Carbon market opportunities through energy
efficiency projects
India Japan Environment week

12th January 2023

Girja Shankar, General Manager

Content• About EESL

• Energy Efficiency Market• Opportunities in cooling sector• Integrated Energy Efficiency Solutions (IEES)• Standard Package Offers (SPO) for Industries• Standard EE Products• New Initiatives (DEEP, IoT solutions)2About EESL
EESL is a joint venture company of four Public Sector Enterprises (PSU) of Ministry of Power,Govt. of India

A Public Energy Service Company(ESCO) underMinistry of Power

100% share holding with Public SectorEnterprises

Established in the year 2009

Board of Directors represented by Ministryof Power and Stake holding companies

EESL Programme
Programs

Milestones

Programmes

Energy Efficiency Business

Clean Energy Business

1736.73 crore LED bulbs, 72.14 lakh
LED Tube lights and 23.44 lakh
Energy efficient fans distributed

UJALA
Unnat Jyoti by
Affordable LEDs for All
Residential

PublicInfrastructure

Public Infrastructure

Buildings

8

1.17 crore LED street lights installedwith CCMS

Decentralized Solar
93SMNP
Smart Meter National
Progamme

Solar Study Lamps

Retrofitting work in 10,423+
Government Buildings has been
completed

BEEP
Building Energy
Efficiency programme

10Trigeneration

416.52 lakh smart meters installed

MEEP
Municipal Energy
Efficiency program

Electric Vehicles

Agreement for IGEA with 25
States/UTs. IGEA report submitted
for 390 cities

61+ lakh solar study lamps
distributed
Project under Implementation with
M&M, Ready pipeline of more than
40 MW.

1176,222 Agriculture pumps replacedwith efficient BEE star rated Pumps.
6

Agricultural

131 MWp of solar power Projects
Installed/ Commissioned

Green Transportation

5AgDSM
Agricultural DemandSide Management

1.5 lakh Solar LED Street LightsInstalled

AJAY
Atal Jyoti Yojana

2SLNP
Street Lighting National
programMilestones

Public Charging
Infrastructure

National EMobility
Programme

1,514 e-cars deployed/underdeployment; 470 AC & DC Captive
chargers installed
66 public charging stations
installed

EESL’s Business Model••••••

Take the upfront risk of performancefor end consumers/ users
Assure end users of Pay As You Save(PAYS)
Innovativerisk
allocation
ofprocurement, installation, service
and maintenanceAggregate demand
Bulk procurements
economies to scale

toleverage

Passing on the benefits to end users formore demand aggregation– virtuous
cycle

Minimum
performancerisk

Complete
TechnicalAssistanceLess Paper
Work

Benefits:
Innovative
Financialmodel
Benefits ofEconomies ofScale

No Collateral

Repayment
fromMonetizedenergySaving5

Energy Efficiency market

6Energy Efficiency Market in India

India
•
•
•

3 rd Largest Primary
Energy Demand
1 / 3 rd of World per
capita Electricity
consumption
1 / 13 th of US per capita
consumption

Population:

1.32 billion

GDPGDP Growth::$ 2.26 trillion
7.1% pa

GDP Share:

Service Sector (58%)
Industry (25%)
Agriculture ( 17%)

Strategic Initiatives
Challenges/ opportunities• Cities accommodate nearly 31% of India's current population and contribute 63% of GDP (Census 2011).
• Urban areas are expected to house 40% of India's population and contribute 75% of India's GDP by 2030

• 3 Missions of NAPCC 2008 and reports of performance of NAPCC• National Solar Mission: 100 GW Solar power target by 2022
• National Mission on Enhanced Energy Efficiency• National Mission on Sustainable Habitat: Smart city mission, HRIDAY and AMRUT scheme• Report of the Expert Group on Low Carbon Strategies for Inclusive Growth: (2014)• India’s Intended Nationally Determined Contribution (INDC):••••

40% of electric power installed capacity from non-fossil fuel by 2030, 175 GW renewable power by 2022
20-25% reduction in Emission intensity of GDP by 2020 compared to 2005 levels
Emission reduction target of 3.59 billion tonnes of CO2 equivalent over BAU
Emphasis on Sustainable Development, Climate Justice & Lifestyles

