Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Report Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India 25th February – 1st March 2019 New Delhi, India Access Report at: https://tinyurl.com/y6n6xyen Prepared for The World Bank Group BY International Institute for Energy Conservation (IIEC) D-1, First Floor, Shopping Centre, D-Block, Paschimi Marg, Vasant Vihar, New Delhi – 110057 INDIA March 2019 1 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Contents Acronyms ................................................................................................................................................. 3 1. Executive Summary ........................................................................................................................ 4 2. Overview of the Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India ..................................................................................................................................... 4 3. Summary of the Knowledge Exchange Program........................................................................ 7 3.1. Day 1, 1st Half: Meeting with the Bureau of Energy Efficiency (BEE) .......................... 7 3.2. Day 1, 2nd Half: Meeting with Energy Efficiency Services Limited (EESL) ................. 14 3.3. Day 2: Visit to GBTL Limited, Bhiwani (PAT Designated Industry Consumer) ........... 23 3.4. Day 3: Meeting with Financial Institutions ...................................................................... 29 3.4.1. Presentation by Punjab National Bank (PNB) ...................................................... 29 3.4.2. Presentation by Small Industries Development Bank of India (SIDBI)........... 36 3.4.3. Presentation by Yes Bank ...................................................................................... 44 3.4.4. Presentation by Indian Renewable Energy Development Agency (IREDA) ... 47 3.5. Day 4: Visit to Agra ............................................................................................................. 51 3.6. Day 5: Visit to New Delhi Municipal Council (NDMC) ..................................................... 52 4. Communication and Outreach .................................................................................................... 55 5. Evaluation, Feedback and Recommendations .......................................................................... 56 6. Annex 1: Agenda .......................................................................................................................... 59 7. Annex 2: List of Speakers ............................................................................................................ 63 8. Annex 3: Evaluation Survey Results .......................................................................................... 63 9. Annex 4: List of Participants ....................................................................................................... 65 10. Annex 5: Logistics Note ............................................................................................................... 66 11. Annex 6: Photographs ................................................................................................................ 70 2 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Acronyms BEE Bureau of Energy Efficiency DISCOM Distribution Companies DSM Demand Side Management ECBC Energy Conservation Building Code EE Energy Efficiency EESL Energy Efficiency Service Limited EREA Electricity and Renewable Energy Authority ESCOs Energy Service Companies FEEED Framework for Energy Efficient Economic Development IIEC International Institute for Energy Conservation IREDA Indian Renewable Energy Development Agency JICA Japan International Cooperation Agency MOIT Ministry of Industry and Trade MoP Ministry of Power MSME Medium, Small and Micro Enterprises NAPCC National Action Plan for Climate Change NDC Nationally Determined Contributions NDMC New Delhi Municipal Council NMEEE National Mission on Enhanced Energy Efficiency PAT Performance, Achieve, Trade PNB Punjab National Bank RE Renewable Energy SDMC South Delhi Municipal Corporation SIDBI Small Industries Development Bank of India VCFEE Venture Capital Fund for Energy Efficiency VNEEKEP Vietnamese Delegation Energy Efficiency Knowledge Exchange Program WB World Bank WBG World Bank Group 3 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 1. Executive Summary The Vietnamese Delegation’s Energy Efficiency Knowledge Exchange program was held in New Delhi, India from 25th February 2019 to 1st March 2019 for a group of Energy Efficiency (EE) practitioners from Vietnam to study national and state level EE programs and schemes like Perform, Achieve and Trade (PAT) in India. This program was held under the auspices of a collaborative platform to provide opportunity to Vietnam for knowledge exchange and learning in order to enhance the capacity to deliver EE, Demand Side Management (DSM) and Smart Metering programs in Vietnam.1 The program aimed to enhance greater connectivity between the community of the World Bank Group’s (WBGs) EE practitioners and country stakeholders from Vietnam, led by the Ministry of Industry and Trade (MOIT) and in India, led by the Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL). The overall emphasis of the knowledge exchange was on financing, implementation and delivery of energy efficiency. This report focuses on this Knowledge Exchange program which took place in India during 25th February 2019 – 1st March 2019, its objectives, detailed discussions, outcomes and learning’s from key EE practitioners from India and Vietnam. Twenty-two EE practitioners representing public and private sector agencies, financing institutions and banks and from World Bank office in Vietnam had participated in this Knowledge Exchange Program. The program was organized by the World Bank in collaboration with Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL). The International Institute for Energy Conservation (IIEC) implemented the 5-day program in India, as a technical consultant to the World Bank. The exchange program consisted of meetings and interactive sessions with experts BEE, EESL, financing institutions, industry and international agencies working in India. The participants also visited the industries to learn about the implementation of energy efficiency measures under PAT Scheme. The program not only provided the opportunity to learn from the information shared by the key speakers but also to network with each other, exchange knowledge, enabled technology transfer and build partnerships for design and implementation of innovative EE programs in future in Vietnam. IIEC also undertook a short feedback survey from the participants at the end of the 5 day-long program. The participants shared constructive feedback on the training and content of the sessions. Participants also provided their inputs for future improvements in the design of exchange programs. The recommendations also included some observations which can be used to develop strategic partnerships between the two countries. 2. Overview of the Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India The Knowledge Exchange Program was supported under the ESMAP-funded activity “Improving Energy Efficiency in Vietnam” managed by World Bank’s Vietnam office. It was coordinated in conjunction with World Bank’s ongoing EE operations in India (such as the India Energy 1 A similar Exchange was held earlier when the Vietnam delegation went to China in 2018 to learn the (1) Chinese mandatory EE target setting, allocation, and enforcement, institutional framework, standards and codes, monitoring and enforcement; (2) ESCO business models; (3) financing mechanisms; and (4) EE implementation at provincial and industrial enterprise level. 4 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Efficiency Scale-Up Program Loan with EESL, and India Partial Risk Sharing Facility for EE Project with EESL and Small Industries Development Bank of India), and is in line with the knowledge and experience sharing objectives of World Bank’s India Lighthouse initiative. The Vietnam government is planning to develop their 10-year National Energy Efficiency (EE) program and to bring a shift from a voluntary based approach to a mandatory one for implementation of Energy Efficiency programs. Additionally, the Government is looking to scale up energy efficiency initiatives and align it with the National Goals. Further to support their national goals, Vietnamese delegation was keen to learn the following aspects of Energy Efficiency in Indian context: 1. India’s national EE program, with a focus on the mandatory PAT scheme for improving EE in energy-intensive industries, in particular regarding target setting, allocation to industrial enterprises, penalties and incentives, M&V, enforcement, etc.; 2. EESL and other energy service company (ESCO) business models; 3. EE financing schemes (as the Bank has an EE credit line and an EE risk sharing project in Vietnam); and 4. Demand side management (DSM) and implementations and use of smart grid technologies. The Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India (VNEEKEP) was organized from 25th February 2019 to 1st March 2019. Twenty-Two EE practitioners representing public and private sector agencies, financing institutions and banks and from World Bank office in Vietnam had participated in this EE Knowledge Exchange Program. The program was organized by the World Bank in collaboration with Bureau of Energy Efficiency (BEE), Energy Efficiency Services Limited (EESL). The International Institute for Energy Conservation (IIEC) implemented the 5-day program in India, as a technical consultant to the World Bank. The exchange program consisted of meetings and interactive sessions with experts BEE, EESL, financing institutions, industry and international agencies working in India. The participants also visited the industries to learn about the implementation of energy efficiency measures under PAT Scheme and visited New Delhi Municipal Corporation site to learn from the implementation of smart metering program. Among the participants and speakers were representatives from:  Indian Organizations  Ministry of Power (MoP), Government of India  Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India  Energy Efficiency Services Limited (EESL), Ministry of Power, Government of India  International Institute for Energy Conservation (IIEC), India  The World Bank  Grasim Bhiwani Textiles Ltd., Bhiwani, Haryana, India  Small Industries Development Bank of India (SIDBI), India  Punjab National Bank (PNB), India  Yes Bank, India  Indian Renewable Energy Development Agency (IREDA), India  New Delhi Municipal Council (NDMC), India  Vietnam Organizations  Energy Efficiency and Sustainable Development Department, Ministry of Industry and Trade, Government of Vietnam 5 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  Electricity and Renewable Energy Authority (EREA), Vietnam  Science and Technology Department, Vietnam  Hai Phong Energy Efficiency and Conservation Center, Vietnam  Hanoi Department of Industry and Trade, Vietnam  International Fund Division, Vietcom Bank, Vietnam  Dong Thap Energy Efficiency and Cleaner Production Center, Vietnam The VN EE Knowledge Exchange in India program provided an opportunity to enable participants to share and learn about EE policies, business models and financing mechanisms to promote demand-side EE improvements across different sectors. The program also provided a cross-learning opportunity on topics such as addressing barriers in transforming EE markets on scale, becoming more efficient, adapting and applying the implementation models that worked successfully in India and other countries. The knowledge exchange program was also a platform for dissemination, sharing and exchange of knowledge in the area of EE and DSM, steered by robust policies, legislations supported by financial mechanisms, institutional development and increased awareness. The following team members provided the support for designing, organizing and delivering this Knowledge Exchange Program: Organization Name Designation IIEC Sanjay Dube Chief Executive Officer IIEC Ankit Kamra Senior Project Manager IIEC Sumedha Awasthy Research Associate IIEC Kartik Dube Research Associate IIEC Akansha Sharma Research Associate IIEC Amar Yadav Senior Admin Officer BEE Abhay Bakre Director General BEE Dr. Ashok Kumar Director BEE Arijit Sengupta Director in charge of International Cooperation BEE Sumit Mudgal Project Engineer BEE Ujjwal Gaur Project Engineer BEE Ajitesh Upadhyaya Textile Sector Expert EESL Venkatesh Dwivedi Director (Projects) EESL SP Garnaik Chief General Manager (Technical) EESL Girja Shankar Assistant General Manager (Technical) EESL Ayan Ganguly Engineer (Technical) EESL Bansi Shukla Engineer (Technical) EESL Titiksha Sharma Engineer (Technical) World Bank Dr. Ashok Sarkar Senior Energy Specialist World Bank Thi Ba Chu Senior Energy Specialist, Vietnam World Bank Xiaodong Wang Senior Energy Specialist, Vietnam World Bank Franz Gerner Energy Sector Coordinator, Vietnam World Bank Ritika Rodrigues Program Assistant, New Delhi World Bank Huong Thu Vu Program Assistant, Vietnam World Bank Hoa Chau Nguyen Program Assistant, Vietnam EE Expert K.K Chakravarti PAT Scheme and EE Sector Expert The presentations made during the EE Knowledge Exchange are all available at https://drive.google.com/open?id=1ptsJmNWSiUqjmj9P-n6ggUJ8C2Z8k8iW 6 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3. Summary of the Knowledge Exchange Program 3.1. Day 1, 1st Half: Meeting with the Bureau of Energy Efficiency (BEE) Date: 25th February 2019 Venue: Bureau of Energy Efficiency, Ministry of Power, Govt. of India, 4th Floor, Sewa Bhawan, R. K. Puram, New Delhi - 110066 (INDIA) Website: https://beeindia.gov.in/ About Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India The Government of India has set up Bureau of Energy Efficiency (BEE) on 1st March 2002 following the prerequisites of the Energy Conservation Act, 2001. The purpose of the Bureau of Energy Efficiency is to help in promoting policies and strategies with a push on self-regulation and market strategies, within the overall structure of the Energy Conservation Act, 2001 with the initial objective of diminishing the energy strength of the Indian economy. This will be accomplished with the effective participation of all stakeholders, producing in the accelerated and continued confirmation of energy efficiency in all sectors. Role of Bureau of Energy Efficiency (BEE) BEE co-ordinates with designated consumers, designated agencies, and other organizations and recognizes, identify and utilize the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act. The Energy Conservation Act provides for regulatory and promotional functions. Regulatory Functions of BEE include: i. Develop least energy performance patterns and labeling design for tools and appliances ii. Promote precise Energy Conservation Building Codes iii. Promote Projects focusing on selected users iv. Promote special energy expenditure norms v. Verify Energy Managers and Energy Auditors vi. Authorize Energy Auditors vii. Describe the manner and periodicity of necessary energy audits viii. Develop reporting formats on energy consumption and action used on the advice of the energy auditors Promotional work of Bureau of Energy Efficiency includes:  Create awareness and disseminate information on energy efficiency and conservation  Arrange and coordinate training of employees and professionals in the techniques for effective use of energy and its conservation  Strengthen consultancy services in the field of energy conservation  Promote research and development  Improve testing and certification methods and promote examination facilities  Formulate and promote the implementation of pilot plans and presentation projects  Promote the use of power efficient processes, tools, devices and systems  Take necessary steps to promote preferred treatment for use of energy efficient equipment or appliances  Support innovative funding of energy efficiency schemes 7 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  Give financial support to organizations for encouraging efficient use of energy and its maintenance  Prepare institutional curriculum on efficient use of energy and its conservation among school and college students  Execute international co-operation plans relating to efficient use of energy and its conservation Proceedings of Day 1, 1st Half Day 1 started off with the welcome of the Vietnamese delegation by Mr. Abhay Bakre, Director General at Bureau of Energy Efficiency, Ministry of Power, and Government of India. He provided an overview of the India’s energy context and brief on some of the prominent energy efficiency programs on Perform, Achieve and Trade (PAT) Scheme, Standards & Labeling Program, Buildings Program, to name a few. Next, BEE invited Ms. Nguyễn Thị Lâm Giang, Director General, Energy Efficiency & Sustainable Development Division, Ministry of Industry and Trade, Government of Vietnam, to take the entire group through a brief overview of current programs, initiatives and policies for energy efficiency and sustainable development in Vietnam This was followed by a detailed presentation by Dr. Ashok Kumar, Director at Bureau of Energy Efficiency on the nuances of BEE’s flagship program Perform, Achieve and Trade Scheme. Below are some of the key excerpts from his presentation. For further details, you may please refer the attached detailed presentation. Topic: Perform, Achieve and Trade (PAT) - An instrument for Enhancing Energy Efficiency in Energy Intensive Sectors in India Speaker: Dr Ashok Kumar, Director & Mr. Arijit Sengupta, Director The National Action Plan on Climate Change 8 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 (NAPCC)2 released by Honorable Prime Minister of India in June 2008, outlined Eight National Missions, The National Mission for Enhanced Energy Efficiency (NMEEE)3 is one of the eight national missions with the objective of promoting innovative policy and regulatory regimes, financing mechanisms, and business models which not only create, but also sustain, markets for energy efficiency in a transparent manner with clear deliverables to be achieved in a time bound manner. The Ministry of Power (MOP) and Bureau of Energy Efficiency (BEE) were tasked to prepare the implementation plan for the NMEEE. NMEEE spelt out the following four new initiatives to enhance energy efficiency, in addition to the programs on energy efficiency being pursued. They are: 1. Perform Achieve and Trade (PAT): A market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. 