The German Development Bank (KfW) and power PSUs promoted Energy Efficiency Services Ltd (EESL) have signed a loan agreement for €200 million to boost energy efficiency in the country, KfW said in a press release.
EESL will use the development funds to invest in energy efficiency measures for private households, public buildings, street lights (LED technology), water supply systems, agriculture (replacing pumps) and industry.
“The plans will lead to major reductions in CO2 emissions for the world’s third largest energy consumer and producer of greenhouse gases,” said Dr Norbert Kloppenburg, member of the executive board of KfW Group. “With this innovative business model, India is breaking new ground when it comes to promoting large-scale investments in energy efficiency, making it a global pioneer in this field.”
According to Kloppenburg, this project follows on from the ‘energy efficiency in public buildings and infrastructure’ programme, which helped to save around 600,000 tonnes of CO2 per year by successfully executing the Domestic Efficient LED Lighting Programme (DELP). This saving corresponds to emissions from approximately 70,000 Indian households.
Overall, he added, the Federal Republic of Germany has committed €600 million for energy efficiency measures in the country, including the €50 million for EESL in 2014.