Project Identification Form (PIF)
Project Type: Full sized project
the GEF Trust Fund
Submission Date: November 9, 2007
Re-submission Date: January 22, 2008
Indicative CalendarMilestones / Expected Dates
Work Program (for FSP) / April 2008/
July 2008
CEO Endorsement/Approval / July 2008
GEF Agency Approval / August 2008
Implementation Start / September 2008
Mid-term Review (if planned) / September 2010
Implementation Completion / September 2012
part i: project IDentification
GEFSEC Project ID[1]: 3538
gef agency Project ID:
Country(ies): India
Project Title: Programmatic Framework Project for EE in India
GEF Agency(ies): , ,
Other Executing partner(s): BEE
GEF Focal Area (s): ,
GEF-4 Strategic program(S): EE in existing Buildings SP-1; EE in SMEs SP-2; EE in Indian RailwaysSP-2
Name of parent program/umbrella project: programmatic framework for ee in india
A. Project framework (Expand table as necessary)
Project Objective(s): To promote energy efficiency in Buildings through increased market penetration of energy-efficient technologies, practices, products, and materials in the residential and commercial building markets; To increase deployment of energy efficient technologies and support adoption of energy-saving practices in the industrial sector (Small & Medium Enterprises (SMEs); and To Implement EE technologies and measures in Indian RailwaysProject Components
/Indicate whether Investment, TA, or STA**
/ Expected Outcomes /Expected Outputs
/Indicative GEF Financing*
/ Indicative Co-financing* / Total ($)($)
/%
/($)
/%
1. Energy Efficiency Improvements in commercial Buildings (UNDP) / TA / Increased market penetration of energy-efficient technologies, practices, products and raw materials in the residential and commercial building markets. / Capacities of Building Departments at centre, state, and municipal levels enhancedEasy to implement compliance procedures formulated
Specific training courses conducted for, architects/design professionals, building material suppliers, builders/contractors/ developers
Training of trainers courses/ workshops / seminars arranged
Courses incorporated at vocational training institutes like SPA#, NID#, for training larger audience
Information disseminated and awareness raised on life cycle cost-benefit and return on investments for ECBC compliance
Model buildings identified and aided to comply with ECBC under public-private partnership in 5 climatic zones
Ensure availability of energy-efficient materials and equipment locally
Administration and enforcement structure of building codes developed
Monitoring and evaluation benchmarks developed
Rebate / tariff discount schemes with utilities discussed and designed for buildings compliant with ECBC
Financing schemes designed with commercial banks for investors to comply with ECBC
Compile and disseminate information on EE financing schemes / 5.2m / 30 / 12 m / 70 / 17.2m
2. Chiller Energy Efficiency Project (WB) / TA/
Investment / CFC demand permanently eliminated through equipment replacements
Fulfillment of Protocol-mandated phaseout of CFC consumption
Removal of incentives for post-2010 emergence of illegal production and trade of CFCs / CO2 equivalent emission reduction from both energy efficiency and reduction in losses of refrigerant gas.
Number of Chiller conversions
Quantity of CFC demand permanently eliminated
Chiller owners aware of the life cycle approach to decision making;
Decision makers include lifecycle approach in developing regulatory and policy frameworks
/ 6.3m / 6 / 93.6m / 94 / 99.9.m
Promoting energy efficiency in the industrial sector
A.Financing Energy Efficiency in Small and Medium Enterprises (WB)
B.Promoting Energy Efficiency and Renewable Energy in Selected SME Clusters in India (UNIDO) / TA/
Investment / Increased deployment of energy efficient technologies and adoption of energy-saving practices in the industrial sector / Increased project appraisal capability for lending institutions/banks
Implementation of innovative financing schemes (i.e. partial risk guarantee coverage) facilitated
Financing EE technology replications
Programme knowledge sharing on results
Reduction in GHG emissions attributable to improvements in SME energy efficiency
Situation analysis for clusters
Preparation of manuals for all clusters detailing technology trends, consumption, BoPs.
Energy use and technology audits conducted in identified pilot clusters/units
Cost benefit analysis carried out
Bankable DPRs developed
Institutionalization of capacity building
Increased project appraisal capability for lending institutions/banks.
Reduction in GHG emissions attributable to improvements in SME energy efficiency
SME specific training developed and conducted for local service providers through workshops, dissemination workshops.
