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Indian PSU Behind the Massive Reduction of LED Bulb Price, Now Pulled Off an International Feat!

Let’s just brush up our memory to recall how LED revolution in India started in the first term of the Modi government. Unnat Jyoti by Affordable LEDs for All (UJALA) was launched in the year 2015. Arguably, the major contributing factor for the scheme to succeed is the massive reduction in the price of LED bulbs. The price had seen the reduction from Rs 310 per unit in February 2014 to Rs 38 per unit in August 2016.

What made this possible? The implementing agency of this scheme, Energy Efficiency Services Limited (EESL), went for a large procurement which resulted in a price reduction of LED bulbs in such a large scale. EESL developed an innovative business model in which the entire investment in these programmes is made by it and the investment is paid back over time from energy savings. This obviated the need for any Government funding for this programme.

Now, A Magic in Solar Energy Sphere

The same EESL has just pulled off another business act of wonder, this time at an international scale. Live Mint reported recently, “India’s state-run Energy Efficiency Services Ltd (EESL) conducted the largest global price discovery exercise by aggregating the demand from 22 ISA member nations, in a potential order valued at $2.7 billion.”

In the Indian context, the cost of solar-powered pumps lowered to ₹60,000/hp from ₹1 lakh/hp.

Back in 2015, India in partnership with France has pioneered the International Solar Alliance (ISA). In September 2018 EESL was chosen by the International Solar Alliance (ISA) to facilitate the development of 5 lakh solar water pumping systems in ISA’s member countries. In May 2019, EESL had issued tender for 2.7 lakh solar water pumps.

Now the reports indicating that EESL, true to its track record, has done the job well to bring the reduction of the price of solar-powered pumps globally.

Many Feathers in EESL Cap

Prime Minister Narendra Modi believes in the global leadership character of India and many of his efforts like the one in pioneering ISA effectively demonstrates that belief. PSU like EESL while playing an important role in realising such vision inspires others as well.

Previously also, EESL took the successful model of UJALA to places. In May 2017, it was the United Kingdom (UK) partially adopted UJALA and then in September same year the Malaysian state of Melaka had embraced the scheme. Our article from the archive UJALA Goes to Malaysia: The Story of an International Model Designed by India had dealt with the subject at length. EESL has its operations in UK, South Asia and South-East Asia.

EESL is involved in many other initiatives apart from UJALA such as Street Lighting National Programme, Agriculture Demand Side Management, e-Vehicles, Smart Meters which you can read in detail in our previous article On a Mission to Enhance Energy Efficiency.

By 2020, EESL seeks to be a $1.5 billion-dollar (Rs 10,000 crore) company putting together all the programmes of EESL.