New Delhi, India- 21 November 2023 – Energy Efficiency Services Limited (EESL), a joint venture of Public Sector Undertakings, in collaboration with the Global Green Growth Institute (GGGI), an international intergovernmental organization, announced the launch of the Asia Low Carbon Buildings Transition (ALCBT) Project in India. Operating under the guidance of the Ministry of Housing and Urban Affairs (MoHUA) as the nodal ministry, this strategic initiative aims to combat the unprecedented surge in peak electricity demand in the country, primarily propelled by the escalating need for cooling solutions. The Government of Germany through its Federal Ministry for Economic Affairs and Climate Action (BMWK) is funding this project under the International Climate Initiative (IKI).
EESL, in collaboration with GGGI, will undertake a range of activities to address the pressing challenges associated with the surging demand for electricity in the building sector. One of the key components of the ALCBT project implementation across three states – Kerala, Haryana, Uttar Pradesh, involves the assessment of 400 buildings (200 old and 200 new) in Kerala; 600 buildings in Haryana (400 old and 200 new); and 600 buildings in Uttar Pradesh (400 old and 200 new). Additionally, 20 Energy-Efficient Cooling Retrofits will be deployed in each of the three states. The Haryana Renewable Energy Development Agency (HAREDA), the Department of Environment, Forest & Climate Change (DoEF&CC), and the Energy Management Center (EMC) are actively supporting this project to ensure its effective implementation within their respective provinces.
Mr. Vishal Kapoor, Chief Executive Officer, EESL & CESL, added “The Asia Low Carbon Buildings Transition (ALCBT) Project is a timely opportunity to champion sustainable building practices. In collaboration with the Global Green Growth Institute (GGGI), we are geared to address the challenges of surging electricity demand and contribute significantly to carbon emission reduction. A key focus includes retrofitting air conditioning systems in 60 Indian buildings, demonstrating our commitment to energy efficiency. The project also advocates bulk procurement strategies in two other countries, fostering the global adoption of sustainable building practices. Despite challenges, our strategic partnerships position the ALCBT Project as a transformative force, propelling India toward a low-carbon future.”
As part of the project, EESL will also provide training to approximately 600 professionals and individuals on the use of Low-Carbon Tools and Building Energy Efficiency. This training initiative extends not only across India but also encompasses two other countries. Furthermore, EESL will play a pivotal role in overseeing pilot demonstrations focused on sustainable cooling systems. Specifically, these demonstrations will be conducted in 60 buildings within India and 40 buildings in two other countries. The primary objective is to showcase the efficacy of Demand Aggregation and Bulk Procurement, with a collective target of 100 buildings. The learnings and achievements from this project will be further utilized for replication in other states.
Commenting on the occasion, Helena McLeod, Deputy Director-General, and Head of the Green Growth Planning & Implementation (GGP&I), Global Green Growth Institute, said, “India is facing an unparalleled surge in peak electricity demand, predominantly driven by the escalating need for cooling solutions. The ALCBT Project is a crucial step towards aligning our building practices with global sustainability goals. By integrating ALCBT tools and training programs, and focusing on robust policy recommendations, we aim to catalyze a paradigm shift in how we approach energy efficiency in the building sector. The Asia Low Carbon Buildings Transition (ALCBT) Project is a great opportunity for GGGI together with the Government of India to take our joint commitments forward. Today we had wonderful discussions around this project’s outcomes, and I am sure this project will strengthen India’s Energy Conservation Buildings Codes (ECBC) and create an entire ecosystem for low carbon building infrastructure.”
Ms. Taina Dyckhoff, Head of Division for Climate and Environment of the German Embassy New Delhi, added: “India is one of the IKI priority countries. We are happy to continue the successful cooperation with this new project, dedicated to low carbon buildings. The German Federal Government values the long-standing bilateral cooperation with India in the field of climate and biodiversity protection. This project is part of our strong Indo-German Green and Sustainable Development Partnership (GSDP). We continue to promote green and sustainable development through our cooperation projects as well as high-level policy dialogues in a whole of government approach.”
The event was graced by Mr. Abhay Bakre, Director General, Bureau of Energy Efficiency, Ministry of Power, Govt. of India who during his keynote address said “India’s building sector is growing fast which will have major impact in end-use energy consumption. Although we are continuously taking steps to have energy efficient buildings through codes and best-practices, we have to accelerate the efforts by use of energy efficient materials & appliances, design and creating cadre of building analysis experts. This ALCBT project is a timely initiative to support India’s quest for achieving NDC goals and decarbonizing the building sector.”
The ALCBT Project is poised to yield substantial benefits, with the following key expected outcomes:
- Carbon Emission Reductions: The project aims to achieve a significant reduction of 1.2 million TCO2eq. This underscores our commitment to contributing to India’s climate goals and fostering global sustainability.
- Financial Mobilization: GGGI will mobilize a substantial € 140 million in all five countries including India, for low-carbon building projects through innovative mechanisms such as Taxonomy, MRV, and (super) ESCO pilots.
- Project Pipeline Generation: This includes a corpus of € 100 million for developing a low carbon project pipeline using MRV tools/taxonomy. Another € 20 million will be raised through proposals to leverage climate funds. The remaining € 20 million shall be mobilized through private ESCOs.
About Energy Efficiency Services Limited (EESL):
A joint venture of NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID, Energy Efficiency Services Limited (EESL) was set up under the Ministry of Power to facilitate implementation of energy efficiency projects. EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency market in India, estimated to at Rs. 74,000 crore that can potentially result in energy savings of up to 20 per cent of current consumption, by way of innovative business and implementation models. It also acts as the resource centre for capacity building of State DISCOMs, ERCs, SDAs, upcoming ESCOs, financial institutions, etc.
About Global Green Growth Institute (GGGI):
Global Green Growth Institute (GGGI), headquartered in Seoul, Republic of Korea is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. GGGI spearheads the ALCBT project, driving national engagements and creating standardized tools for carbon management in the building sector. It also boosts regulator and practitioner expertise for low carbon building, facilitates financial avenues for such projects, and fosters the spread of best practices.
About Asia Low Carbon Building Transition (ALCBT):
The ALCBT Project is a five-year multi-stakeholder project that aims to facilitate the nationwide transition towards Low Carbon Buildings in five Asian countries namely, Cambodia, India, Indonesia, Thailand, and Vietnam. In India, ALCBT project will institutionalize the Building Carbon Assessment (BCA) tools and approaches, build the capacity of public and private sector entities, and link BCA to the implementation of building energy codes in three states. It will enhance building energy codes towards nationally determined ambitious standard using CO2eq/ m2/ year as a common performance metric. Successful implementation of the project will substantially reduce direct GHG emissions from the building sector by 2028. The ALCBT project is being implemented by the Global Green Growth Institute (GGGI) is partnership with Energy Efficiency Services Limited (EESL) from India, HEAT International from Germany, and ASEAN Centre for Energy (ACE) from Indonesia. It is supported by the Government of Germany through its Federal Ministry for Economic Affairs and Climate Action (BMWK) under the International Climate Initiative (IKI).