Cement and Energy

FINANCING ENERGY EFFICIENCY/CONSERVATION I ndian Renewable Energy Development Agency Ltd. (IREDA) has invi ted Energy Service Companies (ESCO's). En ergy end users, equipment manufacturers and vendors. reforming state electricity boards (SEI3 's) and pri va te electri c utilities to participate in the programme of financin g tor Energy Efficiency and Energy Conservation Projects. IREDA, after pioneering in fi nancing and development of renewable Sourct': Enmmnic T i1111'.\', 4 March / 998 energy resources, has entered the field of fi nancing of energy conservation projects, to make Indian industries more competiti ve in cost and quality. The focus is also on energy intensive cement industries. Interested persons/companies may contact Managing Director, lREDA, India Habitat Centre Complex, Core 4A, 1st Fl oor, Lodi Road, New Delhi- II 0 003. IREDA'S ROLE IN ENERGY CONSERVATION In India. energy demand is growing at the rate of 9% rer annum thanks lO the increasing rate of industrit~lisa ti on. urbanisation and agricultural activities. At present there is a shortage of about 8% in energy and 19Cfr in peak demand. The 1-{th Electric Power Survey by the Central Electricity Au th ority (CEA) has projected th at an annual capaci ty growth rate of 9'k is requi red to meet the annual demand growth of 7.5o/t for the decade 1996- 2006. The tot:~ ! investmen t on this account is expected to he USS. 175 hi II ion at fixed prices. Some of the options avai lahll: for red ucing this investment arc: * * * Removing the inc!'licicncies in tran-.,mission and distri bution. capacity utilisation. generation, Improving Exploring the options of using cheaper lo rms nf energy. Practising and implementi ng energy efficiency schemes. Soiii'C't' . f_.Ctllllllllir· Tilll£'5, -1 March 1998 More recentl y, Government of India (GOT) has introduced tax incentives for energy effi ciency investments, most notably a 100% depreciation allowance for certai n categories of energy saving equipment. It has also provided limited fi nancing for energy ciTicicncy projects through lOBI. In the Ninth Plan , GOI plan s to allocate Rs. 1320 mill ion towards a national energy efficiency programme aimed at strengthening policy formulation, train ing and development of energy efficiency auditing services at the centra l and the state levels. World Bank has expressed its desire to collaborate with IREDA in developing and fi nancing energy eniciency in the country. fREDA's work in this field includes delivery of energy efficiency services and equi pment, implementation of Demand Side Management (DSM) schemes and development of Energy Services Companies (ESCO's). 12 )