Energy Efficiency Services Limited (EESL), a joint venture of public sector undertakings under the Ministry of Power, is developing business models for collaborating with private sector Energy Service Companies (ESCOs) and broadening its service offerings in the Building Energy Efficiency Programme (BEEP), in view of the huge market potential in the country. This is being done as a part of the World Bank India Energy Efficiency Scale-up Programme, with technical assistance from the USAID MAITREE Programme.
BEEP is being implemented since 2017. Currently, as many as 11,000 buildings have been covered under this programme through the retrofitting of inefficient appliances with energy-efficient products like LED lights, EE fans, and super-efficient air conditioners. EESL has invested around INR 350 crore in this programme for far.
Recently, a “Consultation Workshop on EESL’s Private Sector ESCO Engagement Initiative” was conducted at Delhi’s Scope Complex. Senior dignitaries from EESL, United States Agency for International Development (USAID), and The World Bank came together to discuss the importance of having private sector ESCOs for accelerating market transformation towards products and services aimed at energy efficiency.
EESL along with USAID and The World Bank are also looking forward to an institutional initiative wherein the lending rate of banks depends not just on business domain and institutions practices but also on how efficient their energy practices are.
The energy efficiency market in India is estimated to be around $10 billion and, so far, the contribution of ESCOs has been very small. When it comes to achieving climate actions goals like net-zero by 2070, India needs at least 60 times more private investment globally than what she has today. Therefore, private sector ESCO support holds the key.