The Union Ministry of Power, in collaboration with the Bureau of Energy Efficiency (BEE), is taking steps to boost the energy efficiency sector by promoting investments in energy efficiency projects across all states. The goal is to tap into the country's energy efficiency investment potential of Rs.10.02 lakh crore by 2031 through a fast-track mode. As part of this initiative, BEE has invited large industries, establishments, Micro, Small, and Medium Enterprises, and other stakeholders to register on its online Facilitation center and submit willingness forms to seek financial support for implementing energy efficiency projects.
On March 12, 2023, BEE published a detailed notification calling for willingness forms for the implementation of energy efficiency projects. The notification outlines the activities of the BEE Facilitation center, the process to connect with financial institutions, and the benefits that borrowing industries/establishments can receive. BEE has also urged all the State Designated Agencies to spread awareness among large industries, establishments, and Micro, Small, Medium Enterprises in their respective states.
During a recent webinar with all the State Designated Agencies (SDAs), the Deputy Director General Dr. Ashok Kumar, along with BEE Director, Vineeta Kanwal, spoke on behalf of Director General Abhay Bakre about the importance of energy efficiency as a crucial tool to increase energy security, contribute to the country's climate change targets, and ensure future sustainability of energy. Dr. Kumar advised all SDAs, including the Andhra Pradesh State Energy Conservation Mission (APSECM), to make strong efforts in achieving the state energy efficiency targets set by BEE. Ms. Kanwal stated that BEE has established an online Facilitation Centre to enable industries to register once and submit their willingness forms for seeking bank financing to implement energy efficiency measures. The Facilitation Centre's objective is to collect the willingness forms and create awareness of BEE's financing schemes among various beneficiaries, such as large industries/Designated Consumers (DCs) under the Perform, Achieve, Trade Scheme of BEE, MSMEs, commercial and institutional buildings, Municipalities, Corporations. The Facilitation Centre prepares the list of energy efficiency technologies and manages an online platform for mobilizing Energy Efficiency financing in the country. "This initiative by BEE could be a turning point for accelerating energy efficiency in the country," she said.
According to the Director of BEE, the BEE Facilitation Center has identified 73 energy efficiency financing projects worth Rs. 2500 crore from across India in the past few months. Of these, around 30 projects were identified in Andhra Pradesh alone, worth around Rs. 400 crore, making it a leading state in identifying energy efficiency financing projects. The Director emphasized that all State Designated Agencies (SDAs) need to put in extra efforts to materialize energy efficiency financing projects.
In line with BEE's suggestions, the Special Chief Secretary for Energy, K. Vijayanand, has directed the APSECM to focus on motivating and convincing MSMEs, large industries, and other establishments in the state to register on BEE's online Facilitation Center for the submission of willingness forms and the implementation of Energy Efficiency financing projects.
K. Vijayanand also stressed that energy efficiency is the most cost-effective solution to meet the increasing demand for energy in the future and ensure the sustainability of energy resources. He added that Chief Minister Y.S Jagan Mohan Reddy and Energy Minister Peddireddi Ramachandra Reddy fully support strengthening the power sector and providing 24x7 quality power supply to industries. Energy efficiency plays a crucial role in achieving reliable and quality power supply while reducing peak demand. Therefore, there is an excellent opportunity for banks and financial institutes to invest in energy efficiency projects, which can help the state improve energy efficiency, achieve energy security, and boost the economy.
Director BEE explained the process for connecting with financial institutions, stating that borrowing units such as industries, establishments, and MSMEs must register online through the website (https://www.adeetie.beeindia.gov.in/) as a one-time process. They must then submit their willingness forms, along with technical details, online. Subsequently, the BEE facilitation center and financial institutions will approach the borrowing units. The benefits to borrowing industries/establishments include easy access to commercial financing from around 22 financial institutions registered with BEE. Borrowing units have the freedom to negotiate the rate of interest with banks or non-banking financial companies (NBFCs). They can also receive reimbursement of up to Rs.2.90 lakhs for grading of energy efficiency projects, and brief technical evaluation of projects will be made available to banks/NBFCs to enable speedy sanction of loans. The facilitation center is working closely with SDAs, municipalities, DISCOMs, and other nodal agencies to organize a series of webinars and workshops to reach out to hosts, beneficiaries, and borrowers and encourage them to invest in EE projects. Potential beneficiaries can fill out project-related information in the willingness form, which will then be evaluated by the Facilitation Center for Energy Efficiency loan/projects.
The FC may approach the potential borrower /applicant for any shortfall or additional information needed to prepare the recommendation report. The Willingness Form along with the recommendation report shall be submitted to BEE before being forwarded to the Financial Institutions (FIs) for further processing. FIs may coordinate with the potential borrowers for EE financing. It will track the status of loan financing with support from concerned FIs for each energy efficiency project. It has developed a dedicated Web-portal which will be vital in up scaling the efforts and ensuring maximum outreach across all industrial segments in the country. A dashboard would be provided to track the status of EE project financing. A login access would be provided to FIs and beneficiaries.
The Facilitation Centre has prepared a list of EE technologies from various sectors. This list includes the basic parameters which FIs take into consideration, such as proposed Energy Savings in percentage as well as in Monetary Terms, Average cost of Investment and Payback Period. This will also help potential borrowers to take decisions regarding the implementation of EE projects. This list shall be continuously reviewed and updated by the Expert Committee formed by BEE on a regular basis.
Huge investment potential in energy efficiency across the Nation:
|
Sl. No |
Sectors |
Energy Savings Investments by 2031 (Rs.Crore) across the country |
|
1 |
Agriculture |
51450 |
|
2 |
Commercial |
81154 |
|
3 |
Domestic |
120233 |
|
4 |
Municipal |
8337 |
|
5 |
Industrial |
515116 |
|
6 |
Transport |
226039 |
|
7 |
Total |
1002329 |
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