2016年-世界发展银行全球_Proven_Delivery_Models_for_LED_Public_Lighting___Super-ESCO_Delivery_Model_in_Vizag_India_20页_1mb

Summary of the Super-ESCO Delivery Model in Vizag, India

Core Content

This document presents a case study of the Super-ESCO Delivery Model implemented in Visakhapatnam (Vizag), India, by Energy Efficiency Services Limited (EESL). The project was initiated in response to the devastation caused by Cyclone Hudhud in 2014, which severely damaged the city's street lighting infrastructure. The goal was to replace all 91,775 conventional streetlights with LED lighting to improve energy efficiency, safety, and public services.

The project was funded through an annuity-based deemed saving model, where EESL provided the upfront capital investment and was repaid through the energy savings generated by the LED streetlights over a 7-year period. The model allowed for no upfront cost to the municipality, as EESL covered the entire project cost of Rs 650 million (US$10.5 million), with 80% financed by a €50 million loan from KfW (German development bank) and 20% from EESL's own funds.

The project was implemented in 45 days by a 250-person emergency team, demonstrating the effectiveness of the model in fast-tracking infrastructure upgrades. The central control and monitoring system (CCMS) was installed to monitor and optimize the performance of the LED streetlights, enabling real-time tracking of energy savings and improving operational efficiency.

Main Points

Project Background

• Location: Visakhapatnam (Vizag), India
• Project Dates: November 2014 to February 2015
• Project Size: 91,775 streetlights
• Implementing Agency: Greater Visakhapatnam Municipal Corporation (GVMC) and EESL
• Funding Mechanism: Annuity-based deemed saving model
• Expected Energy Savings: 50–55%
• Total Annual Savings: 24 gigawatt hours (GWh)

Project Objectives

• Replace outdated and inefficient street lighting systems with LED lighting
• Improve public safety, security, and visual comfort
• Modernize the street lighting infrastructure with a smart monitoring system
• Reduce energy and maintenance costs for the municipality

Key Components of the Model

• Annuity-Based Deemed Savings: EESL calculates energy savings based on technology demonstrations and uses these to determine annuity payments
• No Upfront Cost to Municipality: EESL covers all capital costs, with repayment based on energy savings
• Smart Monitoring System (CCMS): Enables remote control, fault detection, and energy consumption tracking
• Warranty and Maintenance: A 7-year warranty is provided for the LED streetlights, with EESL responsible for maintenance and replacements

Implementation Process

• Project Development: Accelerated due to the urgency of the cyclone aftermath
• Financing: EESL financed the project using a combination of KfW loan and internal funds
• Procurement: LED suppliers were selected from a pre-vetted list
• Installation: Completed in 45 days by an emergency workforce
• Payment Security: A bank guarantee or state government guarantee was required to ensure repayment

Key Information

• Conventional Lighting: Prior to the upgrade, Vizag used high-pressure sodium (HPS) and tubular fluorescent lamps (TFLs), which were inefficient and costly to maintain
• LED Replacement: The project replaced 91,775 streetlights with LED lamps, achieving energy savings of 50–55% and reducing maintenance costs
• Annual Savings: GVMC saves approximately Rs 310 million (US$4.7 million) annually from energy and operational savings
• Ownership Transfer: After 7 years, ownership of the LED streetlights is transferred to GVMC
• Payment Mechanism: GVMC pays EESL Rs 185 million (US$2.8 million) annually, reflecting a 10% interest rate

Lessons Learned

1. Local Success Can Lead to National Implementation
   The Vizag project became a model for other cities in India. The Indian government plans to replicate it in 100 major cities, and over 90 municipalities have signed agreements for LED streetlight upgrades.

2. Efficient Methodology Reduces Monitoring and Verification Costs
   The annuity-based deemed savings model simplifies the baseline and energy savings calculation process, using technology demonstration and on-site inspections instead of lengthy energy audits.

3. Super-ESCO Provides Critical Support for Projects
   EESL, as a super-ESCO, was able to provide the necessary technical, financial, and institutional support to implement the project quickly, especially in the aftermath of a natural disaster.

4. Political Support is Essential
   Strong political backing at the national, state, and municipal levels was crucial in accelerating the project. In many Indian municipalities, political fragmentation can lead to delays and lack of consensus.

5. Technical Expertise and Political Buy-In Ensure Success
   The project faced several technical challenges, such as line clearance management and uneven pole height, which required both technical knowledge and political intervention to resolve efficiently.

6. Infrastructure Upgrades Offer Indirect Savings
   In addition to direct energy savings, the project led to improved power factor (from 0.4 to 0.97), reducing costs for both the power distribution company and GVMC.

Conclusion

The Super-ESCO model implemented in Vizag has proven to be a successful and scalable approach for upgrading public street lighting with LED technology. It addresses key challenges in municipal energy efficiency projects, including limited funding, lack of technical expertise, and political resistance, through a combination of public-private collaboration, innovative financing, and centralized monitoring systems. This model serves as a reference for other cities in India and globally looking to improve their street lighting systems in a cost-effective and sustainable manner.