FACILITATING LED LIGHTING SOLUTIONS IN
INDIA
Energy Efficiency Services Limited
Overview of EESL
Energy Efficiency Services Limited
Energy Efficiency Services Limited
Creating an Energy Efficient India
ESCO- DSM Projects
• Agriculture
• Municipal Functions
• Buildings
• Distribution Efficiency
• Tri-generation
NTPC
Implementation of Central & State Gov. policies
POWER
GRID
EESL
REC
• S & L Programs
• SDA capacity buildings
• Perform Achieve & Trade Scheme for industries
Consultancy Services
• CDM
• Annual Energy Savings Plan
• Policy advice to the government
PFC
Capacity Building
• Development of Private ESCOs
• SDA Capacity Building
Energy Efficiency Services Limited
Installed capacity & Fuel Mix
As on 31.07.2013 ,Total Installed Capacity is 225,793.10 MW
India is world ‘s fourth largest
energy consumer after united
States, China & Russia.
Nuclear,
2.12%
Renewable,
12.20%
Coal
Gas
Capacity Addition in 12th
Five year plan=88 GW
Hydro,
17.55%
Oil
Hydro
Nuclear
Renewable
Oil, 0.53%
Gas, 9.02%
Coal, 58.59%
During the year 2012-13, though the total energy availability increased by 6.2% over the previous year and peak load increased by 6.1%, the shortage
condition prevail in the country in terms of energy and peak availability as given below:-
Requirement
Availability
Shortage
(%)
Energy (MU)
998,114
911,209
86,905
8.7
4
Peak (MU)
135,453
123,294
12,159
9.0
Solution
Sector
Consumption
(Billion kWh)
Saving Potential
Billion kWh)
Agriculture
92.33
27.79
Commercial
9.92
1.98
Municipalities
12.45
2.88
Domestic
120.92
24.16
Industries
265.38
18.57
Cumulative
501
75.36
% Saving
Potential
15 %
Installation cost of DSM measures lesser than capital cost of power
generation
Each unit saved through DSM results in two units of avoided
generation
Energy Efficiency Services Limited
DELP as Solution
Energy Efficiency Services Limited
Rationale and Objectives
DSM Based Efficient Lighting Programme (DELP)
Problem
• 20% of electricity
demand goes into
lighting
• 90% of the
electricity is
converted into heat
in incandescent
bulbs
Potential
Challenge
• 400 million light
points in India today
are lighted by
incandescent bulbs
• High prices of LEDs/
CFLs leads to low
household
penetration
• Their replacement
by LEDs/CFLs would
lead to a reduction
of over 10,00015,000 MW in
electricity demand
Solution
• Overcoming cost
barrier through
DELP
• Utilization of
models developed
for BLY
• DSM for recovering
investments
• ESCO utilization for
large scale
implementation
Energy Efficiency Services Limited
DELP SOP-Methodology
4 LEDs/CFLs per residential house will be distributed to 2.5 lakhs
residential households in exchange of an incandescent lamp (ICL)
Distribution of LEDs/ CFLs by EESL to grid-connected households in
each project area directly or through distribution & collection points.
Collection & Destruction of ICLs by EESL with proper Monitoring
&Verification guidelines prescribed under the DSM programme
Distribution Utilities will implement DSM projects through EESL and link
payment with resultant energy and load reductions.
Energy Efficiency Services Limited
DELP-Proposal
• Issuing guidelines and
regulations,
• Approval of DSM
program
Regulatory
Commission
DISCOMS
• Design, Development
of DSM Programme
• Support for M&V
• Communication and
outreach
• Implementation of
DELP
• Distribution of
LEDs/CFLs, Collection
and destruction of ILBs.
EESL
Energy Efficiency Services Limited
Role of EESL
Upfront investment
Financial risk
Awareness and information
Development of DSM documentation
Submission and approval by ERC
Distribution of LED/ CFL at cost of ILB
Monitoring of LED/CFL use in sample households
Energy Efficiency Services Limited
Role of DISCOMs
Database of households to include name of
users/address/average electricity
consumption
Assist in selection of monitoring groups
required
Distribution of LED/CFL Lamps and
exchange of incandescent lamps
Safe keeping of replaced GLS lamps for
independent inspection
Energy Efficiency Services Limited
• Scheme introduced - Pondicherry
Energy Efficiency Services Limited
Pondicherry Energy Scenario…2013-14
----------------------------------Energy Sale in UT
2434.79 MUs
Energy Requirement (Demand)
2782.61 MUs
Gross Energy Purchase approved
2909.94 MUs
Average Power Purchase Cost
Rs. 3.18/kWh @ Rs. 925 Cr
Average cost of supply approved
Rs. 3.85/kWh
Total Consumers
4,07,115
Total Domestic Consumers
2,99,772
* Source :ARR for fy 13-14
Energy Efficiency Services Limited
SOP: A tool to accelerate EE measures
• SOP provides long term contracts to EE – makes it at par
with PPA
• Provides investors with a viable model to invest
• Allows financial closure of investments
• Targeted interventions can help secure large energy
savings in utilities
• No upfront cost for utilities in implementing the
measures
Energy Efficiency Services Limited
Implementation of DELP SOP
• EESL will, in consultation with PED, select an area for
