The Asian Development Bank has recently announced that it will grant a loan worth $13 million to government-owned energy service company EESL. The investment, reportedly, is touted as an effort to promote efficient energy usage in India.
As per trusted sources, Asian Development Bank (ADB) and EESL inked a $13 million grant, which will be provided by the Global Environment Facility, to further finance an ongoing ADB-funded project that promotes end-use energy efficiency.
According to sources familiar with the development, the grant that will be managed by ADB is tied to the $200 million ADB-funded Demand-Side Energy Efficient Sector Project. The bank approved it in 2016 to fund the installations of millions of energy-efficient lights for homes and streets as well as energy-efficient water pumps throughout India.
Kenichi Yokoyama, Country Director of ADB’s Indian Resident Mission, who also signed the grant agreement, stated that ADB’s funding will help EESL fund energy service utilities with the installation of energy-efficient technologies like light-emitting diode streetlights with municipalities and at the same time subsequently explore new innovations and its self-sustaining business models. The existing loan will focus on saving energy up to 3,800 gigawatt-hours yearly, Yokoyama added.
The announcement was observed at the International Symposium to Promote Innovation and Research in Energy Efficiency 2018 with the presence of R.K. Singh, Union Minister of India.
In response to the event, Singh stated that despite less consumption India will behave responsibly even though countries that consume more should take up more responsibilities, Financial Express reported.
Saurabh Kumar, Managing Director of EESL was quoted saying that additional financing for the project through GEF grant will be utilized by EESL for investing in new and emerging technologies such as efficient motors, trigeneration, air-conditioners, and associated new business models.
ADB further claimed that the endorsement of more energy efficient technologies through additional funding will lead to minimum electricity costs and reduced GHG emissions.