EESL s Initiatives on Scaling up Energy Efficiency in India Energizing the Future

Transcription

1 EESL s Initiatives on Scaling up Energy Efficiency in India Energizing the Future 21st August 2018

2 About Energy Efficiency Services Limited (EESL) Energy Efficiency Services Limited (EESL) is a joint venture company of four Public Sector Enterprises of Ministry of Power, Govt. of India Established in the year 2009 NTPC Limited (India s Largest Power Generating Company) Share Capital : 31.71% Rural Electrification Corporation Limited (Leading Infrastructure Finance Company) Share Capital : 31.71% Power Finance Corporation Limited (Leading Non- Banking Financial Corporation) Share Capital : 31.71% Power Grid Corporation of India Limited (India s Largest Power Transmission Company) Share Capital : 4.87% A Super ESCO that seeks to unlock energy efficiency market in India, estimated to be at 12 billion US $ (INR 74,000 Crore), by way of innovative business and implementation models 2

3 Energy Efficiency Market Business Models in Emerging World Business Models in the emerging world for Energy Efficiency(EE) market need to be innovative, scalable, embrace technology, learn to survive without public funds, incentivise all stakeholders and deliver outcomes in a time bound manner Low Transaction Cost of Joining Value for Money for All Stakeholders Standardization of Technology & Services Simple Business Case & Easy to Comprehend EE Market Business Model Requirement Turnkey Implementation 3

4 EESL s Innovative Business Model Pay As You Save (PAYS) Up front Investment by EESL Barriers of high first cost and comparative end use overcome Performance Guarantee & failures warrantied Flexible business model in terms of performance period and accountability Repayment from savings Encouraging all sections of the value chain including social, economic and environment 4

5 EESL s Business Model A Virtuous Circle Aggregate Demand by including Incentives for all Stakeholders Passing on the Benefits to End Users for more Demand Aggregation EESL takes upfront Risk of Investment and Performance Putting out Large Procurements to Leverage Economies to Scale Innovative Risk allocation of Procurement, Installation, Service and Maintenance 5

6 The Three Pillars that define EESL 6

7 EESL Innovative Approaches Performance Contracting model Parameter Existing Model EESL Model Investment By ESCO By EESL as an ESCO Project design After a detailed Investment Grade Audit for all facilities - requires costs and time Standardised methodology -walk through audits, pilot demonstrations - project development faster and with lower costs. Repayments Based on energy savings after third party M&V Annuity as per the demonstrated savings ex-ante - Service Level Agreements (SLAs) M&V Detailed third party M&V - high costs Deemed and demonstrated savings approach. Risks High - adjustments to baselines - potential disputes Low as the payment is annuity based. Utility based Demand Side Management (DSM) Investment By consumers and from rebates/ incentives leads to increase in tariff Programme design Programme Implementation Decided by Utilities in consultation with regulators/ industry. Role of Utility limited to passing on rebates/ incentives By EESL with no rebates/ incentives - has no impact on tariffs Design of programmes on turnkey basis by EESL Turnkey implementation by EESL at no costs to utilities Risks No risk to utility No risk to utility - EESL assumes all risks

8 EESL Initiatives UJALA SLNP BEEP MEEP AgDSM PRATHAM Decentralized Solar Plants E-Mobility Smart Meter National Programme International Operations AJAY & SoUL 8

9 National LED Lighting Programme Programme has 2 components UNNAT JYOTI BY AFFORDABLE LEDs FOR ALL (UJALA) - Conversion of conventional domestic lights with LED bulbs STREET LIGHTING NATIONAL PROGRAMME (SLNP) - Conversion of conventional street lights with LED street lights 9

10 UNNAT JYOTI BY AFFORDABLE LEDs FOR ALL (UJALA) Hon ble Prime Minister, on 5 th January 2015 launched the National UJALA programme which aims to provide LED bulbs to domestic consumers with a target to replace 77 crore incandescent bulbs with LED bulbs by March, 2019 As on date, EESL has distributed over crore LEDs bulbs since the launch of the program UJALA program is largest non-subsidy based LED lighting programme in the world Under UJALA, EESL has distributed over 65 lakh LED tube lights and lakh energy efficient fans resulting in estimated energy savings of over 550 million kwh per year with avoided peak demand of 180 MW The real time progress and impact of the programme can be monitored through the UJALA dashboard: 10

11 JAN-14 FEB-14 MAR-14 APR-14 MAY-14 JUN-14 JUL-14 AUG-14 SEP-14 OCT-14 NOV-14 DEC-14 JAN-15 FEB-15 MAR-15 APR-15 MAY-15 JUN-15 JUL-15 AUG-15 SEP-15 OCT-15 NOV-15 DEC-15 JAN-16 FEB-16 MAR-16 APR-16 MAY-16 JUN-16 JUL-16 AUG-16 SEP-16 OCT-16 NOV-16 DEC-16 JAN-17 FEB-17 MAR-17 APR-17 MAY-17 JUN-17 JUL-17 AUG-17 SEP-17 OCT-17 NOV-17 DEC-17 JAN-18 FEB-18 MAR-18 APR-18 MAY-18 Demand Aggregation Economics of Scale Procurement Price Per LED Bulb (in INR) Drop in price by 1/8 th Year 11