2. Market Transformation for Energy Efficiency (MTEE) 4 : Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. 3. Energy Efficiency Financing Platform (EEFP) 5 : Creation of mechanisms that would help finance demand side management programs in all sectors by capturing future energy savings. 4. Framework for Energy Efficient Economic Development (FEEED) 6 : Developing fiscal instruments to promote energy efficiency. Perform Achieve and Trade (PAT)7 PAT is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. The genesis of the PAT mechanism flows out of the provision of the Energy Conservation Act, 2001, herein after referred to as the Act. Section 14 (e) of the Act empowers the Central Government to notify energy intensive industries, as listed out in the Schedule to the Act, as Designated Consumers (DCs). Launched in 2012 as a market based regulatory instrument, Perform, Achieve and Trade (PAT) program, is being administered by the BEE that sets mandatory, specific targets for energy consumption for larger, energy-intensive facilities. Currently in its third phase, PAT Scheme is being implemented in three phases- the first phase ran from 2012-2015 covering 478 facilities from eight energy-intensive sectors, namely aluminum, cement, chlor-alkali, fertilizer, iron and steel, pulp and paper, textiles and thermal power plants. Aimed towards bringing down the specific energy consumption, the program provides unit specific targets to the industrial sector based on their current efficiency to enhance the cost 2 http://moef.gov.in/division/environment-divisions/climate-changecc-2/national-action-plan-on-climate-change/ 3 http://pib.nic.in/newsite/PrintRelease.aspx?relid=85182; https://beeindia.gov.in/content/nmeee-0 4 https://beeindia.gov.in/content/mtee-0 5 https://beeindia.gov.in/content/eefp 6 https://beeindia.gov.in/content/feeed 7 https://beeindia.gov.in/content/pat-3 9 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 effectiveness through tradable energy saving certificates e.g. inefficient plants will have a higher target vis-à-vis an energy efficient one. For the energy efficiency achievements against the set targets, ESCerts (Energy Saving Certificates) are issued to the Designated Consumer. The benefit of these ESCerts is that they are tradable through an exchange. Whereas overshooting the target leads to a penalty of INR 1 million, in addition to INR 10,000 per day. Non achiever DCs can purchase these ESCerts to meet targets. In 2017, ESCerts trading generated a daily business of INR 64 million (approx. USD 1 million). Some of the other achievements include:  PAT 1 cycle (2012-2015) resulted in a saving of 5635 MW power and USD 5.8 billion and 31 million tonnes of CO2.  PAT 2 cycle (2016-19) resulted in a saving of 17.5 mtoe of energy USD 3 billion and 60 million tonnes of CO2.  PAT III cycle is under evaluation and the targets for PAT IV cycle are being developed. Institutional Design of the PAT Scheme Trading Type of Institution Operations Compliance (ESCerts) Nodal Authority Bureau of Energy Efficiency (BEE) State Electricity Regulatory Adjudicators, Quasi- Commission (SERC) and Judicial & Judicial - - Adjudicating Institutions Officers, Appellate Tribunal Agencies that State Designated Agency (SDA) & Inspecting Officers, interact with Accredited Energy Auditors (AEA), Energy Power Designated Auditor/Energy Manager at the Designated Consumer Exchanges Consumers (DCs) (DC) Energy Saving Others Legal Experts Traders Companies (ESCOs) Stages of the PAT Cycle 10 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Framework of Energy Efficiency Financing In India To facilitate uptake of Energy Efficiency measure in the country, Government of India announced its Mission on Enhanced Energy Efficiency (NMEEE) under the National Action Plan on Climate Change (NAPCC). The key thought behind the NMEEE, aimed at industry, was the establishment of a Framework for Energy Efficient Economic Development (FEEED), which mainly focuses on developing fiscal and investment guarantee instruments to promote energy efficiency. On behalf of Ministry of Power, Government of India, BEE has taken up several initiatives to strengthen the market for energy efficiency including innovative mechanisms to scale up financing of energy efficiency projects in India. Under the initiative of Framework for Energy Efficient Economic Development (FEEED), BEE has created two financial instruments – Partial Risk Guarantee Fund for Energy Efficiency (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE) – to help financial institutions actively engage with industries, large commercial establishments, and project implementation agencies and provide funds for energy efficiency projects across the country. Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) The PRGFEE is a risk sharing mechanism to provide commercial banks with a partial coverage of risk involved in extending loans for EE projects. Eligible projects for which the PFI can apply for a guarantee could be credit facilities extended to ESCOs for EE projects. Sectors in the mandate of PRGFEE include government buildings, municipalities, SMEs and industries. Framework and Activities Parameter Mission Design Finance USD 52 Million set aside Policy Participating Financial Institution (PFI) empanelled by the BEE to take Administration: guarantee from PRGEE before disbursement of loan to the borrower. Regulatory Guarantee will not exceed USD 50 billion or 50% of the loan (only Frameworks principal), whichever is less. Policy BEE to select a PFI as an Implementing Agency (IA) for all activities - Administration: approval of proposals, signing guarantee agreements, regular monitoring Coordination and appointment of M&V consultant for processing guarantee claims. Policy A Supervisory Committee has been constituted to provide guidance as Administration: well as monitor progress. Monitoring The roles and responsibilities of primary stakeholders under PRGFEE are: BEE Implementing Agency (IA) Financial Institution (FI) Assistance to BEE in Nodal agency, appoints the IA empanelment of Participating Evaluates loan application Financial Institutions (PFIs) Updates the list of empanelled Reviews progress reports and Monitors borrower account ESCOs statement of accounts Empanels independent M&V Updates Supervisory agency, and PFIs under Committee on progress of the Safeguards primary securities PRGFEE scheme 11 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Carries out annual visits and Processes guarantee Submits verification report submits reports to application and signs with due diligence Supervisory Committee (SC) agreements with PFIs Administer the program Safeguards interest of PRGFEE Venture Capital Fund for Energy Efficiency (VCFEE) The VCFEE is a fund that provides risk capital to support EE investments in new technologies, goods and services. The fund helps in creating a volume in EE deal flow by the fund manager through advertising and soliciting opportunities in the EE area. ESCOs and companies that plan to undertake EE projects in the performance-contracting mode are the key beneficiaries. The support under VCFEE is limited to government buildings and municipalities. Framework and Activities – VCFEE Parameter Mission Design Finance USD 35 Million set aside under the 12th Five Year Plan Fund is registered with Securities and Exchange Board of India (SEBI) under its Alternative Investment Funds Regulation. The BEE selects a Policy Participating Financial Institution (PFI) as the Fund Manager. Administration: Regulatory Any single investment by the fund cannot exceed USD 0.3 million or Frameworks 15% of total equity, whichever is lesser, through Special Purpose Vehicles (SPV). Policy Administration: Fund Manager responsible for making investments Coordination Board of trustees has been formed comprising Director General of Policy Bureau of Energy Efficiency, Joint Secretary of Ministry of Law, Joint Administration: Secretary of Ministry of Power, a senior person from Power Finance Monitoring, Corporation and an energy efficiency expert. Trustees to monitor Compliance quarterly reports presented by the Fund Manager. The roles and responsibilities of primary stakeholders under VCFEE are: BEE Fund Manager Board of Trustees Applies to Fund Manager for Approve the Conducts due diligence equity investment strategy Submits documents for pre- Develops investment strategy and Review the progress approval pipeline of projects of funds regularly Makes decisions on investments, exit Raises remaining equity and strategies, management of liquidity - debt and participate in management of investee equities Towards the closing of the session, Mr. Abhay Bakre, Director General, BEE delivered the closing remarks and highlighted some of key points about the Energy Efficiency Landscape in India. Some of the key excerpts from his speech are as follows: India has a total generation of 343 GW of which nearly 40% is consumed by the industrial sector followed by the residential sector. The Bureau of Energy Efficiency (BEE), created in 2001, as mandated under Energy Act, 2000 is responsible for providing regulatory support and 12 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 environment for the uptake of energy efficiency measures. India also has a National Mission on enhanced Energy Efficiency, launched in 2008. To promote energy efficiency, several initiatives have been taken at central level. Flagship initiatives include:  Standards and Labeling for appliances & equipment, which has been hugely successful in India, now covers 21 equipment’s, with 10 made mandatory and the standards over time have been made more stringent.  Energy Consumption norms for energy intensive industries (PAT),  Demand Side Management programs,  Energy Conservation Building Code (ECBC) for commercial buildings, ECBC, which especially started as voluntary program has now been converted into mandatory regime. Though adopted from various existing programs, the Indian ECBC has been further developed as per the Indian climatic conditions. As of now, 12 states have already included it as bylaws. Another key program, launched by the Government is the Unnat Jyoti by Affordable LEDs for all (UJALA), which targeted replacement of 770 million bulbs to be replaced by LED Bulbs, has already witnessed replacement of over 300 million bulbs. The government estimates a potential market of EE worth 20 million USD, for which ESCOs have been empaneled to institutionalize energy efficiency services and promote energy efficiency delivery mechanisms. The government is constantly working on exploring more options for implementing EE. Some identified options are developing state energy efficiency index, electric mobility plan. Further towards the Governments’ commitment to meet Nationally Determined Targets (NDC) agreed in the COP 21, the government is extensively working to promote and outreach, improving financing options, covering small and medium enterprises, conduct school level painting competitions and conducts seminars, workshops and capacity building programs. Towards the end part of his speech, he ensured full support from Ministry of Power and especially Bureau of Energy Efficiency to the Vietnamese delegation in replicating or conceptualizing any of the similar programs in Energy Efficiency. He also extended best wishes on behalf of the Bureau for the rest of the Knowledge Exchange week. 13 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.2. Day 1, 2nd Half: Meeting with Energy Efficiency Services Limited (EESL) Date: 25th February 2019 Venue: Bhabha Chamber, SCOPE Convention Center, 1st Floor, Core - 8, SCOPE Complex, 7 Lodi Road, New Delhi - 110 003 (INDIA) Website: https://www.eeslindia.org About Energy Efficiency Services Limited (EESL) Energy Efficiency Services Limited (EESL) is a joint venture of four national Public-Sector Undertakings – NTPC Limited, Power Finance Corporation Limited, Rural Electrification Corporation Limited and POWERGRID Corporation of India Limited. As South Asia's first and foremost energy efficiency leader, EESL leads the market-related activities of the National Mission for Enhanced Energy Efficiency (NMEEE), one of the eight national missions under the Prime Minister’s National Action Plan on Climate Change. Growth and Impact Founded in 2009 by the Government of India, EESL has reduced India's carbon footprint, peak energy demand, and electricity bills through energy efficiency intervention projects worth Rs. 43 billion in domestic lighting. With an unprecedented 140X growth in 2 years, EESL’s flagship initiative, Unnat Jyoti by Affordable LEDs for All (UJALA), has revolutionized India’s access to energy efficient LED bulbs and reduced carbon emissions by up to 32 million tonnes every year. Energy Efficiency and Conservation (EE&C) across India’s energy intensive industries and other key demand-side economic sectors promise an investment potential of INR 740 million through large-scale deployments. Objectives of EESL  To carry out and promote the business of Energy Efficiency and climate change including manufacture and supply of energy efficiency services and products.  To provide consultancy services in the field of Clean Development Mechanism (CDM) projects, carbon markets, demand side management, energy efficiency, climate change and related areas.  To act as resource center in the field of Energy Efficiency and take up the activities of Capacity Building, Training and other related activities.  To carry out such other activities as offered by the Central Govt., Bureau of Energy Efficiency or any other agency related to Energy Efficiency and Climate Change. EESL Business Models EESL has designed an innovative business model that is scalable, flexible, embraces different and emerging technologies, is independent of public funding, and incentivises all stakeholders. Capable of delivering outcomes in a time-bound manner to enable more, it has the power to unlock demand in sectors where none existed. EESL can therefore drive large-scale initiatives to create markets for disruptive solutions. 14 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The business model:  Is simple and easy to comprehend, ensuring high adoption of solutions, thereby creating value for stakeholders by addressing sector- specific barriers  Enables availability of future-ready solutions that are relevant to all sections of society – individuals, institutions, utilities, and governments  Has low transaction cost, to enable ease of adoption, scalability and replicable across geographies  Is flexible and agnostic of technologies, platforms, and solutions, and can drive markets across the value chain, from LED bulbs and solar photovoltaic (PV) plants to electric vehicles  Has tangible and lasting economic and social benefits, and encourages all sections of the value chain  Effectively communicates benefits to stakeholders to stimulate their participation  Transparently disseminates performance-based outcomes and outputs in the public domain to enhance credibility and drive demand Enabling smooth implementation of our programs, EESL work on two specific models: Energy Service Company (ESCO) Model Under this model, we undertake the entire upfront investment for the project, instead of relying on consumers or clients. The investment is recovered through periodic instalments which result from deemed energy savings over a mutually agreed-upon project period. Operation and maintenance of new equipment is liability of EESL during the contract period. This can enforce effective product warranties to ensure minimal downtime due to equipment malfunctions. Project Management Consultant (PMC) Model Under this model, EESL plays the role of Project Management Consultant (PMC) for project implementation. The upfront investment for the project in this model is borne by the client. For a one-time payment cost of services for energy efficiency projects, our client receives a lifetime of energy savings, translating to monetary savings Proceedings of Day 1, 2nd Half Day 1, 2nd half started off with the welcome of the Vietnamese delegation by Mr. Venkatesh Dwivedi, Director (Projects) at Energy Efficiency Services Limited (EESL). He gave the delegation an overview of the India’s energy efficiency context along with a brief on EESL mandate and some of their flagship & largest programs like: 15 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  Unnat Jyoti by Affordable LEDs for All (UJALA): World’s largest zero-subsidy domestic LED bulb Program  Street Lighting National Program (SLNP): World’s largest street light replacement Program  Agriculture Demand Side management (AgDSM): World’s largest Agricultural Demand Side Management Program Next, Mr. Prabhat Kumar, National Program Manager for EESL’s Building Energy Efficiency Program, gave a detailed presentation on the Program followed by questions and answers. Below are some of the key excerpts from his presentation. For further details, you may please refer the attached detailed presentation. Topic: EESL’s Building Energy Efficiency Program (BEEP) Speaker: Mr. Prabhat Kumar, National Program Manager, Building Energy Efficiency Program Under the Building Energy Efficiency Program, EESL intends to bring investment to the tune of USD 166 million covering more than 10,000 large government/private buildings in next 2-3 years. It is estimated that about 10 million LED lights, 1.5 million energy efficient ceiling fans and 0.15 million energy efficient ACs will be retrofitted by EESL in these buildings. Apart from retrofitting, EESL also aims to widen its services in areas like centralized AC system, Energy Audits and New Generation Energy Management System in buildings. Building energy consumption accounts for over 30% of electrical energy consumption in the country and is rising annually at a rate of 8%. Till date (as on 24 Feb 2019), EESL’s Building Energy Efficiency Program (BEEP) has completed LED lighting implementation in total 10,102 buildings including Railway stations and Airports. Work is under progress in 650 buildings across India. The Program has two business models. 