training workshop for inancial nstitutions on energy...

TRAINING WORKSHOP FOR ‘FINANCIAL INSTITUTIONS ON ENERGY EFFICIENCY FINANCING'

ORGANIZED AT ASHOKA LAKE VIEW, BHOPAL

ON

5TH – 6TH

MARCH 2019

[1]

Government of India launched Energy Efficiency Financing Platform (EEFP) as one of its

initiatives under National Mission for Enhanced Energy Efficiency with an objective to provide

an interaction platform for State Designated Agency, Financial Institutions (FIs) and project

developers for implementation of energy efficiency projects. Under NMEEE, the PAT scheme is in

operation for Big industries (Designated Consumers) as target of energy savings is given by

Bureau of Energy Efficiency to all DC's to bring down there energy consumption.

For sensitizing Financial Institutions, Project developers, designated consumers about

financing option available for energy efficiency projects. MP Urja Vikas Nigam Ltd MNRE as

designated agency organized Two Days Training Workshop on ‘Financial Institutions on Energy

Efficiency financing' from 5-6 March 2019 at Hotel Lake View Ashok, Bhopal.

This training workshop was conceptualized by Bureau of Energy Efficiency, New Delhi

coordinate, managed by MP Urja Vikas Nigam Ltd, Bhopal and supported by ‘Indian Banks

Association’, ‘International finance Corporation’. Considering the March closing period, MPUVNL

had volunteered to coordinate with State Level banking committee for invited Nationalized

Government banks and also private sector for ensuring active participation of majority of financial

institutions. Approximately 42 participants from 13 banks and industries invested 2 days to

attended workshop and understand about ‘Energy Efficiency financing'.

First day session of 5th March 2019 commenced after auspicious lighting lamp inauguration by

Mrs. Malvi Mehrotra (BEE), Mr. Harigovind Rajan (World Bank Group),Mr. BK Patel, CE,

MPUVNL and Mr. Surendra Bajpai, MPUVNL. To promote plantation and sustainability around

us, speakers were welcomed with Saplings.



ON

5TH – 6TH

MARCH 2019

[2]

Mr.Surendra Bajpai briefed about history india’s energy efficiency program along with the

significance of energy efficiency in daily life of non-commercial usersand benefits for that could be

availed by designated consumer infinancing large scale EE projects. Mr. BK Patel also briefed

participants about various Energy efficiency activities taken up by MPUVNL in Madhya Pradesh

and contribution done by SDA achieving National targets assigned by MNRE and Ministry of

Power, Government of India.



ON

5TH – 6TH

MARCH 2019

[3]

Mrs. Malvi Mehrotra ushered the technical session by introducing participants about ‘Energy

Efficiency and Market Opportunity’. As majority of participant where from non- energy efficiency

background presentation covered basics of NMEEE schemes, PAT cycles, PAT achievements

and projected outcomes,etc.

Post tea break, Mr. Harigovind Rajan presented Module-2 highlighting about Energy Efficiency

Business Models covering details of Energy Service Company (ESCO), Implementation Models

(Corporate, retail, energy audit). He also briefed about various Shared Savings,Guaranteed

Savings,Deemed Energy Savings and Outsourced Energy Management ESCO Models along with

eligibility, salient features institutional arrangements of Partial Risk Guarantee Fund for Energy

Efficiency (PRGFEE)and Partial Risk Sharing Facility for Energy Efficiency (PRSF).The banking

and financial representatives were attracted to provisions of PRGFEE scheme and were

inquisitive about practical cases studies involving financing of EE projects/equipment, paybacks,

NPA (if any), etc.

In post lunch session,Mr. Bajpai (MPUVNL) & Mr. Wankhede (OWML) accompanied participants

in Site visit at 'M/s Oswal Woollen Mills Ltd'(OWML) ‘Denim Unit’ at Industrial Area, Philukhedi,

Rajgrah organized to facilitate practically understanding aboutenergy conservational measures

and associated paybacks.



ON

5TH – 6TH

MARCH 2019

[4]

'M/s Oswal' management representative Mr.Manjeet Singh Saini, Unit Manager and his team was

kind enoughtocomfortably showcased following 'Energy Efficient and Renewable Energy’ Projects

along with payback achieved for implementing intervention in their Unit.

