During the Indo-German intergovernmental consultations held in November 2010, both governments agreed to provide a loan of up to EUR 50M to support the startup of anproject is aimed at building and leveraging a cleantech financing ecosystem to spark improved access to finance for Asian Cleantech MSMEs in order to enhance sustainable consumption and production patterns in Asia. , and provide a credit line. They also agreed to a complementary grant of up to EUR 1.5M for accompanying measures.
Initially, EESL was still in an early development stage as a Public Service Undertaking (PSU). Politically, the company served as an implementation arm of the National Mission for Enhanced Energy Efficiency (NMEEE). Shareholders of EESL are NTPC Limited (NTPC), PFC Limited (PFC), Powergrid Corporation of India Limited (POWERGRID) and Rural Electrification Limited (REC).
The main objective was not only to support EESL and KfW in preparing the project, but also assist EESL in reviewing and structuring their energy efficiency investment projects to be implemented. Econoler provided initial strategic support to EESL, particularly in planning and further defining EESL’s role in the ESCO project cycle, and assessed EESL’s technical assistance needs as part of the accompanying measures.
More precisely, Econoler’s team of experts carried out the following tasks:
- Reviewed current EESL investment projects. Econoler reviewed EESL’s investment projects being prepared for implementation and provided advice on risk assessment, and management, as well as mitigation strategies for respective projects.
- Ensured capacity building for EESL as an ESCO. Econoler assisted EESL’s management with: i) drafting and fine-tuning their business plan; ii) defining and detailing the individual steps and components of the ESCO project life cycle for EESL and clarifying the respective responsibilities within EESL; iii) providing strategic support in defining EESL’s role in the ESCO project cycle; iv) strengthening EESL’s capacity to outsource substantial parts of the ESCO project cycle; v) providing strategic support in further developing EESL’s role in ESCO market development; vi) supporting EESL’s development of ESCO projects; vii) assessing current market potential for energy efficiency investment projects in different sectors.
- Supported the preparation of KfW’s line of credit. The aim of this task was to help prepare the project appraisal and support both EESL and KfW to finalize critical aspects of project design.
- Assessed EESL’s mid-term needs for accompanying measures to support its EE-investment activities. Econoler identified EESL’s needs for external support i) to further consolidate and standardize its ESCO activities in preparing and implementing ESCO investment projects to be financed by the KfW line of credit; and ii) to strengthen EESL’s internal capacity to manage and implement the projects.