State power firms to start energy efficiency company

New Delhi, Nov 4 : Four state-run power firms will make equal contributions to float a new company, Energy Efficiency Services Ltd (EESL), to promote energy saving projects in the country, Power Minister Sushilkumar Shinde said Wednesday.

The four equal equity promoters of the new company are NTPC, Power Finance Corp, Rural Electrificaion Corp and Power Grid Corp.

"The equity of EESL will be Rs.190 crore. The company would be able to leverage a total investment of Rs.700-800 crore," Shinde said at the annual Economic Editors' Conference here.

"The overall size of energy investment market under energy service companies (ESCO) in India is Rs.74,000 crore and till now, only 5 percent of the market has been tapped," he added.

EESL will promote energy efficiency projects like Bachat Lamp Yojana and will also act as a resource centre for capacity building of state development agencies and utilities.

"An improvement of 20 percent energy efficiency can result in avoided capacity addition of around 30,000 MW, which amounts to an avoided investment of Rs.120,000 crore," Shinde said.

Interacting with editors from across the country, the minister said the capacity addition programme in the current plan is progressing well comparing to the last three plan periods.

"Already 18,235 MW has been commissioned till Oct 21."

A total capacity of 62,374 MW is going to be added during the current plan period that ends in 2012, Shinde added.

--IANS