Energy Efficiency Landscape

Source: BEE Unnatee reportEnergy Efficiency Market in India• Primary Energy Demand in India: 790 Mtoe (2016-17):• Energy Saving potential: 87 Mtoe by 2031 ; (11.64 Mtoe by 2021)• Energy Efficiency Investment potential: INR 8409 billion by 2031

Source: BEE Unnatee reportEnergy Efficiency Market in India• Primary Energy Demand in India: 790 Mtoe (2016-17):• Energy Saving potential: 87 Mtoe by 2031; (11.64 Mtoe by 2021)• Energy Efficiency Investment potential: INR 8409 billion by 2031
Saving Potential
Municipal
1%

Investment Potential (Cr.)

Commercial
6%
Agriculture
6%

Municipal
2%

Commercial
10%
Agriculture
11%

Industry
36%

Domestic
14%
Industry55%

Domestic
14%
Transport
18%Municipal

Commercial

Source: BEE UNNATEE report

Agriculture

Domestic

Transport

Industry

Municipal

Commercial

Transport
27%
Agriculture Domestic

Transport

Industry

Energy Efficiency’s role in reducing emissions by 2030-31
Investment Potential in Energy Efficiency by 2030-31
3500
3000
2500
2000
1500
1000
50003071

2260

915

1202
812
148

Agricultural

Commercial

Domestic

INR bnMunicipal

Industrial

INR bn / MtCO2e7060
50403020
100

Annual Emission Savings of 438 MtCO2e fromenergy efficiency initiatives
3%
22%

Agricultural
Commercial

23%

Domestic
Municipal
Industrial

Transport

42%

Transport• To achieve its NDC targets, India needs to reduce its annual emissions from all sources by 1000 MtCO2e by the year 2030-31• By 2030-31, annual emission reduction from energy efficiency measures is estimated at 438 MtCO2e• To enable this reduction, the estimated investment potential is INR 8,409 billion by 2031, largest requirement of INR 3,071 billion inIndustry (36%)• On overall basis, for every million ton of reduction in CO2 emissions an investment of INR 19.2 bn is required• Domestic and Industrial segment are the most economic avenues for reducing emissions requiring lower upfront investment/ MTCo2• Industrial Segment is the most critical segment:o Represented 63% of Total Energy Demand in 2016-17
o To contribute 55% of total energy savings and 42% of total reduction in annual emissions by 2031
Source: BEE UNNATEE reportPanchamrit and carbon neutral pathways

1• By 2030, increase non-fossil energy
capacity to 500 GW

2• By 2030, fulfill 50% ofenergy requirements
through renewable energy

3• Reduce one billion ton of the total
projected carbon emissions betweennow and 2030

4

• By 2030, reduce the economy's
carbon intensity to less than 45%

5• Achieve the target of net zero
emissions by 2070

Opportunity
assessment

Costeconomics

EnergyConservations

Energyefficiency

Electrifying

Blending

Fuel switching

Driver for Carbon market
Energy Conservation Bill [2022] Amendment
CARBON TRADING provisions:• The Bill [passed in Aug. 2022] empowers Central government to specify a Carbon credit
trading scheme.
• Carbon credit implies a tradeable permit to produce a specified amount of carbon
emissions.
• Central government or any authorised agency may issue Carbon credit certificates toentities registered under and compliant with the scheme.
• The entities will be entitled to purchase or sell the certificate. Any other person may alsopurchase a Carbon credit certificate on a voluntary basis.

Opportunities in cooling sector (DES)(Identified under EESL OECC study)

15

Cooling need: A developmental need!
Emphasis on Sustainable Development, Climate Justice & Lifestyle: INDC
ICAP targets (2037-38) :• Cooling demand 8 times, building sectorcooling demand 11 times,• reduce cooling demand : 20% to 25%• Continued growth in building construction,• reduce refrigerant demand: 25% to 30%
rate of urbanization, and improved lifestyle• Reduce cooling energy requirements: by 25% to 40%
and aspirations

The TPES requirement for cooling is expected to grow nearly 4.5 times in 2037-38 under Reference Scenario, over the 2017-18
16baseline. Under Intervention Scenario this requirement can be reduced by up to 30%

