ENERGY EFFICIENCY IN ULB’s
ENERGY EFFICIENCY
SERVICES LIMITED
October 12, 2010
1
ENERGY SAVINGS POTENTIAL IN THE STATE
POWER SCENARIO OF UTTAR
PRDAESH FOR 2007-08
S.
No.
Sector
Reference
Annual
Electricity
Consumption
(MU)
Estimated
Annual
Savings
Potential
(MU)
1.
Agriculture
5693
1700
2.
Commercial
610
122
3.
Municipalities
1057
229
4.
Domestic
13704.2
2740
5.
Industries*
16472.89
1152
Total
37537.09
5943
INSTALLED CAPACITY 9339.3 MW
TOTAL ENERGY SALES 45.41 BU
PEAK DEMAND
11104 MW
PEAK MET
8568 MW
PEAK DEFECIT /
SURPLUS
ENERGY DEFICIT /
SURPLUS
-2536 MW
(-22.8 %)
-11293 MU
(-18 %)
*Including electrical energy consumption &
savings potential of SME clusters
ENERGY EFFICIENCY IS THE LEAST COST OPTION TO OVERCOME THE
PEAK DEFICIT
INSTITUTIONAL ARRANGEMENTS FOR EE
 Energy Conservation Act enacted in 2001.
 BEE created at central level in March 2002 to promote the
efficient use of energy and its conservation.
 State Designated Agencies (SDA) at state level for
implementation of EC Act.
 BEE and SDAs are to perform the role of a quassi-regulatory
and policy advisory body to the State and Central Govt.
 Till date 32 States have notified their SDAs.
 Energy Efficiency Services Limited formed in December 2009 to
implement energy efficiency projects in partnership with the
private ESCOs.
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ABOUT EESL
 Energy Efficiency Services Limited (EESL), a JV of NTPC
Limited, PFC, REC and POWERGRID has been set up to facilitate
implementation of EE projects and to be the implementation arm
for Central government and state governments.
 The authorized share capital of the company is Rs. 190 crores and
the paid-up capital is Rs. 100 crores with equal contribution from
all PSUs.
 It is registered under the companies Act, 1956 on 10th December
2009 and the commencement of business certificate is obtained
on 11th February 2010.
 It is the first such government company exclusively for
implementation of energy efficiency in South Asia and amongst
a very few such instances in the world.
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EESL- OBJECTIVES
 To facilitate implementation of energy efficiency projects for
Demand Side Measures including municipal functions,
agriculture, public building, lighting etc.
 To implement schemes, programmes and policies of central and
state governments or its agencies.
 Implementing agency with private ESCO’s and other companies
to promote energy efficiency.
 To provide consultancy services in the field of energy efficiency,
CDM projects, and other related areas.
 To identify and impart training to build the capacity of
stakeholders.
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EESL- ROLES
•Implementation
of EE in buildings,
•municipality,
•agriculture,
•SMEs
•S&L
Programme
•National
Examination
•PAT scheme
•PRGF/ VCFEE
Implementing
Govt.
Programs
ESCO
EESL
Consultancy
Organization
Resource
Centre
•Capacity
building of SDAs
•Training of
Energy Managers
•3L Programmes
•CDM
Consultancy
•Energy Efficiency
Potential
•Consultancy to
SDAs/ Govt.
•International
Consultancy
Municipal EE Projects
EESL as an advisor/consultant
 EESL will prepare the Detailed Project Report
 EESL will prepare the bidding documents and will facilitate in
finalization of the implementing agency
 EESL will facilitate implementation of energy efficiency projects
by acting as a Project Management Consultant (PMC) and also as
an independent third party M&V agency.
EESL as an ESCO
 EESL will prepare the Detailed Project Report.
 EESL will invest in the EE projects by entering into a
performance contract agreement with ULB/State Govt. Dept.
 Investment will be recovered though reduction in electricity bills.
