New Delhi, March 10, 2008—
IFC, a member of the World Bank Group, the Bureau of Energy Efficiency, and the Alliance to Save Energy have come together to launch a program that will facilitate market transformation and replicate municipal energy efficiency projects on a large scale in India.
As part of the program, the institutions have jointly developed the
Manual for the Development of Municipal Energy Efficiency Projects in India
to help municipalities, energy service companies, other energy efficiency providers, and financial institutions.
Through cost-effective actions, municipalities can bring about significant savings in energy, resulting in financial, environmental, and social benefits for citizens.
Commending the manual, Dr. Ajay Mathur, Director General for the Bureau of Energy Efficiency, explained, “Energy efficiency interventions in sectors like power, agriculture, municipalities, commercial buildings, and transportation are essential to mitigating emissions. We are happy to be a part of this forward-looking initiative.” He added that reducing energy expenditures by urban-local bodies can translate to substantial energy savings and help avoid having to augment capacity.
Paolo M. Martelli, IFC Regional Director for South Asia, added, “Quality urban infrastructure is critical to improving people’s lives. Adopting municipal energy efficiency is one of the few cost-effective options available for meeting growing demand for vital services like electricity, water, and wastewater treatment, as well as for optimizing the use of scarce resources.” This initiative is an important fit for IFC, which has made climate mitigation and adaptation a strategic priority globally.
Sudha Setty, Senior Program Manager, Alliance to Save Energy, said, “Energy audits in India have identified that energy represents 40 to 60 percent of operating expenses for supplying water, and that by becoming energy efficient, an urban local body can save a minimum of 25 to 40 percent of this cost.”
The Bureau of Energy Efficiency has endorsed the manual as a standard reference document for urban local bodies and other stakeholders. It will help promote the implementation of municipal energy efficiency programs in water supply and sewerage systems, street lighting, and municipal buildings. The manual can be beneficial to municipalities and utilities when designing bankable projects. It can also show energy service companies how to adapt their industrial business model to the municipal sector. It will provide financial institutions with a comprehensive summary of risk-reducing tools for energy efficiency processes and projects that are not part of their usual asset-based financing portfolio.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
ww.ifc.org.
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