1. The ESCO (Energy Servicing Company) model, where the entire upfront investment is done by EESL which is paid back by the building owner from the energy saving resulted by the intervention. a. Project Cost = Upfront Investment + PMC Fees + Interest on Debt + Return on Equity 2. The other model is PMC (Project management consultancy), where onetime payment cost of services is paid to EESL who then support the complete project implementation. 16 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Some challenges that the program implementation still faces since its launch are lack of awareness of energy efficiency projects, lack of baseline data in energy efficiency, ESCO credibility, lack of awareness about energy performance contracting, access to finance and technical know-how. To facilitate the market, there are provisions by EESL under ESCO. There is cost aggregation by demand aggregation as well as comprehensive warranty by EESL. There is also National Building Dashboard to monitor the same. This was followed by a presentation by the EESL’s Street Lighting National Program (SLNP) team. Below are some of the key excerpts from the presentation. For further details, you may please refer the attached detailed presentation. Topic: EESL’s Street Lighting National Program (SLNP) Speaker: Mr. Santosh Kumar Thakur, General Manager (Technical) Street Light National Program (SLNP) is an initiative of the Government of India to promote energy efficiency in the country. Launched by Hon’ble Prime Minister on 5th January, 2015 to replace the approx. 13.4 million numbers of conventional street lights with smart and energy efficient LED street lights to achieve set targets of Expected annual energy savings of 9 billion kWh, Expected reduction of installed street light load of 1,500 MW, Annual estimated greenhouse gas emission reductions of 6.2 million tonnes of CO2, by 2019. Energy Efficiency Services Limited (EESL), a Public Energy Services Company under the administration of Ministry of Power, Government of India (GoI) is the implementing agency for SLNP. Objective of this Program  Mitigate climate change by implementing energy efficient LED based street lighting  Reduce energy consumption in lighting which helps DISCOMs to manage peak demand  Provide a sustainable service model that obviates the need for upfront capital investment as well as additional revenue expenditure to pay for procurement of LED lights  Enhance municipal services at no upfront capital cost of municipalities EESL Service Model EESL replaces the conventional street lights with LEDs at its own costs and consequent reduction in energy and maintenance cost of the municipality is used to repay EESL over a period of time. The contracts that EESL enters into with Municipalities are typically of 7 years duration where it not only guarantees minimum energy savings but also provides free replacements and maintenance of lights at no additional costs to the municipalities. The service model enables the municipalities to go in for the state of the art street light with no upfront capital cost and repayments to EESL are within the present level of expenditure. Thus there is no additional revenue expenditure required to be incurred by the municipality for change over to smart and energy efficient LED street lights. Procurement EESL procurements conform to Bureau of Indian Standards (BIS) specification & carry a 7-year warranty against technical defects. EESL conducts appropriate quality checks right from the bidding stage to the field level. This has resulted in the LEDs’ overall technical fault being less 17 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 than 2% of lights installed by EESL in the country. EESL has maintained an uptime of 97% for all street lights across the country. Grievance Redressal Mechanism EESL has a stringent complaint redressal mechanism wherein consumers can go to the “Register your complaint” section on the program dashboard www.ujala.gov.in, or on EESL social media handles - for Twitter @EESL_India and for Facebook @EESLIndia for registering complaints. They can also contact the All-India helpline number 1800 180 3580. The official EESL complaint registration email ID is helpline@eesl.co.in. Consumers can also register their complaints at the EESL complaint logging portal - http://support.eeslindia.org/. Further EESL has installed Centralized Control and Monitoring System (CCMS) to enable remote operation and monitoring of the street lights. CCMS provides real time information on energy consumption and remote monitoring of the street lights. Till-date achievement:  Number of street lights replaced – 8.4 million  Expected annual energy savings – 5.6 billion kWh  Expected reduction of installed street light load – 941 MW  Annual estimated greenhouse gas emission reductions – 3.89 million tonnes of CO2  Coverage across states: 12 States in India Present status The real-time present status of the Program can be accessed at http://slnp.eeslindia.org/ The next presentation was on the Smart Meter Program in India. Below are some of the key excerpts from the presentation. For further details, you may please refer the attached detailed presentation. Topic: EESL’s Smart Meter National Program (SMNP) Speaker: Ms. Mayuri Chaukhande, Assistant Manager Working to rapidly establish its stated goal of pan-India universal electricity access, the Government of India is enabling Smart Grids which can offer affordability and other benefits to consumers. The first step towards realising Smart Grids is the implementation of Advanced Metering Infrastructure (AMI). The Smart Meter National Program (SMNP) is being implemented to deploy smart meters across the country. The scheme is being implemented by Energy Efficiency Services Limited (EESL), a JV of PSUs under Ministry of Power. Advanced Metering Infrastructure AMI (Advanced Metering Infrastructure) is the collective term to describe the whole infrastructure from Smart Meter to two way-communication network to control centre equipment and all the applications that enable the gathering and transfer of energy usage information in near real-time. AMI makes two-way communications with customers possible and is the backbone of smart grid. The objectives of AMI can be remote meter reading for error free data, network problem identification, load profiling, energy audit and partial load curtailment in place of load shedding. Building Blocks of AMI 18 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 AMI is comprised of various hardware and software components, all of which play a role in measuring energy consumption and transmitting information about energy, water and gas usage to utility companies and customers. The overarching technological components of AMI include:  Smart Meters - Advanced meter devices having the capacity to collect information about energy, water, and gas usage at various intervals and transmitting the data through fixed communication networks to utility, as well as receiving information like pricing signals from utility and conveying it to consumer.  Communication Network - Advanced communication networks which supports two-way communication enables information from smart meters to utility companies and vice-versa. Networks such as Broadband over PowerLine (BPL), Power Line Communications, Fiber Optic Communication, Fixed Radio Frequency or public networks (e.g., landline, cellular, paging) are used for such purposes.  Meter Data Acquisition System - Software applications on the Control Centre hardware and the DCUs (Data Concentrator Units) used to acquire data from meters via communication network and send it to the MDMS  Meter Data Management System (MDMS) - Host system which receives, stores and analyzes the metering information. Benefits The benefits of AMI are multi-fold and can be generally categorized as:  Operational Benefits – AMI benefits the entire grid by improving the accuracy of meter reads, energy theft detection and response to power outages, while eliminating the need for on-site meter reading.  Financial Benefits – AMI brings financial gains to utility, water and gas companies by reducing equipment and maintenance costs, enabling faster restoration of electric service during outages and streamlining the billing process.  Customer Benefits – AMI benefits electric customers by detecting meter failures early, accommodating faster service restoration, and improving the accuracy and flexibility of billing. Further, AMI allows for time-based rate options that can help customers save money and manage their energy consumption.  Security Benefits-AMI technology enables enhanced monitoring of system resources, which mitigates potential threats on the grid by cyber-terrorist networks. Challenges Despite its widespread benefits, deploying AMI presents three majors challenges that include high upfront investments costs, integration with other grid systems, and standardization.  High Capital Costs: A full scale deployment of AMI requires expenditures on all hardware and software components, including meters, network infrastructure and network management software, along with cost associated with the installation and maintenance of meters and information technology systems.  Integration: AMI is a complex system of technologies that must be integrated with utilities' information technology systems, including Customer Information Systems (CIS), Geographical Information Systems (GIS), Outage Management Systems (OMS), Work Management (WMS), Mobile Workforce Management (MWM), SCADA/DMS, Distribution Automation System (DAS), etc.  Standardization: Interoperability standards need to be defined, which set uniform requirements for AMI technology, deployment and general operations and are the keys to successfully connecting and maintaining an AMI-based grid system. 19 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 AMI in the Indian Context Modernizing India's grid system by investing in AMI promises to mitigate a number of strains placed on the grid due to growing demand for electric, gas and water resources. In particular, AMI will improve three key features of India's grid system including:  System Reliability: AMI technology improves the distribution and overall reliability of electricity by enabling electricity distributors to identify and automatically respond to electric demand, which in turn minimizes power outages.  Energy Costs: Increased reliability and functionality and reduced power outages and streamlined billing operations will dramatically cut costs associated with providing and maintaining the grid, thereby significantly lowering electricity rates.  Electricity Theft: Power theft is a common problem in India. AMI systems that track energy usage will help monitor power almost in real time thus leading to increased system transparency. Implementation of SMNP The SMNP aims to replace India’s 250 million conventional meters with smart meters. The smart meters procurement will be done by EESL. To begin with, the Program is initiated for the states of Haryana and Uttar Pradesh, states with AT&C losses as large as 28.42% and 34.36% respectively. EESL's proven model of bulk procurement, aggregation of demand, and monetisation of savings will be the approach to roll out smart meters. This roll-out is proposed under the Build-Own- Operate-Transfer (BOOT) model, wherein EESL will undertake all the capital and operational expenditure with zero upfront investment from states and utilities. EESL, on its investment, shall earn a nominal Internal Rate of Return (IRR) through a mutually agreed automated payback structure during the concession period, along with payment security mechanism from state governments and utilities. Benefits to the consumer:  Smart meters ensure consumer get real time and accurate bill for their electricity consumption  Smart meters provide a greater control over electricity usage. Consumers can track their electricity usage and accordingly alter their habits – Time of Day / Time of Use Tariff  Smart meters ensure energy and monetary savings  Smart meters help consumers with new Value-added services.  AMI functionalities improve customer satisfaction level for providing accurate billing due to automation, real time consumption information, automatic outage detection This roll-out is proposed under the Build-Own-Operate-Transfer (BOOT) model, wherein EESL will undertake all the expenditure of investment and cost of operation with zero upfront investment from states and utilities. EESL will earn its pay back through a mutually pre agreed structure of internal rate of return (IRR) from state governments and utilities. Installation of these smart meters with its associated Internet of Things (IoT) capabilities will enable the Electricity Distribution Companies (DISCOMs) to:  Obtain real time energy consumption data of each consumer  For subsequent analysis and will pave the way for initiating various smart measures by DISCOMs like  Time of Day (TOD)/Time of Use (TOU) billing,  Prediction and management of peak demand, 20 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  Providing real time energy consumption data to consumer,  Prepaid billing facility,  Remote connection and disconnection of load,  Accurate billing, etc. Installation of these meters will also obviate the need for the meter reader’s visit to each consumer. The next presentation was on the Unnat Jyoti by Affordable LEDs and Appliances for All (UJALA). Below are some of the key excerpts from the presentation. For further details, you may please refer the attached detailed presentation. Topic: EESL’s Unnat Jyoti by Affordable LEDs for All (UJALA) Speaker: Mr. Ashish Malviya, Senior Manager (Technical)-UJALA The EESL’s Unnat Jyoti by Affordable LEDs for All (UJALA, meaning Light in Hindi), is the world’s largest lighting replacement Program. By 2019, UJALA aims to replace 770 million old wasteful lamps with modern, efficient and longer lasting LED lamps, without the need for any government subsidies. To date more than 100 million LED bulbs have been delivered across the country, completely transforming the way people look at LED bulbs and energy efficiency. UJALA’s LED bulbs cost only 80 cents and UJALA allows the consumers to buy them for an initial payment of 16 cents, and the balance is paid through the consumer’s electricity bills in equal monthly installments of 16 cents. In the future, EESL plans to continue to deliver these and more multiple benefits to other Indian manufacturers with the introduction of new energy efficiency initiatives to transform the markets for residential fans, street lighting and agricultural pumps. An ordinary bulb is an extremely energy inefficient form of lighting with just 5% of the electricity input converted to light. Efficient light bulbs like Light-emitting Diode (LEDs) consumes only one-tenth of energy used by ordinary bulb to provide the same or better light output. However, high cost of LEDs has been a barrier in adoption of such efficient lighting systems. The Domestic Efficient Lighting Program (DELP) on-bill financing scheme proposes to overcome this cost barrier. The scheme was named "UJALA" – as an acronym for Unnat Jyoti by Affordable LEDs for All. Under the scheme, 20W LED tube lights and BEE 5-star rated energy efficient fans are also distributed to the consumers. The 20W LED tube lights are 50% more energy efficient than conventional 40W tube lights and are available for $3.67 per tube, as against the market price of $6.67-10. The energy efficient fans under the UJALA scheme come with a BEE 5 Star rating. These ceiling fans are rated 30% more energy efficient than conventional fans and are priced at $20 per fan. Present status The real-time present status of the Program can be accessed at: 21 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  National UJALA Dashboard http://www.ujala.gov.in/  National Pavan Dashboard http://fan.ujala.gov.in/  National Tube light Dashboard http://ledtubes.ujala.gov.in/ 22 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.3. Day 2: Visit to GBTL Limited, Bhiwani (PAT Designated Industry Consumer) Date: 26th Feb 2019 (Tuesday) Venue: GBTL Limited (Formerly Grasim Bhiwani Textiles Ltd), BTM Road, Bhiwani, 127021, Haryana, INDIA Website: Not Available About GBTL Limited GBTL Ltd. (Formerly known as Grasim Bhiwani Textiles Ltd.) has a strong presence in manufacturing of Polyester Viscose (PV) fabric and caters to the market under brands Grasim & Graviera. GBTL sells fabric both in the domestic as well as in the international market across geographies. The Domestic OTC division operates in Domestic over the counter (OTC) formal menswear fabric market by offering Ready to Stitch suiting. The Brands & Retailers division caters to domestic as well as international customers by supplying fabric and also acts as Full Service Provider by offering one stop solution of fabric to garmenting. GBTL is the country’s largest manufacturer of PV and PW suiting, selling its products under the “Grasim” and “Graviera” brands in India in over 25 countries. The biggest strengths of GBTL are its quality-conscious trade partners and global customers. GBTL caters to international fashion houses in the US and the UK, supplying fabric to them for making garments which are available in some of the largest retail chain stores. Day 2 started off with early morning travel from Delhi to the PAT Site in Bhiwani (Bhiwani is a city and a municipal council in Bhiwani district in the state of Haryana, India). At the site, it started off with the welcome of the Vietnamese delegation by Mr. Dhruva Singh Chauhan, Whole Time Director at GBTL Limited. He gave the delegation an overview of the facility along with a brief on the compliances being followed by GBTL Limited on the Perform, Achieve and Trade Scheme. This was followed by a detailed presentation by Mr. Ram Kumar Upadhyay, Energy Auditor on the specific energy conservation initiatives undertaken by the facility. 