ADB to provide US $13 million loan to EESL to promote efficient energy usage in India

•  The Asian Development Bank (ADB) to provide USD 13 million loans to EESL (Energy Efficiency Services) to promote efficient energy usage in India.
• ADB and the Energy Efficiency Services (EESL) signed a USD 13 million grant, to be provided by the Global Environment Facility (GEF), for the additional financing of an ongoing ADB-supported project that is promoting end-use energy efficiency.
• The grant, to be administered by ADB, is tied to the USD 200 million ADB-financed Demand-Side Energy Efficiency Sector Project.
• It was approved by the bank in 2016 to finance the installation of millions of energy-efficient lights on streets and homes as well as energy-efficient water pumps across India.

About Funding:

• The ADB funding is helping EESL finance energy service utilities for installing established energy-efficient technologies such as light-emitting diode (LED) street-lights with municipalities while exploring newer technologies and their self-sustaining business models. The existing loan aims to achieve energy savings of around 3,800 gigawatt-hours annually.
• The additional financing for the project through GEF grant will be used by EESL for making investments in new and emerging technologies, including trigeneration, efficient motors and air-conditioners, smart meters/grids, and associated new business models to expand the use of such innovations, as well as to set up an energy efficiency revolving fund.
• This will support the overall objective of the project that is aligned with the goals of the government's National Mission for Enhanced Energy Efficiency (NMEEE) and aims to expand the market for energy-efficient technologies and reduce greenhouse gas emissions.

About NMEEE:
The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions under the National Action Plan on Climate Change (NAPCC). The prime objective of the mission is to strengthen the market for energy efficiency by creating conducive regulatory and policy regime and has envisaged fostering innovative and sustainable business models to the energy efficiency sector. By this mission government of India wanted to promote the market for energy efficiency by fostering innovative policies and effective market instruments.
The National Mission for Enhanced Energy Efficiency (NMEEE) comprises of four initiatives to enhance energy efficiency in energy intensive industries which are discussed below:

• Perform Achieve and Trade (PAT): Assigning energy reduction targets to large energy intensive industries and distributing Energy Saving Certificates (ESCerts) on achievement of the targets. These ESCerts can then be traded.
• Energy Efficiency Financing Platform (EEFP): Increasing the confidence of financial institutions and investors to support energy efficiency initiatives.
• Market Transformation for Energy Efficiency (MTEE): Promoting adoption of energy efficient equipment’s and appliances through innovative business models.
• Framework for Energy Efficiency Economic Development (FEEED): Promoting energy efficiency initiatives by hedging against investment risks.