Subsidiaries & JVs

EESL

Energy Efficiency Services Limited (EESL), a Joint Venture of four national Public Sector Undertakings (PSUs), namely NTPC Limited, Power Finance Corporation (PFC), REC Limited and POWERGRID Corporation of India Limited.  EESL has very strong parentage, two of its parent company are Navratna and other two are Maharatna PSUs of Union Ministry of Power.

As South Asia's first and foremost energy efficiency leader, EESL leads the market-related activities of the National Mission for Enhanced Energy Efficiency (NMEEE), one of the eight national missions under the Prime Minister’s National Action Plan on Climate Change.

Energy efficiency assumes significance for the nation in the current environment of shortages and concerns over climate change. Ministry of Power, Government of India established EESL in 2009 to facilitate implementation of energy efficiency and climate change projects including energy efficiency services and supply of energy efficient products.

At present, EESL is implementing the world’s largest non-subsidized energy efficiency portfolio across sectors like lighting, buildings, E-mobility, smart metering and agriculture at a scale which no organization has been able to achieve. EESL's energy efficient appliances and technologies have saved India over55 billion kWh estimated energy annually. 

EESL has strong tie up with Bilateral/Multilateral Banks such as World Bank, Asian Development Bank, AfD andKfW for financing and scaling up of energy efficiency projects in India. These Global financial institutions are supporting growth of EESL projects. So far, total line of credit worth INR 11,500 crore has been sanctioned.

The following programmes target energy efficiency in stated segments as it offers enormous opportunity to save energy-

  1. Unnat Jyoti by Affordable LEDs for ALL (UJALA):

Hon’ble Prime Minister, on 5th January 2015 launched Unnat Jyoti by Affordable LED for All (UJALA) programme. Under UJALA scheme, LED bulbs, LED Tube lights and Energy efficient fans are being provide to domestic consumers for replacement of conventional and inefficient variant

Till date, over 36.62 crore LED bulbs, 72.02 lakh LED Tube lights and 23.35 lakh Energy efficient fans distributed by EESL across India. This has resulted in estimated energy savings of 48.08 billion kWh per year with avoided peak demand of 9,724 MW, GHG emission reduction of 39 million t CO2 per year and estimated annual monetary savings of INR 19,200 crore in consumer electricity bills.

  • UJALA scheme was also included in the seven schemes that were selected for the Gram Swaraj Abhiyan (GSA) and Extended Gram Swaraj Abhiyan (GSA) of GoI. EESL distributed over 68 lakh LED bulbs covering over 65,000 villages across India under GSA and EGSA. The distribution of LED bulbs and awareness creation among low income households under this campaign was done through distribution counters and mobile vans in the villages.
  • The procurement price of LED bulb has dropped significantly due to aggregation of demand from INR 310 (Jan. 2014) to INR 39.90 (August 2019)
  • Technical specification of LED bulbs being distributed has been enhanced from 7 W to 9 W and 85 lumen / W to 100 lumen/ W respectively
  • The programme has been able to engage with common man in a significant scale and so far, more than 9 crore consumers have taken the benefit of using these LED bulbs thus making it the largest non-subsidy based LED lighting programme in the world
  • EESL has embraced norms of transparency in all its operations. The procurement of LEDs is done through an open e-bidding process and the information about the programme is disseminated through a website www.ujala.gov.in which monitors the real time progress of the UJALA scheme. The site also provides information about the places where these bulbs are made available, quality control measures and results of independent verification of savings done from time to time

 

Business Model: UJALA

EESL has evolved a service model where it works with electricity distribution companies (DISCOMs) through a benefit sharing approach. The Unnat Jyoti by Affordable LED for All (UJALA) obviates the need for DISCOMs to invest in the upfront cost of LED bulbs; EESL procures the LEDs bulbs and provides to consumers at affordable rates against their market price. The upfront investment made by EESL is paid back in different ways as indicated under:

  1. Upfront Model-Under this model,consumers purchase the energy efficient appliances at upfront cost and gets benefitted by savings in their electricity bill.
  2. DISCOM Cost Recovery Model: Under this model consumer pays only a small part of the cost of bulbs to EESL and balance amount is paid by the DISCOMs to EESL. The investments of EESL is recovered from the DISCOMs as annuity over a period of 3-10 years by monetizing the energy savings that accrue as a result of replacement of incandescent lamps with LEDs. Each replacement leads to a reduction of connected load by 53W. The energy savings are monetized based on the peak procurement cost of DISCOM and is used to pay back the investment made by EESL under an approval by the State Electricity Regulatory Commission. This was implemented in Puducherry and A.P.
  3. On Bill Financing (OBF) Model: Under this Model entire cost is recovered from the consumers by deduction of easy instalments of every month for 8-12 months. The entire cost of the LED bulbs, including the awareness, distribution and cost of capital is recovered from the consumers Electricity bills. This was implemented all over the country.

