The World Bank will fund a multi-million-dollar chiller project for India.
The World Bank has approved a US $6.3 million Chiller Energy Efficiency Project (CEEP) for India. The project aims to reduce greenhouse gas emissions while simultaneously supporting the completion of the phase-out of consumption of ozone-depleting substances required under the Montreal Protocol.
There are four components to the project. The first is the provision of incentives for investment in energy-efficient chillers. In an effort to remove market and techno-economic barriers, the CEEP will provide:
• chiller owners with either: an upfront financial incentive to subsidise the cost of the replacement of centrifugal chillers before end of technical life; or an annual payment from a share of certified emission reductions to be generated from the actual energy savings achieved by the new chillers; as well as
• an incentive for chiller manufacturers, suppliers and energy service companies (ESCOs) to actively participate in the project.
The second component of the project is measurement, monitoring and verification.
As per the methodology approved by the Clean Development Mechanism (CDM) executive board, the CEEP is required to monitor data related to the power-output function of the old chiller to be replaced, electrical consumption of the new chiller, and cooling output in order to measure energy savings and emission reductions achieved.
The third component of the project is technical assistance. To support project readiness and sustainability, this will focus on enhancing the awareness of relevant stakeholders in energy conservation measures, enhancing the understanding of the impact of decision to accelerate the phase-out of production of CFCs on the servicing sector, and strengthening the capacity of chiller owners and other stakeholders to monitor the performance of new chillers and to undertake refrigerant management.
The fourth and the final component of the project is project management. A Project Management Unit (PMU) will be established at a financial intermediary, namely the Industrial Development Bank of India (IDBI), and will be responsible for implementing all activities under the CEEP.
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