Govt. of India & the World Bank Sign $300 Million Agreement to Help Scale-Up India’S Energy (Download PDF)

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Union Govt. (Finance Ministry) inked $220 million Loan Agreement w/World Bank to scale-up India’s Energy Efficiency Program. It also signed $80 million guarantee agreement w/World Bank.

Image of WRI India

Image of WRI India

Image of WRI India

  • Loan will be provided to EESL by World Bank thru its lending arm International Bank for Reconstruction and Development (IBRD).
  • It has maturity of 19 years & 5-year grace period.
  • $80 million IBRD guarantee will partially cover re-payment risks to commercial lenders or investors to enable EESL to raise funds for its program.

Energy Efficiency Program (EEP)

  • Implemented by Energy Efficiency Services Limited (EESL).

  • Scale-up deployment of energy saving measures in residential & public sectors, strengthen EESL’s institutional capacity & enhance its access to commercial financing.

  • EESL will deploy 219 million LED bulbs & tube lights, 5.8 million ceiling fans, & 7.2 million street lights, which will be supplied by pvt. sector manufacturers & suppliers.

Key Components of Program

  • Create sustainable markets for LED lights & energy efficient ceiling fans.

  • Facilitate well-structured & scalable investments in public street lighting.

  • Develop sustainable business models for emerging market segments such as super-efficient air conditioning & agricultural water pumping systems.

  • Strengthen institutional capacity of EESL.

  • Increase pvt. sector participation in energy efficiency, including thru pvt. sector energy service companies.

Significance of Energy Efficiency Program

  • World Bank investments under this program are expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2.

  • It will contribute to avoiding estimated 10 GW of additional generation capacity.

  • This will help to achieve 50 % of National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under 2015 Paris Agreement (India has committed to reduce carbon emissions by 33 - 35 % by 2030 under NDC).

  • Help India to move further towards more resource-efficient growth path.

  • It will help tackle financing, awareness, technical & capacity barriers faced by new energy efficiency programs & support Unnat Jyoti by Affordable LEDs for All (UJALA) program of Central Govt.

- Published/Last Modified on: October 4, 2018

Economy, Environment/Ecology

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