 EESL will be responsible for implementation of EEM’s and O&M
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during the currency of performance contract
LUDHIANA MUNICIPAL CORPORATION
 90,862 street lights in LMC are to replaced with LEDs. A total of
881 switching points exists.
 56% are 70W HPSV, 26% are 150W HPSV, 13% are 250W MH, 7%
are 250W HPSV and the remaining are FTLs and CFLs.
 EESL conducted the Energy Audits and prepared the DPRs.
 The existing annual consumption is 45.72 MU, where as with
LED and automatic switch control and dimmer the consumption
will go down to 10.4 MU for annual avg. operating hours of 4015.
 The estimated project cost is Rs. 66.00 crores including the cost for
PMC and M&V, which are capitilized.
 The project IRR is 14.82% with a SPB of 6 years.
 Bids are invited from LED manufacturers / ESCOs / FIs for
implementation of the project on performance contracting mode.
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ISSUES
 Payment Security Mechanism
 For successful implementation of energy efficiency projects
through ESCO mode, payment security to the investor is very
important.
 It can be done through the creation of an escrow account by
the State Govt.
 As a PSM in case of default by the ULB, funds disbursed to
ULB by the state government can be paid directly to the
ESCO/investor
 Revolving Fund
 State Energy Conservation Fund can do part investment and
will get repaid from energy savings without any profit
 This will improve the Project IRR for the ESCO/investor
 M&V
 Third party M&V whose report is acceptable to ULB and the
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investor
ACTIVITIES OF EESL
A. AS AN ESCO
(i) BUILDINGS AND MUNICIPALITIES
 There is a vast scope for energy efficiency improvement in
buildings and municipalities. Energy efficiency measures bring
about energy savings due to reduced energy consumption.
 Investments will be recovered though reduction in electricity
bills during the performance contract as per the third party
M&V recommendation.
 EESL plans to implement 50 Government Building efficiency
projects and 5 Municipalities energy efficiency projects during
this financial year.
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ACTIVITIES OF EESL
4%
8%
60%
10%
28%
13%
32%
7%
4%
34%
Lighting
HVAC
Others
Commercial Buildings – 33
billion units
Lighting
Fans
Refrigeration
Others
AC
EV Cooler
TV
Residential Buildings – 116
billion units
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IMPLEMENTING EE IN BUILDINGS / ULBs
Third Party
Monitoring
Agency
SDA
Capital investment to be paid back in
equal installments to EESL
Savings, over and above the capital
investment, shared with EESL and
building owner
Facilitate State
Governments to
issue guidelines
State Government
Policy Guidelines and Notifications
Building Owner/ULB
Reduction in
Electricity bill Reduction in Electricity bill to be
Sharing of
savings
passed on to SDA
In case of baseline changes
additional funds may be required
To be paid as per third party M&V
Investment in
the project
EESL
Invest in Energy Efficiency
Operation & Maintenance till the
performance contract period
Shared savings after the capital
investment is paid
ACTIVITIES OF EESL
(ii) AGRICULTURE
 The overall energy efficiency investment market size of
agricultural sector under performance contract system has
been estimated at Rs 5,25,00 crores (total number of pumps 15
million and average cost of pump Rs 35,000).
 EESL will invest in energy efficiency measures on a rural
pump set feeder on which supply quality enhancements [such
as feeder separation and High Voltage Direct Supply (HVDS)]
have been carried out.
 The investments will be for procurement and Operation &
Maintenance of pumpsets during the performance contract.
 The reduction in electricity demand due to implementation of
the project will be shared between DISCOM and EESL as per
contract agreement.
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 EESL plans to take up least two such project this year.
