Singapore, Nov 14 (UNI) The Asian Development Bank (ADB) is to help set up a fund that will mobilise financing for energy efficiency projects in Madhya Pradesh.
The planned Energy Conservation Fund (ECF) will complement an ongoing ADB investment programme in Madhya Pradesh's power sector, which is focused on reducing the gap between power supply and demand and improving efficiency in transmission and distribution.
ADB today said it will provide a 1.7 million dollar technical assistance through the Second Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas.
The government of Madhya Pradesh will contribute an equivalent of 400,000 dollars . The technical assistance will support the ECF by financing the initial operational expenditures.
The ECF will be used to implement programmes through technical and financial assistance, benefiting all stakeholders including the Government of Madhya Pradesh, power sector companies, and consumers.
The technical assistance will also include outreach and awareness programmes to create an environment conducive to the ECF and establish credence among the diverse group of stakeholders whose involvement in energy efficiency is crucial to the success of the ECF - including commercial building owners, utilities, industries, policy makers, energy auditors, energy service companies, energy efficient equipment manufacturers, and banks and financial institutions in the state.
Although the benefits of energy efficiency are well-recognised in the past, several barriers have impeded investments in energy conservation and efficiency projects such as risk aversion, lack of resources, and the high cost of financing when available.
Under its power sector investment program with the Madhya Pradesh state, ADB has been asked to provide a loan of million as initial seed capital for ECF.
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