Oct 4, 2016: Asian Development Bank (ADB) has confirmed a new US$200 million loan to support energy efficiency projects in India. The fund will help to install millions of LED lights across homes and streets, and efficient water pumps in farms across the nation. This will help to save about3,800 gigawatt-hours per year, which is equal to the yearly output of two 300-megawatt coal-fired power stations.
ADB grants US$200 million for LED lighting in India
The US$200 million fund will be provided to Energy Efficiency Services Ltd (EESL), which came into existence in 2009 as a government agency to bring about green energy solutions in India. It is a joint venture between India’s four public sector bodies that include the Powergrid Corporation of India, Rural Electrification Corporation, National Thermal Power Corporation and Power Finance Corporation.
Besides, the ABD finance, EESL will use another $200 million of its own to support energy service activities,which often face difficultyin obtaining commercial funds for energy-saving projects. EESL will provide loans for setting up LED municipal streetlights, efficient agriculture water pumps, and energy-efficient domestic lights and fans.The total
US$400 million venture will install 42 million LED household lamps, 1.5 million LED streetlights, 225,000 new pumps, ceiling fans and LED tube lights.ESL will offer such energy efficiency loans across states that include Andhra Pradesh, Goa, Karnataka, Maharashtra, Rajasthan, Telangana, and Uttar Pradesh.
Ambitious long-term target
While ADB hopes that these projects will help to attract more investments into energy efficiency, EESL has astriving long-term target to install 4.5 million streetlights, 6 million energy-efficient pumps and 700 million LED bulbs by 2020. For this, an investment of more than US$12 billion is required.
India has recently signed Paris Climate agreement to reduce the energy intensity of its economy by 33% from 2005 levels by 2030. A new ADB study projected that attaining an intermediate decrease of at least 20% by 2020 would involveinvestment of US$68 billion in energy efficiency measures in India alone.
Government of India has started National Mission for Enhanced Energy Efficiencyprogram, which has launched numerous initiatives toimprove energy efficiency in energy intensive businesses. Such initiatives are triggered to open the market for energy efficiency projects that is projected at more than US$11 billion.
Using more LED lights and fans in homes and institutions will mean energy savings of 80%, LED streetlights bring savings of 50%, and efficient water pumps will save 30% of energy.