EESL Launches Energy Efficient Air Conditioning Program

EESL is expected to mobilize around $211 million to build an infrastructure to provide these air conditioners to residential and institutional power consumers in Delhi

February 26, 2019


Energy Efficiency Services Limited (EESL), a joint venture between the public-sector units of the Ministry of Power and the government of India, has launched a “Super-Efficient Air Conditioning Program” for residential and institutional consumers in Delhi who procure power from BSES, Delhi’s major distribution company (DISCOM). EESL claims that these air conditioners (ACs) will be 40 percent more efficient than the 3-star ACs currently available in the market. EESL has also stated that it is working towards making this program available to all consumers across the nation with the other DISCOMs likely to partner with EESL in the future.

EESL estimates this program to reduce the peak power demand in the south and west Delhi by 22 MW. The program addresses the prospect of the nearly four-fold increase in energy consumption from buildings and cooling appliances in India by 2032. It also aims to tackle the goals of India’s Cooling Action Plan and Hydrochlorofluorocarbon Phase Out Management Plan, thereby helping India achieve targets under the Kigali and Paris Agreements as well.

Mr. Saurabh Kumar, Managing Director, EESL stated: “Our UJALA program gave us the confidence that the Indian consumer is receptive to awareness and demand cultivation efforts for energy efficiency. Through the super-efficient AC program, we are endeavoring to not only redefine standards for efficiency and widen the gamut of energy efficient appliances available to Indian consumers but to also significantly improve upon our previous efforts to make these technologies universally and conveniently accessible.”

The two organizations will work together to implement the 12-month pilot of the program by exchanging an agreement through which BSES Rajdhani Power Limited (BRPL) would assist in aggregating demand, providing local marketing, and outreach support to promote energy efficient technologies in the areas it currently services. The program aims to cover around 2.5 million residential and institutional consumers in the south and west Delhi.

EESL will conduct all activities related to sourcing, supplying, complaint management and redressal, and fulfillment of warranty obligations for the products. EESL is also expected to mobilize a capital of ₹1.5 billion for the program while redeeming its investment through upfront payments for the super-efficient ACs from customers. EESL expects to discover prices that are 20-30 percent less than the retail costs of similar technologies currently available in the market.

EESL also launched an e-commerce website –, through which customers of BRPL, and of other DISCOMs that partner with EESL in future, can purchase these ACs. Through this website, EESL will also focus on supplying consumers with its range of other energy-efficient products.

EESL is supported by a grant from the Global Environment Facility (GEF), an independent financing mechanism that was established on the eve of the 1992 Rio Earth Summit to address global environmental issues.

While some of the government agencies are working towards energy efficiency and curbing energy demand, most renewable energy generating firms constantly complain about the lack of power demand from consumers.

In November 2018, the Asian Development Bank (ADB) announced that it entered into a $13 million grant agreement with EESL. The GEF also provided this grant for the additional financing of an ongoing ADB-supported project that aims to promote end-use energy efficiency.

Around the same time, Mercom also reported on the news of the Uttar Pradesh Electricity Regulatory Commission (UPERC) approving a petition filed by Uttar Pradesh Power Corporation Ltd. (UPPCL) for the rollout of smart meters in the state in partnership with EESL.