Financial De-Risking Instruments for Energy Efficiency in India: The Role of Energy Savings Insurance

The International Institute for Energy Conservation Pvt. Ltd. (IIECPL) is assisting the Organisation for Economic Co-operation and Development (OECD) and the Bureau of Energy Efficiency (BEE) in developing a roadmap for the introduction of Energy Savings Insurance (ESI) Scheme for India. This transformative initiative aims to accelerate energy efficiency investments by addressing financial risks associated with energy-saving projects, particularly within Micro, Small, and Medium Enterprise (MSME) clusters. The project is strategically structured around four key pillars:

• Conducting a comprehensive needs assessment

• Facilitating stakeholder consultations

• Developing a detailed implementation roadmap

• Identifying high-impact pilot projects

By leveraging global best practices and fostering collaboration among key stakeholders, the initiative seeks to establish a robust and scalable framework for the successful deployment of an ESI scheme in India.

As a key technical partner, IIECPL is assisting the OECD and BEE in designing a strategic roadmap that identifies market opportunities, financing mechanisms, and targeted interventions to pilot and scale the ESI scheme.

Additionally, IIECPL team is also working closely with the Asian Development Bank (ADB) and other development partners to identify and implement pilot projects that align with the roadmap’s objectives. By reducing financial uncertainties, unlocking new investment avenues, and fostering market confidence, this initiative will serve as a catalyst for widespread energy efficiency adoption in India, driving long-term sustainability and economic resilience.