EOI for Empanelment of Consultants for Preparation of State-wise ...

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EOI for Empanelment of Consultants for Preparation of State-wise Energy Savings Plan / General Consultancy and for Preparation of Detail Project Reports on Waste Heat Recovery in some Selected Units of Small & Medium Enterprises (SME) Clusters along with Demonstration in a few of them Contact Person for queries R. K. Puram, Sector – 1, New Delhi – 110066 Arijit Sengupta Asstt. Energy Economist Bureau of Energy Efficiency 4 th Floor, Sewa Bhawan, R. K. Puram, Sector – 1, New Delhi – 110066 Phone – (011) 26179699 (5 lines) Fax – (011) 26178352 Email – asengupta@beenet.in 2.0 BACKGROUND INFORMATION India faces formidable challenge in meeting its energy needs and in providing adequate energy of desired quality in various forms in a sustainable manner and at competitive prices. Target is to achieve 8% to 10% economic growth rate over the next 25 years. To deliver this growth on sustainable basis and to meet the energy needs of all citizens, at the very least, India needs to increase its primary energy supply by 3 to 4 times and its electricity generation capacity/supply by 5 to 6 times of their 2003-04 levels. India’s commercial energy supply would need to grow from current 5.2% to 6.1% per annum while its total primary energy supply would need to grow at 4.3% to 5.1% annually. By the year 2031-32, power generation capacity must increase to nearly 800000 MW from the current capacity of around 160000 MW inclusive of all captive plants. Similarly, requirement of coal, the dominant fuel in India’s energy mix will need to expand to over 2 billion tonnes/annum based on domestic quality of coal. Meeting the energy challenge is of fundamental importance to India’s economic growth imperatives and its efforts to raise its level of human development. In all sectors of the economy, improving energy efficiency before increasing energy supply is generally the more economically and environmentally efficient national strategy. The emphasis for the future is to look for technologies to promote energy efficiency, demand side management and conservation. The success of Government of India’s plan lies with effective policy framework, implementation and promotion of energy efficiency initiatives. The Energy Conservation Act, 2001; created Bureau of Energy Efficiency (BEE) which was assigned a quasi-regulatory role looking after policy advisory and a catalyst to promote energy efficiency in the country. Energy efficiency assumes significance for the nation in the current environment of shortages and concerns over climate change. It is a win-win situation for all – for facility owners increased energy efficiency means availability of more resources and for nations energy efficiency offers a number of benefits including improved use of natural resources, reducing energy imports, Page 6
EOI for Empanelment of Consultants for Preparation of State-wise Energy Savings Plan / General Consultancy and for Preparation of Detail Project Reports on Waste Heat Recovery in some Selected Units of Small & Medium Enterprises (SME) Clusters along with Demonstration in a few of them improved balance of trade, conservation of foreign exchange, reduced capital requirement for new energy production facilities, and reduced environmental pollution from energy use, and production. It offers enormous promise for a robust market to exist under the PPP model (Energy Service Company (ESCO) based). Given that BEE has been assigned a quasi-regulatory role, taking on implementation may lead to conflict of interest as BEE is required to suggest policies, identify programs and then participate in the bidding process for implementing them. Hence, there was the need to have a separate implementing agency which addresses all the issues/barriers which impede the progress in investments in energy efficiency projects and can take the implementation leadership position in the market. In this regard, Energy Efficiency Services Limited (EESL) is a joint venture company promoted by 4 Central Public Sector Undertakings (CPSUs), namely National Thermal Power Corporation Limited (NTPC Limited), Power Grid Corporation of India Limited (PGCIL), Power Finance Corporation Limited (PFC Limited) and Rural Electrification Corporation (REC) was constituted. It is registered under the companies Act, 1956 on 10 th December 2009 and has obtained the commencement of business certificate on 11 th February 2010. It will be the first such company exclusively for implementation of energy efficiency in South Asia and amongst a very few such instances in the world. The authorised share capital of EESL is Rs. 190.00 crores with equal contribution from the 4 promoters. After analysing the market potential and future scenario, business models have been devised for various activities. In the existing scenario, EESL could work in following broad areas as given in Fig. 1. Figure 1: Role of EESL EESL as ESCO Page 7
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