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 scale-up of investments in a growing energy efficiency market in India. Since its incorporation in 2009, EESL has created a _new normal_ for more efficient lighting, pumping, and buildings, and will continue to service these traditional end-use market segments that present potential savings of terawatt-hours per year. EESL is expanding its market scope to include _upstream_ efficiency opportunities that have not been targeted by traditional energy service company (ESCO) investments. New business models are being tested and improved to address more expansive opportunities, including on-grid distributed renewable energy in the _last mile_ of on-grid supply to rural agricultural areas and electric mobility.
|Project Name||Scaling Up Demand Side Energy Efficiency Sector Project|
|Project Type / Modality of Assistance||Loan
|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||Effective gender mainstreaming|
|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 scale-up of investments in a growing energy efficiency market in India. Since its incorporation in 2009, EESL has created a _new normal_ for more efficient lighting, pumping, and buildings, and will continue to service these traditional end-use market segments that present potential savings of terawatt-hours per year. EESL is expanding its market scope to include _upstream_ efficiency opportunities that have not been targeted by traditional energy service company (ESCO) investments. New business models are being tested and improved to address more expansive opportunities, including on-grid distributed renewable energy in the _last mile_ of on-grid supply to rural agricultural areas and electric mobility. Continued efficiency gains across energy supply chain spectra will reduce the need for new centralized electricity generation plants, facilitating the future decommissioning of obsolete fossil-fuel power plants. ADB's loan will support expansion of EESL's business lines to include: (i) smart meters and other intelligent energy management system elements; (ii) electric mobility including charging infrastructure; and (iii) on-grid solar energy at existing distribution substations to reduce losses in agricultural feeders. ADB is now administering a grant from the Global Environment Facility (GEF) to support expansion of EESL's ESCO business to new energy efficient technologies, and the proposed loan will help scale up and accelerate deployment of those technologies and replicate success achieved by the ongoing ADB project. This will be the second ADB investment to EESL to support replication, scale up, and expansion of energy savings investments. A sector loan financing modality is proposed for this project because there is a sector road map and capacity, and it allows for the early implementation of subprojects with high readiness and the expansion of coverage to include newer subprojects as they are developed, irrespective of physical location.|
|Project Rationale and Linkage to Country/Regional Strategy||The Energy Conservation Act (2001) formalized the government's strategic policy of increased energy efficiency to reduce demand without jeopardizing growth. After several years with modest achievements in end-use measures, EESL was established as a public sector ESCO to pursue large-scale investments with a comprehensive service package of project design, implementation, monitoring and investment. In 2015, the government pledged to reduce the energy intensity of its economy by 33% 35% below 2005 levels by 2030. In order to meet the 2015 pledges, several barriers must be addressed: (i) regulatory -- retail electricity prices continue to be subsidized by most distribution utilities and energy efficiency programs are voluntary; (ii) institutional -- capacity to support needed scaling of energy efficiency is limited; (iii) financing -- up-front costs can be high for energy efficiency technologies, but individual project sizes are small from a lender's perspective and returns may be difficult to analyze; further, the economic benefits of efficiency investments may be quantifiable, but cannot be readily monetized and delivered as up-front financing; (v) knowledge -- limited understanding of energy-saving technologies and associated benefits limit market penetration.|
Market for energy-efficient technologies expanded
Emissions intensity of economy reduced
|Outcome||End-use energy efficiency in subproject areas increased|
Energy-efficient technologies promoted and deployed in eligible states
End-user energy efficiency awareness increased
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Staff requirements for project processing involve the South Asia Energy team and require about 10 person-months of effort. For the project preparation, existing project preparatory and capacity building TA for EESL financed on a grant basis by the Clean Energy Fund under the Clean Energy Financing Partnership Facility will be used.|
|Procurement||The overall project procurement classification is proposed to be moderate (Category B) and will be confirmed during further processing of the project. EESL has well-developed procurement systems which comply with its own procurement policy as well as Government of India's General Financial Rules, 2005. EESL has adopted e-procurement as per Government of India guidelines for all procurements in excess of 500,000 and the system is IT Act, 2000 compliant.|
|Responsible ADB Officer||Jiwan S. Acharya|
|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||28 Nov 2018|
|Fact Finding||22 Jul 2019 to 31 Jul 2019|
|MRM||24 Sep 2019|
|Last Review Mission||-|
|Last PDS Update||29 Nov 2018|
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.
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|Title||Document Type||Document Date|
|Scaling Up Demand Side Energy Efficiency Sector Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2018|
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|
|Scaling Up Demand Side Energy Efficiency Sector Project: Environmental Assessment and Review Framework||Environmental Assessment and Review Framework||Aug 2019|
|Scaling Up Demand Side Energy Efficiency Sector Project: Resettlement Framework||Resettlement Frameworks||Aug 2019|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
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|Tender Title||Type||Status||Posting Date||Deadline|
|52196-001 Proposed IND: Scaling Up Demand Side Energy Efficiency Sector Project (EESL 06 smart meters)||Invitation for Bids||Active||19 Jul 2019||30 Oct 2019|
|Loan No. 52196-IND: Scaling Up Demand Side Energy Efficiency Sector Project [EESL/06/OCB/Solar SPGS System/181912031]||Invitation for Bids||Closed||24 Dec 2018||14 Mar 2019|
|IND: Scaling Up Demand-Side Energy Efficiency Sector Project||Advance Notice||Active||20 Dec 2018|
No contracts awarded for this project were found
None currently available.