JICA s Approach for Energy Efficiency Finance in India

Transcription

1 JICA s Approach for Energy Efficiency Finance in India ASIA ESCO Conference, New Delhi Jan th, 2010 Keiji KATAI Representative Japan International Cooperation Agency (JICA) Katai.Keiji@jica.go.jp

2 1. JICA : The World s Largest Bilateral Aid Agency US$ 10,280 million (FY2008 Budget Estimate) bilateral bilateral assistance assistance Grant Grant Grant Grant Aid Aid MOFA Technical Technical Assistance Assistance JICA ( ) New New JICA JICA ODA ODA Yen Yen loans loans JBIC October, multilateral multilateral assistance assistance international international authority authority ( ) A part of grant assistances will be provided by MOFA and the rest of the financial assistances will be shifted to JICA. 2

3 JICA : Focus in India Employment Basic Social Service Inclusive Growth Transportation Economic Growth Faster Growth Energy & Climate Change Poverty Reduction India Environmental Improvement Rural Livelihood Natural Environment Urban Environment 3

4 2. Energy Efficiency Finance in Indian Context Vast Potential for Energy Efficiency Improvement (15%±) Interest by Industry for EE Improvement to cut cost (Grid Electricity & Diesel Generator) But. Very Slow Replication,, especially in MSMEs (Micro, Small and Medium Enterprises) 4

5 2. Major obstacle Procedure for Loan Sanction Financial Institutes (Branch Officers) Technically not equipped with reviewing individual energy saving investment Time consuming process is not preferred Enterprises (especially MSMEs) Busy with day-to to-day operation Not aware of detailed energy saving potential Difficult to prepare Project Report for energy saving investment from technical and time constraints Selection of Technology by copying nearby examples Detailed Information sharing with other Units is not easy - competition 5

6 3. JICA s MSME Energy Saving Project for investment finance Consultant Technical Assistance Consultant GoI guarantee Sub-Loan % Clusters E/S Project (MSME) E/S Project (MSME) Concessional Loan PLIs/NBFCs Sub-Loan PLIs/NBFCs (SIDBI= Small Industries Development Bank of India) Sub-Loan E/S Project (MSME) E/S Project (MSME) 6

7 Outline JPY 30 billion / Approximately USD 300 mil or INR 1500 Cr Financial Parameter Interest Rate: % p.a. to end user Minimum Borrower Contribution: 25%(Existing) / 33% (New Company) Eligible Borrower: Small & Medium Enterprise in any industry at anywhere in India 7

8 JICA s approach Energy Saving Equipment List Eligible Investment: Those items in the Energy Saving Equipment List (Dynamic List reflecting field realities) EASY & QUICK reference for Lender, Borrower & Equipment Supplier to achieve Replication JPN s Experience Listed investment can achieve 15% Energy Saving Please visit website: Energy Saving Equipment List 8

9 Energy Saving List 1. Common Equipment 2. Industry Specific Electrical Equipment, Glass, Ceramics Thermal Equipment, Pulp & Paper Industry Insulation, Foundry, Textile Commercial Buildings, Engineering Industry Heat Insulating Food Processing Building Material, Brick, Dyes, Cement Incineration & Auto Component Generation from Solid Casting & Forging Waste, Tanning & Leather Industrial Furnace, Processing Dryers etc Pharma, Frtilizer Steel, Chemical, 3. Renewable Plastics, Polymer Wind, Solar, Small etc Hydro, Biomass, Solid Waste, etc

10 (Sample Equipment List) Common Equipment S l. N o Eligible Equipment/Technology Advantages Expecte d Effects Specificati ons 1 Electrical Equipment JCI 1. 1 # Variable Frequency Drives (VFD) # Energy Efficient Motors Energy Saving; Extended equipment life; reduced maintenance Reduction 20~30% Loss by adopting of High level material Efficiency 3-5% up # Energy Efficienct Transformers Improvement no load loss Lighting # Energy efficient fluorescent lamps (e.g. T5) # Compact Fluorescent Lamps (CFL) # Metal Halides Lamps # High Pressure Sodium Vapor lamps EC25% Cut EC25% Cut EC25% Cut EC25% Cut JEM201,225, 226,227 JISC4212 Over 98% High Voltage Total Load Loss less than 0.3% Luminous efficiency over 80lm/w Luminous efficiency over 60lm/w Luminous efficiency over 110lm/w Refere nce JCI JCI JCI JCI BEE BEE BEE BEE 10

11 Sample of Industry Specific Equipment 13 Foundry # kwh Indicator for Induction Furnace Reduction in Electrical Energy Consumption CII # Medium Frequency Induction Furnace (by replacing Arc Furnace or Main Frequency Furnace) Waste Heat Recovery leadign to reduction of Thermal Energy Consumption Cost Saving by eliminatio n electrode s CII # Heat Recovery System for Stress Relieving Furnaces Reduction of Fuel consumption CII # VFDs for Screw Compressors CII # Oil fired Core Drying Oven Reduction in Electrical Energy Consumption Reduction of operating condition by 50% CII # Gas fired Aluminium Melting Furnace (replace Oil fired Furnace) Reduction in Thermal Energy consumption. Reduction fuel cost by 20% CII # Divided Blast Cupola (DBC) Replace conventional cupola Coke saving 25~65% TERI # Gas fired Cupola Eco friendly, Higher tapping temperature, Better melt quality and Reduction in Thermal Energy consumption. CLCSS List 11

12 Activities Cycle -One-to-one FU - Feedback to the List - Monitoring of Impact 4Follow-up 1Cluster Visit Meeting with Industrial Association, SIDBI, BDS providers - Financial Opportunity & Tech Options -11 Campaigns are already carried out 3Awareness Campaign 2Energy Audit -Technical Brochure to be prepared - Feedback to Energy Saving Equipment List 12

13 Collaboration with ESCO? Guaranteed Saving mode is more suitable than Shared Saving mode for this scheme ESCO can be a promoter of Energy Saving Investment. Let s s work together at Clusters Equipment Manufacturer can play good catalytic role A: Guaranteed Saving Contract B: Shared Saving Contract Performance Contract Payment Client Loan ESCO Financial institution Performance Contract Payment Client ESCO Loan Financial institution Client-financed ESCO-financed 13

14 JICA s Pipeline Idea: RE/EE/EC/ESCO Finance Providing Credit Line to IREDA (Indian Renewable Energy Development Agency) for the purpose of RE/EE/EC/ESCO finance IREDA: A Public limited Government Company which promotes, develops and extends financial assistance for Renewable Energy (RE) and Energy Efficiency (EE)/Conservation (EC) Projects

15 On-going IREDA Scheme -1 : ESCO Financing (with Performance Guarantee/ Shared Saving) IREDA Loan Repayment ESCO Replacement of Equipment Performance Guarantee Municipal Body First Charge Escrow Account Shared Saving Shared Saving Source: Presentation by IREDA

16 On-going IREDA Scheme - 2 : Finance to both Leasing Co. & User Energy Efficiency in Sugar Plants IREDA Loan 1 Repayment User Loan 2 Equipment Lease Repayment Leasing Company Rental Source: Presentation by IREDA

17 Thank You