Energy Efficiency Services Limited (EESL) is an energy services company focused on areas such as renewable energy, lighting, electric mobility and energy efficiency. In an interview with Renewable Watch, Animesh Mishra, chief general manager, head (sales and CCPR), EESL, spoke about the company’s recent business highlights, its top priorities and key focus areas. He also shared his perspective on the state of the power sector, the decentralised solar market and electric vehicle (EV) charging infrastructure. Edited excerpts…
What are the key trends shaping the Indian energy efficiency segment?
At the recent COP28 discussions in 2023, nations committed to collectively doubling the global average annual rate of energy efficiency improvements from around 2 per cent to over 4 per cent every year until 2030. With this, energy efficiency has emerged as a crucial component of India’s energy landscape. We, at EESL, are steering this shift towards energy efficiency with initiatives such as Unnat Jyoti by Affordable LEDs for All (UJALA), Street Lighting National Programme, Building Energy Efficiency and smart metering programmes at the forefront. The increasing use of smart grids and metering technologies enables real-time monitoring and control of energy consumption, a trend expected to continue with the government’s support to improve efficiency and reduce energy losses.
Moreover, industrial energy efficiency is a key focus area, with the government promoting the use of energy-efficient technologies and practices. The PAT scheme has been extended to less energy-intensive sectors and electric motor-driven systems are being encouraged to improve efficiency.
What are some of the challenges involved in scaling up decentralised solar power? How are EESL’s plans on this front shaping up?
Scaling up decentralised solar power is faced with several challenges, including land acquisition, project financing, grid integration and economies of scale. Securing access to the land owned by distribution companies (discoms) often leads to bureaucratic delays and complicating project timelines. Additionally, integrating decentralised solar projects into the grid is challenging, particularly in urban areas where finding suitable land near substations is difficult. These projects also face higher relative costs due to similar manpower and resource requirements as in larger solar parks, further impacting their feasibility.
EESL is tackling these challenges through various strategies. We are establishing strong partnerships with discoms to streamline land access and promote rooftop solar installations on government buildings, eliminating the need for additional land acquisition. EESL is also looking into microfinancing schemes in collaboration with financial institutions to make smaller-scale projects more appealing to investors. We are also aiming to improve financial attractiveness and reduce costs by utilising the carbon credit market and developing standardised designs for decentralised solar projects.
By focusing on partnerships, innovative financing, standardised designs and policy advocacy, EESL aims to make decentralised solar projects more feasible and financially attractive. These efforts will contribute to a cleaner energy future and enable local communities to participate more actively in the renewable energy sector.
What are the key bottlenecks in the expansion of EV charging infrastructure? How can these be addressed?
The expansion of EV charging infrastructure faces several critical bottlenecks that need addressing for smooth scalability. High costs associated with upstream infrastructure, exacerbated by restrictions on LT connections to only up to 50 kW, leads to expensive upgrades and non-uniform electricity tariffs for commercial charging stations. In states such as Maharashtra, Rajasthan and Haryana, high fixed demand charges result in actual tariffs exceeding Rs 20 per unit. Additionally, the cumbersome process for load sanction and approvals, coupled with urban location challenges requiring right of way permissions, leads to further delays in infrastructure development. Standardising tariffs and streamlining the approval process can mitigate these issues.
Technological and interoperability challenges also pose significant barriers. The lack of standardised connectors for electric two-wheelers and three-wheelers, compatibility issues between different charging protocols and rapid advancements in the charging technology pose the risk of making the existing infrastructure obsolete. Establishing industry-wide standards for connectors and protocols, and promoting backward compatibility in new charging technologies, can help address these concerns. Furthermore, access to finance is hindered by the lack of proven business models, limited awareness among financial institutions, and strict collateral and creditworthiness requirements. Gathering and disseminating data on successful business models, educating financial institutions and introducing tailored financial products for SMEs can facilitate better access to finance.
