IEA DSM Task XVI Competitive Energy Services India Abhishek Nath BEE, India, March 31, 2008

Future Energy Needs To give a sustained growth rate of 8% to 2031-2032, India needs To enhance primary energy supply by 3-4 times (coal from 600 mt to 2,000 mt), and Electricity supply by 5-6 times (from 130,000 to 800,000 MW) of 2003-04 levels

ADB Study on ESCO potential (2003) Market Type Investment Potential (Billion Rs) Energy Savings (MWH) (MW) Industrial – Generic EE Measures 42.0 23.7 mn 3,400 Industrial - Process EE Measures 79.0 25.3 mn 3,600 Commercial 1.5 0.2 mn 56 Government 4.2 1.6 mn 500 Municipal 13.0 3.7 mn 1,688 Total 140.0 54.5 mn 9,244

Background of ESCO activities Initial activities Through USAID, DFID and CIDA efforts ESCOs formed like Thermax EPS, Intesco Energy Audit of Public Buildings (2002) Problems – awareness of ESCO concept, credibility of ESCOs

Follow Up 3 Country Energy Efficiency project (India, China, Brazil) Loan windows on energy efficiency were opened up SBI Uptech a large technology upgradation programme also included energy efficiency in it’s ambit Indian Council for promotion of Energy Efficiency Business was launched in 2005

ESCO Development Programme (BEE) is promoting energy efficiency measures in the country under the Energy Conservation Act, 2001 The BEE will do the empanelment of Energy Service Company (ESCOs) 50 ESCOs participated, about 40 are suitable for empanelment, about 400 projects put together BEE will also get an endorsement rating of the ESCOs

Main Problems Faced by ESCOs BEE talked to 7 ESCOs in various places in the country to discuss problems the setting up of a correct baseline, making provisions for variations and other changing circumstances in a detailed contract and ensuring payments and then made as per terms to ESCOs through an innovative financing mechanism.

Current and Future Activities Market Development Buildings, Ag DSM, Mu DSM, SMEs Partial Risk Guarantee Fund

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