Under the ambit of the National Action Plan on Climate Change (NAPCC), India’s Mission on Enhanced Energy Efficiency (NMEEE) has identified a Framework for Energy Efficiency Economic Development to create fiscal instruments that promote the uptake of energy efficiency projects. This is crucial amidst the global call to cut emissions. Aimed at industry, FEED focuses on developing fiscal and investment guarantee instruments to promote energy efficiency, like Partial Risk Guarantee Fund for Energy Efficiency(PRGFEE)
As a risk-sharing mechanism, PRGFEE provides commercial banks with a partial coverage of risk exposure against loans issued for energy efficiency projects, and directly supports financing of Energy Efficiency(EE) projects by
In July 2015, BEE appointed the consortium of Energy Efficiency Services Limited (EESL), REC Power Distribution Company Limited(RECPDCL) and Rural Electrification Corporation(REC) as the Implementing Agency for PRGFEE. The scheme, notified by The Ministry of Power on May 26, 2016, covers energy efficiency projects across Government Buildings, Municipalities, SMEs and industries.
PRGFEE will act as a first-loss and subordinated recovery guarantee, to be placed in a guarantee reserve account and paid out to empanelled participating Financial Institutions (“PFIs”) in case of loss or default in energy efficiency projects. The project must be implemented by BEE empaneled ESCO on performance contracting mode
|Bureau of Energy Efficiency||REC||REC/PDCL||EESL|
To constitute Supervisory Committee for monitoring PRGFEE and provide guidance. Annually empannel Energy Service Companies (ESCOs).
To appoint an Implementing Agency and monitor its performance.
To empannel Participating Financial Institutions and M&V Agencies
Guidance Support & Supervision.
Legal Compliance of Guarantee Documents
Overall Management & Team Leader
Furnishing PRGFEE Guarantees;
Technical Appraisal & Monitoring;
Marketing & Promotion;
Aggregation of EE Projects