12 UJALA Gram Swaraj Abhiyan in 16,807 Villages, Over lakh LED bulbs distributed Madhya Pradesh, Central India Puducherry, South India North East India Odisha, East India 12

13 Street Light National Programme (SLNP) Hon ble Prime Minister, on 5 th January 2015 launched the SLNP with a target to replace 1.34 crore conventional Street Lights with smart and energy efficient LED street lights by March, As on date, EESL has installed over lakh LED street lights resulting in estimated energy savings of over 4 billion kwh per year with avoided peak demand of over 675 MW EESL has enrolled 941 ULBs and work is completed in 506 Urban Local Bodies Entire upfront investment by EESL and repayment through deemed savings model 7 year contracts with municipalities guaranteeing minimum energy saving (of-typically 50%) and free maintenance of lights. The progress and impact of the programme can be monitored through the SLNP dashboard: 13

14 Building Energy Efficiency Programme (BEEP) Agreement signed for implementation of Energy efficiency measures in over 9,400 buildings belonging to Central / State Governments as well as private sectors As on date, EESL has completed BEEP in 4,600 buildings leading to energy savings of over 80 million kwh and cost savings of INR 85 crore and avoided peak demand of over 20 MW In , EESL has completed retrofitting of 3,631 Buildings of Indian Railways/Central Government/State government. EESL has target of around 7,000 buildings in FY on implementation of Energy efficiency measures. Achievement- PWD Maharashtra (1725 Buildings retrofitted), Indian Railway (1625 buildings retrofitted), Signing of agreement with DMRC (INR 43 crore) and AAI (INR 24 crore) among others like Income Tax, GST, ICAR, GSI, etc 14 Our National Building Dashboard provides real time information on the progress of the programme

15 Municipal Energy Efficiency Programme (MEEP) The Ministry of Urban Development signed an MoU with Energy Efficiency Services Limited on 30 th September 2016 to improve energy use efficiency in bulk water supply, public lighting, transportation and domestic consumption in cities and towns across the country. As on date, audit reports for 201 cities have been submitted. Item Actual ( ) Target ( ) Achievement in FY 18 No of AMRUT Cities enrolled No of City Audits has started (other Cities are implementing the project on their own) 177 (Inventories of other enrolled Cities are still awaited from ULB s) No of Cities where IGEA Reports are submitted to ULB NA

16 Agriculture Demand Side Management (AgDSM) EESL is implementing AgDSM Program using upscaling methodology for replacing farmer s inefficient pump sets with new BEE 5 Star rated Pump sets in the State of Andhra Pradesh and Uttar Pradesh, India. As on date, over 30,000 nos. pumps have been installed resulting in annual energy savings of 65 MUs Cumulative Pump set Installations-A.P & U.P in FY Total Pump Sets Installed (FY ) 18,103 Nos Sep 2017 Oct Nov Dec Jan 2018 Feb 2018 Mar 2018 Energy Saved in Million Units (MU) 47 MUs 16

17 PRATHAM (National Motor Programme) EESL has initiated the National Motor Replacement Programme in industrial sector to replace inefficient motors with Energy Efficient IE3 motors from 1.1kW to 22 kw range. The procurement process for 1.2 lakh motors has been completed (30-35% reduction in price from market price).the implementation has been started- demand for 30,000 motors has been aggregated. Varanasi, Surat, Bhiwandi, Ichlakarnji, Erode clusters identified to replace in-efficient electric motors with IE-3 motors on Pay- as -you- save (PAYs) model in Power Looms. Pilot Projects at Surat Textile Cluster has been completed (7 Nos.). Due to not-so-attractive results, EESL is exploring to package the solution with other interventions like Energy Efficient Lighting, Power Factor Controllers etc. Targeting 10 lakh IE3 motors to be replaced by 2020 Investment to the tune of INR crore Going beyond 22 kw in subsequent bidding. EESL has set the target of 3.25 lakh IE3 motors to be replaced by 2020 in Textile Clusters under SAATHI program Investment to the tune of INR crore Potential of about 13 lakh Power Looms Estimated Energy Saving of 565 MU of electricity per year INR crore Investment of about INR crore Simple Payback Period of 22 months. 17

18 Decentralized Solar Plants Decentralized solar plants of 0.5 MW to 2 MW capacity on surplus land of rural substations to feed agriculture consumers directly Reduces the line losses of DISCOMs, reduces subsidy burden PPA signed with MSEDCL at INR 3.1 per unit for 25 years for 200 MW under phase-1. Work has commenced in approx. 230 rural substations and expected to be completed by Oct 2018 MoU signed with APSPDCL for small solar PV based power projects (150 MW under phase-1 & 300 MW under phase-2) on 23 rd Feb 2018 EESL has signed a MoU with New Delhi Municipal Council (NDMC) for implementation of Solar PV based projects in buildings including embassies, schools, hospitals etc. MoU signed with BSES Rajdhani Power Limited on 7 th April, 2018 for implementation of solar projects Tariff offered by EESL is more than 50 % cheaper than the prevailing commercial tariff in the NDMC area. 18

