EESL receives $434 mn from global, multilateral agencies
, ET Bureau|
Updated: Nov 02, 2017, 12.12 AM IST
NEW DELHI: State-run Energy Efficiency Services Ltd (EESL), which is implementing India’s e-vehicles and LED bulbs programme, has received $434 million in funding from global and multilateral agencies for its initiatives.
This funding will help EESL expand its sphere of activities, managing director Saurabh Kumar told ET. EESL has partnered with Global Environment Facility (GEF), an international body of 183 countries, private players and international institutions.
EESL plans to commercialise segments of the energy efficiency market, which are yet unexplored and bring them to the mainstream through this funding opportunity, Kumar said.
“These GEF grants are meant to go into the sectors which are very new and these are like smart meters, smart grids.. tri generation is another. All these are new technologies, business models, yet untested in India and that's where the GEF grants will be used to open up these markets and then the commercial money comes in. Very much like the LED story if you look at it,” he said.
GEF CEO Naoko Ishii said the funding to EESL will help leverage a bigger market for energy efficiency in India. “These are the technologies that will be commercialized, to enable them to be fully marketable and also to reduce the cost.. there is a combination of technical assistance, taking the risks,” she added.
Ishii said while the Indian government’s goals around renewable energy and electric vehicles may be “very ambitious”, it is sending out a very strong signal to countries and foreign investors to put their money in these initiatives.
“The goals have not been set without a thought. All you have to do is to enable the environment, markets will take up,” Kumar added.
The funding received by EESL in the form of loans and equity also includes a loan sanction of $200 million from the Asian Development Bank, and another $20 million from Germany’s stateowned Kreditanstalt für Wiederaufbau (KfW). EESL will also raise $200 million through its various initiatives.
Along with helping India meet its INDC goals, the funding will help EESL provide a fillip to its flagship street lightning programme under the government’s UJALA scheme.
This funding will help EESL expand its sphere of activities, managing director Saurabh Kumar told ET. EESL has partnered with Global Environment Facility (GEF), an international body of 183 countries, private players and international institutions.
EESL plans to commercialise segments of the energy efficiency market, which are yet unexplored and bring them to the mainstream through this funding opportunity, Kumar said.
“These GEF grants are meant to go into the sectors which are very new and these are like smart meters, smart grids.. tri generation is another. All these are new technologies, business models, yet untested in India and that's where the GEF grants will be used to open up these markets and then the commercial money comes in. Very much like the LED story if you look at it,” he said.
GEF CEO Naoko Ishii said the funding to EESL will help leverage a bigger market for energy efficiency in India. “These are the technologies that will be commercialized, to enable them to be fully marketable and also to reduce the cost.. there is a combination of technical assistance, taking the risks,” she added.
Ishii said while the Indian government’s goals around renewable energy and electric vehicles may be “very ambitious”, it is sending out a very strong signal to countries and foreign investors to put their money in these initiatives.
“The goals have not been set without a thought. All you have to do is to enable the environment, markets will take up,” Kumar added.
The funding received by EESL in the form of loans and equity also includes a loan sanction of $200 million from the Asian Development Bank, and another $20 million from Germany’s stateowned Kreditanstalt für Wiederaufbau (KfW). EESL will also raise $200 million through its various initiatives.
Along with helping India meet its INDC goals, the funding will help EESL provide a fillip to its flagship street lightning programme under the government’s UJALA scheme.
