Private Sector ESCO Engagement Initiative

EESL’s Building Energy Efficiency Program (BEEP) which is the world’s largest zero-subsidy energy efficiency retrofit scheme, was launched with MAITREE’s assistance by Energy Efficiency Services Limited (EESL) in 2017. Till date, 11,523 buildings have been covered under this program through retrofit of inefficient appliances, with an investment of INR 350 crores.

USAID MAITREE is providing technical assistance to EESL in development of business models for collaboration with private sector ESCOs and broadening of service offering in the Building Energy Efficiency Program (BEEP), as a part of the World Bank India EE Scale-up Program. A hybrid consultation workshop (online and offline), “Private Sector ESCO Engagement Initiative” was organized by USAID MAITREE in partnership with EESL and the World Bank to discuss new areas of energy efficiency offerings, as well as partnership and business models. The event saw participation from senior representatives from private ESCOs who shared their insights on the initiative and partnership models. Roles, responsibility, and risk-sharing mechanisms between EESL, private ESCOs and clients, and methods of M&V for scale-up were also discussed at the workshop.

The market for energy efficiency in India is expected to be worth between USD 10 – 35 billion dollars. The aggregate revenues of the ESCO company, excluding EESL’s revenues, are not expected to exceed USD 150 million. According to research, ESCOs have the potential to exploit a large percentage of India’s energy savings market, which was estimated at 183.5 billion kWh per year in a 2009 study by the World Resources Institute. In commercial buildings alone there is an investment potential of INR 15000 – 21000 crores.[1]

Considering this huge potential for scaling energy efficiency in India through partnership with private ESCOs, the Private Sector ESCO Engagement Initiative aims to accelerate market transformation towards energy efficiency products and services. Partnership with private sector ESCOs is integral to EESL’s vision to further scale up BEEP scope and reach to further enhance energy efficiency in India.

[1] Transforming the energy services sector in India.

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