Energy Service Companies (ESCO) in India
Submitted in partial fulfilment of the requirements of the course
WRITTEN ANALYSIS AND COMMUNICATION-II
INSTRUCTOR: Prof. Meenakshi Sharma
ACADEMIC ASSOCIATE: Mr. Saurabh Shukla
13th January, 2013
India ranks among the lowest in terms of energy efficiency but there’s huge potential for improvement: annual savings of 183.5 billion kWh. Agriculture, Industry and Lighting are the sectors with highest saving potential. However, lack of information, capital, and favourable policies restrict implementation of saving schemes. ESCOs are new in India but they will play an important role to help India achieve higher efficiency. To ensure its success some corrective measures and support from government and industry are needed to build awareness and create a win-win situation for both energy intensive companies and ESCOs.
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Breaking myths, leaping hurdles – Energizing an efficient India The projected growth of Indian economy will see a proportional increase in its energy demand. TERI estimates that the commercial energy requirement would get quadrupled by 2031/32 to a whooping 2100 million tonnes of oil equivalent compared to 525 Mtoe in 2011/12. Along with an increase in supply it also warrants for higher efficiency in energy usage. Efficiency, in fact, is one of the cheaper solutions to energy security which also reduces carbon emissions. McKinsey’s analysis estimated that demand for electricity will reduce by 30% by having efficient lighting, buildings and appliances alone. India ranks in the bottom of energy efficient countries in the world but that also presents huge potential for improvement. Quantitatively, the Indian Ministry of Power estimates an annual saving of 183.5 billion kWh with an investment of about $10 billion. Additionally it also translates into avoiding 148.6 Mtoe of CO2 equivalent...