The Energy Conservation and Commercialization (ECO) Bilateral Project Agreement was signed between the Government of India (GOI) and the United States in January 2000 with the objective to enhance commercial viability and performance of the Indian energy sector as well as to promote utilization of clean and energy-efficient technologies in the sector. ECO phase I (ECO-I) helped India set up the Bureau of Energy Efficiency (BEE) to enforce the country’s Energy Conservation Act of 2001. ECO-II helped agencies in a few targeted states develop energy conservation strategies and test new approaches through pilot projects. It also contributed to the establishment of India’s first energy efficiency (EE) codes for buildings. The third phase, ECO-III which started October 2006, is helping BEE implement the Energy Conservation Building Codes (ECBC) in Gujarat and Punjab, with an overall focus on improving energy efficiency in the building sector, developing capacity of states to implement energy efficiency programs, and establishing energy efficiency centers and institutions.
In 2000, ECO-I aimed to promote widespread commercialization of energy efficiency technologies and services in India, thereby contributing to the reduction in growth of greenhouse gas emissions. Its two main components were:
- Energy Efficiency Market Development and Financing (“Markets” Component)
- Energy Efficiency Policy and Institutional Reforms (“Policy” Component)
To achieve project goals, a series of program approaches and activities at the central and state levels were established under the two components. Under the Energy Conservation Act 2001, the Central Government established the Bureau of Energy Efficiency in March 2002, as a statutory body. USAID ECO-I Project supported Government of India in the development of BEE by setting up procedures and authorities, establishing office facilities, and assisting in activities leading to the development of BEE’s Action Plan.
To support policy and market interventions aimed at enhancing both private and public sector capabilities to deploy market-based mechanisms for end-use investments in energy efficiency technologies and services, ECO-I provided technical assistance and training on the organization of the Demand Side Management (DSM) Cell, development of a load research program, and an innovative loan program to finance market development activities. ECO-I also provided vital inputs to BEE for the implementation of its Action Plan such as financing mechanisms and training of energy efficiency financing with lenders such as State Bank of India, Small Industries Development Bank of India, and Rajasthan Finance Corporation. ECO-I assisted with a development program for Energy Service Companies (ESCOs) through numerous training activities, providing vital tools, including model performance contracts, project financial analysis and screening software, model financial feasibility study format for lender approval, and Monitoring and Verification protocols. Finally, ECO-I also assisted BEE with the development of an energy auditor certification program.
In the second phase, ECO-II technical assistance and training support was provided to BEE to implement portions of its Action Plan, such as implementation of Utility DSM in selected Indian State Utilities; DSM capacity building within state electric utilities; development and implementation of a set of demonstration projects – Municipal Water pumping projects (one each at Nasik Municipal Corporation and Karnataka Urban Supply and Sewerage Board); BESCOM Efficient Lighting Program (BELP); energy efficiency for government buildings, and other programs. The most important assistance provided by ECO-II was in the development of a) an Energy Conservation Building Code for the five Climatic Regions of India and b) State Energy Conservation Action Plan for the state of Maharashtra. In addition, various programs were implemented and funded under the Loan Fund Component. These included Bagassse Cogen Project, Distribution Upgrade project with Noida Power Company Ltd., Street-lighting efficiency project with an ESCO, and the Waste Heat Recovery Project.
ECO-III’s overall objective was to continue to assist the GOI in the implementation of the Energy Conservation Act 2001 by building on the earlier phases of the ECO project, with activities aligned with BEE’s focus areas as proposed in the 11th Five Year Plan – namely, developing institutional capacity at the state level by working with designated agencies, and continuing to develop the implementation framework for energy efficiency in buildings (new and existing) and municipal sector to prepare for mandatory enforcement of ECBC which will require fundamental changes in the way commercial buildings are designed and constructed vis-à-vis building’s envelope, lighting, and HVAC system.
ECO-III’s assistance to BEE comprised of five major tasks:
- Task 1: Moving to State Level Energy Efficiency (EE)
- Task 2: Institutional Development
- Task 3: Education Curriculum and Professional Training
- Task 4: Support to Outreach and Extension Activities
- Task 5: Support to Development Credit Authority/Energy Efficiency Risk Financing
ECO-III concluded its activities in September 2011. For more information, please contact:
USAID/India
Email: [email protected]