IMPLEMENTING Ag DSM PROJECT
Consumers
•Sale of saved energy to
other consumers
Government / Regulatory
Commission
•Reduction in Subsidy payments
•Policy Guidelines and Approvals
•Inclusion in Annual Revenue
Requirement
Utility / DISCOM
•Annual payment from Special DSM
fund to support capital expenditure
•Sharing of savings to support
operating expenses
•Improved Collection efficiency
•Reduced Losses and Peak Load
Policy
Electricity
sales
Payment
Security
Package
guidelines &
Approvals
Regulator
Monitoring
Agency
Farmer
•Free Energy Efficient Pump
sets
•Reduced Energy Bills
•Free Maintenance
•Quality Power Supply
EESL
Third Party
Testing
Agreement
•Capital investment for Installation of new
pumps
•Design / Installation / Commissioning &
R&M
•Demonstrate the energy savings
•Repair and Maintenance
ACTIVITIES OF EESL
(iii) BACHAT LAMP YOJANA
 BLY seeks to provide CFLs to households at the price similar to
that of incandescent bulbs and plans to utilize the Clean
Development Mechanism (CDM) of the Kyoto Protocol to
recover the cost differential between the market price of the
CFLs and the price at which they are sold to households.
 EESL will invest for implementing Bachat Lamp Yojana (BLY)
 Distribution of CFLs in the project area at Rs. 15/- per CFL and
collection of one incandescent bulb
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IMPLEMENTING BLY SCHEMES
Empanelment of
investor / BLY
Developer with
BEE
Investor / BLY
Developer and
DISCOM
identify SSCCPA area
CPA validation by
DoE
Investor develops
CPA-DD and
submits to BEE
CFL distribution
by Investor /
DISCOM / BLY
Developer
Project area
monitoring as
per CPA-DD
Signing of TriPartite
Agreement
Investor secures
finance and
sources CFLs
CPA Verification
and allocation
of CERs by BEE
ACTIVITIES OF EESL
B. CONSULTANCY
 EESL will provide consultancy / Advisory services for the
various activities in a CDM programme of activities namely
 Developing the CDM programme of activity documents
 Promotion of the Programme of activities
 Conducting market surveys as per UNFCCC guidelines
 Conducting monitoring surveys as per UNFCCC guidelines
 Forward and Spot Trading of CERs
 Developing Database management systems
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ACTIVITIES OF EESL
C. IMPLEMENTING GOVT. SCHEMES
Standards & Labelling
 Right from receiving the applications to the processing of
applications from manufacturers and check testing of samples
drawn from the market will be handled by EESL.
 EESL has taken up processing of applications of 3 products viz.
Ceiling Fans, Colour Television and Pumpsets.
Perform Achieve and Trade (PAT)
 One of the initiatives of the NMEEE is Perform Achieve and
Trade (PAT).
 EESL has taken up the study for conducting “Baseline Energy
Audit” of Designated Consumers.
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ACTIVITIES OF EESL
IMPLEMENTATION OF CSR OF OTHER COMPANIES
 As part of Corporate Social Responsibility, some of the
companies have approached EESL to facilitate energy efficiency
initiatives. EESL prepares DPR’s and implements low carbon and
energy efficient projects like existing lamps in the villages with
LEDs, LED street lights, Efficient lighting and water pumping in
townships etc.
 First such DPR for M/s Shapoorji Pallonji Infrastructure Capital
Ltd. (SPINFRA) has been prepared for villages Chhara,
Sarakhadi, Nanawadi, Kaaj in Junagad District of Gujarat state
and is to be implemented by EESL.
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SCOPE OF WORK FOR DPR ON STREET LIGHTS
No. and rating of Switching Point for Street lighting in the ULB.
Total length and width of street illuminated
Total No. and height of street Light Poles
Total No. and type of fixtures
Control Mechanisms employed, and no. of working hours at
different seasons in the year
 General study of HT & LT electrical power distribution system
and to carry out actual measurement of the electrical parameters
like voltage, current, active / reactive power, power factor/ Lux
level etc. using calibrated instruments and find out energy
conservation possibilities therein.
 To review actual loading and load distribution on transformer
and to assess possibilities of energy saving.
 To review the voltage levels in street lighting systems, and
suggest mechanisms for voltage optimization.
