UJALA Scheme Current Affairs
Union Government (Finance Ministry) has inked $220 million Loan Agreement with World Bank to scale-up Inida’s Energy Efficiency Program. It also signed $80 million guarantee agreement with World Bank.
The loan will be provided to EESL by World Bank through its lending arm International Bank for Reconstruction and Development (IBRD). It has maturity of 19 years and 5-year grace period. The $80 million IBRD guarantee will partially cover re-payment risks to commercial lenders or investors to enable EESL to raise funds for its program.
Energy Efficiency Program (EEP)
It will be implemented by Energy Efficiency Services Limited (EESL). It will help to scale-up deployment of energy saving measures in residential and public sectors, strengthen EESL’s institutional capacity and enhance its access to commercial financing. Under it, EESL will deploy 219 million LED bulbs and tube lights, 5.8 million ceiling fans, and 7.2 million street lights, which will be supplied by private sector manufacturers and suppliers.
Key Components of Program
- Create sustainable markets for LED lights and energy efficient ceiling fans.
- Facilitate well-structured and scalable investments in public street lighting.
- Develop sustainable business models for emerging market segments such as super-efficient air conditioning and agricultural water pumping systems.
- Strengthen institutional capacity of EESL.
- Increase private sector participation in energy efficiency, including through private sector energy service companies.
The World Bank investments under this program are expected to avoid lifetime greenhouse gas emissions of 170 million tons of CO2. It will also contribute to avoiding an estimated 10 GW of additional generation capacity. This will help to achieve 50% of National Mission for Enhanced Energy Efficiency target of 19.6 GW indicated in India’s Nationally Determined Contributions (NDCs) under 2015 Paris Agreement (India has committed to reduce carbon emissions by 33-35% by 2030 under NDC). Thus, help India to move further towards a more resource-efficient growth path. It will help tackle financing, awareness, technical and capacity barriers faced by new energy efficiency programs and also support Unnat Jyoti by Affordable LEDs for All (UJALA) program of Central Government.
State run Energy Efficiency Services Ltd (EESL) has distributed over 30 crore light emitting diode (LED) bulbs across country under zero-subsidy Unnat Jyoti by Affordable LEDs for All (UJALA) scheme. The distribution of 30 crore LED bulbs has led to energy savings of over 38,952 million kWh, annually, amounting to energy savings of Rs. 15,581 crore.
The implementation of scheme has increased penetration of LED in domestic market to 10% from mere 0.4% earlier. It has also increased India’s share in global LED market to 12% from a mere 0.1%. It has increased annual LED domestic production rom 30 lakh bulbs to over 6 crore bulbs, simultaneously creating 60,000 jobs.
Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme
It is zero-subsidy scheme that aims promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and preserve environment. It is LED based Domestic Efficient Lighting Programme (DELP). Its purpose is to help reduce electricity bills of consumers and also contribute to energy security of India.
The scheme was launched in January 2015 and is currently largest LED distribution programme in the world. It is being implemented by EESL, a joint venture of PSUs under Ministry of Power. Under it, LED Bulbs are distributed. LED bulbs have a very long life, almost 50 times more than ordinary bulbs, and 8-10 times that of CFLs, and therefore provide both energy and cost savings.
Benefits: Electricity savings, Reduction of load, Reduction of consumer bills and Greenhouse gas emission reductions. It also serves Government’s mandate of energy efficiency as key mitigation strategy.