The government, World Bank and state-owned EESL inked a $220 million loan agreement and $80 million guarantee pact to push energy efficiency programme in India.
To be implemented by EESL, the programme will help scale up the deployment of energy saving measures in residential and public sectors, strengthen EESL’s institutional capacity, and enhance its access to commercial financing.
The $220 million loan, from the International Bank for Reconstruction and Development (IBRD) to Energy Efficiency Services Ltd, has a 5-year grace period, and a maturity of 19 years.
“The Government of India, the EESL, and the World Bank on Tuesday signed a $220 million Loan Agreement and a $80 million Guarantee Agreement for the India Energy Efficiency Scale-Up Program,” the joint statement by World Bank and EESL said.
The investments under the programme are expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2, and contribute to avoiding an estimated 10 GW of additional generation capacity.
This would be over 50 per cent of the National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under the Paris Accord.
“The programme will help tackle the financing, awareness, technical and capacity barriers faced by new energy efficiency programs and support the UJALA and SLNP programs of the Government of India,” said Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, said in the statement.