IFCI, Bureau of Energy Efficiency collaborate on energy efficiency financing

IFCI Limited and Bureau of Energy Efficiency (BEE) today signed a Memorandum of Understanding (MoU) to work closely on the latter’s Energy Efficiency Financing Platform (EEFP). Present at the occasion were Mr. S.P. Sharma, Vice President, IFCI Limited and Dr. Ajay Mathur, Director General, BEE.

The EEFP, an initiative under National Mission for Enhanced Energy Efficiency (NMEEE), seeks to create a mechanism for enabling mainstream financing of energy efficiency projects.

NMEEE estimates the overall energy efficiency investment market at around Rs. 74,000 Crores. The combined capital of BEE funds will infuse over Rs. 170 Crores in the energy efficiency market in the coming years.

Speaking on the occasion, Mr. S. P. Sharma, Vice President, IFCI said , “IFCI is already associated with the power sector in general and the supply side in particular by way of financing / investing either in equity or in debt. With signing of this MoU with BEE, IFCI would be associating itself in various facets of Energy Efficiency Financing Platform(EEFP), Framework for Energy Efficient Economic Development (FEED) and Perform Achieve Trade (PAT) scheme, and supporting other initiatives of BEE in Demand Side Management.”

Dr. Ajay Mathur, Director General, BEE said, “Signing of this MoU with IFCI is evidence of BEEs continued and sustained efforts in strengthening its efforts under EEFP and actively engaging with Financial Institutions (FIs) in energy efficiency. BEEs partnership with IFCI will help both organizations to share available knowledge and experience and to work together to support channelization of investors funds into energy efficiency projects.”

The Memorandum will not only help to promote energy efficiency project financing also provide a framework for collaborations in the field of Energy Efficiency financing instruments and funds, Utility based Demand Side Management (DSM), Energy Conservation Building Code, Energy Efficiency in existing commercial buildings, Standards and Labeling Programme and Energy Efficiency in Industries will be taken up in India.