Financing EE technology replications / 17.4m / 24 / 56m / 76 / 73.7m
4.Improving Energy Efficiency in the Indian Railways system
(UNDP) / TA / Increased adoption of energy efficiency technologies and measures in the Indian Railways system / At least 1000 Railway technical staff (officers, supervisors, engineers) trained
Testing house staff trained for measurement and calibration of the equipment used in railways
Support the Center of Excellence
Information on technology status and best operating practices compiled for Lighting, EE Pump, Power Devices, Green Building, HVAC, DG Set, Sensors and Automatic Metering of Energy
Prepare and implement energy audit procedures for each railway operation eg production unit, traction Substations, Workshop, Production Unit, Maintenance depot and Buildings
Cost/ benefit analyses for priority technologies/ measures conducted
Railway’s internal incentives scheme for implementing EE tech/ measures created and implemented Piloting and demonstrating tech./measures in EE Rolloing Stock, Static installation, Workshop and Production facilities
Identify intenational best practices
Facilitate dissemination of knowledge between the Center of Excellence and similar institutes abroad / 5.2m / 15 / 30 m / 85 / 35.2m
5Programmatic Knowledge Sharing
(WB) / STA / Detailed reports of program impact over time,recommendations for mid-course correction / Increased effectiveness of program implementation, policy/program revisions as required / 1m / 33 / 2m / 67 / 3m
Total project costs / 35.1m / 15 / 193.6 / 85 / 228.7m
* List the $ by project components. The percentage is the share of GEF and Co-financing respectively to the total amount for the component.
** TA = Technical Assistance; STA = Scientific & technical analysis.
B. Indicative Financing Plan Summary For The Project ($)
GEF / 360,000 / 35,100,000 / 3,546,000 / 39,006,000
Co-financing / 250,000 / 193,600,000 / 193,850,000
Total / 610,000 / 228,700,000 / 3,546,000 / 232,856,000
* Please include the previously approved PDFs and planned request for new PPG, if any. Indicate the amount already approved as
footnote here and if the GEF funding is from GEF-3.
C. Indicative Co-financing for the project (including project preparation amount) by source and
by name (in parenthesis) if available, ($)
Project Government Contribution (BEE, MSME, Railways) / (select)GrantSoft LoanHard LoanGuaranteeIn-kindUnknown at this stage / 42 m
GEF Agency(ies) / (select)GrantSoft LoanHard LoanGuaranteeIn-kindUnknown at this stage
Bilateral Aid Agency(ies) / (select)GrantSoft LoanHard LoanGuaranteeIn-kindUnknown at this stage
Multilateral Agency(ies) (WB) / Grant(select)Soft LoanHard LoanGuaranteeIn-kindUnknown at this stage / 1 m
Private Sector (industry, financial institutions, commercial banks) / Hard Loan(select)GrantSoft LoanGuaranteeIn-kindUnknown at this stage / 131.6
NGO / (select)GrantSoft LoanHard LoanGuaranteeIn-kindUnknown at this stage
Others / (select)GrantSoft LoanHard LoanGuaranteeIn-kindUnknown at this stage / 19
Total co-financing / 193.6 m
D. GEF Resources Requested by Focal Area(s), agency (ies) share and country(ies)*
GEF Agency / Focal Area / Country Name/Global / (in $)
Project Preparation / Project / Agency
Fee / Total
World Bank(select)UNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / Climate Change(select)BiodiversityInternational WatersLand DegradationOzone Depletion SubstancesPersistent Organic PollutantsNDI/CSPSGP/CB/LDC-SIDS Support / India / 0 / 19,006,000
UNDP(select)World BankUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / Climate Change(select)BiodiversityInternational WatersLand DegradationOzone Depletion SubstancesPersistent Organic PollutantsNDI/CSPSGP/CB/LDC-SIDS Support / India / 210,000 / 10,610,000 / 1,180,000 / 12,000,000
UNIDO(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOIFAD / Climate Change(select)BiodiversityInternational WatersLand DegradationOzone Depletion SubstancesPersistent Organic PollutantsNDI/CSPSGP/CB/LDC-SIDS Support / India / 150,000 / 7,150,000 / 700,000 / 8,000,000
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select)BiodiversityClimate ChangeInternational WatersLand DegradationOzone Depletion SubstancesPersistent Organic PollutantsNDI/CSPSGP/CB/LDC-SIDS Support
Total GEF Resources / 360,000 / 35,460,000 / 3,546,000 / 39,006,000
* No need to provide information for this table if it is a single focal area, single country and single GEF Agency project.
part ii: project JustiFication
A. State the issue, how the project seeks to address it, and the expected global environmental benefits to be delivered:
The Eleventh Five Year Plan (2007-12) of Government of India targets savings of 5 percent of consumption levels through implementation of a set of energy efficiency interventions. The targeted reduction of energy use in the economic process will leverage the Energy Conservation Act, 2001 which set up the Bureau of Energy Efficiency (BEE) as the statutory body to facilitate and coordinate such initiatives at the central level and State Designated Agencies (SDAs) at the state level. The goal of the Ministry of Power and BEE to strategize the proposed energy efficiency interventions by putting in place an appropriate regulatory and market transformation regime that will address numerous market failures preventing the widespread adoption of energy efficiency products and technologies. Strengthening institutional framework, promoting market for energy efficient product and services, innovative financial instruments are some of the measures being facilitated by BEE to achieve this goal. Capacity building, awareness and outreach, training are some of the tools in this endeavour.