23 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Below are some of the key excerpts from the presentation. For further details, you may please refer the attached detailed presentation. Topic: Energy Conservation Initiatives and PAT Compliance Measures at GBTL Limited Speaker: Mr. Dhruva Singh Chauhan, Director & Mr. Ram Kumar Upadhyay, Energy Auditor The Indian Textile Market is very large, about USD 150 billion as of July 2017, and plays a vital role in the Indian economy. It contributes to 4% of India’s GDP, 14% of India’s total manufacturing output, 14% of overall index of industrial production (IIP) and 13% of India’s export earnings. India has 6% share in world textile export market, amounting to 37.74 billion USD during FY 2017-18, and is the third largest exporter of Textiles. The textile market is growing at a CAGR of 13.58% during 2009-2018. Indian Textile sector employs over 45 million people in about 3,400 mills. Indian Textile industry is highly diversified in nature. It varies from the traditional hand-spun and hand-woven textile sub-sectors to the large mills sector. Power looms and Knitting sector form the largest part of the textile sector. The sector consists of many processes like spinning, weaving, knitting, dyeing, printing, finishing, etc. Sectoral contribution to Country’s Economic value India’s Textile Industry plays a vital role in terms of contribution to Indian economy through export. India’s textile export was 37.74 billion USD during FY 2017-18. Indian Textile sector contributes to 13% of India’s export earnings. India has approximately 3,400 textile mills ranging from large to small to micro scale industries. Out of these, 90 units were identified as DCs under PAT Cycle – I, based on the minimum threshold of energy consumption of 3000 TOE. Textile industry can be divided broadly into 3 manufacturing processes: 1. Spinning 2. Weaving 3. Processing PAT Cycle – I and Textile Sector PAT is a regulatory instrument to reduce specific energy consumption (SEC) in energy intensive industries, with an associated market-based mechanism to enhance cost effectiveness through certification of excess energy savings, which could be traded. Energy Savings Certificate (ESCerts) are issued to the industries which reduces their SEC beyond the target, whereas, those who fails to achieve their target are entitled to purchase the certificate for compliance, or liable to be penalized. The platforms for trading of ESCerts are the existing power exchanges. PAT cycle-I came into force from 2012, with financial years 2007–08 to 2009–10 as the baseline. The minimum gate-to-gate energy consumption (threshold) of textile sector was notified as 3,000 tonne of oil equivalent (TOE); plants in the sector consuming energy above the threshold value were notified as DCs. These plants were given the target Specific Energy Consumption (SEC) reduction based on the average value of specific energy consumed by them for the baseline years. Under PAT cycle-I, 90 textile units were listed as DCs (Designated Consumer) and were mandated to reduce their energy consumption as per the target given. The total reported annual energy consumption of these designated consumers was about 1.2 million TOE in the baseline period. These DCs were given SEC target reduction of 5.5% and 24 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 energy saving target of 0.066 million TOE, which was 0.99% of the total national energy saving target under PAT cycle-I. Subsequently, after the completion of PAT Cycle-I, 99 units in Textile sector were notified as DCs with total energy consumption of 1.47 million TOE in PAT cycle-II. The targeted energy saving for PAT Cycle - II is 0.09 million TOE. In PAT Cycle-III, 34 DCs were notified with an annual energy consumption of 0.66 million TOE and target of 0.04 million TOE. List of major energy saving opportunities in the sector A list of major energy saving opportunities in the sector have been identified and listed below. The projects are listed based on readiness level, co– benefits obtained by installing the system and based on expected payback range by implementing the project. 25 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Process Flow at GBTL Limited Annual Production Capacity Spinning 35000 spindles Weaving 140 looms Processing 18 million meters Power Plant 8MW 26 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 PAT-I Cycle Target for GBTL Limited Energy Saving Target : 4.5%, Energy Saving Achieved : 16% ESCerts Earned : 3196 units Energy Conservation Measures at GBTL Limited Saving Saving Investment Project (Electrical Energy) (Million Payback (Yrs.) (USD/year) (USD) kWh/year) Re-Engineering of Humidification Plants 1.37 112857 147000 1.30 Replacement of old inefficient motors (77 Nos.) of various 0.28 23286 27000 1.16 ratings with energy efficient motors VFD installation on Stenter machine 0.15 6571 13000 1.98 VFD Installation on ID Fan, FD Fan & Screw feeders of 30 Lac 0.08 6571 27000 4.11 Kcal Capacity thermopac at SPH VFD Installation HTHP (High Temperature High Pressure) 0.04 3000 3571 1.19 Machine Replacement of Straight type Overhead blowers with Bend type 0.11 9143 0 0.00 blowers Replacement of Old Chese Winding Machine with Energy 0.06 5143 142857 27.78 Efficient Machine Air Compressor pressure optimization at Spinning 0.10 8132 0 0.00 VFD Installation - BFWP 1 & 2 (Boiler Feed water Pump) 0.13 11143 73571 6.60 VFD Installation - PA Fan (Primary air fan) 0.04 3571 4714 1.32 VFD Installation - CT Fan (Cooling tower fan) 0.08 6714 3571 0.53 VFD Installation – Compressor 0.03 2571 4429 1.72 VFD Installation - ACWP (Auxiliary cooling water pump) 0.04 3286 1714 0.52 VFD Installation - CWP (Cooling water pump) 0.08 6429 4429 0.69 Total 2.597 208417 452856 2.17 27 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Saving (Million Payback Project (Steam Saving) Saving (USD/year) Investment (USD) kcal/year) (Yrs.) TPP Boiler Modification to reduce dump steam 0.08 95714 50000 0.52 & to meet variable PLF requirement TPP Boiler Automatic blowdown & blowdown 1.08 3429 18857 5.50 flash steam recovery system TPP Turbine Modification to reduce specific 2.08 794143 472143 0.59 steam consumption Total 3.24 893286 541000 0.60 Project (Water Saving) KL/annum Saving USD Investment (USD) Water Recovery from Relax Scouring Machine 60687 4117 50000 Backwash water from Softening Plant 60111 4078 0 ETP Water Recycle by RO Plant 106780 7244 28571 Cooling water Recycle in Process House 15901 2397 7143 Total 243479 17836 85714 28 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.4. Day 3: Meeting with Financial Institutions 3.4.1. Presentation by Punjab National Bank (PNB) Day 3 kicked-off with meeting Punjab National Bank at the World Bank office in New Delhi. Date: 27th Feb 2019 (Wednesday) Venue: The World Bank Hindustan Times Building 18-20, Kasturba Gandhi Marg New Delhi 110001 Website: https://www.pnbindia.in/ About Punjab National Bank Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore, with an authorised capital of $ 2,900 and working capital of $ 290. Far-sighted visionaries and patriots like Lala Lajpat Rai, Mr. E.C. Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh Majithia displayed courage in giving expression to the spirit of nationalism by establishing the first bank purely managed by Indians with Indian Capital. During the long history of the Bank, 7 banks have merged with PNB. The Bank’s brand image and trust reposed by its customers have been reflected in growing customer base and rising business graph of the Bank. Domestic Business of the Bank is over $0.167 Million and the Bank continues to maintain its forte in low cost CASA deposits. The Bank has shaken off one of the biggest adversities in its history and has rebounded back. Focus on recovery and arresting fresh slippages with a simultaneous shift towards higher earnings through qualitative credit growth along with rationalization of Risk Weighted Assets (RWAs) has helped Bank to return to profit and improve CRAR. The Bank has been able to achieve better results in the quarter owing to MISSION PARIVARTAN, a transformational exercise underway for Business Excellence aimed at enhancing Efficiency, Productivity and Profitability for long term sustenance and giving the Bank an edge over its competitors. `Mission Parivartan Division`, an independent `THINK TANK` formed to initiate, implement and drive change through improvement in People, Products and Processes, has enabled Bank to serve the customers with enhanced vigour and zeal to live up to its tagline “The Name you can Bank Upon”. India: Solar Rooftop Investment Program by Asian Development Bank The main objective of ADB PNB loan Program for solar rooftop is to support the implementation of MNRE grid connected rooftop Program with a focus on financing solar rooftop systems on Commercial and Industrial buildings on standalone or aggregate basis without GOI/State Govt. subsidy The proposed $505 million sovereign-guaranteed Solar Rooftop Investment Program (SRIP) is a multi-tranche financing facility, consisting of $500 million financial intermediation loans and a $5 million capacity development technical assistance. As requested by the Government of India, Punjab National Bank is the borrower, and the India provided a sovereign guarantee to the Asian Development Bank for the SRIP. 29 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The SRIP intends to primarily finance large solar rooftop systems on industrial and commercial buildings on standalone or aggregated basis. Punjab National Bank's loans to sub borrowers will be priced based on Punjab National Bank's cost of funds and subproject-specific risks. The proposed accompanying technical assistance for $5 million is critical to integrate the building blocks of the Government of India's sector development initiative to ensure a viable market demand, by strengthening (i) Punjab National Bank's institutional capacity, and (ii) certain market development elements. SRIP's value addition, inclusive of $330 million from ordinary capital resources and $170 million from Clean Technology Fund, is to facilitate India's transition to a low carbon economy and therefore contribute to the climate change goal of reducing greenhouse gas emissions by 441,700 tons of carbon dioxide equivalent annually, or about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems. Some of the key details for the Solar Rooftop Investment Program are as follows: Project Name Solar Rooftop Investment Program Project Type / Loan Modality of Technical Assistance Assistance MFF Facility Concept 0095-IND: Solar Rooftop Investment Program Ordinary capital resources US$ 330.00 million Clean Technology Fund US$ 170.00 million Source of Funding / Amount TA 9187-IND: Solar Rooftop Investment Program Clean Technology Fund US$ 5.00 million MFF Facility Concept: Solar Rooftop Investment Program World Bank (IBRD) US$ 647.90 million Environmentally sustainable growth Strategic Agendas Inclusive economic growth Gender Equity and Mainstreaming Governance and capacity development Drivers of Change Knowledge solutions Partnerships Private sector development Sector / Finance / Infrastructure finance and investment funds Subsector Project Rationale The Government of India (government) plans to expand the country's and Linkage to solar rooftop capacity by 40 gigawatts (GW) by 2022. To fuel India's Country/Regional economic growth, its power system will have to expand rapidly over the 30 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Strategy next decade. This is also to maintain national energy security and expand energy access to all people in India. To ensure environmental sustainability, the government places a high priority on renewable energy development. India's National Action Plan on Climate Change (prepared in 2008) outlines existing and future policies and programs addressing climate mitigation and adaptation. Under the plan, the government launched the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010 to add 20 GW of grid connected solar energy by 2022. On 17 July 2015, the Union Cabinet approved a revised JNNSM proposal to increase the original 20 GW solar energy target to 100 GW by 2022, including 40 GW of rooftop solar energy generation. The proposed Solar Rooftop Investment Program would therefore i. establish a solar rooftop financing facility at Punjab National Bank to provide dedicated debt financing to help India meet its 40 GW solar rooftop capacity target by 2022; and ii. provide associated institutional capacity and market development support, leading to a pipeline of bankable subprojects. Energy security provided to all in an environmentally sustainable manner, Impact and renewable energy developed Technical Assistance: Facilitating Solar Rooftop Investment in India Introduction A capacity development technical assistance (TA) grant in the amount of $5 million will be provided to the Government of India (government) to support (i) the implementation of Asian Development Bank Solar Rooftop Investment Program (SRIP) and (ii) associated institutional capacity and market development in the solar rooftop sector in India. The rationale for such a capacity development TA is to provide the necessary conditions to create bankable solar rooftop subprojects to enable Punjab National Bank (PNB), the SRIP borrower, to finance these subprojects. The proposed capacity development TA is to be implemented over 5 years from January 2017 – January 2022, and aligned with the other relevant ongoing and future sector capacity development initiatives. Outputs and Key Activities: The proposed TA would have three main components: I. PNB institutional capacity development, II. market development, and III. awareness campaign, each of which will be implemented jointly by Ministry of New and Renewable Energy (MNRE), 2 PNB, and/or ADB. While ADB will administer the proposed TA, the training component will be delegated to and implemented by MNRE and PNB, both of which will be the TA executing agencies of the training component. Because the TA will partly leverage the capacities of existing training facilities: (i) MNRE’s 35 partner institutions under its Solar Energy Training Network (SETNET) and (ii) PNB’s 30 regional training centers, such extensive training programs under the TA are best managed by MNRE and PNB respectively. The executing agencies’ capacities on procurement, consultants recruitment, financing management, risk management, financial reporting, and payment approval and procedures were assessed and found to be adequate. 