District cooling System Initiatives
LIGHT TOUCH ▪ 7 cities supported and 5 city rapid assessments published (Bhopal,Coimbatore, Pune, Rajkot, Thane)▪ Methodologies and tools developed and made for all cities▪ Supported Chennai & Surat under GEF Sustainable Cities Impact
Programme

PILOTS▪ Amaravati, Hyderabad Pharma City, Rajkot and Thane currently supported
as pilot cities. Exploring Gujarat as a pilot state▪ Technical, financial and legal support for pilot projects▪ Support for long-term planning on district cooling and policy development▪ Capacity building, energy mapping, Monitoring and Reporting framework

NATIONAL▪ EESL national coordinator▪ National potentials study for district cooling published▪ Global and country-level Virtual Platform▪ Technical assistance being established as support to NIUA
▪ Proposed policy frameworks, financial mechanisms (GEF-7 proposal made)17

DES updates
new space cooling demand inIndia connect to district cooling:
51 million TR ± 15%(If developed: reduce 25GW of peak power
demand; 27 million tCO2; 4361 tonnes ofrefrigerant and save 32 TWh of energy
annually)••

Lack of promotion at national and state level urban development
programs/schemes
Lack of policy drivers like Act, codes, electricity tariffs, fiscal instruments,contracting and leasing arrangements;•••

Design risks like under or over projected loads
Insufficient research and case studies in India
Lack of mapping of underground utilities and reserving space••

Higher capital investment requirements
Revenue generation risks due to under or over projectedloads•••

Lack of skilled professionals to design, operate and maintain
Lack of awareness among key stakeholders
Lack of capacity in government sector to develop master plans withintegrating district coolingDES updates• EESL UNEP signed SSFA on DES 2018

▪ 7 cities supported and 5 city rapid assessments published (Bhopal,Coimbatore, Pune, Rajkot, Thane)• National Project Steering Committee(Co-Chaired by MoEFCC & BEE:

▪ Methodologies and tools developed and made for all cities• UNEP-EESL conducted Rapid
assessment study on DES• Conduct National District Coolingpotential study• Part on ICAP, HCFC Phase-out
Management Plan (HPMP-I/II)▪ Can support Chennai & Surat under GEF Sustainable Cities Impact
Programme▪ Seeking cofinance and collaboration to support all light touch cities▪ Amaravati, Hyderabad PharmaCity, Rajkot and Thane currently supported aspilot cities. Exploring Gujarat as a pilot state▪ Technical, financial and legal support for pilot projects▪ Support for long-term planning on district cooling and policy development▪ Capacity building, energy mapping, Monitoring and Reporting framework▪ EESL national coordinator▪ National potentials study for district cooling▪ Global and country-level Virtual Platform▪ Technical assistance being established as support to NIUA

Strategic Initiatives/ Reference documents• India Japan Vision Statement 2018: Partnership for global action• Strengthening environmental partnership on climate change and wastewater management• Finalizing the work programme for implementation of Paris agreement and accelerate furtherconsultations for establishing the Joint Crediting Mechanism• Strengthening cooperation on sustainable and clean form of energy: renewable energy, hydrogenbased energy• Japan India Energy Transition Cooperation Plan
• Collaborate on energy efficiency, energy storage, manufacturing of eco-friendly vehicles
including hybrid and electrical vehicles• Member of International Solar AllianceTerms of Reference of the study:

EESL conducted study on DES opportunities under JFJCM
Objective of the study under the OECC study (December 2020).
•Identification of potential JCM project in India• Identification of potential JFJCM projectConduct a study on district cooling systems in India to:

Identify the opportunities to introduce
district cooling systems in India with a viewto contribute to improving energy efficiency
in industrial and commercial zones

Assess whether the said identified
opportunities can be developed into the ADBfinanced project with support from the JFJCM.

The brief study on district cooling systems in India has been made under the assignment

Cooling Demand Potential as per ICAP
❑ The urban population of the country is expected to growfrom 410 to 814 mn from 2014 till 2050 (census data).

Space cooling in buildings

Refrigeration❑ India is going to be the largest consumer of space cooling in
the world with space cooling potentially responsible for
28% of electricity demand and 44% of the peak load.