 

 

State/UT wise details of progress of UJALA programme-

S. No.

State/UTs

No. of LED bulbs Distributed

No. of LED Tube lights Distributed

No. of EE Fans Distributed

1

Andaman Nicobar

4,00,000

   

2

Andhra Pradesh

2,20,39,170

1,49,700

3,24,418

3

Arunachal Pradesh

4,99,498

42,713

32,508

4

Assam

71,69,352

1,51,454

42,822

5

Bihar

1,95,32,469

1,13,442

42,958

6

Chandigarh

5,54,283

57,342

15,454

7

Chhattisgarh

1,07,61,086

2,81,849

64,596

8

Dadra & Nagar Haveli

1,63,808

4,884

1,886

9

Daman & Diu

1,42,623

547

19

10

Delhi

1,32,80,468

2,54,705

17,971

11

Goa

10,05,890

   

12

Gujarat

4,14,09,279

12,75,656

6,42,550

13

Haryana

1,55,93,778

2,13,209

60,691

14

Himachal Pradesh

85,07,576

88,153

19,707

15

Jammu and Kashmir

84,86,579

14,363

7,283

16

Jharkhand

1,36,45,874

1,68,019

31,621

17

Karnataka

2,35,56,179

4,12,846

72,098

18

Kerala

1,54,00,552

19,650

9,100

19

Ladakh

2,30,630

   

20

Lakshadweep

2,00,000

50,000

 

21

Madhya Pradesh

1,75,58,188

4,24,906

1,08,091

22

Maharashtra

2,19,71,431

5,31,133

1,86,211

23

Manipur

2,99,934

20,593

 

24

Meghalaya

4,33,245

4,495

 

25

Mizoram

6,15,267

36,125

1,579

26

Nagaland

10,99,038

25,833

7,499

27

Odisha

5,22,70,570

1,70,868

37,770

28

Puducherry

6,09,251

   

29

Punjab

30,10,852

99,766

18,328

30

Rajasthan

1,71,29,445

3,48,684

91,786

31

Sikkim

1,64,000

7,819

 

32

Tamil Nadu

42,69,985

6,20,061

1,70,176

33

Telangana

21,80,284

3,11,180

47,897

34

Tripura

10,43,832

84,083

15,270

35

Uttar Pradesh

2,61,96,217

5,09,135

2,02,599

36

Uttarakhand

56,21,539

39,112

5,809

37

West Bengal

92,29,228

6,69,711

56,558

Total

36,62,81,400

72,02,036

23,35,255

 

 

 

  1. Street Lighting National Programme (SLNP):

Hon’ble Prime Minister, on 5th January, 2015 launched Street Lighting National Programme (SLNP) to replace conventional street lights with smart and energy efficient LED street lights across India.

 

Till date, EESL has installed over 1.09 crore LED street lights in ULBs and Gram Panchayats across India. This has resulted in estimated energy savings of 7.35 billion kWh per year with avoided peak demand of 1,224 MW, GHG emission reduction of 5.05 million t CO2 per year and estimated annual monetary savings of INR 5,142 crore in electricity bills of municipalities.

 

  • Under SLNP, 1508 Urban Local Bodies (ULBs) have been enrolled, out of these ULBs, work has been completed in 972 ULBs.
  • EESL is also implementing LED Street lighting projects in Gram Panchayats on the same service model as the SLNP for municipalities with the objective to promote the use of efficient lighting in rural areas. So far, EESL has installed 29.5 lakh LED street lights in rural areas of Andhra Pradesh, Andaman & Nicobar Islands, Jharkhand, Goa and Telangana.
  • The LED street lights are installed after a detailed survey of the existing infrastructure is undertaken. The survey inter-alia looks at the infrastructure gaps, verification of inventory and mapping locations for setting up CCMS (Centralized Control and Monitoring System)
  • Progress of the programme may be seen at online dashboard https://slnp.eeslindia.org

 

Business Model: SLNP

EESL replaces the conventional street lights with LEDs at its own costs (without any need for municipalities to invest) and the consequent reduction in energy and maintenance cost of the municipality is used to repay EESL over a period.  The contracts that EESL enters with municipalities are typically of 7 years duration where it not only guarantees a minimum energy saving (of-typically 50%) but also provides free replacements and maintenance of lights at no additional cost to the municipality.  The service model enables the municipalities to go in for state of the art street lights with no upfront capital cost and repayments to EESL are within the present level of expenditure.  Thus, there is no additional revenue expenditure required to be incurred by the municipality for change over to smart and energy efficient LED street lights.

