EESL to invest £100 million in UK over next 3 years
EESL MD Saurabh Kumar says the firm has decided to invest £100 million over the next three year in UK and he estimates an annual revenue of £20-25 million after that
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New Delhi: State-run Energy Efficiency Services Ltd (EESL) will invest £100 million in the UK over the next 3 years with an aim to create space in the country’s £6.4 billion energy efficiency services market.
EESL entered into a joint venture with EnergyPro Ltd, an advisory company in energy efficiency, and invested in EPAL, earlier a wholly-owned arm of the EnergyPro. EESL would route its investments through EPAL.
“EESL has already invested £7 million in the EPAL. We have 80% stake in this JV whereas the remaining stake is with our partner EnergyPro Ltd,” EESL managing director Saurabh Kumar told PTI. “The EESL has decided to invest £100 million over the next three year. We have estimated an annual revenue of £20-25 million after this investment. At present, with £7 million investment in the EPAL, the revenues are estimated at £1 million per annum for the next 15 years.”
Power minister Piyush Goyal will be visiting London next week where he would make formal announcement about this investment by EESL.
Kumar said the total accessible market for energy efficiency services in the UK is estimated at £6.4 billion by 2020. With an aim to unlock this potential, EESL has entered into a JV with EnergyPro and became a majority stakeholder in the EPAL, he said.
The JV is already handling seven different projects of energy efficiency including a community centre, school, hospital and golf course.
Elaborating further, Kumar said these institutions are part of big groups and chains of establishments, which would be prospective consumers of integrated energy efficiency solutions. Apart from providing energy efficient LED bulbs, the EESL would provide better solar and heating systems to reduce to the consumption of energy.
The Unnat Jyoti by Affordable LEDs for All (UJALA) project is being implemented by the EESL across 25 states and 7 UTs in India. The project is the world’s largest affordable lighting replacement programme that seeks to replace 770 million inefficient lamps with efficient and long-lasting LED lights by 2019.
The EESL has been able to successfully aggregate demand and has undertaken bulk distribution of LED bulbs that has led to more than 88% reduction of costs–from $4.7 (February 2014) to $0.58 (recent procurement, without taxes).
The benefit of this cost reduction has been passed on to the consumers making LED and energy efficient appliances an affordable commodity for all. The average price at which LED bulbs under UJALA are available is at $1 (subject to various state taxes) with a 3-year warranty. The consumers are authorised to avail any number of LED bulbs with an upfront payment.
In the UK, EESL aims to promote and implement low-carbon, energy efficiency and renewable energy solutions in both public and private sectors.