In 2015, India pledged to reduce the energy intensity of its economy by 33 to 35 percent below 2005 levels by 2030. The Indian government has also found that increased energy efficiency is critical to containing energy demand without jeopardising the country’s growth. Now India’s ambitious initiatives have won significant funding support from two major SE4All partners: the World Bank and the Asian Development Bank (ADB).
In February, ADB approved a 115 million loan to support replacing incandescent light bulbs with more efficient LEDs in both street lighting and households. This loan will also promote the use of more efficient agricultural pumps. Then in April, the World Bank approved a USD 400 million loan for promoting the use of efficient LED light bulbs, fans and agricultural pump sets.
These efficiency measures offer multiple benefits: lower electricity bills, peak power shaving and reduced losses for distribution companies. Both loans will be directed to Energy Efficiency Services Limited (EESL), an entity under the Union Power Ministry. EESL was set up as a government-owned energy services company to facilitate energy efficiency investments, including work designing, implementing, monitoring and investing in energy efficiency projects.