Building an efficient foundation for India's energy supply: KfW supports reduction in energy consumption

• KfW signs loan agreement for the amount of EUR 200 million
• Increasing energy efficiency in private households, industry, public infrastructure and agriculture
• Significant CO2 reduction for the world's third largest energy consumer and producer of greenhouse gases

Today, KfW (on behalf of the German Ministry for Economic Cooperation and Development (BMZ)) signed a loan agreement in the amount of EUR 200 million with Energy Efficiency Services Limited (EESL). EESL will use the development funds to invest in energy efficiency measures for private households, public buildings, street lights (LED technology), water supply systems, agriculture (replacing pumps) and industry. EESL also offers its customers an array of other services to help save energy.

"The plans will lead to major reductions in CO2 emissions for the world's third largest energy consumer and producer of greenhouse gases. With this innovative business model, India is breaking new ground when it comes to promoting large-scale investments in energy efficiency, making it a global pioneer in this field," said Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

This project follows on from the "Energy efficiency in public buildings and infrastructure" programme, which helped to save around 600,000 tonnes of CO2 per year by successfully executing the Domestic Efficient LED Lighting Programme (DELP). This saving corresponds to emissions from approximately 70,000 Indian households.

Overall, the Federal Republic of Germany has committed EUR 600 million for energy efficiency measures in India, including the EUR 50 million for EESL in 2014.

EESL was set up by the Indian Ministry of Power in 2010 as a joint venture between NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID in an effort to facilitate the implementation of energy efficiency projects. EESL works as both an energy provider and a point of contact for increasing capacity through state-appointed bodies, energy providers, financial institutions and other institutes in the area of energy efficiency. This makes it the first company of its type in South Asia and one of the few companies in the world dedicated exclusively to the implementation of energy efficiency measures.

To find out more about KfW Development Bank, please see www.kfw.de