implementation of DELP.
• EESL and PED will file DSM-SOP petition before JERC which will
include:
–
–
–
–
–
–
Consistency of DELP-SOP with the key objectives of DSM guidelines
Cost benefit analysis as per DSM guidelines
Agreed methodology for determining energy savings
Implementation methodology and framework
SOP cost for procurement of energy savings through DELP – price and period of contract
DELP-SOP ‘PPA’
• After consideration and approval by JERC, EESL and PED will
undertake project implementation
• BEE could undertake independent monitoring of energy savings
Energy Efficiency Services Limited
Financing of DELP SOP
Measure
No. of
consumers
8 W LED
14 W CFL
Project
Period
Units
saved
(MUs/Yr)
Utility
Saving
SOP
Purchase
price
Total Annual
Payout to
EESL
Benefit
to PED
2.5 Lakh
7 Years
(4 bulbs each)
54.60
Rs.16.38 Rs.2.5/Unit Rs.13.65
Crores
Crores
Rs.2.73
Crores
2.5 Lakh
2 Years
(4 bulbs each)
48.30
Rs.14.49 Rs.2.5/Unit Rs.12.07
Crores
crores
Rs.2.42
Crores
JERC can allow PED to provide Rs.2.5/KWh for every unit of energy saved to EESL to
service investments in LEDs/CFLs .
There is a net saving to PED even after EESL payment.
JERC could reduce power procurement cost in ARR by the total EE payout therefore
making the proposal tariff natural.
Energy Efficiency Services Limited
Energy Efficiency : A resources for Utilities
•
A Standard Offer programme uses EE as resources for the benefit of
Utilities.
Reduced in “purchased” AT & C losses of T&D (16.5%) due to reduced
demand
The Energy Efficiency saving translate into reduced purchase of costly
units, sale of excess power or increased revenue through unscheduled
Interchange (UI)
Purchase from customers at Rs. 3.18/kWh
Save losses of about Rs. 0.52/kWh and sell at interface points as base line
of UI….reduce costly power purchase cost.
Allow more connections to industrial customers at higher tariff
Consumer save significant energy and benefitted from reduced energy bill.
Energy Efficiency Services Limited
A huge potential of implementing SOP at very low cost.
•
•
EESL will invest in EE, Utilities have to pay to EESL at Rs./kWh –saved for some
years, depending on the measures.
The following table elaborates the technical potential for EESL’s DELP as sample
measure :
Measure
Initial Kw
Efficient kW
Cost saving due
to T &D losses
(16.5%), kWh/y
Total cost saving for
utility per unit, Rs/y
DELP-LED lighting 8 W
0.052
0.010
34
208
DELP-CFL lighting 14 w
• Technical Potential
0.060
0.046
30
184
Measure
No of Consumers
Energy Saving
Utility saving
DELP-LED lighting 8 W
2,50,000
65.38 M kWh/y
Rs. 21 Crores
DELP-CFL lighting 14 w
2,50,000
57.84 M kWh/y
Rs. 18.39 Crores
Energy Efficiency Services Limited
Immediate Step for Implementation of DELP SOP
•
EESL will, in consultation with PED, select an area for implementation of DELP.
•
EESL, PED and SERC , under the overall guidance of BEE, will agree on necessary DSM
regulations that will inter-alia include –
A DSM based mechanism to service investments. This would be based on agreed energy savings based on BLY
methodology. A mechanism for monitoring and verification, A dispute resolution mechanism, Logistic arrangements for
distribution of LEDs as replacement of ILBs
•
EESL will undertake awareness and outreach of the scheme to household. It will provide
upto 4 LEDs/CFLs per household at Rs.25/ lamp as replacement for working ILBs
•
EESL and PED will undertake distribution of LEDs/ CFLs to every household and maintain a
list of such distribution.
•
For monitoring purposes, BEE will select a random sample of household for bi-annual
verification.
•
PED will provide EESL payment on a periodic basis based on the SOP methodology agreed.
Appropriate ESCROW/payment security mechanism to be in-built to reduce the revenue
risk to EESL.
•
EESL will implement mechanism to prevent resale of LEDs/CFLs and reuse of ILBs
Energy Efficiency Services Limited
Additional Attractiveness of DELP as SOP
For PED:



Loss per unit incurred by PED of Rs. 0.52/kWh will be eliminated. Annual potential benefit to
PED of the DELP SOP = ( 0.52* no of units saved per year) Rupees, leading to reduction in
accumulated liabilities.
The per unit cost of energy paid by PED under the DELP SOP will be fixed over the period of
Power purchase Agreement as compared to rising cost of energy.
The annual saving would lead to reduction in Renewable Purchase Obligation of the PED
For Consumers

Reduced Electricity Bill and use of energy efficient lightings with minimum capital cost
For EESL


The long term contracts for implementing the programme from PED and potential to tap
finance from Banks/FIs.
Ability to take advantage of technology improvement accompanied with price reduction.
For Public

Direct green house gas reduction
Energy Efficiency Services Limited
Join us in our endeavor to create an
Energy Efficient India
Thank You
Energy Efficiency Services Limited