EESL, under the leadership of its Managing Director, Saurabh Kumar, is bringing about a revolutionary change in the LED Lighting industry. Kumar shares with EPC World the company’s plans to promote energy efficiency and savings envisaged. Excerpts:
Please provide an update on the LED bulb program being undertaken at present. How many bulbs have been distributed so far across the country and what are your plans for the next one year?
EESL is implementing the National LED programme launched by the Prime Minister on 5th January 2015. The objective of the programme to provide people with affordable LED bulbs. EESL has aggregated demand and has undertaken bulk programme of LED bulbs that has led to significant reduction of costs – from ` 310 (February 2014) to ` 54.90 (April 2016) – more than 80% reduction. The benefit of the cost reduction has been passed on to consumers. The average price of LED bulbs under UJALA has reduced to ` 85 with a 3 year warranty. UJALA scheme is running in stages and aims to cover all the states in India and has benefited consumers. By March 31, 2017 we expect to reach an overall target of distributing about 25 crore LED bulbs all across the country.
How much of savings in energy efficiency is envisaged through this program? Also, how will it help India meet its climate change commitments?
More than 10.5 crore LEDs stand distributed under the UJALA scheme, which is resulting in more than 3.8 crore kWh energy savings per day. This way we have avoided a peak demand of about 2,824 MW in India and are leading to a reduction in carbon footprint of about 31,301 tonnes per day. The total number of bulbs to be distributed by 2019 are 77 crore, which will result in avoiding peak capacity addition of 20,000 MW and GHG mitigation of 80m ton every year.
How has the Government push through EESL led to growth of LED industry in India, in terms of demand, supply and pricing?
We have tested and successfully demonstrated that aggregation and bulk procurement model in the lighting scheme works well. India’s share in LED bulb business internationally has increased from 0.1% in 2013-14 to nearly 12% in 2015-16. Interestingly, the potential of the energy efficiency is marked at INR 74,000-crore and India’s LED bulb market is set to register a growth of more than 30% in the next 4-5 years. It has been forecasted that Government’s initiative of LED bulb adoption can increase India’s LED market share to ` 21,600-crore by the year 2020. We are looking forward to realizing this investment potential by 2020. The installed capacity of the industry has grown from a little over 5 lakh bulbs/month (2014) to over 3 crore/month now.
How has EESL grown as an organization in terms of its role and revenue?
EESL registered a turnover of about 21 crore in 2013-14, ` 70-crore in 2014-15 and has reached ` 720 crore in 2015-16. This year turnover target is
` 2000 crore. EESL has now over 500 employees with presence in 16 states.
EESL was set up to promote energy efficiency in India. But the company’s activities seem to mostly be limited to LED lighting industry. Please elaborate your plans to tap other segments and markets to promote energy efficiency, such as energy efficient fans and agricultural pumps?
EESL is committed towards creating a sustainable market for energy efficiency in India. We do not differentiate between our programmes. It is just that some projects are different and more comprehensive than others and thus require more time and effort. Whatever leads to a huge impact in energy efficiency holds our attention and focus.We have been steadily implementing our projects like efficient buildings and energy efficient agricultural pump sets. EESL has also initiated programmes for energy efficient fans and tube lights.
What are your plans for promoting energy-efficient fans?
Under NEEFP, EESL aims to replace over 35 crore inefficient fans by 2018. Currently, the scheme has been implemented in the state of Andhra Pradesh (AP) and Uttar Pradesh (UP). In AP, we plan to distribute nearly 2 lakh fans to consumers and in Uttar Pradesh over 3 lakh fans will be distributed. Distribution in both regions is currently ongoing. Preliminary discussions with the government of Rajasthan is underway. EESL plans to expand the operations of the scheme throughout India.
Please explain progress
achieved by EESL on other fronts such as S&L program and PAT. Do you think the PAT scheme has
worked so far?
Currently, EESL is BEE’s only Independent Agency for Monitoring and Evaluation (IAME) for S&L assignments. Lately, there have been four products such as TFL or tube lights, air conditioners, distribution transformers and frost free refrigerators, which are allowed to enter market only after proper labeling. As per the BEE notification, about 16 commodities including LED lamps come in the voluntary category for S&L. Throughout the years, EESL has been BEE’s preferred agency to handle S&L tasks. Certifications are processed after tests in preliminary product design stage and check testing is also conducted to fully implement compliance. EESL has a limited role in PAT scheme, having undertaken baseline energy audit as required by BEE. It is, therefore, not possible for EESL to comment on the scheme.
