The funds will also be utilised by EESL to explore business models to generate greater public demand for EVs to support India’s push for green vehicles.
18 Dec 2019 | 12395 Views | By Autocar Pro News Desk
The Asian Development Bank (ADB) and the government of India on December 16, signed a $250 million (Rs 1,774 crore) loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in the country. The investment is said to benefit agricultural, residential and institutional consumers. In addition a $46 ...
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The Asian Development Bank (ADB) and the government of India on December 16, signed a $250 million (Rs 1,774 crore) loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in the country. The investment is said to benefit agricultural, residential and institutional consumers. In addition a $46 million (Rs 327 crore) financing will be provided from the Clean Technology Fund (CTF), which will be administered by ADB.
In 2016, ADB had approved a $200 million (Rs 1,420 crore) loan to EESL for Demand Side Energy Efficiency Sector Project that focused on efficient lighting and appliances.
The loan agreement was signed by Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, India and Kenichi Yokoyama, Country Director, ADB’s India Resident Mission.
Khare said after the loan signing that the project is expected to contribute to promote energy efficiency and meet government’s commitments to reduce energy intensity of the economy in India. In addition, introduction of energy-efficient technologies in eligible states including smart meters, distributed solar photovoltaic systems and electric vehicles will help reduce electricity network losses and reduce greenhouse gas emissions.
Yokoyama said that this is one of the few ADB projects specially focused on demand-side energy efficiency targeting upstream efficiency opportunities and business models that can be scaled up in India and other ADB developing member countries.
The funds will also be utilised by EESL to explore business models to generate greater public demand for EVs to support India’s push for green vehicles.
The agreement will see an additional $2 million (Rs 15 crore) in Technical Assistance to support EESL in implementing the project, including a gender action plan, mobilising private sector participation in energy efficiency services, identifying new business opportunities, and transferring knowledge about successful models. The TA will also support the identification and development of new sub-projects and pilot test some technologies. The grant comes from the Clean Technology Fund, to be administered by ADB.