Escos Reinforce Energy Efficiency’s Role In Building Back Better In India

By Author: yantra Harvest
Total Articles: 11
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India is one of the largest energy consumers in the world. The government has long predicted the significance of energy efficiency and demand-side management for giving consistent, reasonable, and sustainable electricity to everyone which is one of the Sustainable Development Goals. Globally, the scaling-up of demand-side energy efficiency measures has turned out to be one of the utmost hopeful and cost-effective solutions to increase energy security, reduce power cuts, and decrease greenhouse gases and local emissions as well as support job creation.

Thus, India can take advantage of its size to build a flourishing market for energy-efficient products and services with the assistance of the correct business models. This is giving confidence that India may so far follow the path of the US and China.

India can create markets that are able to create a billion-dollar ESCO industry that motivates stakeholders to take some intended risks to bring important value in relation to sustained energy savings to end users.

The government of India is propelled by national targets as well as global climate change commitments. ...
... The Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL) has been foremost in the energy efficiency market revolution.

There has been a lot of progress in this sector, but still, approximately $150 billion country’s energy efficiency investment potential lies untapped. There are some challenges and barriers that plug the gaps that have played a crucial part in holding the ESCO market back such as frail enforcement of regulations, low awareness, inadequate credit flow, and the perception of high investment risk. Subsidized energy rates also dispirited the implementation of energy efficiency and misrepresented the market. In the India State Energy Efficiency Index, discrepancies in energy efficiency performance between different states and sectors were reflected.

Though India has more than 150 ESCOs in the country having positive track records for designing and executing energy savings projects, it still faces difficulty in raising finance from banks. Obviously, this impasses the progress of the private ESCO industry.

It has been challenging for ESCOs to tackle the barriers. ESCOs recognize energy cost savings ways and capitalize on them in return for a part of energy cost savings. Yantra Energy Harvest works with energy end-users through energy savings performance contracts (ESPCs) that safeguard a share of savings for energy efficiency.

Generally, services provided ESCOs are as follows:

Identification, development, and design of energy-efficiency projects;
Financing, or attaining the financing, of the energy-efficiency project;
Installation of energy-efficiency technology/equipment; and
Measurement, monitoring, and verification of the project’s energy savings.
Sometimes, ESCOs will also maintain the energy-efficiency equipment that has been installed. ESCOs implement a variety of energy-efficiency measures, including high-efficiency lighting, heating and air conditioning, efficient motors, industrial process improvement, cogeneration, variable speed drives, waste heat recovery, and centralized energy management systems.

ESCOs have an enormous potential role to play in dropping energy consumption and thus greenhouse gas emissions that may be helpful in managing energy shortages and price increases. The intensity of energy use, chiefly in the industrial sector, gives greater opportunity for energy efficiency savings. The financial savings achieved from energy efficiency measures as some projects in India result in annual savings that are close to half the total project cost, or in some cases exceed the total project cost.

ESCOs play a significant role in delivering energy-efficiency advances. Many industrial operators and building managers lack the technical knowledge to take on energy efficiency developments themselves. We are specialists, who can design effective systems, and as their revenues are directly linked to energy savings, Yantra Harvest Energy is going to ensure that the savings are as large as possible.

ESCOs offer access to innovative financing that customers might not be able to get on their own, as and also lessen burdens on public budgets. Yantra Harvest Energy caters to the requirements of both the customer and the financial institution.

So, let’s work together towards building a carbon-free planet. You can contact us at sales@yantraharvest.com and give us a call at 8799928359 for more details.