EESL Using Innovative Business Models to Scale up
EESL – Using Innovative Business Models to Scale up EE investments 20 th April, 2015, Bangkok Energy Efficiency Services Limited (A JV company of PSUs of Ministry of Power, Govt of India)
Rising demand for refrigerants AP Region ØHFCs use growing at 8% per annum (2004 -2008)-GHG emissions could be upto 19% of total GHG emissions in 2050 in BAU – from 1% ØAnnual emission could be 8. 8 Gt CO-eq by 2050 ØIndia – AC penetration about 4% - annual demand is about 3. 5 m WWW. EESL. CO. IN| 2
Barriers for no-ODS low-GWP Technologies ØLow demand –though technology exists ØHigh cost as compared to existing HVAC using HFCs of HCFC ØInadequate information about refrigerants – energy use awareness significant in several countries ØIssues related to toxicity/ inflammability a concern Case Study – No-ODS HC Based AC -Commercially available in India 1. 5 Ton -Energy efficiency more than 3. 9 EER – best in class (5 STAR) -Cost Rs. 45, 000 ($ 750) – about $ 100 more than other HFC based 5 STAR AC -EESL business model could help scale up demand for such ACs -Attract other manufacturers to invest in this technology WWW. EESL. CO. IN| 3
EESL – Replicable and Scalable Business Models -Third party investments in efficient equipments by EESL -Aggregating demand to bring economies of scale – drive down costs to make efficiency affordable - Risk mitigation – technical risk through back to back arrangement with suppliers. -Financial risk – BG, ESCROW and Revolving LCs – Approval by ERCs for bulb and agriculture programme (part of ARR) and state govt guarantee for Street Lights -Awareness and outreach in project areas -Ongoing investments in lighting EE of about $ 1. 3 billion WWW. EESL. CO. IN| 4
EESL – Business Model - Addressing Barriers -First high cost barrier – providing LEDs at $ cents 1. 3 -Monetise energy savings to pay for upfront investment ($ 5/ LED) -Aggregating demand – reduced prices of LEDs – from $ 6 to $ 1. 3 No of incandescent bulbs replaced in AP Annual energy savings GHG emission reductions Reduction of installed load Actual capital investment Cost savings to DISCOM every year for reduced peak power Annual payments to EESL 4. 1 m 229 million KWh 226, 710 t. CO 2 217 MW Rs. 80 crore ($ 14 m) Rs. 112 crore ($ 18. 7 m) Rs. 30 crore ($ 5 m) WWW. EESL. CO. IN| 5
Moving towards market transformation LED prices reducing by aggregating demand Participating entities have increased WWW. EESL. CO. IN| 6
Thank You For more information contact skumar@eesl. co. in www. eesl. co. in WWW. EESL. CO. IN| 7
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