Framework for Energy Efficient Economic Development (FEEED)
Policy measure

The Framework for Energy Efficient Economic Development (FEEED), which is a component of the Indian government’s National Mission on Enhanced Energy Efficiency (NMEEE), consists of two funds to promote energy efficiency in India: the Partial Risk Guarantee Fund (PRGF) and the Venture Capital Fund for Energy Efficiency (VCFEE) (Garnaik, n.d.). The FEEED promoted and supports a set of critical fiscal financial parameters to accelerate the transition to an energy efficient market (TERI, 2010). 

Implementation

The two financial measures provide support to lenders as they can be used for “promoting energy efficiency in manufacturing of energy efficient products in SME sector, and financing of ESCO projects” (Garnaik, n.d).


“The financial arrangement of partial risk guarantee fund (PRGF) is a risk sharing mechanism which offers to commercial banks to partially cover their risks against loans sanctioned for energy efficiency projects to cover up risk perceptions associated with the lending for new technologies and new business models. This risk coverage is in addition to the support provided by the Credit Guarantee Trust of India.” (TERI, 2010)


“Venture capital for energy efficiency (VCFEE), another financial support mechanism provided by the government provides an equity base for energy efficiency projects. This helps ESCOs in providing capital availability and secures lending from financial institutions.” (TERI, 2010)

Challenges
No identified challenges.
Outcomes
No identified outcomes.
References

Garnaik, S.P., n.d. National Mission for Enhanced Energy Efficiency. Available at: http://moef.nic.in/downloads/others/Mission-SAPCC-NMEEE.pdf.


TERI (The Energy and Resources Institute), 2010. Joint policy research on co-benefits in tackling climate change and improving energy efficiency in India – Preliminary Report. New Delhi. Available at: www.teriin.org/events/pdf/carbon_markets/1_Co-benefits_EE.pdf