19 E-Mobility Successful tender completed for procurement of 10,000 e-cars MoU for 10,000 e-cars and 4,000 chargers signed with AP State Govt. on 24 th Feb 2018 The National E-Mobility Program was launched on 7 th March 2018 by Hon ble Minister of Power, New and Renewable Energy Tender for additional 10,000 E-cars initiated on 12 th March More than 125 e-cars have been delivered and are in operation. 100 AC and 25 DC chargers already installed in key locations including MoP, MNRE, NTPC, NDMC, SDMC, NISE among others. As on date, demand of e-cars from Central Governments and States is around 19,000 cars Planning and execution of E-Mobility program in key states includes: Andhra Pradesh, Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Telangana, Uttarakhand, etc. 19

20 Smart Meter National Programme Procurement of 50 lakh smart meters and System Integrator completed Jharkhand, Gujarat, Bihar shown interest in the model Prepaid meters for UP Tender for procurement of 1 crore meters completed Tender for procurement of additional 50 lakh smart meters and system integrator initiated on 8 th March 18 Signed MoU for 17 lakh Smart Meters with both power distribution companies i.e. APEPDCL and APSPDCL in the Andhra Pradesh state on 24 th Feb 2018 EESL has signed MoU with NDMC on 13 th April 2018 for implementation of Advanced Metering Infrastructure (AMI) and SCADA system for 80,000 customers EESL has signed MoU with Uttar Pradesh Power Corporation Limited (UPPCL) on 26 th April 2018 to replace 40 lakh conventional electricity meters with smart meters in the State of Uttar Pradesh. On 25th June 2018, Hon'ble CM of Haryana has approved installation of 10 lakh smart meters in Panipat, Karnal, Panchkula, Faridabad and Gurugram districts EESL has installed 100 smart meters as proof of concept at Varanasi and online demonstration made to Hon ble MOSP, GoI. 20

21 AJAY and Solar Study Lamp Atal Jyoti Yojana (AJAY): Installation of Solar Street Lighting Systems in the States where household Grid Power coverage is less than 50% as per 2011 census. Lighting up the roads, streets, bus stops, market places and intersections in remote areas/ villages that do not have adequate Street Lights. As on date, over 1.15 lakh Solar LED Street Lights commissioned in 5 States i.e. UP, Bihar, Jharkhand, Odisha and Assam Solar Urja Study Lamp (SoUL) Programme : Over 15 lakh Solar Study Lamps distributed in 5 States i.e. UP, Bihar, Jharkhand, Odisha and Assam It has covered 110 Blocks through 63 Assembly-cum-Distribution Centres LoA placed to 5 nos. of Suppliers/manufactures under Phase II Procurement for 24 lakh on 27 th April Total 70 lakh Solar Urja Study Lamps (SSLs) to be distributed by December,

22 Driving Energy Efficiency Across the Globe 22

23 International Operations UK/Canada Investment of 55 million in acquisition of Combined Heat & Power (CHP) asset Edina Power Services Ltd., leading CHP integrator in UK and Ireland Revenue: 100m; 200+ Staff; 8 offices; 500+ installations 208m of potential in CHP based ESCO market in UK 11.5 GW of potential in Tri-generation in India Last week, Edina received The Queen s Award for 2 nd time in 4 years Acquisition worth 5.6 million of 7 Building Energy Efficiency Contracts. Revenues: 700 k per annum Investment of 1.5 million in a 58MW Battery Storage plant for Toronto Hydro largest in North America 12 GW of potential in UK and 70GW in India by

24 International Operations Other Countries SE Asia (Vietnam / Thailand) Feasibility study completed for EVN s National Program on DELP with UNEP assistance ($46,000). Report Accepted by EVN Study on EE in Thai Auto Parts Industry is under progress with GGGI assistance (125,000 $) Projects under discussion: DELP for 1.6 million bulbs in Vietnam with partial support from UNEP SE Asia (Myanmar) Pilot projects on LED lighting (Domestic & Street) under financial assistance of MEA ($1.2 million) including for parliament building submitted to Embassy of India, Yangoon Received first overseas project to install 3,756 Energy Efficient LED street lights at Nay Pyi Taw in Myanmar. 24

25 International Operations Other Countries Princess Al-Jawhara Street, Riyadh Saudi Arabia EESL has signed MoU with National Energy Service Company of Saudi Arabia for providing Consultancy services EESL is sharing technical knowledge and experience with NESCO for rolling out LED Street Light projects in Saudi Arabia. Princess Al-Jawhara Street, Riyadh becomes the first lane to be lit with LEDs under the consultancy project SE Asia (Malaysia) EESL has signed an agreement with Green Growth Asia for supply of 30 lakh LED bulbs in the state of Melaka in Malaysia ($ 3.9m) EESL has commercially supplied 1200 No s, 20W LED Tube lights & 600 No s of 9W LED bulbs to the Indian High Commission in Malaysia in Dec

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