In a first-of-its-kind international acquisition by an entity under Ministry of Power, the Energy Efficiency Services Limited (EESL) — a joint venture of four National Public Sector Enterprises under administrative control of Ministry of Power, Government of India — announced its acquisition of Edina, a leading supplier, installer and maintenance provider of combined heat and power (CHP), gas, and diesel power generation solutions in the United Kingdom (UK).
The £55 million (Rs 493 crore) acquisition is the first-of-its-kind venture by an entity under the Ministry of Power, Government of India and is effected through its UK subsidiary, EnergyPro Assets Limited (EPAL).
“EESL has taken over management of Edina and is looking at consolidation –including tapping UK’s 6-billion-pounds (Rs 53,782 crore) energy efficiency market — alongside building a pipeline of projects in India,” Saurabh Kumar, Managing Director, EECL and Chairman, EPAL, said here yesterday while expressing excitement about harnessing the capabilities of a company (Edina) that successfully implemented combining of heat and power technology.
“Besides leveraging Edina’s unique bespoke approach with our proven, innovative business models for scaling energy-efficient solutions across international borders, this acquisition is an important step in scaling trigeneration (electricity, cooling and heating) technology adoption, transforming the CHP market in India and also facilitating India’s energy security and sustainable energy supply,” he said.
Highlighting Edina’s caterpillar technology for gas engines — and its running 400 installations across the UK and Australia – that suited hotels, hospitals, airports, malls and other sites, Kumar noted that cooling remained a major sector that needed to be catered to in India, and a 2010 study had showed that gas availability was no problem in the country.
“We hope to increase energy efficiency by 50% and Edina’s technology comes in one piece where the users have to just “Plug and Play. So we are working on a large training programme for our engineers alongside building up our enterprise and are focusing on a service approach in India where we will charge per unit (according to prevailing gas costs) for our services. The Government has given EESL a mandate to ensure energy efficiency and we are presently working in this regard on 2,000 buildings — including collectors’ offices, mantralayas etc — with next year likely to cover 10,000 buildings,” he said adding “We signed an MOU with Airports Authority of India (AAI) to ensure energy efficiency at all its airports.”
“Our priority is also to expand our scope in the UK which drew 10 million pounds revenue last year for Edina. We hope to be ready for launching our IPO by the 3rd or 4th quarter of 2019,” he said to media queries.
Edina is the market leader in the UK in gas engines with Rs 896 crore annual turnover and containerized solutions that reduce customers’ energy costs and carbon emissions while also providing a continuous and reliable power supply from sites in the UK, Ireland and Australia, Tony Fenton, Joint Managing Director, Edina, said while expressing hope of replicating the company’s success in new markets and leveraging EESL’s experience globally.
“The Bureau of Energy Efficiency has installed this technology in India and is saving Rs one crore annually. We will cater to clients on the required basis,” Fenton said while highlighting the fact that EPAL has received its first order worth UK’s £ 14 million pounds (Rs 125 crores) from Sterling & Wilson in India for supply of two 32MW gas engines by October 2018. “This acquisition is the perfect combination as the Indian market is ripe for our technology in using biogas and sewage gas,” he said.
Through the acquisition, Edina has agreed to service Sterling & Wilson UK Ltd, the UK subsidiary of Sterling & Wilson India, to develop Short Term Operational Reserve (STOR) by supplying gas generating units that will provide 26MW of electrical power. Located in Skelmersdale, West Lancashire, England, the project aims to supply power to the UK national grid at times of peak demand while addressing shortages in electrical capacity at the company’s own sites.
UK-based servicing opportunities with India-based clients, like Sterling & Wilson, will help EESL in its expansion plans. On the one hand, EESL aims to tap into UK’s £6 billion (INR 53,782 crore) energy efficiency market, expanding the offering in the energy service contract model for CHP technology. On the other, EESL intends to bring CHP technology to India, providing an integrated service offering to industries that would enable them to receive equipment maintenance, electricity, heat and power at no upfront costs for technology installation.
EESL is implementing a global strategy and commitment to invest £150 million (INR 1,343 crore) through EPAL into energy services business opportunities in the UK, EU and North America between 2017 and 2019. EESL’s investment plan takes forward the commitment made by Honorable Prime Minister Narendra Modi of India and Prime Minister Theresa May of the UK for an enhanced ‘Energy for Growth’ Partnership between the two countries.
EESL has a proven track record of forging new frontiers in the global Energy Efficiency services markets across the world. The company has taken its market transformation business models to the UK, South Asia and South-East Asia. In the UK, where the total accessible market for energy efficiency services is expected to grow by 10% between 2017 and 2020, EESL services Energy Savings Performance Agreements (ESPA) to clients in the education and leisure sectors (schools, district council, golf course) through EPAL.
Furthermore, EESL launched the Government of India’s Affordable LED program UJALA (UK Joins Affordable LEDs for All) in London in May 2017, thus enabling consumers in UK to access affordable lighting solutions. Energy efficiency initiatives being implemented by EESL have cumulatively led to energy savings of over 41 billion kWh and a reduction of over 32 million tonnes of greenhouse gas (GHG) emissions across the globe.
The EESL, under the administration of Ministry of Power, Government of India, is working towards mainstreaming energy efficiency and is implementing the world’s largest energy efficiency portfolio in the country. Driven by the mission of Enabling More – more transparency, more transformation, and more innovation, EESL aims to create market access for efficient and future ready transformative solutions that create a win-win situation for every stakeholder. By 2020, EESL seeks to be a US$ 1.5 billion (INR 10,000 crore) company.
The EESL has pioneered innovative business approaches to successfully roll-out large-scale programs that allow for incentive alignment across the value chain and rapidly drive transformative impact. EESL aims to leverage this implementation experience and explore new opportunities in overseas market for diversification of its portfolio. As on date, EESL has begun its operations in UK, South Asia and South-East Asia.
EnergyPro Assets Limited (EPAL), is a joint venture of EESL and EnergyPro Ltd, a UK-based advisory company that consults on energy efficiency projects. Through EPAL, EESL aims to promote and implement low-carbon, energy efficiency and renewable energy solutions in both public and private sectors.
