December 16, 2019
This comes amid India’s ongoing efforts to set up 175 GW of renewable capacity by 2022 and a broader target to set up 500 GW of renewable capacity by 2030
The latest EESL project is expected to contribute to the mission to promote energy efficiency and meet commitments to reduce the energy intensity of the economy
Accompanying the loan will be a grant of US$2 million to support EESL in implementing the project, including mobilisation of private sector participation
In 2018, ADB made commitments of new loans and grants amounting to over US$21.6 billion. Established in 1966, ADB is controlled by 68 member nations
The Asian Development Bank (ADB) and the Government of India on December 16 signed a US$250 million loan agreement to expand energy efficiency investments in the country. The loan to the Energy Efficiency Services Limited (EESL) will benefit agricultural, residential and institutional consumers. In addition, a US$46-million financing will be provided from the Clean Technology Fund (CTF), administered by the ADB. ADB had previously approved a US$200 million loan to EESL, a public sector energy service company, in 2016 for Demand-Side Energy Efficiency Sector Project that focused on efficient lighting and appliances. This comes amid India’s ongoing efforts to set up 175 GW of renewable capacity by 2022.
The latest EESL project is expected to contribute to the mission to promote energy efficiency and meet commitments to reduce the energy intensity of the economy. Introduction of energy-efficient technologies in eligible states including smart meters, distributed solar photovoltaic systems and electric vehicles will help reduce electricity network losses and reduce greenhouse gas emissions. This is one of the few ADB projects especially focused on demand-side energy efficiency targeting upstream efficiency opportunities and business models that can be scaled up in India and other developing member countries covered by the regional development bank, said Kenichi Yokoyama, country director of ADB’s India Resident Mission.
The project’s smart metering component will help address billing and collection inefficiencies. EESL will also explore business models to generate greater public demand for e-vehicles to support India’s current push for electric vehicles. Promoting awareness of the benefits of using energy-efficient technologies is another feature of the project. Capacity building for electricity distribution, regulatory agencies, and other government bodies will also be carried out. Accompanying the loan will be technical assistance of US$2 million to support EESL in implementing the project, including a gender action plan, mobilising private sector participation in energy efficiency services, and identifying new business opportunities.
The technical assistance fund will also support the identification and development of new subprojects and pilot test some technologies. The grant comes from the Clean Technology Fund, to be administered by ADB. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to US$21.6 billion. Established in 1966, ADB is controlled by 68 members — 49 from the region.