ADB, Central govt ink loan pact to expand energy efficiency investments
The project will meet the government’s commitments to reduce energy intensity of the economy
The Asian Development Bank (ADB) and the Central government have signed a $250 million loan with Energy Efficiency Services (EESL) to expand energy efficiency investments in India.
The loan pact 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 in 2016 for Demand Side Energy Efficiency Sector Project that focused on efficient lighting and appliances.
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.
The project’s smart metering component will help address billing and collection inefficiencies. EESL will also explore business models to generate greater public demand for e-vehicles to support India’s current push for electric vehicles.
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.