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The Alliance to Save Energy, with funding from REEEP, is providing technical advisory services to Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) and Urban Local Bodies (ULBs) to undertake municipal energy efficiency projects in 45 towns using energy performance contracts (EPCs).
This is the first time there has been such a large financing project involving ESCOs in India. In this case, 29 municipalities have been bundled together to implement energy efficiency measures through EPCs. The ESCOs will implement water pumping and street lighting projects for the municipalities based on a shared savings EPC model. Two leading ESCOs have been selected based on a competitive bidding process. They have guaranteed minimum savings of 30 percent on the municipal electricity bills pertaining to water pumping and street lighting. The maximum project period is five years.
An independent monitoring and verification agency will verify the savings using the International Performance Monitoring and Verification Protocol (IPMVP). To ensure that ESCOs are repaid from project savings by municipalities, an ESCROW Trust and Retention Account will be set up by municipalities.
The project model is being replicated in Gujarat under the USAID ECO III project, where the Alliance is providing technical support to the Gujarat Urban Development Company (GUDC). Gujarat is embarking on municipal energy efficiency programs in all of its 159 urban local bodies.
For more information on this and other projects of the Alliance International Team, please contact Sudha Setty ssetty@ase.org or Alexander Filippov, afilippov@ase.org.
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