Energy Efficiency Services Limited

Energy Efficiency Services Limited
Name	Energy Efficiency Services Limited
Type	Public Sector Undertaking
Industry	Energy efficiency
Founded	2010
Headquarters	New Delhi, India
Area served	India
Owner	Ministry of Power (India); Bureau of Energy Efficiency

Energy Efficiency Services Limited

Energy Efficiency Services Limited is an Indian public sector undertaking established to implement large-scale energy efficiency projects. It was created to operationalize policies framed by the Bureau of Energy Efficiency and to work alongside agencies such as the Ministry of Power (India), Power Finance Corporation, and state-level utilities. The company operates across sectors including buildings, industries, and municipalities, delivering technical services, financing mechanisms, and implementation support.

History

The company was incorporated in 2009 and began operations in 2010 following directives from the Government of India and mandates associated with the National Action Plan on Climate Change and the Perform, Achieve and Trade scheme. Early initiatives drew on models from international institutions such as the World Bank, Asian Development Bank, and bilateral partners including United Kingdom programs and the Department of Science and Technology (India). Initial projects targeted street lighting and public buildings with equipment supplied by vendors linked to the Bureau of Energy Efficiency testing laboratories, leveraging standards influenced by the International Electrotechnical Commission and the Bureau of Indian Standards.

Organization and Ownership

The firm is constituted as a Public sector undertaking with shareholding primarily held by the Ministry of Power (India) and the Power Finance Corporation. Governance follows norms similar to other Indian public enterprises such as National Thermal Power Corporation and Steel Authority of India Limited, with oversight from boards comprising officials from the Ministry of Power (India), representatives of the Bureau of Energy Efficiency, and independent directors drawn from institutions like the Indian Institute of Technology Delhi and the Indian Institute of Management Ahmedabad. Its operational model coordinates with state entities including Delhi Jal Board and municipal corporations such as the Municipal Corporation of Delhi.

Programs and Services

The company implements energy performance contracts, audits, retrofits, andESCO-style delivery similar to international providers like Siemens and Schneider Electric. Major services include retrofitting public street lighting, replacing conventional lamps with LEDs certified by the Bureau of Indian Standards, conducting energy audits per protocols influenced by the International Energy Agency, and delivering project financing akin to models used by the KfW and European Investment Bank. It administers schemes aligned with national policies such as the Atal Mission for Rejuvenation and Urban Transformation and supports programs tied to the Smart Cities Mission and state renewable initiatives.

Projects and Impact

Notable implementations include large-scale LED conversions across municipal bodies including projects in New Delhi, Mumbai, Bengaluru, and Kolkata. Projects often interface with distribution companies like Tata Power Delhi Distribution Limited and BSES Rajdhani Power Limited and involve lighting manufacturers such as Philips and Havells. Reported impacts cite reductions in electricity demand comparable to projections by the International Renewable Energy Agency and greenhouse gas savings consistent with calculations from the Intergovernmental Panel on Climate Change. Work in industrial energy efficiency has engaged partners in sectors represented by trade bodies such as the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce & Industry.

Financial Performance and Funding

Funding sources include equity from state shareholders, debt facilities from institutions like the State Bank of India and Power Finance Corporation, and project-specific financing aligned with instruments used by the Asian Development Bank and the World Bank. Revenue streams come from energy performance contracts, carbon financing mechanisms under regimes comparable to the Clean Development Mechanism and voluntary carbon markets, and service fees linked to municipal contracts. Financial disclosures mirror reporting practices of other PSUs including Power Grid Corporation of India and are subject to audits by firms such as the Comptroller and Auditor General of India.

Partnerships and Collaborations

The company collaborates with international agencies such as the United Nations Development Programme, bilateral donors including United Kingdom, multilateral lenders like the World Bank and the Asian Development Bank, and technology partners including Siemens, Schneider Electric, and Philips. Academic collaborations involve institutions such as the Indian Institute of Technology Bombay and the Indian Institute of Science. It has undertaken joint initiatives with state governments (for example, Government of Maharashtra and Government of Karnataka), municipal corporations, and utilities including Bharat Heavy Electricals Limited and NTPC Limited.

Controversies and Criticism

The firm has faced scrutiny over contract procurement practices and the pace of project implementation in some municipal contracts, drawing attention from bodies such as the Comptroller and Auditor General of India and media outlets like The Hindu and Times of India. Critics have compared performance and transparency against benchmarks set by international firms such as ABB and Eaton, and questioned reliance on carbon financing mechanisms similar to debates surrounding the Clean Development Mechanism. Operational challenges cited include coordination with state distribution companies such as Jaipur Vidyut Vitran Nigam Limited and hardware quality concerns involving suppliers referenced in procurement disputes.

Category:Public sector undertakings in India Category:Energy conservation in India