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




SCOPE OF WORK FOR DPR ON STREET LIGHTS
 To review rating and location of capacitor and suggest power
factor improvement scheme and to carry out the harmonics
analysis study and suggesting measures to mitigate it, if
required.
 Monitoring & Measurement of Electrical Energy Consumption
(KWH & KVAH).
 Measurement of lux level at different positions of the road. The
measurement of existing lux levels will be carried out as per the
standard 9-point approved methodology for street lighting. The
minimum and the average lux will be calculated as per the
prescribed formulae of the 9-point method.
 Analysis of the reduction in Electrical Energy Consumption
(KWH & KVAH) due to energy efficient lighting without
compromising the present lux level based on technical
parameters like power factor, lumen / watt, CIE Color
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Rendering Index etc.
SCOPE OF WORK FOR DPR ON STREET LIGHTS
 A study to be carried out by placing LED in at least three fixtures
to obtain real data.
 Providing a list of energy efficient LED street light
manufacturers / suppliers.
 Providing a list of ESCOs / FIs who may be interested in bidding
for the implementation of this project in joint collaboration with
LED street light manufacturers / suppliers.
 Cost-benefit analysis showing the simple pay-back period,
Return on Investment (RoI), Net Present Value (NPV) and
Internal Rate of Return (IRR).
 The apporx. cost for preparing DPR on street light will be around
Rs. 9.00 lakhs for a MC having 1,00,000 street lights.
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SCOPE OF WORK FOR DPR ON WATER PUMPING
 Discussion with all relevant stakeholders viz. ULB/ PHE Dept.,
consumers, distribution utility etc.
 Name plate details of existing pump sets, delivery valve position,
foot valve status / condition and other details.
 To provide an overview of existing facilities and current
operating system like electrical distribution system, metering
system, power tariffs and subsidy, if any, electricity availability,
seasonal as well as historical water level variation pattern.
 Detailed energy audit (performance evaluation) for all pump sets
in each of the water supply schemes in urban and water supply
schemes in rural areas will be carried out by measuring the
suction & discharge head, power input and water flow to
evaluate operating efficiency of the pump sets. Based on audit
study an efficiency index for the existing pumping system will be
prepared.
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SCOPE OF WORK FOR DPR ON WATER PUMPING
 Other parameters and site conditions like delivery valve
position, working of foot valve and type of piping etc., will also
be studied.
 The capacity and type of new energy efficient pump sets that can
replace the existing pumps for the same discharge will be
decided based on field studies after evaluating the existing pump
set performance and operating efficiency.
 Interaction with various pump manufacturers / suppliers will be
made to understand the selection criteria, impact of changing
water levels on the pump set efficiencies, input power and to
study the pump curves. During the interaction the efficiency
range of different types of star labelled pumps along with
technical details, budgetary quotes, suppliers of spare parts etc.
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will also be discussed.
SCOPE OF WORK FOR DPR ON WATER PUMPING
 The energy saving potential that can be achieved by replacing
existing pumps with that of best efficiency pump set will be
quantified based on the analysis of the measurements. In
addition to this various technically sound and economically
viable measures to improve the end-use energy efficiency like
optimum sizing of pump sets for the same discharge, change of
foot valve and change of piping system etc will also be provided
in the energy audit report.
 The cost estimate for preparing DPR in one water supply scheme
in Urban having around 100 pumps ranging from 2HP to 50HP
will be around Rs. 5.50 lakhs.
 The cost estimate for preparing DPR in one water supply scheme
in Rural having around 10 pumps ranging from 2HP to 50HP
will be around Rs. 35,000/25
SCOPE OF WORK FOR PREPARING BIDDING
DOCUMENT & FINALIZATION OF AGENCY
 Finalization of the Detailed Project Report in consultation with
Municipal Corporation.
 Preparation of bidding documents including technical
specifications for energy efficiency projects and drawings etc.