 

 

 

State/UT wise detail of progress of SLNP programme-

S. No.

State/ UTs

No. of LED Street Lights installed by EESL

1

Andaman & Nicobar

                                             14,911

2

Andhra Pradesh

                                       28,91,046

3

Assam

                                             28,073

4

Bihar

4,40,280

5

Chandigarh

                                             43,853

6

Chhattisgarh

                                          3,70,885

7

Delhi

                                          3,35,181

8

Goa

                                          2,07,110

9

Gujarat

                                          8,88,578

10

Haryana

                                             80,020

11

Himachal Pradesh

                                             56,946

12

Jammu & Kashmir

1,33,001

13

Jharkhand

                                          4,84,351

14

Karnataka

                                             12,310

15

Kerala

                                             73,574

16

Lakshadweep

                                                1,000

17

Madhya Pradesh

                                          1,05,868

18

Maharashtra

8,50,940

19

Odisha

                                          3,34,819

20

Puducherry

                                                   450

21

Punjab

                                          1,03,465

22

Rajasthan

                                       10,49,724

23

Sikkim

                                                   868

24

Tamil Nadu

                                                7,376

25

Telangana

11,40,177

26

Tripura

                                             75,751

27

Uttar Pradesh

10,93,091

28

Uttarakhand

                                             51,324

29

West Bengal

                                             80,529

Total

1,09,55,569

Benefits of the scheme:

  • Inefficient lights shall be replaced with energy efficient LED Lights which have better life and better output parameters.
  • The replaced LED Lights shall be linked with CCMS(Central Control and Monitoring System) which will offer seamless monitoring and control mechanism through real time dashboard leading to increase of better outputs and for the clients too.
  • Making roads safer for pedestrians and motorists due to enhanced brightness and reduced dark spots.

 

 

 

 

  1. Smart Meter National Programme (SMNP):

Smart Meter National Programme aims to replace 25 crore conventional meters with smart meters in India. Smart meters are connected through a web-based monitoring system which will help to reduce commercial losses of utilities, enhance revenues and serve as an important tool in power sector reforms. EESL business model to roll out smart meters is revamping the current manual system of revenue collection which leads to low billing and poor collection efficiencies.

EESL has signed MoUs/Agreements with the states of Andhra Pradesh, Uttar Pradesh, Haryana, Bihar, NDMC-Delhi, Rajasthan, Telangana for implementation of smart meters

By EESL’s smart metering project, NDMC becomes the first utility to have all their consumers with smart meters without any upfront investment from NDMC

Under this programme, EESL has completed the procurement process of 1.5 crore smart meters. As on date, EESL has installedover 14.07 lakh smart meters in Uttar Pradesh, New Delhi, Haryana and Bihar under this programme.

 

Business Model:

Under the SMNP, EESL is implementing its proven model of bulk procurement, aggregation of demand, and monetisation of savings to roll out smart meters. This roll-out is proposed under the cost plus model, wherein EESL will undertake all the capital and operational expenditure with zero upfront investment from states and utilities. EESL will therefore, receive a nominal Internal Rate of Return that is reflected in a mutually agreed upon, automated payback structure.

Business model of EESL is Cost plus model, wherein EESL;

•       Invests Upfront, Zero CAPEX required from Utilities.

•    AMI project implementation on cost plus BOOT model- EESL recovers actual cost with nominal RoE, Debt interest and Project Management Charges.

•       IT Infra on Cloud for fast deployment and reduction in CAPEX

•       Multiple Meter Supplier to speed up deliveries.

•       Major portion of Savings vest with DISCOMs/ Utilities.

 

In terms of financials for the current projects, EESL expects a certain minimal amount as an inflow per meter per month (single phase meter) from the Discoms. This will be a monthly outflow of Discom (Opex) with no Capex. This makes a financial sense as this model addresses three key challenges of the Discoms- Firstly Unavailability of High Capex for such programs; secondly this monthly outflow will become self-sustainable due to the benefits Smart meters bring to the Discom in terms of increase in billing efficiency, pre-payment functionality of AMI will increase collection efficiency, reduction of revenue management costs like metering increase in operational efficiency in overall business process andincreasing the customer satisfaction.

 

 

 

State/UT wise detail of progress of Smart Meter National Programme:

 

S. No

State/UT

No. of Smart Meters Installed by EESL

1

Bihar

55,231

2

Delhi

58,310

3

Haryana

1,73,408

4

Uttar Pradesh

11,20,145

Total

14,07,094

 

Benefits of the scheme:

 

  • Upfront investment, installation, integration, communication and maintenance of smart meters
  • DISCOMs pay over a 6-7year period rental (Rs. 70-95 per month)
  • Web-based monitoring, Reduction in commercial losses of utilities, Enhanced revenues of DISCOMs (Revenue per month increase between Rs. 200-500)
  • Avg. 30% reduction in AT&C losses where Smart Meter Saturation is >80%
  • Revamping the current manual system of revenue collection which leads to low billing and poor collection efficiencies.
  • Ease for the end consumers, monitoring through mobile based application
  • Online Data Analytics- Effective Load Forecasting with on-line visibility of Consumption pattern, Disconnection of defaulters improving DISCOM cash flows

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