Energy Efficiency Financing Platform

The scheme seeks to help stimulate necessary funding for Energy Service Company (ESCO) based delivery mechanisms for energy efficiency.

• The objective of the Energy Efficiency Financing Platform (EEFP), an initiative under National Mission on Enhanced Energy Efficiency, is to create a mechanism towards mainstream financing of energy efficiency projects.

The costs will be recovered from the energy savings, which will also reduce the subsidy bill of the state government. EEFP will provide instruments like bankable detailed project reports and other risk mitigation measures to enhance comfort for lenders towards aggregated energy efficiency projects. The BEE has undertaken the following measures, in addition to those related to implementing demonstration projects in government buildings, in order to stimulate the market: • Putting in place a government-supported standard methodology that covers the entire project chain from audit to performance measurement and verification. • Designing a standard performance contract. • Designing appropriate financial mechanisms to fund projects. • Implementing projects and evaluating their impact. • Building capacity in ESCOs and project owners.

In an effort to provide the EEFP, MoUs with PTC India Ltd, Small Industries Development Bank of India (SIDBI) and HSBC have been signed by BEE. PTC India Ltd has commenced financing of several building energy efficiency projects in Rashtrapati Bhavan Estate, ESIC (Employees’ State Insurance Corporation), Hospitals in Rohini and East Delhi, AIIMS, and Safdarjung Hospital. SIDBI has taken up project preparation of energy efficiency in 25 small and medium enterprises (SME) clusters which will then be offered financing. Further, investment grade energy audits have been completed for large public buildings in the country. Based on the recommendations of these audits, iconic buildings in the states will be taken up for implementation through ESCO route.