SNo Projects Paybacks

1. 2 MW captive Solar PV plant 10 Years

2. Changed in Boiler fuel feed system ie, replaced Coal with Rice husk as fuel 12 Months

3. Replacing Street Light Halogens with LED lights 6-8 Months

4. Retrofitting existing Plant ICL, CFL with LED forlighting 03 Months

Above Projects and achieved Paybacks assisted in developing confidence among banking

participants that since technical life of EE equipment was 10 years to 20 years. Hence,'Energy

Efficient Projects' are bankable projects and depending on equipment size/capacity the cost

incurred in retrofitting andimplementing EE measures can be easily recovered in period of 03 to 12

months. Moreover, they were unanimous that probability of Bank loan turning into bad loan are

less since EE measures are implemented in either designated consumers or MSME which either

have good balance sheet or have been operating for long time.

'M/s Oswal' management offered refreshments as hospitality and concluded first day session with

hope that financial institution would further instill confidence in their Higher banking management

for financing EE Projects.

On 6thMarch 2019, the second day session Ms. Malvi Mehrotra recapped about previous day

session and presented Module-3 about 'Financial Appraisal of EE Project' along with role of

scheduled commercial banks/NBFC in financing energy efficiency project.



ON

5TH – 6TH

MARCH 2019

[5]

In post tea session, Mr. Chandan Roy, Frost & Sullivan presented Module-4 on 'Technical

appraisal requirement' and Module-5 on various Monitoring & Verification procedure related to EE

Project'.

After Lunch, Mr. Tusharkant Tiwari, Petroleum Conservation Research Association presented

cases study specifying about implementation of Energy efficiency project in energy intensive

industries like Oil &gas, etc.. He also discussed about mitigation of Credit risk model in designated

consumer. In further sessions, Mr. Tushar Patel, EY presented highlights of 'MPUVN-RESCO'

and per unit cost achieved across various institutions that gave consent to avail benefits of MP-

RESCO Model.

To assess the knowledge comprehended by banking participants during the sessions aQuiz was

organized. Further to make workshop more interactive and promote thought of financing energy

efficiency projects,4 teams were made each having 4-5 participants.

Each team was given 4 different unique mock Cases/topics of Energy Efficiency sector.

SNo Topic of Case Analysis Types of Projects

Case-A. Building Sector P1. Implementing EE lighting (LED lights in the building)

P2. Replacement of inefficient fans by new and efficient



ON

5TH – 6TH

MARCH 2019

[6]

fans and installation of LED lighting

P3. Replacement of existing inefficient ACs by 5 star rated

energy efficient ACs in a hospital

P4. Implementation of new and innovative EE project

(Enthalpy Wheel) in Air-Conditioning system of a hotel

Case-B.

Large Industry

P1. Replacement of existing transformers by Energy

Efficient transformers

P2. Installation of EE motors in Ring frame machine

P3. Installation of Variable Frequency Drives (VFDs) for

Fans and Blowers

P4. Replacement of pneumatic chip conveyors with belt

conveyors

Case-C.

SME Industry

P1. Installation of Energy Efficient gas fired pit-furnace

P2. Use of De-superheating technology for Waste Heat

Recovery from the refrigeration system (200 TR)

P3. Installation of Energy Efficient Tray Dryer (400 trays)

P4. Improvement of Kiln insulation

Case-D.

Municipal

Corporations

P1. Replacement of existing inefficient street lights by

LED street lights

P2. Replacement of existing inefficient water pumps by

efficient water pumps

P3. Installation of Energy Efficient LED street lights

P4. Replacement of existing inefficient sewage pumps by

efficient pumps

Participants need discuss among team and evaluate sectorial Energy efficiency projects against

establish principles of banking and financial sector like, Capital Investment in the Project, Financial

Indicator, Annual Savings,Payback, ESCO Model types, Payment security mechanism,etc.

Each team can select only 1 EE project among 4 above options and has to unanimously provide

the valid justification for supporting their choice among each of 4 proposed Projects options.



ON

5TH – 6TH

MARCH 2019

[7]

As a token of remembrance and promote plantation around our surrounding the winners of Quiz

along with proactive team and participants were given Saplings as a Prize. Mrs. Malvi Mehrotra

(BEE) culminated the workshop by thanking MPUVN and representatives of various bank, hoping

that banks would assist in promoting schemes towards financing energy efficiency projects for

both DC and other conscious project developers.

Mr.Surendra Bajpai (MPUVNL) expressed his regards towards BEE for choosing Bhopal for

organizing Workshop and also conveyed regardstowards DC's and appreciated FI's for sparing

time to participate in this workshop.

The 2-day sessions was anchored by Mr. Pulkit Khosla, Consultant, BEE- MPUVN and

workshop and other support activities where coordinated by Mr. Ambuj Adhwaryu, Consultant,

BEE- MPUVN, Mr. Kaushal Lodaya, PwC and assisted by Mr. Lokendra singh Jatt.

training workshop for inancial nstitutions on energy...

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