The project is expected to contribute to the government’s commitments to reduce the energy intensity of the economy.
In a push to Narendra Modi-led government’s 2022 clean energy target, India and the Asian Development Bank have signed a loan of $250 million earlier this week to promote clean and efficient energy. The move is aimed at expanding energy efficiency investments in India that will benefit agricultural, residential and institutional consumers. On top of it, $46 million financing will also be provided from the Clean Technology Fund (CTF), according to a statement by the Ministry of Finance. The entire loan is approved to Energy Efficiency Services Limited (EESL), which was previously approved a $200 million loan to focus on efficient lighting and appliances.
“The project is expected to contribute to the mission of Government of India to promote energy efficiency and meet government’s commitments to reduce the energy intensity of the economy,” said Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs. The introduction of energy-efficient technologies in eligible states including smart meters, distributed solar photovoltaic systems and electric vehicles will also help to reduce electricity network losses and greenhouse gas emissions, he added.
Especially the smart metering component, included in the project, is believed to be helpful in addressing billing and collection inefficiencies. Apart from curating the conventional sources of energy, the decision is also aimed to generate greater public demand for e-vehicles to support India’s current push for electric vehicles.
Promoting other forms of renewable energy usage will also be one of its primary objectives. The project will organise various campaigns to make people aware of the benefits of using renewable energy, instead of the conventional forms of energy.
Meanwhile, the government had said that India will not only meet but beat the seemingly impossible target of installing 175 gigawatts of renewable energy generation capacity by 2022-end. The Ministry of New and Renewable Energy has also put up a roadmap on how the country will cross 175 GW renewable energy capacity by 2022.