 Preparation of Notice Inviting Tenders (NIT).
 Replying to queries from bidders.
 Assist in evaluation of bids received and selection of
implementing agency by ESCO mode.
 Preparation of performance contract agreement document.
 Advisory services for acceptance and finalization of contract with
implementing agency.
 Cost for preparing bidding document and finalizing
implementing agency for one MC for street lighting & water
pumping will be around Rs. 2.50 lakhs.
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SCOPE OF WORK FOR PMC
 Deputing an official on as and when required basis at location to
oversee the progress of the implementation of the project as
required by the Municipal Corporation.
 Quarterly progress reports to be submitted to MC intimating the
progress of implementation.
 To assist scrutiny of running payments and final bill of the
implementing agency.
 To verify the data/ details submitted by the implementing
agency.
 Clearance of payments due with the implementing agency.
 Advisory service at Physical Completion.
 Advisory services on M&V evaluations and plus/minus
payments due with implementing agency.
 The cost of PMC & M&V will be capitalized as the project cost.
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Visit us at www.eesl.co.in
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COST ESTIMATE FOR PREPARING DPR
Item
Charged Rate
(Per Month)
Days
Value
Professional Expenses (On-Site)
Certified Energy Auditor / Manager (1 no.)
INR 1,50,000
45
INR 2,25,000
Energy Analyst (1 no.)
INR 1,00,000
45
INR 1,50,000
Sub-Total
INR 3,75,000
Assumption: On site manpower cost includes professional fees, data collection and measurement, consultation with
stakeholders etc. of the expert man powers to be deputed by EESL.
Professional Expenses (Off-site)
Certified Energy Auditor / Manager (1 no.)
INR 1,20,000
45
INR 1,80,000
Energy Analyst (1 no.)
INR 80,000
45
INR 1,20,000
Sub-Total
INR 3,00,000
Assumption: Off site manpower will be involved in analyzing the data collected and preparing the DPR and other
administrative expenses.
Logistical Expenses
Travel and stay of the experts deputed and also for
INR 1,85,000
officials from EESL
Assumption: Deputed Experts will make to & fro travel from headquarter to the site, will to have stay for the
duration of surveys, data collection etc. EESL officials will also make to and fro travels.
Professional Charges of EESL Officials
10% of total (approx)
INR 86,000
GRAND TOTAL (Indian Rupees Nine Lakhs and Forty
INR 9,46,000
29
Six Thousand only) – exclusive of all taxes
COST ESTIMATE FOR PREPARING BIDDING
DOCUMENT & FINALIZATION OF AGENCY
Item
Charged Rate
(Per Month)
Days
Value
Professional Expenses (On-Site)
Certified Energy Auditor / Manager (1 no.)
INR 1,50,000
7.5
INR 37,500
Energy Analyst (1 no. )
INR 1,00,000
7.5
INR 25,000
Sub-Total
INR 62,500
Assumption: On site manpower cost includes professional fees, data collection and measurement, consultation with
stakeholders etc. of the expert man powers to be deputed by EESL.
Professional Expenses (Off-site)
Certified Energy Auditor / Manager (1 no.)
INR 1,20,000
22.5
INR 75,000
Energy Analyst (1 no. )
INR 80,000
22.5
INR 60,000
Sub-Total
INR 1,35,000
Assumption: Off site manpower will be involved in analyzing the data collected and preparing the DPR and other
administrative expenses.
Logistical Expenses
Travel and stay of the experts deputed and also for officials
INR 31,500
from EESL
Assumption: Deputed Experts will make to & fro travel from headquarter to the site, will to have stay for the duration of
surveys, data collection etc. EESL officials will also make to and fro travels.
Professional Charges of EESL Officials
10% of total (approx)
INR 22,900
GRAND TOTAL (Indian Rupees Two Lakhs Fifty One
30
INR 2,51,900
Thousand and Nine Hundred only) – exclusive of all taxes