Issues and challenges in financing of energy efficiency projects

Abstract

In this study, we will focus on electricity efficiency business in France and India. Through the example of an actor which operates in both sides, Schneider Electric, we will present the challenges and opportunities of the two markets. We will first analyze these markets. Indeed, electricity market issues in France and in India are not similar. In terms of geography, demography and economical development, the demand is dramatically different. In terms of industries, political governance and regulation, and maturity of transport and distribution networks, the supply is also very different. Nevertheless the need of electricity efficiency is shared in both countries. In France, government, because of regulation, environmental concerns and budget constraints, is forced to promote electricity efficiency. In India, electricity distribution expansion and network reliability are still problems which are crucial for the sustainability of the country's development. As we will see in a second point of analysis, beyond technical solutions, an actor like Schneider Electric must also consider the project management as a whole. Project design and financing is a challenge in France and in India. Thirdly, in a comparative analysis, we will draw conclusions about synergies that may be found in conducting projects in both sides.