Post on 21-Dec-2015
transcript
EESL – Using Innovative Business Models to Scale up EE investments
Energy Efficiency Services Limited(A JV company of PSUs of Ministry of Power, Govt of India)
20th April, 2015, Bangkok
WWW.EESL.CO.IN| 2
Rising demand for refrigerants AP RegionRising demand for refrigerants AP Region
Demand Forecast for Refrigerants
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Years 2005-2020
ODP T
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Actual Growth
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HFCs use growing at 8% per annum (2004-2008)-GHG emissions could be upto 19% of total GHG emissions in 2050 in BAU – from 1%
Annual emission could be 8.8Gt CO-eq by 2050
India – AC penetration about 4% - annual demand is about 3.5m
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Barriers for no-ODS low-GWP Barriers for no-ODS low-GWP Technologies Technologies
Low demand –though technology exists
High cost as compared to existing HVAC using HFCs of HCFC
Inadequate information about refrigerants – energy use awareness significant in several countries
Issues related to toxicity/ inflammability a concern
Case Study – No-ODS HC Based AC
-Commercially available in India 1.5 Ton
-Energy efficiency more than 3.9 EER – best in class (5 STAR)
-Cost Rs. 45,000 ($ 750) – about $ 100 more than other HFC based 5 STAR AC
-EESL business model could help scale up demand for such ACs
-Attract other manufacturers to invest in this technology
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EESL – Replicable and Scalable Business Models
-Third party investments in efficient equipments by EESL
-Aggregating demand to bring economies of scale – drive down costs to make efficiency affordable
- Risk mitigation – technical risk through back to back arrangement with suppliers.
-Financial risk – BG, ESCROW and Revolving LCs – Approval by ERCs for bulb and agriculture programme (part of ARR) and state govt guarantee for Street Lights
-Awareness and outreach in project areas
-Ongoing investments in lighting EE of about $ 1.3 billion
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EESL – Business Model - Addressing Barriers
-First high cost barrier – providing LEDs at $ cents 1.3-Monetise energy savings to pay for upfront investment ($ 5/ LED)-Aggregating demand – reduced prices of LEDs – from $ 6 to $ 1.3
No of incandescent bulbs replaced in AP
4.1 m
Annual energy savings 229 million KWhGHG emission reductions 226,710 tCO2
Reduction of installed load 217 MWActual capital investment Rs. 80 crore ($ 14m)Cost savings to DISCOM every year for reduced peak power
Rs. 112 crore ($ 18.7m)
Annual payments to EESL Rs. 30 crore ($ 5m)
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Moving towards market transformation
LED prices reducing by aggregating demandParticipating entities have increased