World Bank pegs India's energy efficiency market at Rs 1.6 lakh crore

NEW DELHI: India's market potential for energy efficient products has risen more than four times to a Rs 1.6 lakh crore, estimated on the basis of the success of UJALA -- the Narendra Modi government's scheme to replace old filament and CFLbulbs with modern LED lamps, says a yet-to-be published World Bank report.

The 3-part report has been prepared for Energy Efficiency Services Ltd (EESL), promoted by state-run power companies, spearheading the government's schemes for demand side management (DSM) through energy efficient items.

"The success of UJALA has reinforced stakeholder confidence in the promise of DSM and reestablished the utility DSM market potential from Rs 44,000 crores, estimated in 2010, to Rs 1.6 lakh crore by considering the end-use energy efficiency opportunities alone," says the report.

It says residential end-use appliances, agriculture/irrigation pumps and municipal infrastructure (street lights etc.) are the top three DSM (demand side management) markets contributing to this potential.

As an example, the report cites the UJALA scheme as the quintessential DSM programme for Indian utilities, driven entirely by market-based mechanisms. The Centre has since also launched similar programmes for energy-efficient fans, air-conditioners and irrigation pumps.

The report estimates the renewed focus on DSM would deliver 178 billion units of electrical energy savings per annum that roughly translates to 18-20% of the current levels of all-India annual electricity consumption and potential to reduce annual carbon emission to the tune of 150 million tonne.

Besides, areas such as demand response, solar photovoltaic (SPV) rooftop systems and smart grids - all pet projects of the power ministry under Piyush Goyal's watch - offer tremendous market potential for utility DSM in India, says the report.

Noting that more than 100 million 7-watt and 9-watt LED lamps has been sold to households and institutional consumers, the report says the scheme is currently delivering over 35 million kWh (kilowatt hour, or unit) of energy savings per day. This translates into more than Rs 14 crore in energy cost savings per day and 2,667 MW of avoided generation capacity.

The emergence of EESL as a public sector energy services company (ESCO) to design, finance and implement utility scale DSM solutions and further lead investment related actions has proved to be a silver bullet towards breaking the institutional and financial logjam to scale up utility DSM resources in India, the report notes.

By adopting unique market driven approaches, derived from globally successful and innovative DSM delivery models, EESL has achieved unprecedented scale of success in advancing utility DSM solutions in the recent past.

 

Source : http://timesofindia.indiatimes.com/business/india-business/World-Bank-pegs-Indias-energy-efficiency-market-at-Rs-1-6-lakh-crore/articleshow/55212793.cms

SMART GRID Bulletin May 2017


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