Transport air conditioning
Cold chain❑ The building sector is the biggest consumer of energy andaccounts for approximately 57% of the total coolingdemand (ICAP).
❑ Dominated by air-conditioning systems used for spacecooling.
❑ This clearly depicts a rise of nearly 5.3 times in theelectricity consumption by chillers in the coming twodecades.

SHARE OF COOLING DEMAND (2018) (IN TERMS OFENERGY)
cold chain, 0.50%

Refrigeration,
19.90%

Transportation
Air conditioning,
22.89%Space Cooling(residential andcommercial),
56.72%

Breakup of Existing Cooling Demand
2017-18 - 135000 MWh❑ Room air conditioners hold a dominant share of thesector’s cooling energy consumption – at 42%
Room Air Conditioner

8%

Chiller System
42%

30%

VRF System
Packaged ACFan8%9%Air Cooler

3%❑ Energy efficiency in room air conditioner segment isalready targeted through the following initiatives:

Share of Cooling Demand (2017-18) in (mn TR)
Space Cooling (residentialand commercial)

5%

Refrigeration

24%
51%
20%

❑ The consumption in the commercial sector, which
comprises of Chillers, VRF (already being used in highend residences also apart from commercial buildings)
and packaged AC is currently at 27000 GWh

Transportation Air
conditioning

Cold chain❑ Standard and labelling programme of Bureau of Energy Efficiency(BEE) for fixed as well as variable speed air conditioners❑ SEAC propgramme of Energy Efficiency Services Limited for
promoting super-efficient and climate friendly air conditioners

Projection of growth in cooling demand
Sector-wise Growth in Cooling Demand

Share of Cooling Demand (2027-28)
Space Cooling(residential andcommercial)

260

4%

Refrigeration

19%
136

11%

7675
30

35

7.5

2017-183350

92022-23

Space Cooling (residential and commercial)

Refrigeration

Transportation Air conditioning

Cold chain45
2027-28

1566%

Transportation
Air conditioning
Cold chain❑ The space cooling demand is going to rise by 3.46 times from the year 2018 to the year 2028 (ICAP).
❑ It was observed that the national cooling demand for space cooling, in commercial buildings, lies in the rangeof 260 mn TR ± 25%, by year 2027-28.
❑ However, it is to be noted that a considerable percentage of space cooling demand can be tapped/catered by
DCSs in India.

DCS Potential
Tier-1 cities (12 cities)
Parameters

Coolingrequirement,(mn TR)

Potential of DCS in new commercial buildings inIndia in next 10 year

3.40

Tier-2 city (9 cities)

DCS plants

Coolingrequirement (mnTR)

84

83.77

DCS plants

Coolingrequirement(mn TR)

DCS plants

2018.111031.315

Potential of DCS in residential buildings in India in
next 10 year

Space cooling TR requirement in next 10 Years

1.3, 7%18.11, 93%

Potential of DCS in newcommercial buildingsin India in next 10 year

Potential of DCS in
residential buildings inIndia in next 10 year

Total, 21 cities

Total no. of DSC system required in next 10 Years

15, 13%103, 87%

Potential of DCS in newcommercial buildingsin India in next 10 year

Potential of DCS in
residential buildings inIndia in next 10 year

Investment potential of DCS in next 10 years❑Number of District cooling plants is approximately 118 nos.
❑Investment potential is about 13.5 Bn $❑Annual Energy Saving 2964 GWh❑CO2 emission reduction 2520 Mn Kg❑Potable water savings in cooling tower make up water 29755 mn liters

Major DCS projects in India❑ GIFT City, Ahmedabad – 180,000 TR capacity❑ DLF cyber city (trigeneration based) – 78,000 TR capacity❑ Delhi Airport – Approx. 20,000 TR capacity❑ Mumbai Airport – Approx. 20,000 TR capacity❑ Chennai Airport – Approx. 12,000 TR capacity❑ Kolkata Airport – Approx. 12,000 TR capacity❑ Dhirubhai Ambani Knowledge City, Navi Mumbai- Approx. 12,000 TR capacity❑ Infosys (various campuses) – Approx. 50,000 TR (approx.)❑ Pragati Maidan, Delhi - Approx. 12,000 TR capacity (In Construction)❑ India International Convention Centre, Delhi – Approx. 10,000 TR capacity (In Construction)