31 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 I. PNB Institutional Capacity Development a. Establishment of dedicated solar rooftop units at its headquarters and selected branches (ADB—administered). The proposed capacity development TA would help PNB establish solar rooftop units (SRU) at its headquarters and relevant branches by recruiting and deploying technical analysts to help originate, review, price, approve, administer, and/or monitor solar rooftop projects. The SRU established at PNB headquarters would also function as the ADB program administration unit. b. Train-the-trainer component (PNB—administered). The capacity development TA will support the training efforts provided by the 30 PNB regional training centers dedicated for the SRIP. This will be achieved through training the trainers in PNB’s training centers to provide the necessary skill sets to originate, review, price, approve, administer, and/or monitor solar rooftop projects. The training would be provided at both headquarters and branch (zonal) offices. c. Business advisory support (ADB—administered). The proposed capacity development TA would recruit a renewable energy service company to work with potential sub borrowers to bring the developed subprojects to PNB for financing. The renewable energy service companies would (i) prepare feasibility studies, financial projections, project structuring, and other matters related to sub loan application to PNB; (ii) review compliance requirements, including necessary licenses, permits, and clearances; (iii) arrange service providers [e.g., equipment suppliers, and EPC (engineering, procurement, and construction) and maintenance contractors]; and (v) undertake other steps leading to system operation. The legal consultant (firm) would provide any related business legal support. d. ADB project administration and monitoring (ADB—administered). This is the first time PNB will have undertaken a loan from ADB. The proposed capacity development TA would provide a team leader and the procurement consultant to help PNB follow ADB administration guidelines. II. Market Development a. Market training program (MNRE—administered). MNRE’s 35 SETNET partner institutions would build capacities among the solar energy professionals community in India through various training methods, including standardized training curricula. The proposed TA consultants could support the training of relevant SETNET trainers and/or fund the training programs, including to selected state nodal agencies (SNAs), 5 power distribution companies, solar rooftop project developers, system installers and engineers, and others relevant stakeholders. b. Recruitment and deployment of technical analysts (MNRE—administered). 32 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The proposed TA would support the establishment of dedicated solar cells in identified states and the recruitment of technical experts to be deployed to these solar cells, SNAs, or even power distribution companies, among others. c. Dedicated websites and toolkit (ADB—administered). ADB would work with MNRE and PNB to develop a dedicated solar rooftop website to provide a single information source, including a toolkit, for provide one-stop shop for solar rooftop project development and financing. The ADB primary TA consultants would help develop a toolkit, which would provide rooftop owners, developers, bankers, and other relevant stakeholder’s information regarding all aspects of solar rooftop systems. III. Awareness Campaign (MNRE and PNB—administered) a. The proposed capacity development TA would also help MNRE and PNB promote solar rooftop systems and available financing facilities in India by raising public awareness of their technical and commercial benefits. In particular, the TA consultants would help MNRE and PNB: (i) undertake a formal SRIP launch event of the ADB–PNB financing facility; (ii) conduct nationwide and state-level marketing and awareness multi-media campaigns including local media (e.g., newspapers, television, radio) and other available and effective media channels including Internet websites; (iii) undertake marketing calls to potential industrial, commercial, and residential clients; and (iv) develop other outreach programs. The websites and toolkits would support the efforts under this component. These activities will be carried out through third party contracts. The ADB communication consultant will provide the relevant support to MNRE and PNB. Cost and Financing The proposed capacity development TA is estimated to cost $5,000,000 to be financed on a grant basis by the Clean Technology Fund. For details on the specific scheme, please refer additional documentation in the shared drive or visit https://mnre.gov.in/file-manager/UserFiles/PNB-Scheme-for-Financing- Rooftop-Projects.pdf Topic: Emerging Innovative Clean Energy Financing Mechanisms and Business Models) Speaker: Mr. PR Khichi, Asst. General Manager Key Excerpts from the presentation by Punjab National Bank Different Financing Models for Solar Rooftop Projects Different business models affect the exposure to upfront cost by buyer and encourage adoption of solar energy. 33 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 CAPEX Model The most common solar rooftop financing option where customer has to pay 100% cost upfront. One among many advantages of this model is that consumers are eligible to claim accelerated depreciation to gain tax savings & make reasonable return on investment. Consumers who are facing high liquidity problems are not advised to opt for this finance option. Here O & M responsibilities are of the rooftop owner. RESCO Model Under the RESCO model, a third-party company finances, installs, operates and maintains the rooftop solar project. A power purchase agreement /lease agreement is signed between the installer and the consumer at a mutually agreed price (tariff). The main advantage of this model is that consumer can install a solar PV system and simultaneously have the choice whether or not to consume the electricity. Based on the consumption choice, the model is further divided into two types – a. In Rooftop Leasing Model, the project developer will be paying a fixed lease payment to a building owner over the time of the lease period for installing the solar panel on the rooftop. b. In Power Purchase Agreement, the project developer can sell the power back to the building owner in favour of a lower solar power tariff. The excess power could be sold by the developer to the utility. Benefits of RESCO Model 1. No Upfront Payment, Payment only in convenient mutually agreed monthly instalments. 2. Consumer enjoy solar saving on his electricity bills without any upfront investment 3. Consumer also has flexibility to own the plant at defined duration after paying a defined % of the cost of System and enjoy electricity at very low cost. 34 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Metering Arrangements Net Metering: The energy generated by the solar rooftop plant is first allowed for self- consumption and the excess energy is injected to the grid. Gross Metering: The total energy generated by the solar rooftop plant is to be injected into the grid without allowing the generated solar energy to be consumed directly by the consumer. Benefits Salient FEATURES of the Scheme Eligibility Financing shall be available for Grid Connected Roof Top Solar PV projects at commercial, Industrial and Institutional buildings having unutilized rooftop space- Both Public and Private or any other structure (excluding subsidy linked projects). Project Cost The present Benchmark cost for installation of Grid Connected Solar Rooftop projects is between $750-1000 per KW. The cost of Grid Connected Solar Rooftop may further vary depending upon cost of modules, inverter and mounting structure for the specific roof or as per latest notifications issued by Ministry of New & Renewable Energy (MNRE). Target Group Sole proprietorship firms, partnership firms including Limited Liability Partnership (LLP), Limited companies, Private Limited companies, Trusts, Associations, Special Purpose Vehicle (SPV), Non-bank financial institution (NBFCs) and registered societies. Purpose To finance Grid Connected Solar Rooftop PV projects under CAPEX and RESCO models Margin Minimum 30% with a suitable upfront contribution of the required margin. Rate of One year MCLR (Marginal Cost of Funds based Lending Rate - MCLR is the 35 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Interest minimum interest rate, below which a bank is not permitted to lend) plus spread is competitive in the market. Repayment Door to Door tenor of maximum 15 years which comprises construction / Period installation, moratorium and repayment period. Moratorium 1 year after 1st disbursement or 4 months from COD (Commercial Operations Date) whichever is earlier. 3.4.2. Presentation by Small Industries Development Bank of India (SIDBI) This was followed by a detailed presentation by Small Industries Development Bank of India (SIDBI). Date: 27th Feb 2019 (Wednesday) Venue: The World Bank Hindustan Times Building 18-20, Kasturba Gandhi Marg New Delhi 110001 Website: https://www.sidbi.in/ Topic: Emerging Innovative Clean Energy Financing Mechanisms and Business Models) Speakers: 1. Mr. Rajeev Thakur, Chief Technical Specialist 2. Mr. Sachin Verma, Sr. Energy Expert 3. Mr. Kiran Kumar, Sr. Tech Expert 4. Mr. Mekala Amruth Sudheesh. Sr. Energy Expert 5. Pawan Kr. Bharti, Manager Key Excerpts from the presentation by Small Industries Development Bank of India (SIDBI) About Small Industries Development of India (SIDBI) SIDBI is the Primary Financial Institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector. Besides focusing on the development of the Micro, Small and Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency. SIDBI helps MSMEs in acquiring the funds they require to grow market, develop and commercialize their technologies and innovative products. The bank provides several schemes and also offers financial services and products for meeting the individual’s requirement of various businesses. SIDBI is active in the development of Micro Finance Institutions through SIDBI Foundation for Micro Credit, and assists in extending microfinance through the Micro Finance Institution (MFI) route. Its promotion & development program focuses on rural enterprises promotion and entrepreneurship development. 36 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 In order to increase and support money supply to the MSE sector, it operates a refinance program known as Institutional Finance program. Under this program, SIDBI extends Term Loan assistance to Banks, Small Finance Banks and Non-Banking Financial Companies. Besides the refinance operations, SIDBI also lends directly to MSMEs. The Japan International Cooperation Agency (JICA) has extended a Line of Credit to Small Industries Development Bank of India (SIDBI) for financing Energy Saving Projects in Micro, Small, and Medium Enterprises (MSMEs) Sector. The project is expected to encourage MSME units to undertake energy saving investments in plant & machinery / production process to reduce energy consumption, enhance energy efficiency, reduce CO2 emissions and improve the profitability in the long run. The financial assistance to MSMEs will be through SIDBI, as well as through refinance to banks / State Finance Corporations (SFCs) and Non-Banking Financial Companies (NBFCs). Under the Line technical assistance is also provided to financial institutions and MSME units for dissemination of information and successful implementation of Energy Saving projects in MSME Sector. The interest rate is based on internal risk rating within the band i.e. Fixed rate: 9.5 – 10% per annum and Floating rate: 9.75 – 10.5% per annum. With a view to transform the EE consultancy services market so that the services mentioned above are reasonably priced and also there is an assurance on the quality of performance/ results/ benefits, SIDBI has developed “4E (End to End Energy Efficiency ) Solutions”. SIDBI launched the 4E Intervention on the occasion of “World Environment Day” on June 5, 2014 to provide technical backstopping and support MSME clients for reducing their power & fuel cost. End to End Energy Efficiency or 4E Scheme aims to promote Energy Efficiency Investments in MSME’s (Micro, Small and Medium Enterprises). Under this scheme SME’s (Small and Medium-sized Enterprises) can avail Loan for their Investments towards Implementing Energy Efficiency Measures, New Technology Up 37 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 gradation in Machinery which conserves energy, Investment towards Roof Top Solar Etc. The MSMEs will be assisted with Technical Consultancy and Financial Facilitation at better rate of Interest (below 10%). Purpose of SIDBI 4E Scheme  For implementing the Energy Efficiency measures on an end to end basis.  For meeting the part cost of capital expenditure including for the purchase of equipment, machinery, civil works, installation and commissioning.  For enacting the Energy Efficiency measures as recommended in the project report any other related expenditure required by the MSME unit, provided it is not more than 50% of Project Cost  Financing for second-hand machinery or equipment; purchase of land and construction of the building (except minor civil works) will not be taken up under the scheme As per this scheme, a mandatory Detailed Energy Audit (DEA) is undertaken by a qualified Energy Auditor and Consultant empanelled with India SME Services Technology Limited (ISTSL) a Joint Venture of SIDBI at a highly subsidized rate.  A Detailed Project Report (DPR) is developed which again evaluated by the qualified Technical Team at SIDBI before furnishing them to the respective MSME Units.  A provision of financing options ranging between USD 16,667 - 0.25 million at a highly subsidized rate of interest is made available to the MSMEs to implement the suggested Energy Conservation Measures (ECM).  All possible implementation Support, Monitoring and Verification support, will be provided to the MSMEs at no extra cost. Benefits of 4E Scheme  The 4E Program helps MSMEs improve bottom line through energy savings (10-25%), by availing the services of Technical Consultants at a reasonable cost with assurance on the quality of services and assured savings.  A back-to-back financing product support is provided with the help of the World Bank to provide loans for EE projects to MSMEs. The term loans are provided at concessional interest rates and on softer terms. Eligibility The Eligible borrowers for this Scheme are Micro, Small or Medium Enterprises in the Manufacturing or Service Sector. In order to avail Loan under this Scheme, the Plant has to submit Detailed Energy Audit (DEA) & Detailed Project Report (DPR). The Audits and DPR will be done through India SME Services Technology Limited (ISTSL) a Joint Venture of SIDBI. Documents required  Filled in application form  Filled in questionnaire  Advance money from the unit as per the application form  Borrower registration certificate (depending on the type of entity)  GST Details Loan Amount and Tenure  Up-to 90% of the Project cost with minimum loan amount of $16,667 and maximum loan amount not to exceed $250,000  Eligible loan amount should not exceed 1/5th of the total turn-over of the applicant unit. 38 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  The repayment period including initial moratorium period of up-to 6 months, shall not be more than 36 months for loans up-to $166,667 and 60 months for loans beyond that amount. Interest Rate Interest rate will be in the range of 8.10 – 9.9%. The repayment period is 36 Months for Loan up to $166,667 and 60 Months for Loan Up to $250,000 including initial moratorium period up to 6 months. Partial Risk Sharing Facility for Energy Efficiency (PRSF) The Partial Risk Sharing Facility for Energy Efficiency (PRSF) aims to support India’s Energy Savings Performance Contracting (ESPC) market for Energy Efficiency projects. It provides guarantees to the Participating Financial Institutions (PFIs) i.e. Banks/ Financial Institutions/ Non-Banking Financial Company for the Energy Efficiency loans extended by them through Energy Service Companies (ESCOs). PRSF was launched by the Small Industries Development Bank of India (SIDBI), India’s foremost financial Institution to promote, finance, and develop Micro, Small & Medium Enterprises (MSMEs) in India, with a risk-sharing corpus of US$ 37 million. The main objective of this program is to stimulate and transform India’s ESPC-based ESCO market by promoting increased level of EE projects and create a banking ecosystem to finance ESCO projects in India. PRSF consists of a risk-sharing facility for energy efficiency, managed by SIDBI, (US$37 million), funded from a Global Environmental Facility (GEF) contribution of US$12 million and backstopped by a Clean Technology Fund (CTF) Guarantee, in the form of contingent finance, of US$25 million, and a technical assistance component. The project provides partial credit guarantees to Participating Financial Institutions (PFIs) to cover a share of default risk faced by them in extending loans to Energy Efficiency (EE) projects implemented by the Host entity through Energy Service Companies (ESCOs) after entering into Energy Saving Performance Contracts (ESPC). 39 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Eligibility Criteria Projects  Any project in which ESCO enters into ESPC with the Host, with the objective of bringing about demonstrable energy savings.  In case of ESCO being a JV or consortium, the share in equity or contract value, as applicable, of ESCOs falling under MSME shall not be less than 51% for such JV or consortium to be treated as MSME. Sectors  Large industries (excluding thermal power plants), including those notified under the BEE’s energy consumption norms and standards (i.e. through PAT scheme).  MSMEs  Street lighting (municipalities)  Buildings. Loans  The Energy Efficiency (EE) loans sanctioned by PFIs to either the ESCO or the Host entity, falling within the micro and small enterprises category of MSMED Act shall only be covered.  Minimum 75% of the guaranteed loan should be towards the cost of the investments required for implementation of the EE project which shall include expenditure on purchase, 40 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 erection &commissioning, installation or retrofit / modification of the equipment, etc. contributing to energy savings.  Any project in respect of which the envisaged aggregate energy savings performance for the project is specifically guaranteed by any other Government scheme (whether introduced by a State government or the Government of India) will not be covered.  