The Asian Development Bank (ADB) and the Government of India on December 16, 2019 signed a $250 million loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in India that will benefit agricultural, residential and institutional consumers.
- In addition, $46 million financing will be provided from the Clean Technology Fund (CTF), to be administered by ADB.
- ADB previously approved a $200 million loan to EESL, a public sector energy service company, in 2016 for Demand Side Energy Efficiency Sector Project that focused on efficient lighting and appliances.
Benefits and features
- The project is expected to contribute to the mission of Government of India to promote energy efficiency and meet Government’s commitments to reduce energy intensity of the economy.
- 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.
- EESL will also explore business models to generate greater public demand for e-vehicles to support India’s current push for electric vehicles.
- Promoting awareness of the benefits of using energy efficient technologies is another feature of the project. Awareness campaigns will engage local organisations in knowledge-sharing and training, with a focus on women electricity consumers. Capacity building for electricity distribution, regulatory agencies, and other government bodies will also be carried out.
- Accompanying the loan will be a technical assistance (TA) of $2 million 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 subprojects and pilot test some technologies. The grant comes from the Clean Technology Fund, to be administered by ADB.
- ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
- In 2018, it made commitments of new loans and grants amounting to $21.6 billion.
ADB
- ADB: Established in 1966, it is owned by 68 members — 49 from the region.
