Energy efficiency can help save Rs 1.2 lakh cr investments: Shinde

At a time when the Indian power sector is facing a funding shortage of over Rs 5 lakh crore, the government has said that saving of power through the energy-efficiency route could save investments of up to Rs 1.2 lakh crore in the sector.

“An improvement of 20 per cent energy efficiency can help avoid capacity addition of around 30,000 Mw. This, in turn, can save investments worth Rs 1.2 lakh crore,” Power Minister Sushil Kumar Shinde said today.

Lower energy efficiency has put a pressure on realisation of power capacity in India.

The minister also added that while only 50 per cent of the capacity addition targets were met in the eighth, ninth and tenth Plan periods, his ministry would ensure that the current Plan’s target of 78,700 Mw was met. He had earlier said that only 60,000 Mw of this target would be met.

Shinde, who was speaking at the two-day annual Economic Editors’ Conference, also said that the ministry would soon float a separate energy efficiency company — Energy Efficiency Services Ltd (EESL) — which would have an equity base of Rs 190 crore.

The new company’s equity would consist of equal participation from four power sector PSUs — NTPC Ltd, PowerGrid Corp, Power Finance Corp and REC Ltd.