्दी) Translated PDS Feb 2016

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 Access to Information Policy (AIP) 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


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
LOCATION SURVEY, PLANNING, SUPPLY, INSTALLATION & COMMISSIONING WITH 3 YEARS WARRANTY & AMC FOR 1020 NOS. PUBLIC CHARGING STATION - LOTS 8 TO 9 Loan 3436 24 Mar 2021 M/S. OKAYA POWER PVT. LTD. | D-7, UDYOG NAGAR, ROHTAK RD. NEW DELHI, DELHI INDIA Energy Efficiency Services Limited 1,110,689.96 1,102,708.45
LOCATION SURVEY, PLANNING, SUPPLY, INSTALLATION & COMMISSIONING WITH 3 YEARS WARRANTY& AMC FOR 1020 NOS. PUBLIC CHARGING STATION - LOTS 1 TO 7 Loan 3436 24 Mar 2021 M/S. OKAYA POWER PVT. LTD. | D-7, UDYOG NAGAR, ROHTAK ROAD NEW DELHI, DELHI 110041 INDIA Energy Efficiency Services Limited 7,270,623.02 7,256,507.74
THIRD STREET LIGHTS - LOT 1 (GUJARAT, PUNJAB, UTTAR PRADESH, UTTARAKHAND Loan 3436 01 Dec 2020 M/S. BAJAJ ELECTRICAL LTD. | 45/47, VEER NIRMAN ROAD, MUMBAI-400001 MAHARASHTRA INDIA Energy Efficiency Services Limited 6,160,363.56 6,160,363.56
THIRD STREET LIGHTS - LOT 3 Loan 3436 01 Dec 2020 M/S. BAJAJ ELECTRICAL LTD. | 45/47 VEER NIRMAN ROAD MUMBAI-100004 MAHARASHTRA INDIA Energy Efficiency Services Limited 5,500,569.95 5,500,569.95
THIRD STREET LIGHTS - LOT 2 (WEST BENGAL, JARKHAND, BIHAR, DELHI) Loan 3436 01 Dec 2020 M/S. BAJAJ ELECTRICAL LTD. | 45/47, VEER NIRMAN ROAD, MUMBAI-400001 MAHARASHTRA INDIA Energy Efficiency Services Limited 5,840,071.76 5,840,071.76
THIRD STREET LIGHTS - LOT 4 Loan 3436 01 Dec 2020 M/S. BAJAJ ELECTRICAL LTD. | 45/47 VEER NIRMAN MUMBAI-10000, MAHARASHTRA INDIA Energy Efficiency Services Limited 5,866,168.25 5,866,168.25
THIRD STREET LIGHTS Loan 3436 01 Dec 2020 M/S. ORIENT ELECTRIC LIMITED | C-130, SECTOR-63 NOIDA-201301 INDIA Energy Efficiency Services Limited 5,875,961.29 5,875,961.29
DESIGN, MANUFACTURE, TESTING, SUPPLY, INSTALLATION & WARRANTY OF 50,000 NUMBERS 1.5 TR WITH 5.4 ISEER SPLIT AIR CONDITIONERS AND OTHER RELATED WORKS Loan 3436 15 Jul 2019 M/S. VOLTAS LIMITED | A43 MOHAN COOPERATIVE INDUSTRIAL ESTATE MATHURA ROAD, NEW DELHI- 110044 INDIA Energy Efficiency Services Limited 16,764,291.81 16,201,964.09
EFFICIENT MOTORS (IE3) WITH 3 COMPREHENSIVE WARRANTY Loan 3436 10 Sep 2019 M/S ROTOMOTIVE POWERDRIVERS INDIA LTD | 223, NAPA TALPAD, GANA-BORSAD ROAD TAL. BORSAD DIST. ANAND, GUJARAT-388560 INDIA Energy Efficiency Services Limited 8,680,968.10 8,680,968.10
SECOND STREET LIGHTS - LOT 2 (UP & BIHAR), LOT 3 (TELANGANA), LOT 5 (WEST BENGAL) Loan 3436 17 Oct 2019 M/S ORIENT ELECTRIC LIMITED | C-130, SECTOR-63 NOIDA-201301 INDIA Energy Efficiency Services Limited 16,950,841.78 16,950,841.78
SECOND STREET LIGHTS - LOT 4 (WEST BENGAL), LOT 6 (GUJARAT & RAJASTHAN) Loan 3436 17 Oct 2019 M/S CROMPTON GREAVES CONSUMER ELECTRICALS LTD | EQUINOX BUSINESS PARK, TOWER 3 EAST WING 1ST FLOOR, LBS MARG, KURLA (WEST) MUMBAI INDIA Energy Efficiency Services Limited 6,980,130.22 6,980,130.22
SECOND STREET LIGHTS - LOT 1 (MAHARASHTRA) Loan 3436 17 Oct 2019 M/S SUDDAPURAM AUTO ENGINEERING CO. PVT. LTD. | GUT NO.277, CHAKAN IND. AREA, TAL.KHED, DIST PUNE-410501 MAHARASHTRA INDIA Energy Efficiency Services Limited 5,551,093.22 5,551,093.22
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 29,275,142.00 29,272,170.00
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 11,526,719.00 11,424,366.00
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 4,894,082.00 4,850,624.00
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 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 10,646,647.00 10,646,647.00

Procurement Plan

Title Document Type Document Date
Demand-Side Energy Efficiency Investment Project: Procurement Plan Procurement Plans Mar 2019