BEE has launched voluntary standards and labeling programme for end use appliances, has initiated implementation of energy audits in demonstrative government buildings, instituted Energy Conservation Awards to incentivize energy efficiency and energy conservation activities in industry and a National Painting Competition for young children. Some other programmes like a CDM based efficient lighting programme for households, energy efficient building code, Municipal and Agricultural DSM programmes and energy efficiency adoption in Small and Medium Enterprises (SMEs). The strategy is to interweave the sectors with high energy efficiency potential and interventions into eight programmatic components with deliverables defined in the short, medium and long term basis for demonstrative realizable potential.
It is proposed that GEF resources be integrated into the national energy conservation and efficiency strategy by supporting specific components where the implementing agencies have a comparative advantage. GEF supported activities will occur in three of the eight areas, namely: building energy efficiency; designated consumers and SMEs; and institutional strengthening.
BUILDINGS ENERGY EFFICIENCY
In India, the building sector is the second largest employment provider next only to agriculture and its size is close to US $12 billion and it is growing at about 30% per annum. The share of electricity consumption by large commercial buildings is currently about 7% of the country’s overall electricity consumption, and it is growing at about 8% annually. Air-conditioning and lighting are the two most energy consuming end-uses in the commercial building sector. It is estimated that new buildings can reduce between 30-40% energy consumption by incorporating appropriate design interventions in the building envelope, lighting, heating, ventilation and air-conditioning system. To implement energy efficiency technologies and measures in new buildings the Bureau of Energy Efficiency (BEE) has developed and proposed the Energy Conservation Building Code (ECBC) in May 2007. Major issues relating to ECBC implementation are – developing appropriate knowledge and capacities at various Govt. levels, availability of trained designers and architects and the availability of suitable energy efficient materials and equipment in the local market. UNDP-GEF’s intervention aims to address the above barriers and assist the Government to implement/operationalize the ECBC through activities such as strengthening institutional capacities in the public sector; technical training for key partners such as architects, developers, builders; assistance for piloting ECBC technologies and measures; enforcement of the building code and economic incentives for investors.
Chiller-based cooling is the predominant cooling method used in large commercial buildings and industrial facilities. Chillers produce chilled water and, through the use refrigerant, pumps, fans, and compressors, remove heat from buildings and facilities and release it to the environment. Compression refrigeration is a common technology widely used for building chillers. The proposed India Chiller Energy Efficiency Project will focus on replacing centrifugal chillers given that technology advancements during the last twenty years in this segment of cooling systems has been significant. While the average energy consumption of CFC-based centrifugal chillers manufactured in 1980s was 0.8 kW/RT (kilowatt-hour per ton of refrigeration) or higher (actual energy consumption could be significantly higher if the system is poorly run and/or badly maintained), non-CFC centrifugal chillers manufactured today can achieve energy consumption as low as 0.48 kW/RT, representing about 40% improvement in energy consumption. This Project will assist Indian chiller owners and operators by providing an incentive for early replacement of CFC-based chillers to be funded in part by the GEF and MLF (in the start-up phase) and by carbon finance revenues from the third year of project implementation and beyond.
INDUSTRY SECTOR: SMALL AND MEDIUM ENTERPRISES (SMEs)
India has nearly three million small and medium enterprises which constitute more than 80 percent of the total number of industrial enterprises in the country. According to recent estimates by the Indian Institute of Foreign Trade, approximately 60 percent of the country’s GDP comes directly or indirectly from SMEs. The 2006 Integrated Energy Policy Report of the Planning Committee noted that lowering the energy intensity of GDP growth through higher energy efficiency is an important element for meeting India’s future energy challenges and ensuring its energy security. Currently, India consumes 0.16 kg of oil equivalent (kgoe) per dollar of GDP expressed in purchasing power parity terms, and its CO2 intensity per GDP (adjusted for PPP) has shown a slight decline over time. Numerous sector-specific studies have confirmed that energy intensity in industry can be further reduced, with significant aggregate impacts and global benefits from reduced emissions of Greenhouse Gases, with the widespread adoption of commercially available technologies to improve energy efficiency, and that there is an especially high unrealized potential for improvement in the Indian SME sector. Despite the recent GOI improvements in reducing overall energy intensity, the SME sector has fallen behind larger Indian industry benchmarks in terms of productivity, technology and energy efficiency (EE). SMEs, especially those for whom energy costs represent a large portion of total production costs, can reap especially high direct economic benefits from improving efficiency of energy conversion and reduction of energy losses, yet numerous barriers and market failures have prevented widespread adoption of efficiency measures. There is a need, therefore, to systematically support the EE investment proposals and create a mechanism of identifying, preparing and financing these proposals at local level. The proposed project will address the gap between energy auditors and bank loan officers and demonstrate a viable mechanism of synergic tie up between SMEs, energy auditors, Financial Analysts/Chartered Accountants, and local bankers. It is proposed to identify and work in about 50-75 energy intensive clusters in states such as Maharashtra, Gujarat, Madhya Pradesh, Punjab and Tamilnadu/Karnataka. The project will also develop DPRs for EE projects in at least 25 chosen clusters.