Syska LED has won a uniquely structured tender by public sector entity Convergence Energy Services Limited (CESL) to supply LEDs for homes in rural India based on carbon finance. In a first-of-its-kind structure, CESL had invited participation of bidders for co-investment on a revenue-sharing basis, where costs and profits would be shared in a manner that will encourage public-private participation in climate change mitigation. In this tender, Syska is downside protected through a fixed price offered by CESL; upside from carbon credits is shared in equal proportion between the two parties.
Commenting on the partnership Ms. Mahua Acharya, MD & CEO, CESL, said, “Gram Ujala has been appreciated by the Government and rural beneficiaries. We were very happy to see an enthusiastic response from participants in a structure that promises to be a sustained partnership between a public and private company. Based on an open tender process, we are happy to announce that Syska has won the bid. I hope to see more private players participate with Government to work together for the common goal of climate change mitigation.”
As part of this agreement, CESL will be procuring 70 lakh 12-watt LED lamps, and 30 lakh 7-watt lamps. Both Syska and CESL will share 50 per cent of the cost and therefore 50 percent of the revenue, arising from the sale of carbon credits and the opportunity to participate in nation building. LEDs will be distributed to homes in rural India at a minimal price of Rs. 10 each.
The Gram Ujala programme was launched by Minister of State for Power and New & Renewable Energy, Shri RK Singh in March 2021. As on date, distribution is ongoing in Bihar and Uttar Pradesh. The next few states are Gujarat, Andhra Pradesh and Maharashtra.
Mr. Rajesh Uttamchandani, Director, Syska LED stated, “Government is working tirelessly to ensure optimal electricity supply and proper lighting in rural parts of the country. As a leading brand of India, Syska is pleased to find mechanisms that enable private sector players to join hands towards larger common objectives such as energy conservation, climate change mitigation and business models for enabling such basic services as good quality lights at price points that are affordable for rural India. We look forward to a long and fruitful partnership.”
The Gram Ujala programme has been designed to support widespread distribution for rural consumers. Energy savings from the use of efficient lights will reduce households’ energy bills, whilst enabling higher disposable income and savings. Carbon revenues are the only way this program is made sustainable.
Convergence Energy Services Limited (CESL) as a newly established company is taking the lead in delivering clean, affordable, and reliable energy supply. It is focusing on energy solutions that lie at the confluence of renewable energy, electric mobility, and climate change by using innovative financial models. It will also prepare, monetize, and hold carbon assets arising from clean energy generation, battery energy storage and energy efficiency.
About Convergence Energy Services Limited (CESL)
A 100% owned subsidiary of EESL – Convergence Energy Services Limited (Convergence), a new energy company is focused on delivering clean, affordable, and reliable energy. Convergence focuses on energy solutions that lie at the confluence of renewable energy, electric mobility, and climate change.