Overview
The India AEL Street Lighting Energy Efficiency Project was designed by Asian Electronics Limited (AEL) to implement energy efficient T5 street lighting for nine Municipal Corporations (MCs) in India, in the states of Maharashtra, Rajasthan and Madhya Pradesh. Through this project, AEL replaced baseline fluorescent T12 and mercury/sodium vapor lamps and fixtures with energy efficient T5 fittings with electronic ballast. The project followed an Energy Service Companies (ESCO) business model, under which an energy performance contract (EPC) between the municipality and an energy efficient service provider ensures that goods and services associated with the project are paid for with the energy-cost savings accrued from it, allowing the municipality to implement improvements without incurring any upfront costs. The additional source of CER revenue helped in reducing the contracting period, by allowing additional revenue stream for repayment of the investment borne by AEL. A certain portion of the Clean Development Mechanism (CDM) revenue was shared with the municipalities as an incentive in addition to the energy cost savings.
Benefits
Community benefits: Training and education of the municipal employees about efficient use of electricity; reduced energy bills making electricity more affordable for the poor.