EESL’s portfolio on industrial energy efficiency

28

Integrated Energy Efficiency Solutions

IEES Solutions

Baseline
Energy Consumption

130-50 %Lighting
2LED Technology

AirConditioner

Super Efficient AC with ISEER> 5.4

3Integrated EEServices
Resultant
Energy Consumption

HotelBuildings

7

EE Motor

IE-3 Motor as per IS 12615

4SolarSolutions

TriGeneration

Over-All System Efficiency >80 %Corporates

5 Energy audit

6Standard Package
offer

Standard Package Offer
Standard
Package of OfferIdentified Energy Efficient Technologies (Standard Package Offer)

TextileScrew Compressor(PM motor +VFD)
PLC Automation
Boiler automation
Micro Turbine
Condensate
recovery

ForgingInduction Billetheater
Special purpose
machineServo Motor

Chemical
Scroll Chiller

Vertical Agitator
IBR Boiler
Agitated Nutsche
Filter Dryer(ANFD)

Rice MillsTea
FRP based Fan
Modulating Burner
Dryer Automation
Weatheringautomation

Paper

LSU Dryer

Vacuum Pump

IBR Boiler

Direct Driven Agitators

SRRM &Foundry
Metallic Recuperator
Automation ofreheating furnace
Divided Blast Cupola
Swirl Burners

PharmaAutomatic tube
cleaning system
Electric VacuumPump
Side Stream Filtration
Mist Cooling Towers

Demonstration of Energy Efficiency Project(DEEP)• MoU Date: 24th March 2022
• Objective: To upscale commercialization of innovative EE technologies across PAT sector
for designated consumers• Offerings:• Phase I: Undertake projects in 27 facilities for 8 innovative technologies• Phase II: Upscaling of technologies for market transformation• Project Fund allocation (INR 63.99 Cr)• Demo Stage:• Upscale:• Tenure: 1 year
• Financial Model: Upfront payment through BEE funds and DC contribution

Demonstration of Energy Efficiency Project(DEEP)

Feasible
Equipment

EoI

Feasible
Project

Feasible
Equipment

EoI

Feasible
Project

Feasible
Equipment

projects in 27 facilities for 8
innovative technologies•PhaseII:

Upscalingtechnologies
transformationforofmarket

Total (4 tech)

Feasible
ProjectPhase I: Undertake demo

LG Waste Heat
RecoveryEoI•

Turbo BlowerFeasible
Equipmentfor designated consumers

Efficient Compressor

SectorAluminium
CementChlor Alkali
Fertilizer
Iron and steel
Petrochemicals
Pulp and paper
Refinery
TextilesThermal power
plant

12
11
302
1
300
1000
20
200
4000204

2151
1531181
121
15101
41391
1
1110
3
71
401
2
100
30
301
1
100
20
501
1
200
70
50011
10
400001
110
40000511044262311542181152273311214452174332222332100000005413Grand Total

16713 40 28 74 12816 12711 80 50 114

commercialization of innovative

EE technologies across PAT sector

Micro-turbine

Feasible
ProjectDEEP

EoI

upscaleFeasible
Equipment

To

Feasible
Project

Objective:

EoI•

Second set of Technologies (EoI-2A/ 3A)
1. High Grade Waste Heat Recovery system (2A1)•Scrap Preheating with Electric Arc furnace Exhaust•

Regenerative Burner for Reheating Furnace•Recuperator

2. Cooling solutions from waste heat recovery (2A2)
3. Industrial automation with an objective of energy efficiency improvement
along with Plant Performance Management/ Process Optimisation (3A1)
4. Inlet air cooling system from waste heat recovery (3A2)

5. IE4 motors with VFD (3A3)Girja Shankar
General Manager & Head CDP(Corporate Driven Programme)
gshankar@eesl.co.in
Registered and Corporate Office:Energy Efficiency Services Limited
5th to 7th Floor, Core - 3, SCOPE Complex, Lodhi Road,New Delhi - 110003, India
M: +91-9868880656
W: www.eeslindia.org