The innovation and power of the business models helps in enlisting large number of utilities and governments to participate in the projects. This helps in aggregation of demand. EESL then procures equipments or services in bulk enabling reduction in costs dues to ensuing economies to scale. For instance, in the UJALA programme, the bulk cost of LEDs have reduced from Rs. 310 ($ 5) to Rs. 40 ($ 0. 65) as a result of procurement of 300 million LEDs over a 2 year period.
Similarly, the cost of procurement of LED street light lamps and services have gone down by 65% over the same period. The benefits of aggregation of demand and lower prices are passed on to consumers that leads to further demand as the repayment periods go down. In UJALA, the cost reduction has enabled the repayment period come down from 10 years (in 2014) to less than 3 months now (2017).
EESL encourages such innovation to disrupt the market for energy efficient products and services. It carefully chooses such equipments and services which are of common use and has the potential of substantial reduction in energy consumption. This is the mainstream business of EESL so there are no inner competition per se.
Mr. Saurabh Kumar is an Indian Revenue Service officer of 1992 batch. He is an Electrical Engineer from Indian Institute of Technology (IIT) Kanpur and Masters in Public Policy from National Graduate Institute of Policy Studies, Tokyo, Japan.
Mr. Saurabh Kumar has worked in various capacities in Income Tax Department, Ministry of Power, and Bureau of Energy Efficiency (BEE). He was Secretary, BEE during 2007-2010. He proceeded on a UN Deputation to Bangkok for the last 2 years and was handling environmental issues in Asia – Pacific region.
Mr. Saurabh Kumar has been appointed as the Managing Director, Energy Efficiency Services Limited by the Ministry of Power and he took over as the Managing Director of EESL on 6th of May 2013.