Energy Efficiency Financing Platform (EEFP)
FEEP is one of the components under National Mission for Enhanced Energy Efficiency (NMEEE). The objective of FEEP is to accelerate energy efficiency financing by creating fiscal instruments, capacity building of financial institutions and by organizing awareness/ outreach activities for industries, MSMEs, OEMs and ESCOs.
1.Energy Efficiency Financing Platform (EEFP) –
BEE, since its inception, has been working on strengthening the importance of Energy Efficiency (EE) and the development and integration of EE measures across sectors. With time as the market got evolved and became relatively mature by government fierce interventions, the need of timely access of finance is realized. EEFP aims to establish a platform to interact with Financial Institutions (FIs), project developers and other stakeholders for the implementation of energy efficiency projects and accelerating energy efficiency financing.
2.Objective
The broader objective of EEFP is to create mechanisms which would help finance demand side management programmes in key sectors by capturing future energy savings as well as for capacity building of financial institutions and ESCOs/OEMs/ designated consumers.
This shall also play a vital role in creating the awareness for BEE’s various energy efficiency financing schemes to boost the investment in this area.
3.Status & Achievements
(a)Investment Bazaar:
Bureau of Energy Efficiency (BEE), in association with State Designated Agencies (SDAs) organizes state level events by the name of “Investment Bazaar for Energy Efficiency” with the aim to provide the necessary platform in which bankable energy efficiency projects can be showcased in presence of Financial Institutions, OEMs, industries, ESCOs etc.
This event facilitates in creating the awareness among industry stakeholders on different financing schemes, EE product/services, ESCO mode of implementation of EE projects.
Till date, 34 Investment Bazaar events have been organized by SDAs across various states in India. These include Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Haryana, Punjab, Madhya Pradesh, Maharashtra, Tamil Nadu, Telangana, Karnataka, Uttar Pradesh, Uttarakhand, Odisha, Kerala, Chandigarh and Haryana. During these events, EE projects with project cost of more than Rs. 2700 crore have been showcased.
(b)Training Program for FIs:
For capacity building of FIs, BEE signed MoU with Indian Banks’ Association for the Training Programs on Energy Efficiency Financing. The MoU was signed in 2015 and this training program was launched in June 2015. These workshops have been held in two phases. Phase 1 included 4 ToT workshops and 2 direct training workshops. In phase 2, 22 direct training workshops for FIs on EE Financing held at different locations (17 states covered) across India. In these workshops total of 682 participants from 72 banks/NBFCs banks/NBFCs received training on EE financing. The programs of these training workshops ended on 31st March 2019.
In order to further strengthen banks/NBFCs/MFIs on EE initiatives, programmed, imparting knowledge on EE measures / technologies, future prospects and assessment, BEE has engaged NPTI to conduct 6 capacity building workshops to train officials from FIs across India till 31st March 2023.
(c) Grading of Energy Efficiency Projects
With the objective to significantly increase finance of EE projects, and create enabling conditions or interventions for increasing the finance of these clean technologies/measures, a pilot programme is initiated where BEE will reimburse the grading fee of the first 100 Energy Efficiency (EE) projects limiting to Rs. 2.90 lakh per EE project graded as well as financed by a lending financial institution. Till date two grading agencies are empanelled under this program i.e. CRISIL Ltd, and SMERA Ratings and Gradings Ltd.
In this program, the borrowing unit can get the grading of its project done by any of these two empanelled grading agencies. Borrower shall initially pay this Grading Fee to BEE’s empanelled Grading Agency upon receiving the grading report of their EE project. Subsequent to the disbursal of the loan to the borrower, the concerned FI shall intimate BEE about 100% loan disbursed for every loan and place request for reimbursement of the incurred grading cost. Pursuant to this, BEE shall release Grading Fee of maximum of Rs.2.90 Lakhs (Rupees Two Lakhs Ninety Thousand only) per project to the concerned financial institution who shall adjust this reimbursed amount of Grading Fee in the instalment of EE loan within 12(twelve) months of receiving the reimbursement from BEE.
IREDA, YES bank, SIDBI, and Central Bank of India have already signed MoA with BEE for the promotion of this programme and all other FIs registered with BEE’s Facilitation Centre are also eligible to take benefit under this programme. The grading will be done on a well-defined parameters, tailored for EE projects.
Till date BEE have approved 3 grading reports of UE press Tools Pvt. Ldt., M B Sponge and Power Ltd. term loan I & M B Sponge and Power Ltd. term loan II, these projects were financed by SIDBI and Central Bank of India. The grading reports of these 3 projects were prepared by CRISIL.
4.Target Beneficiaries
- Financial Institutions (Banks and NBFCs)
- MSMEs
- Large Industries
- Energy Service Companies(ESCOs)
- Buildings & Municipalities
- Other Energy Consuming Sectors
5.Partners
- State Designated Agencies(SDAs)
- NPTI
- CRISIL Ltd
- SMERA Gradings and Ratings Ltd
- IREDA
- YES Bank
6.Contact details of PO /email
1. Mr. Sunil Kumar Verma
( Director, BEE)
Email: sk.verma@beeindia.gov.in
2. Mr. P Shyam Sunder
(Joint Director, BEE)
Email: pshyam.sunder@beeindia.gov.in