Energy Performance Contracting has the potential to be a very successful model for implementing energy efficiency projects at the state and city levels. However, this elegant concept is fraught with challenges along the way and can come undone if any of the numerous complexities involved are not adequately addressed. To this end, ECO-III, in partnership with Alliance to Save Energy, has been working closely with Gujarat Urban Development Company Limited (GUDC), the designated State Agency, to create a replicable model for enhancing energy efficiency in municipalities by helping to facilitate the undertaking of energy performance contracting for municipal street lighting and water pumping projects in all of the 159 Urban Local Bodies (ULBs) and 7 Municipal Corporations (MCs) in the State of Gujarat.
Objectives
- To help promote the use of Energy Performance Contracting as a market transformation mechanism to improve the end-use efficiency of municipal street lighting and municipal water pumping in all Urban Local Bodies across the state.
- To provide participants with the means, ability and technical assistance to see through the various stages of the project development process from inception to implementation and beyond, to measurement & verification.
- To ensure the sustainability of the program by effectively engaging various levels of stakeholders including administrators, decision makers, managers, engineers and project implementers.
Accomplishments
- Provided comprehensive (including technical, legal and risk management) assistance to Gujarat Urban Development Company (GUDC) for developing a state-wide program aimed at improving energy efficiency in street lighting and water pumping facilities in 159 Urban Local Bodies (ULBs) and seven Municipal Corporations (MCs) of Gujarat, in the largest municipal energy efficiency project conceived in India.
- Assisted GUDC in developing:
• Expression of Interest from the ESCOs in implementing performance contracting
• Request for Proposals and Evaluation Criteria for selection of energy auditors
• Technical evaluation of the suggested energy efficiency measures for Street Lighting and Water Pumping
• Energy Service Performance Contract for undertaking energy efficiency measures for street lighting and water pumping
• Request for Proposals and Evaluation Criteria for 3rd Party Measurement & Verification (M&V) Agencies
• Agreements for Trust and Retention Accounts (TRA) and Escrow accounts for smooth operation of energy performance contracts
- Assisted GUDC in the selection of ESCOs for taking up investment grade audits in ULBs to facilitate implementation of ECMs.
- Assisted GUDC in the selection of third Party M&V Agencies for providing objective assessments of reported savings.
- This project has become the basis of a national energy efficiency program in municipalities that has been launched by the BEE.
- GUDC signed a Memorandum of Understanding (MOU) with Power Trading Corporation for financing up to $ 65 million.
- Gujarat Urban Development Company Ltd. (GUDC)
- Infrastructure Leasing & Financial Services Ltd. (IL&FS)
- Alliance to Save Energy (ASE)
