Future-ready and scalable energy efficient solutions are key to sustainable growth

The rapid and ill-planned race to grow has brought the horrors of global warming upon the world. That climate change is a global phenomenon that impacts the poor and the vulnerable is the most worrisome fact. However, this adversity also presents an opportunity for innovation, that strikes a balance between growth and sustainability. An inclusive and sustainable growth can only be ensured by breaking away from conventional business models and adopting transformative solutions.  

Before the naysayers dismiss such ideas by calling them ‘easier said than done,' India’s successful transformative innovations need to be highlighted. Lack of commercial viability coupled with high financial risks have always held the industry from investing in energy efficient, future-ready technology solutions. Besides, the prohibitive cost of their ownership constrains the mass adoption of such solutions. So far, the negligible growth shown by energy efficient solutions like electric vehicles, and solar roof tops underlines these very challenges. 

The first step to solving a problem is acknowledging it. The challenges to adoption of energy efficiency need strategic intervention with clear emphasis on generating outcomes. EESL adopted a solutions-driven approach in designing its market interventions by directly rooting out hurdles. We provided a stimulus to industry participation by taking the bold move of sharing and mitigating financial risks. EESL makes the entire upfront payment, and procures in bulk through competitive bidding thereby encouraging wide scale industry participation.

The world’s largest LED lighting initiative, UJALA (Unnat Jyoti by Affordable LEDs for All), is a path-breaking model that transformed the market for LEDs in India without causing any subsidy burden for the government. Till only a few years back, LED bulbs whose procurement cost was over Rs. 310 per unit with little penetration in the market are now procured at just Rs 38 per unit.

The Road Ahead

 Any revolution starts with a single step. The journey to revolutionise the Indian market for energy efficiency commenced with UJALA and is now expanding to other efficient solutions including electric vehicles, smart meters, and solar rooftops. The proposed mass procurement of 10,000 electric vehicles will be a game changer for the sector. This aggregation of demand has already provided the much-needed shot in the arm to the industry, which is now firing on all cylinders to fast-track India's EV programme.

Similarly, competitive bidding for procuring five million smart electricity meters has brought down the prices by 40-50%. EESL will deploy these meters in two states with high losses from billing inefficiency -- Uttar Pradesh and Haryana. Further, to promote the vision of our Honorable Prime Minister, EESL plans to take up photo voltaic solar rooftop programme with all the states and union territories by offering attractive solar tariff.

Nevertheless, this is just the beginning. Our large scale transformative solutions have created a new normal for market dynamics and consumption patterns. Additionally, our interventions facilitate the development of the ancillary support system thereby strengthening the entire ecosystem. Case in point, the development of charging stations for e-vehicles.

Commercial Viability Without Subsidy  

Commercial viability and wide-scale adoption of energy efficiency require solution-driven innovation which is independent of subsidies and heavy capital expenditure. Our ‘Pay-As-You-Save model’ obviates the need for any upfront capital investment. However, the business sense remains intact. The entire investment made by EESL is recovered through monetised savings over a scheduled period.

Any innovation is considered successful only when it generates a positive impact. EESL is proud to have created an innovative business model which has not only saved billions of units of energy and carbon emissions but also made life easier and streets safer for Indians. India saved around 100 billion kWh of annual energy through UJALA while reducing CO2 emissions by 790 million tonnes per year.

Scalability of Solutions

Attaining definitive impact while ensuring high quality have been at the core of our transformative solutions. This approach has helped transformation at a rapid pace. Otherwise, who would have thought that within only three years LEDs would become a household object from being an elitist luxury? The new normal where energy efficiency is a way of life and transformative solutions like e-vehicles, smart meters, and solar rooftops are widely adopted is around the corner. 

Leveraging global synergies to bring transformative technology solutions to the domestic market is the cornerstone of our vision. For instance, EPAL, a joint venture EESL and UK-based EnergyPro Ltd, has partnered with Leclanché, a leading battery storage solutions provider to execute an advanced battery storage project in Ontario, Canada. The project is one of the largest in North America and will enable EESL to bring similar solutions to India. An added advantage is Leclanché’s expertise in e-vehicle charging solutions which can charge a vehicle within just five minutes. This can potentially transform the industry.

The Indian government has a vision to ensure a sustainable growth that trickles down to the lowest common denominator. EESL’s solutions enable the nation to tread rapidly towards the achievement of policy goals. Our first-hand experience in implementing efficient solutions contributes to formation of realistic policy parameters.

We are committed to enable more innovation, transparency, and transformation not only in the Indian market but also globally. Our vision is to enable all stakeholders to effectively manage their energy needs through efficient technologies. Being the implementing agency for the world’s largest non-subsidised energy efficiency portfolio across lighting, buildings, and agriculture, EESL now plans to unlock the $12-billion potential in the Indian market through scalable, flexible, and transformative solutions.