Projects involving only substitution of conventional energy with off-grid or captive renewable energy source, except those involving significant savings in energy consumed, will not be covered. Operational Mechanism  The Scheduled Commercial Banks / NBFCs shall sign a MoU with PEA to participate under the project as PFIs.  Complete preparatory activities, fulfill the laid down norms and subsequently sign a Master Guarantee Agreement with PEA.  Sanction of EE loan by the PFIs to eligible ESCO or Host for implementation of eligible EE Projects.  Submission of Guarantee Application with appropriate Guarantee fee to PEA.  Sanction and issuance of guarantee letter to PFIs by PEA  Repayment of EE loan by the Borrower to PFI  Guarantee claim by PFI, in case of default of EE loan  Release of eligible guarantee coverage to PFI The operational mechanism including various transactions involved under the Risk Sharing Facility is shown at the figure below: 41 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The Scheduled Commercial Banks / NBFCs shall sign a MoU with PEA, complete preparatory activities, fulfill the laid down norms and subsequently sign a Master Guarantee Agreement with PEA to participate under PRSF as PFIs. After sanction of loan by the PFIs to eligible ESCO or Host for implementation of eligible EE Projects, the PFI will enter the PRSF Application details in the PRSF website using the User id & Password provided to it by PEA. PEA may call for additional details and documents where considered necessary. Upon approval of a Guarantee Application by the PEA, PFI shall be issued a Guarantee Letter containing the terms & conditions specific to that individual Guarantee. This Letter shall be read along with the Master Guarantee Agreement executed by that particular PFI; the guarantee shall come into force from the date of first disbursement or the date of payment of first installment of guarantee fee to PEA, whichever is later. Further, PFI shall also submit to PEA, for its records, the hard copy of the print-out of the guarantee application duly signed by the Authorized signatory along with the other supporting documents as may be specified by PEA (i.e. Copy of the DPR, copy of the Appraisal Note, Sanction letter, etc.). Based on the energy savings performance contract (ESPC) entered between ESCO and Host, the Host entity shall deposit the proceeds equivalent to actual energy savings to the TRA account. The modus operandi of TRA is explained at section 6. The repayment of loan (principal and interest) to the PFI will be done through the designated priorities of the TRA. PRSF Guarantee claims originate from underperformance of the underlying energy efficiency investments and the resulting cash shortfall for debt service (principal and interest). The required cash buffer in the TRA will carry the borrower over temporary liquidity problems but cannot make up for extended, chronic cash shortfalls. In the latter case, insufficient cash to service the debt will lead to a default, which allows the PFI to make a guarantee claim to PRSF, up to the amount of debt covered and provided that the M&V Agency has verified the eligibility of the claim. For additional information, please refer http://prsf.sidbi.in/ Project Partners Project Implementing Entity Project Executing Agency (PEA) and Technical Assistance Executing Agency Technical Assistance Executing Agency Project Funding The Project has a total outlay of USD 43 million consisting of the “Risk Sharing Facility for Energy Efficiency” component of USD 37 million and technical assistance component of USD 6 million. 42 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The entire “Risk Sharing Facility” component of USD 37 million is managed by SIDBI, under which partial credit guarantees are provided to cover a share of default risk faced by Participating Financial Institutions (PFI) in extending loans to eligible EE projects implemented through ESCOs. The technical assistance component of USD 6 million are managed by SIDBI and EESL, under which capacity building activities and other developmental/operational support for the project are provided. Extent of guarantee The extent of guarantee coverage under PRSF is 75% of the loan amount guaranteed. Guarantee cover will be calculated on the lowest of the following:  Principal outstanding as on date of account turned into NPA  Principal plus interest as on date of claim has been lodged with PEA, and  Sanctioned Loan amount guaranteed. The minimum amount of single guaranteed loan shall be INR 1 million. The maximum amount of loan amount guaranteed shall not exceed INR 150 million. Guarantee Tenure The maximum tenure of the guarantee will be 5 years (or such other period as may be decided by PEA) from the date of the first disbursement of the guaranteed loan or till the last date of the operational period of PRSF, whichever is earlier. However, the guarantee tenure shall not exceed the loan tenure. Guarantee Approval After sanction of a loan by PFIs to eligible ESCO or Host for implementation of EE Projects, the Participating Financial Institution (PFI) will enter the Guarantee Application details in the PRSF website using the user id & password provided to it by PEA. Project Executing Agency (PEA) shall provide online approval of the guarantee coverage. The guarantee shall come into force from the date of payment of the first installment of guarantee fee to PFI. Further, PFI shall also submit to PEA, for its records, the hard copy of the print-out of the guarantee application duly signed by the authorized signatory along with the other supporting documents as may be specified by PEA (i.e. Copy of the DPR, copy of the Appraisal Note, Sanction letter, ERMF Compliance certificate, etc.). The guarantee shall apply only to loan amounts disbursed by PFI within a period of 18 months from the date on which the guarantee has been approved. 43 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.4.3. Presentation by Yes Bank The next presentation was delivered by Yes Bank team. Date: 27th Feb 2019 (Wednesday) Venue: The World Bank Hindustan Times Building 18- 20, Kasturba Gandhi Marg New Delhi 110001 Website: https://www.yesbank.in/ Topic: Emerging Innovative Clean Energy Financing Mechanisms and Business Models) Speaker: 1. Chandan Bhavnani, Executive Vice President, Responsible Banking 2. Husnal Kaur, Senior Vice President, Multinational Corporate Banking 3. Ankush Kumar Gupta, Vice President, Corporate Finance Infrastructure Banking 4. Arnesh Sharma, Assistant Vice President, Responsible Banking Key Excerpts from the presentation by Yes Bank About Yes Bank YES BANK, India’s fourth largest private sector bank is a high quality, customer centric and service driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 29 states and 7 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi. Responsible Banking @ Yes Bank Rapid globalization and digitization are increasingly shaping our world in an unprecedented manner. Technological advances that are unparalleled in their speed and impact are making it imperative for businesses to innovate and be Future Ready, Now. Bringing the future to the present for the Bank, therefore, involves an intrinsic and sustainable transformation by future-proofing the business. Developing solutions to minimize negative effects while taking advantage of positive impact of future events holds the key. To reap full benefits of this evolution, innovations in technology, policy formation and finance are the way forward. Thus, at YES BANK, Future Now, a philosophy to bring the future to the present 44 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 through innovation and various interventions, is not only a commitment to business, but also towards achieving the global development goals. YES BANK institutionalized Responsible Banking as a key differentiator and one of its six strategic pillars since inception. It believes that there is an inherent need for financial institutions to play a central role in India’s economy to create positive social and environmental impact. With a greater understanding of its stakeholders’ needs and an uncompromising focus on corporate governance and risk management, YES BANK has been able to establish sustainability impact through cutting-edge solutions in climate finance and community interventions. The Bank’s visionary approach to prioritizing Environmental, Social and Governance (ESG) performance in the Indian banking sector with early efforts at bringing future to the present for all its stakeholders has borne fruit, endorsed by recognition at various platforms. YES BANK is the first Bank in India to establish dedicated knowledge champions with subject matter expertise in Renewable & Clean Energy space – which has seen significant thrust from the Government of India as well. Future Ready Climate Action YES BANK believes that financial institutions are catalysts to a sustainable economy. Building a sustainable future involves propagating the use of future-ready technologies like blockchain, electric vehicles and smart buildings. These sunrise sectors offer an investment opportunity of USD 3.1 trillion in India. The Bank, through its Responsible Banking ethos, is pioneering this low-carbon transformation with a focus on:  Integrating Environmental and Social parameters into its lending decisions  Innovating for the Bottom of the Pyramid by leveraging technology  Proactively investing in positive impact sectors  Greening its own operations  Climate literacy The Bank’s 360-degree risk framework integrating ESG parameters is central to future proofing the business. The Bank proactively looks at mitigating emerging risks and creates new opportunities in India’s climate-resilient business sectors. YES BANK believes that climate change is a business opportunity for transition to a low-carbon economy and has pioneered the Green Bond market in India. In December 2017, the Bank became the first Indian bank to solely arrange a Social Bond, the proceeds of which would go towards financing affordable housing projects. This, along with a pilot blended-finance project for salt pan farmers in Little Rann of Kutch (A District of Gujarat state in western India), showcases the Bank’s futuristic approach to financial innovations for sustainable communities. Catalyst in Climate Change Action YES BANK believes financial institutions can become catalysts in driving climate action by adopting a proactive approach to address climate change issues. The Bank is committed to this role with its innovative financial mechanisms. 45 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The Bank has envisaged a holistic climate strategy, which would be instrumental in institutionalizing a targeted approach for climate action. It intends to further strengthen its risk management and disclosure in line with TCFD recommendations. The Bank also aims to enhance its recognition as a green bank with the launch of green products, ensuring sustainable operations, and deepening ties with Development Finance Institutions (DFIs) and sustainability focused investors Renewable Energy Lending and Advisory India has an ambitious target of establishing 175 GW Renewable Energy (RE) capacity by 2022. Apart from RE target, India’s NDCs are laid out to drive climate action in the country with an investment of USD 2.5 trillion. YES BANK has sanctioned credit for setting up RE projects of capacity 1,264.96 MW during FY 2017-18. YES BANK has also committed to mobilize USD 1 billion till 2023 and USD 5 billion till 2030 towards financing solar energy projects in India at the World Energy Summit 2018. Renewable Energy Finance Facility YES BANK launched a USD 400 million renewable energy finance facility as a joint initiative with European Investment Bank (EIB) to support the expanding renewable energy sector. Along with the Bank, this facility will be supported by EIB with an investment of USD 200 million, project promoters and other financial institutions. This initiative is EIB’s first-of-its-kind engagement with any Indian commercial bank. The 15- year tenor of the association is EIB’s longest lending tenor. This program will streamline financing for a range of renewable energy projects being built and operated by leading Indian organizations. Eligible solar projects have been identified in Rajasthan, Telangana, Maharashtra and Karnataka states of India, while additional projects are being examined. In October 2017, YES BANK signed a long-term credit line of USD 30 million with OeEB, the Austrian Development Bank, for dedicated financing of wind and solar power projects in India. Energy Efficiency Investments India’s Micro Small & Medium Enterprises (MSMEs) sector is emerging as a growth powerhouse. Over 51 million MSMEs account for 40% of the country’s total exports and 38% of its GDP. For YES BANK, providing finance for sustainable MSMEs is a part of their core business strategy. The Bank signed a MoU with the Bureau of Energy Efficiency (BEE) to become the Participating Financial Institution (PFI) for availing risk guarantee under the Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE). The PRGFEE is an innovative financial instrument, which uses public resources to channelize private sector finance towards promoting energy efficiency in different sectors of the economy, including MSMEs, buildings and municipalities. YES BANK will channelize the Bank finance for energy efficiency projects through BEE approved Energy Services Companies (ESCOs). The Bank also trained select employees across the country through the BEE – PRGFEE (Partial Risk Guarantee Fund for Energy Efficiency; https://beeindia.gov.in/content/prgfee) workshop. 46 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Another similar scheme was launched, under a World Bank initiative, by Small Industries Development Bank of India (SIDBI) to provide partial guarantee of 75% of the loans up to USD 2.5 million for energy efficiency projects. Under this Partial Risk Sharing Facility (PRSF) the focus would remain on MSMEs and working through Energy Service Performance Contracting (ESPC) delivered through Energy Service Companies (ESCOs). In July 2016, YES BANK became the first Financial Institution (FI) to sign a MoU with SIDBI to implement this scheme. During the UN Climate Summit in September 2014, the bank had committed to invest in 5,000 MW commitments over five years starting in February 2015. With these motivations the bank came up with the following highly welcomed green bonds. In a significant step, the bank issued India’s first -ever Green Bonds (AA+ by CARE) and this is one of the first issuances in emerging economies, raising an amount of INR 10 billion, in accordance with Green Bond Principles. The Bank’s second issuance of USD 52.5 million bond raised on a private placement basis with IFC. It was the first-ever investment by IFC, a part of World Bank Group, in a green bond issuance in emerging markets. The innovative aspect of the transaction was that the IFC paid for the placement using the proceeds from the first Green Masala Bond raised in the offshore rupee market. Notably, the bond was awarded the “most innovative bond structure” by Environmental Finance in May 2016. 3.4.4. Presentation by Indian Renewable Energy Development Agency (IREDA) The next presentation was given by a team from Indian Renewable Energy Development Agency (IREDA) Date: 27th Feb 2019 (Wednesday) Venue: The World Bank Hindustan Times Building 18-20, Kasturba Gandhi Marg New Delhi 110001 Website: https://www.ireda.in/ Topic: Emerging Innovative Clean Energy Financing Mechanisms and Business Models) Speaker: 1. Abhilakh Singh, General Manager 2. KP Philip, Deputy General Manager Key Excerpts from the presentation by IREDA About IREDA The India Renewable Energy Development Agency Limited (IREDA) is a Public Limited Government Company established in 1987 under the administrative control of the Ministry of New and Renewable Energy (MNRE). The mission of IREDA is to promote, develop and extend financial assistance for renewable energy and energy efficiency/conservation projects. 47 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The IREDA financial services include direct project financing, equipment finance, business development finance, loans for manufacturing facilities of energy efficiency equipment, and loans to banks/financing institutions for on-lending. It is funded partly through the Central government and also receives funding from the German development bank (KfW), French development bank (AFD), Nordic Investment Bank (NIB), European Investment Bank (EIB), Japan International Cooperation Agency (JICA), World Bank (WB), Asian Development Bank (ADB), and other international financial institutions. Objectives of IREDA 1. To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency. 2. To strive to be competitive institution through customer satisfaction. 3. To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects. 4. Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources. Sectors Eligible for Loan Assistance All the projects in Renewable Energy (RE), Energy Efficiency/ Conservation and other Environmental Sustainable technologies, including Power Generation, Transmission, Renovation & Modernization, which are techno-commercially viable, are eligible to obtain finance from IREDA. The eligible sectors are as under:  Wind Energy  Hydro Power  Solar Energy  Biomass including Bagasse & Industrial Cogeneration  Biomass Power Generation  Waste to Energy  Energy Efficiency & Energy Conservation  Bio-fuel / Alternate Fuel including Ethanol & Bio-Diesel  Hybrid Projects with RE Technologies  New & Emerging Renewable Energy Technologies Wind Energy  Machine types eligible (Wind Electric Generator - WEG) for financing wind projects will be as per Revised List of Models and Manufacturers (RLMM) of Wind Turbines issued by Centre for Wind Energy Technology (C-WET) Hydro Power  IREDA also finance medium and large hydro projects (above 25 MW) under consortium/ co- finance mode only with other lenders Biomass including Bagasse & Industrial Cogeneration  Use of high energy efficient equipment in sugar / paper mills for supporting co-generation projects are encouraged  In case of Sugar Mill, the minimum size of Sugar Plant should be 2500 TCD.  If alternate fuel is required for extension of operating days in a year, fossil fuels up to 15% of annual fuel consumption is allowed 48 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  In case of project size up to 5.0 MW (except sugar industry), the minimum applicable boiler pressure will be 42 kg/ cm2  In case of project size above 5.0 MW (Both for Sugar and Non-Sugar Industry), the minimum applicable boiler pressure will be 63 Kg/cm2. Biomass Power Generation  IREDA shall finance not more than one independent Biomass Power Project excluding captive Biomass/ Bagasse based Co-generation, in a radius of 50 KM, whether funded by IREDA/other FIs/Banks.  For Biomass direct combustion power projects, IREDA’s loan exposure may be limited up to 50% of project cost.  Biomass direct combustion power projects exceeding 7.5 MW capacity up to a maximum of 10 MW, will be considered on case to case basis subject to careful examination, particularly with reference to Biomass availability, presence of other Biomass power/ Biomass cogeneration projects in that area, linkage for off-season fuel, water availability etc. and the loan from IREDA shall not exceed loan for 7.5 MW of the project. However, IREDA may also consider projects exceeding 7.5 MW up to maximum of 10 MW on a 70: 30 debt equity ratio and may take exposure up to 50 % of project cost subject to above condition and that the promoter shall bring in upfront 75 % of their contribution.  Projects based on captive biomass/ energy plantation are encouraged.  Use of high energy efficient equipment in Biomass Power Plants are encouraged Bio-fuel / Alternate Fuel Including Ethanol & Bio- Diesel  IREDA loan is available only for projects for oil extraction & trans esterification process  In case of Fuel cells, IREDA loan is available for power/ vehicle applications only. Waste to Energy  The loan exposure of IREDA would be limited up to 50% of the project cost  Loan is restricted to energy generation system and excludes pre-fuel processing system Grid Inter-connection Facility for RE Evacuation / Transmission /Distribution facility  IREDA shall extend term loan for 100% of eligible equipment cost limited to a maximum of 70% of total project cost.  The above loan shall be applicable to all grid connected power projects Miscellaneous  RE/EE Proposals not covered in the above will be considered for financing on the individual merit basis. Types of Energy Efficiency and Conservation Projects Considered for Financing / Term Loan  Replacement / retrofit of selected equipment with energy efficient equipment  Modification of entire manufacturing processing  Recovery of waste heat for power generation Industrial Sectors Covered under Energy Efficiency/Conservation  Iron and steel sector  Fertilizers  Textile  Cement  Pulp & Paper 49 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  Aluminum  Sugar  Petrochemical  Glass & Ceramics  Refineries  Domestics / Commercial Sector  Street Lighting  Energy Saving Scheme Incentive available for Energy Efficiency/Conservation Projects  Rebate in central excise duty  Rebate in interest rate on term loan  Rebate in prompt payment of loan installment Procurement Procedures The borrower is required to follow the established market practices for procurement and shall demonstrate that the quality goods and services are being purchased at reasonable and competitive prices. Wherever the loan is sanctioned against international lines of credit such as the World Bank, Asian Development Bank, kfW, etc., the relevant procedures will have to be followed and requisite documents will have to be submitted by the borrower. Financing Norms State Sector State Sector Borrowers/ Borrowers/ CPSUs CPSUs State Sector (Category 'A' &'B' ) (Category 'A++' Borrowers/ [AND] Central Sector # Borrower/Sector ) [AND] CPSUs Borrowers (Other than Identified (Category 'A+' ) Identified CPSUs & CPSUs [AND] AAA rated) - New AAA rated category Companies Renewable Energy Projects except Biomass and Waste to 1. 9.80% 9.95% 10.20% Energy projects 2. Biomass and Waste to Energy (WTE) projects 10.25% 10.75% 11.15% Private Sector Borrower # Borrower/Sector GRADE I GRADE II GRADE III GRADE IV 3. Roof top Solar 9.80% 10.05% 10.35% 10.70% 4. Wind Energy, and Grid Connected Solar PV 9.80 % 10.15 % 10.50 % 10.95 % Co-generation, Hydro and CSP, Energy Efficiency , Energy 5. Conservation & Solar Thermal /Solar PV Off-Grid, Biomass 10.25% 10.75% 11.15% 11.45% Power and other sector 6. Manufacturing (All sectors) Existing units – 10.80 % Green Field – 11.00% 7. LoC for Refinance Cost of domestic borrowing + 1% to 2% spread 50 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.5. Day 4: Visit to Agra8 On Day 4 i.e. 28th Feb 2019, the delegation utilized the open time to visit Taj Mahal, one of the Seven Wonders of the World and ‘The World Heritage Site in India’. Website: https://www.tajmahal.gov.in/ Brief synthesis The Taj Mahal is located on the right bank of the Yamuna River in a vast Mughal garden that encompasses nearly 17 hectares, in the Agra District in Uttar Pradesh. It was built by Mughal Emperor Shah Jahan in memory of his wife Mumtaz Mahal with construction starting in 1632 AD and completed in 1648 AD, with the mosque, the guest house and the main gateway on the south, the outer courtyard and its cloisters were added subsequently and completed in 1653 AD. The existence of several historical and Quaranic inscriptions in Arabic script have facilitated setting the chronology of Taj Mahal. For its construction, masons, stone-cutters, inlayers, carvers, painters, calligraphers, dome builders and other artisans were requisitioned from the whole of the empire and also from the Central Asia and Iran. Ustad-Ahmad Lahori was the main architect of the Taj Mahal. An area of 10,400 sq km around the Taj Mahal is defined to protect the monument from pollution. The Supreme Court of India in December, 1996, delivered a ruling banning use of coal/coke in industries located in the Taj Trapezium Zone (TTZ) and switching over to natural gas or relocating them outside the TTZ. The TTZ comprises of 40 protected monuments including three World Heritage Sites - Taj Mahal, Agra Fort and Fatehpur Sikri. 8 The original agenda included visit to Mumbai (Day 4 and Day 5) to meet with Rashtriya Chemicals & Fertilizers (PAT Industry Consumer), State Bank of India, Maharashtra Energy Development Agency (MEDA) and Maharashtra State Electricity Distribution Company Limited (MSEDCL) but was canceled due to cancellation of onward flight to Mumbai (due to closure of Air space). Hence, the program was modified to include an additional meeting in New Delhi with New Delhi Municipal Council (one of the municipal corporations in Delhi) and visit to Agra. 51 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 3.6. Day 5: Visit to New Delhi Municipal Council (NDMC) Date: 1st Mar 2019 (Friday) Venue: New Delhi Municipal Council, Palika Kendra, Parliament Street, (in front of Jantar Mantar), New Delhi – 110001 Website: https://www.ndmc.gov.in/ Topic: Advanced Metering Infrastructure Solutions Implemented at New Delhi Municipal Council (NDMC) Speakers: 1. Mr. Narendra Gautam, Director (Power/Commercial) 2. Mr. Virender Singh, Director (Training) 3. Mr. A.W. Ansari, Jt. Director (IT) Key Excerpts from the presentation by NDMC About New Delhi Municipal Council (NDMC) New Delhi Municipal Council (NDMC) is the municipal council of the city of New Delhi, India, and the area under its administration is referred to as the NDMC area. About the Project When India’s Minister for Power, New and Renewable Energy Mr. R.K. Singh launched the New Delhi Municipal Council’s (NDMC) smart metering project on 9th Jan 2019, it became the first municipality in India to achieve 100% smart metering. 52 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The New Delhi Municipal Council office on the iconic Janpath in India’s capital The project replaced 50,000 conventional electricity meters with smart meters in the NDMC area. NDMC will benefit from enhanced consumer satisfaction resulting from better complaint management, faster restoration of outages, awareness of optimized consumption pattern, and improvement in system stability, reliability and transparency. The Advanced Metering Infrastructure (AMI) solution fetches instantaneous meter readings and load profile data from smart meters and makes it available to billing and analytics applications after thorough validation. Automated remote meter reading helps NDMC save on reading costs and eliminate associated errors in meter reading and billing, thereby improving billing efficiency. Other advantages of AMI include anytime, anywhere access to meter data and critical events such as meter tampering. NDMC will also be able to disconnect and reconnect electricity supply remotely. NDMC consumers can view their energy usage pattern and take necessary decisions to save on energy using NDMC’s web or mobile apps. This is a significant step towards converting all the 250 million power meters in India into smart and prepaid meters by 2022, in line with the National Smart Grid Mission (NSGM) of the Government of India. EESL has funded and built the Smart Metering (AMI) Solution in the NDMC project area. It will also operate and manage the system enabling NDMC to benefit from smart meters with zero upfront financial investment. NDMC’s repayment to EESL will be through the monetisation of energy savings, resulting from enhanced billing accuracy, avoided meter reading costs and other efficiencies. This includes the immediate elimination of the cost of manual meter readings. These savings further enable NDMC to invest in value-added services for its consumers. NMDC’s large-scale adoption of smart meters is a significant measure towards future-ready technologies. Smart meters pave the way for the smart grid as they enable two-way real-time communication between DISCOMs and consumers through GPRS technology. Implementing smart meters is one of the operational performance parameters under the Government of India’s Ujwal DISCOM Assurance Yojana (UDAY). The scheme would help in reducing AT&C losses. It will also help in monitoring round-the-clock power supply eventually leading to greater efficiency and a pathway to meeting the government’s vision of 24X7 Power 53 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 for All. Under its Smart Meters National Program, EESL aims to replace 250 million conventional meters with smart meters in India. 54 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 4. Communication and Outreach 55 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 5. Evaluation, Feedback and Recommendations IIEC conducted an evaluation using a format designed for post-evaluation of the program. The participants provided the constructive feedback about the 5 day-long Exchange Program. The participants also shared some valuable suggestions on how to improve such knowledge exchange programs in the future. Overall, the evaluation results indicate (see survey, Annex 2) the program was well received by the participants. At the end of the 5 day-knowledge exchange, they found this program extremely rewarding, as they highly appreciated the value add provided to improve their knowledge on a number of relevant EE topics across the region. The overall program and content of the meetings was found to be quite relevant by all participants. 75% of the participants agreed that the program was relevant to their work and the country’s needs and 56% of the participants felt that the sessions were designed to cover almost all up-to-date and latest issues of EE that were useful to them. The presentations made by the Indian speakers gave the participants ideas and content relevant to their country programs. The participants actively interacted with the speakers to find out more about the key factors of success of EE in India and how they could be replicated so the Vietnam would be able to become more energy efficient. 56% participants were completely agreed that all the relevant organizations and Indian counterparts were engaged in the exchange of knowledge program. 50% of the attendees felt that the speakers were able to answer their questions fully and satisfactorily. The group indicated that the most valuable takeaway from the 5 day-long exchange was the session on information sharing the overview of Energy Efficiency Policy, Regulatory and Institutional Framework in India covering:  Industrial Energy Efficiency (Perform, Achieve and Trade - PAT Scheme)  Energy Efficiency Partial Risk Guarantee Fund (PRGF)  Building Energy Efficiency Codes and Policies (Energy Conservation Building Code/Green Building Program)  Appliances Energy Efficiency Standards and Labeling  Utility Demand Side Management (DSM) Interventions Participants also expressed the need for in-depth study and more time dedicated to such specific subjects during the program in future. Given the overall feedback and observations made during the program, it is certain that such type of an exchange not only helps in information exchange but also helps the participants forge relationships and develop programs which can enhance the deployment of EE. 56 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 The program was very This program is very useful for meaningful to us as it informs me, allowing me to have a big about the energy efficiency picture of India’s energy policy development and efficiency policies and schemes. measures. It enables me to make relevant policy recommendations in -Vice Manager of Energy Management Vietnam. Division, Binh Duong Department of Industry and Trade - Official, Science and Technology Department Feedback from Participants Program was super and we also got very good feedback from our Vietnamese client and I again want to thank you and the whole IIEC team for the fantastic job you have been doing. - Energy Sector Coordinator, The World Bank in Vietnam 57 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Some overarching themes and key takeaways from the program include: 1. An opportunity to support Vietnam to help them in developing a clean energy framework with various energy efficiency measures taken into consideration e.g. cap-n-trade scheme for industries, standard and labeling, energy efficiency in buildings 2. There’s a strong possibility to replicate overarching framework, procurement procedures, technical specifications, for design and implementation of large scale energy efficiency programs in Vietnam 3. There is a strong need for training and capacity building on energy efficiency and related aspects of government officials from the region through similar exchange programs. 4. Energy Efficiency is often side-lined in the funding planning while countries maybe making efforts to adopt clean energy mechanisms and frameworks. There is a great opportunity here for strengthening and capacity building of Financial Institutions. 5. The learning’s from the success of the some of the flagship programs in and around similar geographies (e.g. PAT Scheme, Standards and Labeling program) can be used to formulate similar programs in Vietnam. 6. Buildings present a huge opportunity in terms of being the biggest energy consumers where programs such as smart energy management and energy efficient technologies can help in achieving the EE targets. This presents an opportunity for international FIs that can support such programs. 7. Data on EE continues to be a big challenge. There is a tremendous opportunity for conducting more energy research to develop country level frameworks. 