Page 285 - Low Carbon Development in China and India
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is intended to address the key barriers of (i) availability of long-term
finance at reasonable rates of interest to solar and energy-efficient
applications, and (ii) build capacity within financial institutions to
assess commercial risks in these businesses.
Similar to PRGF, the World Bank is facilitating efforts from Clean
Technology Fund (CTF) and Global Environmental Facility (GEF) for
a Partial Risk Sharing Facility (PRSF) to initiate the Energy Service
Performance Contracting market for Energy Efficiency projects in large
scale industries. Its objective is to achieve energy savings by catalyzing
the market for energy service companies (ESCO) implemented energy
efficiency projects in India.
The PRSF comprises of a risk-sharing fund corpus of USD 35 million
implemented by SIDBI, the Project Execution Agency (PEA) and
funded from the CTF contribution of USD 25 million and a GEF
contribution of USD 10 million (Component 1) and a TA and capacity
building component from a GEF component of USD 8 million, with
USD 6 million implemented by SIDBI & USD 2 million implemented
by EESL (Component 2) (SIDBI 2014).
Such initiatives aiming at lower cost financing can help make
more projects financially viable, bring advanced renewable energy
investments closer to grid parity faster and reduce payback periods of
energy-efficient investments.
Special Funds at the Sub-National Level
A formal mandate to setup state energy conservation funds is mentioned
in the Energy Conservation Act 2001 (EC Act 2001) that requires each
state to designate an agency to implement the Act, and establish the
State Energy Conservation Fund (SECF). The establishment of SECF
is for the purposes6 of promotion of efficient use of energy and its
conservation within the state. The Bureau of Energy Efficiency (BEE),
Ministry of Power, Government of India, provides a contribution of
INR 4 crore (approx. USD 0.66 million)7 to those states willing to set
up an SECF managed by a designated agency in the individual states.
(BEE undated)
6 Paragraph 16, Energy Conservation Act, 2001
7 The government scheme is for contribution by the Ministry of Power to all the
State/UTs with a maximum ceiling of INR 4 crore (approx. USD 0.67 million)
for any State/UT provided in two instalments of INR 2.00 crore (approx. USD
0.33 million) each. The second instalment of contribution to SECF was released
only after the states have provided a matching contribution to the BEE’s first
instalment.
250 Low Carbon Development in China and India
finance at reasonable rates of interest to solar and energy-efficient
applications, and (ii) build capacity within financial institutions to
assess commercial risks in these businesses.
Similar to PRGF, the World Bank is facilitating efforts from Clean
Technology Fund (CTF) and Global Environmental Facility (GEF) for
a Partial Risk Sharing Facility (PRSF) to initiate the Energy Service
Performance Contracting market for Energy Efficiency projects in large
scale industries. Its objective is to achieve energy savings by catalyzing
the market for energy service companies (ESCO) implemented energy
efficiency projects in India.
The PRSF comprises of a risk-sharing fund corpus of USD 35 million
implemented by SIDBI, the Project Execution Agency (PEA) and
funded from the CTF contribution of USD 25 million and a GEF
contribution of USD 10 million (Component 1) and a TA and capacity
building component from a GEF component of USD 8 million, with
USD 6 million implemented by SIDBI & USD 2 million implemented
by EESL (Component 2) (SIDBI 2014).
Such initiatives aiming at lower cost financing can help make
more projects financially viable, bring advanced renewable energy
investments closer to grid parity faster and reduce payback periods of
energy-efficient investments.
Special Funds at the Sub-National Level
A formal mandate to setup state energy conservation funds is mentioned
in the Energy Conservation Act 2001 (EC Act 2001) that requires each
state to designate an agency to implement the Act, and establish the
State Energy Conservation Fund (SECF). The establishment of SECF
is for the purposes6 of promotion of efficient use of energy and its
conservation within the state. The Bureau of Energy Efficiency (BEE),
Ministry of Power, Government of India, provides a contribution of
INR 4 crore (approx. USD 0.66 million)7 to those states willing to set
up an SECF managed by a designated agency in the individual states.
(BEE undated)
6 Paragraph 16, Energy Conservation Act, 2001
7 The government scheme is for contribution by the Ministry of Power to all the
State/UTs with a maximum ceiling of INR 4 crore (approx. USD 0.67 million)
for any State/UT provided in two instalments of INR 2.00 crore (approx. USD
0.33 million) each. The second instalment of contribution to SECF was released
only after the states have provided a matching contribution to the BEE’s first
instalment.
250 Low Carbon Development in China and India