Additional bottlenecks include land acquisition difficulties, utilisation challenges and insufficient incentive mechanisms. Securing large urban land parcels, overlapping land rights and redevelopment projects complicate land acquisition. Deployment issues are further hindered by variability in EV charger quality due to a lack of stringent certification processes. Simplifying land acquisition processes, clarifying land rights and implementing stringent quality control and certification standards are necessary. Developing and promoting state-level incentives, streamlining application procedures and establishing standardised communication protocols for a national roaming exchange can drive better utilisation of public EV chargers. By addressing these challenges through comprehensive policy reforms, standardisation efforts, financial incentives and streamlined processes, the expansion of EV charging infrastructure can be significantly accelerated.
What have been EESL’s business highlights in the past year?
The past year looked encouraging in the energy-efficiency sphere. As the world’s largest energy service company, EESL is actively advancing towards turning this vision into a tangible reality. For this, we introduced induction-based cookstoves, offering a cost advantage of 25-30 per cent over traditional cooking methods. Under the National Efficient Cooking Programme, the company has recently distributed 2,000 induction cookstoves to Anganwadi workers in Ladakh.
Additionally, EESL’s push for inverter bulbs has gained momentum in recent times, in line with our commitment to innovative energy solutions. These bulbs offer enhanced energy savings and durability and in the coming year, EESL aims for a widespread adoption strategy, envisioning every Indian household benefiting from their efficiency.
More importantly, EESL’s e-marketplace is set to revolutionise access to energy-efficient appliances. This user-friendly platform will directly link consumers with manufacturers and distributors, streamlining the process and ensuring transparent pricing. This initiative not only empowers consumers but also fosters a thriving market for clean energy products, making them accessible to everyone.
What will be EESL’s key focus areas going forward? What are some of the opportunities that the company is pursuing?
EESL’s foremost priorities in the coming years revolve around advancing energy efficiency and sustainability initiatives, particularly focusing on two key areas – energy-efficient fans and electric cooking, specifically induction cookstoves. To revolutionise cooking practices in India and emphasise the importance and urgency of energy-efficient fans, we are set to distribute 10 million efficient brushless direct current (BLDC) fans and 2 million energy-efficient induction cookstoves nationwide. Through these initiatives, EESL continues to lead the way in the energy efficiency sector, making substantial contributions towards a sustainable and energy-efficient future for India.
Additionally, EESL has recently expanded its energy-efficiency portfolio with the introduction of 5-star rated 6-watt LED bulbs. As part of our ongoing commitment to the UJALA programme, these highly efficient LED bulbs promise 30 per cent energy savings, while maintaining the same level of light intensity.
We also recognise the substantial energy consumption associated with common household appliances. The data suggests that approximately 45 per cent of the global energy consumption stems from just 20 basic appliances, with a significant portion used in both commercial and domestic settings. Hence, EESL underscores the importance of targeting the retail sector. To address this, we have recently launched an energy-efficient appliances marketplace (EESLMart), catering to both B2C and B2B segments. It is poised to become the go-to destination for energy-efficient appliances and solutions, featuring appliances including BLDC ceiling fan – 5-star (with remote), BLDC ceiling fan – 5-star (without remote), emergency LED bulb-10 watts, LED bulb-6 watts, 20-watt Int Batten tube light, 1.5 and 1.0 TR super-efficient 5-star ACs. We plan to expand our offerings to include energy-efficient motors, electric bicycles, induction cookstoves and more.
With EESLMart.in, EESL is collaborating with various state discoms and consumer service providers such as Andhra Pradesh Eastern Power Distribution Company Limited, Tata Power Renewable Energy Limited and others to enhance the speed of adoption for energy-efficient appliances.
Through this platform, we aim to provide an affordable, seamless and efficient procure-to-pay experience, empowering environmentally conscious consumers and bridging the information gap on energy-efficient products. By focusing on these initiatives, we are facilitating a mass movement towards energy efficiency, significantly contributing to sustainability efforts across both domestic and industrial sectors.
