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DSM Service Providers

DSM industry in India is at a nascent stage in spite of the huge potential for energy savings across various categories of consumers. Different studies have shown that the critical barriers to the growth of DSM industry in India are not the availability of funds or costs but the availability of qualified DSM service providers. DSM experts in the country (BEE and other institutions) have constantly proved that India is desperately in need of energy efficiency technology providers, equipment manufacturers, and above all energy service providers (ESCOs). Despite the rapid growth rate of the ESCO sector in India (an annual growth rate of 62% in 2008-09), this sector is still far too small for the country to aspire to effectively harvest in its huge energy savings potential.

DSM service providers may include:

  • National or local energy service companies (ESCOs).

  • National or local companies or individuals that provide energy-related services (e.g., contracting, consulting, engineering)

  • Energy efficient equipment/product manufacturers (e.g., lighting, heating, ventilation, air-conditioning equipment (HVAC) equipment, motors, pump sets etc..).

  • Retail electric providers.

The Bureau of Energy Efficiency has taken certain necessary steps to encourage the supply of performance-contract based energy-efficiency enhancement services through Energy Service Companies (ESCOs) in India.

An exercise for expanding the number of existing ESCOs through an open invitation and evaluation process was taken up by BEE, whereby 37 ESCOs were found eligible for short listing.(List of DSM service providers)

An accreditation exercise of ESCOs, in terms of success in implementation of energy efficiency projects, ability of technical man-power, and financial strength to invest in such projects, was carried out by CRISIL and ICRA, with technical and financial support of BEE.(Report prepared by CRISIL and ICRA)

Sources: “The vast potential of energy efficiency in India” By ‘Bruno De Wachter’ published by Leonardo Energy on 07-07-2009.

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