Page 50 - Shelter-April 2024

CASE STUDIES

with the public sector (ESP). The ESP identifies Pune (PMC) Case
strengths of drawing service and evaluates the energy Pune Municipal Corporation
standards/ specifications saving opportunities and (PMC) has undertaken an
and competitive procurement recommends improvements initiative towards achieving
systems. that can be paid for through energy efficiency through PPP
PPPs can play an important energy savings. The ESP for the city streetlight system
role in achieving municipal usually guarantees that the currently operated by it. The
energy efficiency through savings will meet or exceed PMC entered into a service
retrofitting of current energy annual payments that cover contract under PPP with M/s
systems with modern and all project costs; in case of any Tata Projects Ltd through
efficient energy systems. shortfall, the ESP will pay the its subsidiary – Ujjwal Pune
Given the not-so-capital same. The contract clearly Ltd. This project is first of its
intensive nature of municipal identifies the procedures kind taken up by the PMC
streetlight retrofitting by which these are to be under PPP mode, wherein
projects, various service measured and verified. The the necessary luminescence
contracts are appropriate PPP concern about ESP’s ability is to be maintained with
model. Performance contracts to meet future financial no additional financial
can be designed for all project obligations in the event investments. The project is
sizes and scope through of not achieving adequate fully self-financed through
tailoring to the energy net energy savings (after energy consumption
conservation programme deducing project costs) can be savings and reductions
by taking advantage of addressed through a reserve in maintenance costs
energy saving opportunities brought about by streetlight
and the supply of products fund mechanism. Such retrofitting. Retrofitting of
and services. Performance reserve funds, also termed as streetlight system involves
contracting in energy Escrow Funds, provide for the replacement of existing
efficiency programme usually meeting any funds shortfall. incandescent/ photo-
consists of three independent Achieving energy luminescent streetlamps
agreements: with those that function on
efficiency through Light Emitting Diode (LED)
(i) Project development streetlight retrofitting in technology. It also involves
agreement Indian cities replacement of street lamp

(ii) Energy service agreement In this section, an attempt posts as well as increasing
is made to shed lights on their number in order to
(iii) Financing agreement the achievements of energy achieve a better illumination
efficiency in urban streetlight through better placement (or,
Performance contracting system by two large Indian spacing) as well as improving
is a common way to cities – Pune and Hyderabad – the monitoring and control
implement energy efficiency by forging partnerships with through automation.
programmes and frequently private sector in the form of
covers the financing of needed the PPP. The case analysis laid 3.1.1 Project snapshot
equipment. It is an agreement down below gives an account Following is a snapshot of
between a municipal of the streetlight retrofitting energy conservation achieved
corporation and private project snapshots and features through streetlight retrofitting
Energy Service Provider in the two cities. project in Pune.

48 HUDCO-HSMI Publication