An Agreement for operationalization of Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) to support energy efficiency projects was concluded here last week.
The agreement which addresses credit risk barriers faced in financing Energy Service Companies (ESCOs) has been signed between Bureau of Energy Efficiency (BEE) and the REC Power Distribution Company Ltd. (RECPDCL) on behalf of consortium between RECPDCL, REC Ltd. & Energy Efficiency Services Ltd (EESL) last week.
The Agreement was signed by Sanjay Seth, Secretary, BEE and Somya Kant, Chief Financial Officer, RECPDCL in the presence of Dr. Ajay Mathur Director General, BEE.
PRGFEE is an innovative financing mechanism under Framework for Energy Efficient Economic Development (FEEED), which is one of the initiatives under National Mission for Enhanced Energy Efficiency
This fund has been constituted by Bureau of Energy Efficiency and Ministry of Power, Government of India. PRGFEE is a risk sharing mechanism to provide financial institutions (Banks/NBFCs) with a partial coverage of risk involved in extending loans for energy efficiency projects.
