EESL’s National Chiller Energy Efficiency Program

Total nationwide cooling demand is expected to increase, in terms of Tonnage of Refrigeration (TR), 8 times by 2038 from 2017 baseline. In buildings the corresponding growth will be 11 times over the same time span, the fastest growth for any sector. 74% of total cooling demand will result from space cooling. Chillers will alone contribute a significant percentage. EESL conceptualized National Chiller Energy Efficiency Program (NCEEP) for expediting timely replacement of superannuated, inefficient chillers and other central cooling plant equipment with energy efficient models.

MAITREE’s technical assistance to EESL included the following:

  1. Market Feasibility Assessment
    1. Feasibility study to assess market opportunity for chiller plant replacement in India and assess distribution of chiller population by age, cooling capacity, technology etc.
    2. Market demand assessment for ESCO financing and forecasts for chiller replacement to be a 1.5 billion USD market till 2030.
  2. Program Design
    1. Advise EESL in forming Technical Committee, comprising of HVAC experts and manufacturers, to oversee program design.
    2. Development of financial models to determine commercial viability of replacement using ESCO financing. Shared savings and cost-plus business models were prepared to analyze profitability for EESL.
    3. Review of business models to analyze the profitability of the NCEEP. A hybrid model of deemed savings, ESCO financing and shared savings was proposed for NCEEP.
    4. Development of a short, medium- and long-term business strategy for EESL outlining value proposition, investment, revenue forecasts and implementation strategy.
    5. Advised EESL in raising equity from donor agencies and private sector.
  3. Capacity building
    1. Development of the technology handbook to increase EESL teams understanding of energy efficient central cooling systems and their appropriate application
  4. Program Roll out support
    1. Coordination with World Bank, PFIs to roll out NCEEP through ESCO model.
    2. NCEEP pilot screening with EESL and facilitation of meetings with Central Public Works Department and private sector owners to identify pilots, and discuss project performance specifications, execution, and investment models.
  5. Chiller Financial Feasibility Tool Development
    The Chiller Financial Feasibility tool analyses energy savings and evaluates return on investment and project payback for EESL. MAITREE’s technical assistance included:

    1. Defining tool functionalities
    2. Development of the logic for calculating energy savings for chiller only or whole chiller plant retrofits; evaluating taxation and depreciation and calculating project investment, expenses, revenue
    3. Project returns calculations: return on equity, internal rate of return and simple payback
    4. User interface design for adding existing chiller profile data, and technical specifications and unit costs of prosed replacement measures
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