8. Strong need for Enhanced Awareness and information dissemination amongst policy makers, regulators, general public, about the efficacy, need and comparative use of energy efficient technologies 9. Need for training and capacity building of financial institutions, to make them aware of the benefits of energy savings and remove the perception that funds for energy efficiency projects carry very high risks 58 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 6. Annex 1: Agenda Vietnamese Delegation’s Energy Efficiency Knowledge Exchange in India February 25 - March 1, 2019 AGENDA DAY 1 (NEW DELHI) - 25th Feb 2019 Time Topic Presenter/Organizer Venue 0900-0930 Travel from Hotel to Bureau of Energy Efficiency (BEE) Office, New Delhi 0930-0940 Introduction of the Vietnamese delegation All 0940-0955 Introductory Address by The World Bank The World Bank Mr. Abhay Bakre, Director General, Bureau of Energy 0955-1010 Welcome Address by Bureau of Energy Efficiency (BEE) Efficiency, Ministry of Power, Government of India Mr. Raj Pal, Economic Advisor, Special Address by Shri Raj Pal, Economic Advisor, Ministry 1010-1025 Ministry of Power, Government of Power of India Mr. Sanjay Dube, CEO, 1025-1035 Setting the Context - Agenda for the week International Institute for Conference Room, Energy Conservation (IIEC) Bureau of Energy Efficiency, Ms. Nguyễn Thị Lâm Giang, Ministry of Power, Govt. of Director General, Energy India, 4th Floor, Sewa Bhawan, Overview of Vietnam Energy Efficiency Strategies, Programs Efficiency and Sustainable R. K. Puram, New Delhi 1035-1100 and Challenges Development Department, Ministry of Industry and Trade, Government of Vietnam 1100-1110 Group Photo 1110-1120 Tea Break Overview of Energy Efficiency Policy, Regulatory and Institutional Framework in India covering: 1. Industrial Energy Efficiency (Perform, Achieve and Trade - PAT Scheme) Bureau of Energy Efficiency, 1120-1310 2. Energy Efficiency Partial Risk Guarantee Fund (PRGF) Program Heads 3. Building Energy Efficiency Codes and Policies (Energy Conservation Building Code/Green Building Program) 4. Appliances Energy Efficiency Standards and Labeling 5. Utility Demand Side Management (DSM) Interventions 59 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 6. Discussions 1310-1330 Open Discussion 1330-1415 Lunch 1415-1445 Travel from BEE Office (New Delhi) to SCOPE Complex, New Delhi 1445-1500 Introduction of the Vietnamese delegation All Dr. Junaid Ahmad, Country 1500-1510 Special Address by The World Bank Director-India, World Bank (TBC) Mr. Saurabh Kumar, Managing 1510-1520 Introductory Address by EESL Director, EESL Presentation on Overview of Energy Efficiency Implementation and Financing in India, covering: 1. Industrial Energy Efficiency & Demand Side Management Bhabha Chamber, SCOPE 2. Energy Efficiency Financing Complex, 7 Lodi Road 1520-1645 EESL Program Heads New Delhi 3. Smart Meter Program 4. Building Energy Efficiency Program 5. LED Street Lighting National Program (SLNP) 6. LED Domestic Lighting - Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) 1645-1730 Open Discussion 1730-1800 Networking and Tea 1800-1830 Travel back to Hotel (Hotel: ITC Maurya, Diplomatic Enclave, Sardar Patel Marg, New Delhi) DAY 2 (NEW DELHI) - 26th Feb 2019 Time Topic Presenter/Organizer Venue Travel from Hotel to PAT Designated Consumer Site (GBTL Ltd., formerly known as Grasim Bhiwani Textiles Ltd., Bhiwani, 0700-1100 Haryana) Site Visit: PAT Designated Consumer Site 1100-1330 (Contact Point: Mr Ram Kumar Uppadhya upadhyay.rk@gbtl.in) 1330-1430 Lunch at site 1430-1830 Travel back to Hotel (Hotel: ITC Maurya, Diplomatic Enclave, Sardar Patel Marg, New Delhi) DAY 3 (NEW DELHI / MUMBAI) - 27th Feb 2019 60 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Time Topic Presenter/Organizer Venue 0730-0830 Check out from Hotel (Hotel: ITC Maurya, Diplomatic Enclave, Sardar Patel Marg, New Delhi) 0830-0930 Travel from Hotel to World Bank Office (New Delhi) Mr. PR Khichi, Asst. General World Bank Conference Room, Meeting with Punjab National Bank (PNB) Manager – Credit, Punjab Hindustan Times Building, 18- 0930-0950 (Topic: Emerging Innovative Clean Energy Financing National Bank (+ other key 20, Kasturba Gandhi Marg, New Mechanisms and Business Models) officials) Delhi 0950-1010 Open Discussion Meeting with Small Industries Development Bank of India Mr. MK Pandey, General (SIDBI) Manager, SIDBI & CEO, India 1010-1030 (Topic: Emerging Innovative Clean Energy Financing SME Technology Services Ltd Mechanisms and Business Models, including the Partial Risk (+ other key officials) Sharing Facility) 1030-1050 Open Discussion World Bank Conference Room, Hindustan Times Building, 18- Mr. Chandan Bhavnani, 20, Kasturba Gandhi Marg, New Meeting with Yes Bank Executive Vice President, Delhi 1050-1110 (Topic: Emerging Innovative Clean Energy Financing Responsible Banking, Yes Bank Mechanisms and Business Models) (+ other key officials) 1110-1130 Open Discussion Mr. Abhilakh Singh, General Meeting with Indian Renewable Energy Development Manager, IREDA & Mr. K P Agency (IREDA) 1130-1150 Philip, Deputy General (Topic: Emerging Innovative Clean Energy Financing Manager (Technical Services), Mechanisms and Business Models) IREDA 1150-1210 Open Discussion 1210-1300 Lunch 1300-1430 Travel from World Bank Office (New Delhi) to Hotel DAY 4 (DELHI) - 28th Feb 20199 Time Topic Presenter/Organizer Venue 9 The original agenda included visit to Mumbai (Day 4 and Day 5) to meet with Rashtriya Chemicals & Fertilizers (PAT Industry Consumer), State Bank of India, Maharashtra Energy Development Agency (MEDA) and Maharashtra State Electricity Distribution Company Limited (MSEDCL) but was canceled due to cancellation of onward flight to Mumbai (due to closure of Air space). Hence, the program was modified to include an additional meeting in New Delhi with New Delhi Municipal Council (one of the municipal corporations in Delhi) and visit to Agra. 61 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 Full Day – Open Time DAY 5 (DELHI) - 1st Mar 2019 Time Topic Presenter/Organizer Venue Morning till Open Time 1100 1200-1245 Lunch 1245-1400 Travel from Hotel to NDMC Site Visit NDMC Site Visit 1400-1530 (Contact Point: Mr. Girja Shankar gshankar@eesl.co.in) 1530-1630 Travel from NDMC Site Visit to Hotel 1630-2030 Open Time 2030 onwards Check-out from Hotel and Travel to Airport 62 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 7. Annex 2: List of Speakers Organization Name Designation BEE Abhay Bakre Director General BEE Dr. Ashok Kumar Director BEE Arijit Sengupta Director in charge of International Cooperation BEE Ajitesh Upadhyaya Textile Sector Expert EESL Venkatesh Dwivedi Director (Projects) EESL Girja Shankar Assistant General Manager (Technical) GBTL Dhruva Chauhan Business Director and Unit Head GBTL Ram Kumar Uppadhya Head – Engineering PNB PR Khichi AGM SIDBI Rajeev Thakur Chief Technical Specialist Yes Bank Chandan Bhavnani Executive Vice President, Responsible Banking IREDA Abhilakh Singh General Manager IREDA KP Philip Deputy General Manager NDMC Narendra Gautam Director (Power/Commercial) World Bank Dr. Ashok Sarkar Senior Energy Specialist EE Expert K.K Chakravarti PAT Scheme and EE Sector Expert 8. Annex 3: Evaluation Survey Results Total # of Completely Somewhat Somewhat Completely Questions Neutral Total Responses Agree Agree Disagree Disagree The program was relevantly designed, as per 16 75% 25% 0% 0% 0% 100% our work and country’s requirements The program was up-to-date and covered 100% latest issues and provided an opportunity to 16 56% 44% 0% 0% 0% learn something new and relevant to our domain The program engaged relevant organizations 100% and Indian counterparts for the exchange of 16 56% 44% 0% 0% 0% knowledge from our domain The presentation durations and time allotted 16 56% 38% 0% 0% 0% 100% 63 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 for discussions was sufficient The time management of the program, 100% including the planning of meeting slots, travel 16 63% 25% 6% 6% 0% and breaks were appropriate The quality of the presentations in terms of 100% 16 25% 69% 0% 6% 0% language and clarity was good The presentations were interesting, practical 100% 16 38% 56% 0% 0% and well aligned to the subject 6% The presenters were able to answer questions 100% 16 50% 44% 0% 6% 0% fully and satisfactorily The program venue, audio-visual set up and 100% 16 25% 56% 13% 6% 0% other logistics were up to mark The sites visited were relevant and interesting 16 56% 31% 13% 0% 0% 100% The members of the organizing entity (IIEC) 100% 16 63% 31% 0% 6% 0% were cooperative and well behaved Please rate your overall stay and comfort for 100% 16 50% 50% 0% 0% 0% the entire time of the program 64 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 9. Annex 4: List of Participants Salutation Last Name First Name Designation Email Address Director General - Energy Efficiency and Sustainable Development Ms NGUYEN Thi Lam Giang giangntl@moit.gov.vn Department (EESD), Head of Delegation Mr DINH Van Chau Official, EESD chaudv@moit.gov.vn Ms DANG Thi Thuc Official, EESD thucdt@moit.gov.vn Mr TA Thanh Hai Official, Electricity and Renewable Energy Authority (EREA) haitth@moit.gov.vn Mr DUONG Khac Hien Official, Science and Technology Department hiendk@moit.gov.vn Ms TO Thi Kim Loan Official, MOIT Office loanttk@moit.gov.vn Mr DAO Sy Thanh Director, Hai Phong Energy Efficiency and Conservation Center daosythanhhaiphong@gmail.com Mr NGUYEN Thanh Hai Vice Director, Hanoi Department of Industry and Trade morskoe@yahoo.com Mr LAI Ngoc Quy Manager of International Fund Division, VCB quy.ho@vietcombank.com.vn Ms PHAM Thi Thanh Phuc Officer, International Trust Fund Division, BIDV phucptt@bidv.com.vn Ms NGUYEN Thi Thuy Mai Vice Director, Da Nang Department of Industry and Trade maintt1@danang.gov.vn Director, Dong Thap Energy Efficiency and Cleaner Production Mr MAI Van Doi doiscndt@gmail.com Center Manager of Legislation Division, HCM City Department of Industry Mr TRAN Kiem Hieu kiemhieutran@gmail.com and Trade Vice Manager of Energy Management Division, Binh Duong Mr TRAN Cong Danh danhtc2006@gmail.com Department of Industry and Trade Mr NGUYEN Thanh Tung Vice Director, Can Tho Energy Efficiency and Conservation Center Thanhtung_ecc@yahoo.com Mr PHAN Van Quyet Interpreter phanvanquyet@gmail.com Ms VU Thi Van Anh Official, Business Department, Electricity of Vietnam anhvtv@evn.com.vn Mr NGUYEN Ngoc Giap Official, Business Department, Electricity of Vietnam giapnn@evn.com.vn Ms. LE Thi Hoa Binh Vietcombank BINHLTH.HCM@vietcombank.com.vn Ms. DOAN Thi Phuong Chi Vietcombank CHIDTP.HCM@vietcombank.com.vn Mr GERNER Franz Energy Sector Coordinator, The World Bank in Vietnam fgerner@worldbank.org Mr CHU Ba Thi Senior Energy Specialist, The World Bank in Vietnam tchu@worldbank.org Dr SARKAR Ashok Senior Energy Specialist, The World Bank asarkar@worldbank.org World Bank, Communications Consultant for India Lighthouse Ms. GUPTA Divya Divyagupta2@gmail.com Initiative 65 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 10. Annex 5: Logistics Note VIETNAMESE DELEGATION’S ENERGY EFFICIENCY KNOWLEDGE EXCHANGE IN INDIA February 25 (Monday) – March 1, 2019 (Friday) LOGISTICS AND INFORMATION SHEET 1. HOTEL ARRANGEMENT AND PAYMENT MODALITIES All Participants shall be staying at the hotels listed below. ITC Maurya, New Delhi Check in: 24th February (Sunday) Address: Diplomatic Enclave, Sardar Patel Stay: 25th and 26th February (Monday and Marg, New Delhi - 110021 India Tuesday) Phone: +91- 11- 26112233 Check Out: 27th February (Wednesday) Email: reservations@itchotels.in Website: www.itchotels.in ITC Maratha, Mumbai Check in: 27th February (Wednesday) Address: Sahar, Andheri (E) Stay: 28th February (Thursday) Mumbai - 400099 Check Out: 1st March (Friday) Phone:+91-22-28303030 Email: reservations@itchotels.in Website: www.itchotels.in ITC Maurya, New Delhi Check in: 1st March (Friday) Address: Diplomatic Enclave, Sardar Patel Stay: 1st March (Friday) Marg, New Delhi - 110021 India Check Out: 2nd March (Saturday) Phone: +91- 11- 26112233 Email: reservations@itchotels.in Website: www.itchotels.in  The rooms are blocked and the booking confirmations will be sent to all the participants. The room rate includes double occupancy room, daily breakfast, Wi-Fi, and both side airport transfers.  Each double-occupancy room at the Hotel will be shared by two people (this applies to the 15+ 1 Vietnamese delegation members) 66 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  If you have informed about any dietary restrictions, the same has been conveyed to the hotel.  Check-in date is no earlier than Sunday, 24th February 2019, 1400 hrs and check-out is no later than Saturday, 2nd March 2019, 12 noon.  For 15 Vietnamese participants and 1 interpreter Hotel room payments will be taken care by International Institute for Energy Conservation (IIEC).  Any other incidental charges (telephone calls, mini-bar, laundry, etc.) will be billed directly to the guest.  Should participants change their arrival date or cancel their trip, please intimate Ms Sumedha Awasthy (sawasthy@iiec.org) at the earliest. 2. GROUND TRANSPORTATION Transportation for your pick-up from the Indira Gandhi International Airport, New Delhi has been organised through the hotel. The participants DO NOT have to pay for the hotel taxi as the costs for your pick-up and drop have already been paid by IIEC. The distance between the airport and the hotel is approximately 10 Km. The driver will be waiting in front of GATE NUMBER 6 with name of the delegation on a placard. On 2nd March 2019 or depending on the timings of the return flights, the participants will be dropped off at the Indira Gandhi International Airport, New Delhi by Hotel Taxi, already booked by IIEC. The participants DO NOT have to pay for the airport drops. PLEASE NOTE: The check-out time of the hotel is 12.00 pm. Thus, all the participants MUST check out by 12.00 pm on 2nd March 2019. 3. TRAVEL INSURANCE The Travel insurance for all the participants will NOT be covered by the organizers. PLEASE NOTE that you are responsible for your own medical insurance during the travel and whilst you are in India. Please ensure that you have an insurance policy that provides sufficient coverage for medical expenses and repatriation to your home country. 4. CURRENCY EXCHANGE  Money can be converted to local currency (INDIAN RUPEES - INR) at the bank branches and money changers located at the Indira Gandhi International Airport, New Delhi and in the nearby markets.  The current exchange rate is approximately US$ 1= INR 70.55. Exchange rate is subject to fluctuations. Currency can also be exchanged at your hotel. 5. ELECTRICAL CONNECTIONS The voltage used in India is 220 volts. The plug/socket is Type D and you may want to carry an appropriate travel plug/adapter. 6. BUYING A SIM CARD IN INDIA 67 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 On arrival in India, you can buy a SIM card at the international airport from the kiosks of mobile service providers such as Airtel, Vodafone or Reliance, which are located almost immediately after you clear customs. If you have the required documentation handy, all you have to do is fill up a form and submit it to the vendor. Once the documents are verified, you can purchase the SIM immediately (approximate costs INR 550 or $10) and will get a 10-digit mobile number. Usually, the SIM is activated within 24 hours, after a confirmation call is made to your mobile phone for verifying the details provided in your application. You will need to provide the following documents to the vendor along with the application form.  2 colour passport photographs of yourself  A photocopy of the personal details page of your passport. You will also have to produce your passport for verification, after which it will be returned to you.  A photocopy of your Indian visa. Once again, you will have to show the original visa for verification.  A photocopy of the proof of your home address in your country of residence. This could be your passport, driver’s license or any other Government issued document. Remember to carry the original document along for verification. 7. DRESS CODE Please note that the dress code for all activities during the event is business casual. 8. WEATHER The weather forecast for New Delhi indicates cool weather with sunlight for the week of 24th Feb 2019 to 2nd March 2019, with temperatures ranging between 15°C to 24°C. The weather forecast for Mumbai indicates pleasant weather for the week of 24th Feb 2019 to 2nd March 2019, with temperatures ranging between 20°C to 30°C. Therefore, it is advised to carry light warm clothes, umbrellas, caps, sunglasses or sunscreens to protect you from the sun during the field visits on 26th, 27th and 28th Feb 2019. 9. EMERGENCY CONTACTS of organizers in India (IIEC) INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION  Ms Sumedha Awasthy – Cell / WhatsApp Number: +91-958-228-9010 Email: sawasthy@iiec.org  Mr Kartik Dube – Cell / WhatsApp Number: +91-992-351-6655 Email: kdube@iiec.org  Mr Amar Nath Yadav – Cell / WhatsApp Number: +91-782-726-6999 Email: ayadav@iiec.org IMPORTANT INSTRUCTIONS FOR DELEGATES Please consider these as standing instructions for the entire course of time that the program is proposed for, in India. 68 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019  For Checking-out from the hotel room, on whichever day it is indicated in the program agenda, please report to the hotel desk 30 min prior to avoid any delay in the scheduled plan  According to the agenda, for the start of the day please report at the bus, 15 min prior to avoid any delays to the scheduled plan  For all days the breakfast will be served at the hotel from 6:30 AM onwards  Please do care to check your respective room for any personal belongings left behind before checking out  Please always make sure to carry your identification proof (Passport)  Please always make sure to carry your ID badge provided by IIEC as it also contains instructions and contacts in case of any emergency  The members of the delegation are requested not to leave the group without notifying the IIEC officials for any kind of travel / excursion / shopping etc. on their own  There will be a daily briefing at the end of every day where the IIEC officials will be giving out an overview of the meeting planned for the next day  Dinner has already been arranged in the hotel of stay for all days if you wish to opt for any local cuisine from outside, it will be at your own expense  Please handover your boarding pass from Delhi-Mumbai-Delhi to Ms. Sumedha Awasthy (IIEC) 69 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 11. Annex 6: Photographs 70 Report on Vietnamese Delegation’s Energy Efficiency Knowledge Exchange Program in India - New Delhi, 25 Feb – 1 Mar, 2019 71