Programmatic Framework for Energy Efficiency in India

1
Programmatic Framework for Energy Efficiency in
India GEF National Dialogue Workshop Bhubaneshw
ar, 31st October 2007
Report of the Working Group On Climate Change
2
Sustainable Urban Transport

• The objective of the project would be to take
  such initiatives that would have a significant
  impact on the emission of GHG from the transport
  sector in urban areas, without adversely
  affecting the mobility and accessibility needs of
  the urban population. At the same time the
  initiatives would
• Reduce the existing levels of congestion
• Reduce the impact of motor vehicles on urban
  air quality
• Improve road safety, and
• Foster the use of sustainable technologies that
  minimise the energy consumption in urban
  transport
• GEF Resources 25 million
• Total Project Cost 350 million

3
Resource Allocation under EE Programmatic Approach

• Strategy Component IA GEF
  Cofinancing
  Resources
• Building Energy WB 7m
  95mEfficiency UNDP 6m
  12m
• Designated WB 12m
  30mConsumers SMEs UNDP 6m
  30m UNIDO
  8m 26m
• Institutional WB 1m
  2m
• TOTAL
  40m 195m

4
Chiller Energy Efficiency Project- World Bank

• CO2 equivalent emission reduction from both
  energy efficiency and reduction in losses of
  refrigerant gas.
• Number of Chiller conversions
• Quantity of CFC demand permanently eliminated
• Chiller owners aware of the life cycle approach
  to decision making
• Decision makers include lifecycle approach in
  developing regulatory and policy frameworks
• Co-financing tied up with commercial banks by WB

5
Energy Efficiency Improvements in Commercial
Buildings- UNDP

• Capacities of Building Departments at centre,
  state, and municipal levels enhanced
• Compliance procedures formulated
• Specific training courses for, architects/design
  professionals, building material suppliers,
  builders/contractors/developers
• Courses incorporated at vocational training
  institutes like SPA, NID
• Information disseminated and awareness on life
  cycle cost-benefit and return on investments for
  ECBC compliance
• Development of model buildings under
  public-private partnership in 5 climatic zones
• Availability of energy-efficient materials and
  equipment
• Administration and enforcement structure of
  building codes
• Monitoring and evaluation
• Rebate/ tariff discount schemes with utilities
• Financing schemes designed with commercial banks
  for investors to comply with ECBC
• Compile and disseminate information on EE
  financing schemes
• Co-financing from BEE and other stakeholders

6
Improving Energy Efficiency in the Indian
Railways system- UNDP

• Training of Railway technical staff and testing
  house staff for measurement and calibration of
  the equipments
• Support the Center of Excellence
• Information on technology status and best
  operating practices compiled for Lighting, EE
  Pump, Power Devices, Green Building, HVAC, DG
  Set, Sensors and Automatic Metering of Energy
• Implementation of energy audit procedures for
  each railway operation
• Evolving internal incentives scheme for
  implementing EE
• Piloting and Demonstrating tech./ measures in EE
  Rolling Stock, Static installation, Workshop and
  Production Facilities
• Identify international best practice from Japan,
  Germany France and others
• Facilitate dissemination of knowledge between the
  Center of Excellence and similar institutes
  abroad
• Co-financing from the budget of Ministry of
  Railways

7
Energy Efficiency Improvements in Small and
Medium Enterprise (SME) Clusters- UNIDO

• Situation Analysis for clusters.
• Preparation of manuals for all clusters detailing
  technology trends, consumption, BoPs.
• Energy use and technology audits conducted in
  identified pilot clusters/units
• Cost benefit analysis carried out
• Bankable DPRs developed
• Institutionalization of capacity building
• Reduction in GHG emissions attributable to
  improvements in SME energy efficiency
• SME specific training developed and conducted for
  experts
• Through Experts workshop, Dissemination
  workshops
• Co-financing from MSME and BEE

8
Financing EE in SMEs- World Bank

• Increased project appraisal capability for
  lending institutions/banks.
• Implementation of innovative financing schemes
  (i.e. partial risk guarantee coverage)
  facilitated
• Financing EE technology replications
• Programme knowledge sharing on results
• Reduction in GHG emissions attributable to
  improvements in SME energy efficiency
• Co-financing from commercial banks and BEE (for
  capacity building element)

9
Institutional - World Bank

• Review of project and design and implementation
  processes at initiation and on an annual basis
• Monitoring of deliverables in specific projects
• Mid term evaluation
• Redesign and reprioritization based on evaluation
• Assessment of direct and indirect impact on
  carbon emissions
• Compilation and dissemination of best practices
• Co-financing from BEE

10
New Project Ideas

• Adaptation projects for climate change may not be
  available under GEF Trust, but may be accessed
  from the Special Climate Change Fund controlled
  by GEF -(taking off from the 1st NDI)
• Proposal by the Government of Gujarat to support
  experiments for impact assessment of climate
  change on the yield of foodgrains (wheat/ rice)
  and the possibility of sustaining production
  estimated amount of 10 million
• Need to take up projects to control methane
  emissions in agricultural operations/ cattle -
  technologies are available
• GEF projects for agriculture and allied sectors
  need to be developed such as energy efficiency
  improvements in agricultural pumpsets

11
New Project Ideas (contd.)

• Proposal for growing of Jetropha in clusters of
  5-10 villages alongwith oil extraction for
  bio-diesel project - Govt. of Gujarat- would need
  to follow evolving GEF strategy on bio-fuels
• Proposal for a renewable energy distributed power
  generation project in a rural area that could
  increase wealth and empower the community WII
  would need to conform to GEF strategy (priorities
  3 and 4)
• Underground coal gasification should be developed
  as a medium term project
• RD projects on solar energy not implemented
  after sanction- not recommended

12
Recommendations

• Strong endorsement of the programmatic approach
  developed for EE and Sustainable Transport
• GEF resources would be co-financing major
  government programmes (and not vice-versa)
• In cases like alternative transport proposals for
  major cities, the GEF grant being a small
  proportion of the overall project cost (25 m out
  of 350 m) approval of GEF may be accelerated
  once the overall project is approved
• Projects worth 100 million in total may be taken
  up for development to ensure that any slippage on
  the projects can be made up
• Agricultural sector projects may be taken up on a
  priority basis because of the benefits that would
  accrue to the majority of population.