Webinar on “Opportunities for financing ESCO projects”,

Location :

Date : 13/02/2015

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USAID Partnership to Advance Clean Energy – Deployment Technical Assistance (PACE-D TA) Program organized a webinar in collaboration with AEEE on “Opportunities for financing ESCO projects” on Friday, February 13, 2015.

Speakers:

Dr. Bhaskar Natrajan, Deputy Chief of Party – Energy Efficiency, PACE-D TA Program

Mr. Arvind MT, Director, Amplebit Energy

The webinar provided the following insights:

  • Overview of the ESCO market and the barriers, challenges in the field (Dr. Bhaskar Natrajan)
  • Provisions have been made under the EC ACT 2001 to undertake large EE projects in the various segments
  • However, the number of projects have been very few and ESCO business has not taken off as it was expected
  • The ESCO business has been around for more than a decade now but the challenges in scaling up remain
  • The emphasis should be on B2B meetings with ESCOS and Clients to handhold them and secure energy performance contract
  • More financial instruments will help securing EE loans from FIs leading to more projects getting undertaken

Insights on the technical issues relating to EPC projects usually faced by a number of ESCOs (Mr. Arvind MT)

There is a high ‘risk’ perception among FIs due to the unfamiliar technical know-how of projects
M&V systems with remote monitoring should be enforced for all EE projects

Questions raised by SIDBI and a few ESCOS and were as follows:

What is the size of projects for which ESCOs look for EE loans?
How does one securitize loans for projects to the tune of 100Cr?

Key Comment:

ESCOs need to initially take up EPC projects to achieve comfortable levels with FIs and Banks

To access the presentation:

Opportunities for financing ESCO projects, Mr. Arvind MT, 13 February 2015