Using the Tamil Nadu Municipal EE Programme to create a replicable financing model.


To create a replicable financing model to ensure that the planned Municipal Energy Efficiency projects in Tamil Nadu state are successfully implemented using performance contracting and energy service companies (ESCOs).

Main Activities

  • Assist Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) with auditing and project implementation, and facilitate their interaction with ESCOs;
  • Guide ESCOs and TNUIFSL during the monitoring and verification process to apply the International Performance Monitoring and Verification Protocol (IPMVP)  and assess/demonstrate its suitability for Indian Watergy projects;
  • Create a tool kit to enable other cities and states to replicate the financing approach;
  • Develop a succinct case study describing the project;
  • Organise a workshop to disseminate the model to other states;
  • Replicate the application of performance contracting to municipal water supply energy efficiency projects;
  • Field test IPMVP protocol for water pumping in India for first time.

Expected Impact

  • The proposed project will be crucial to ensuring the success of the Tamil Nadu Municipal Energy Efficiency Programme, which in turn is crucial for creating confidence in the use of performance contracting for municipal energy efficiency in India, and for increasing confidence in India's nascent ESCO industry;
  • After many years of promoting Watergy in India, its benefits are now widely accepted; the barrier has been financing. This improved confidence in financing with performance contracting will spur its widespread adoption for Watergy in cities and towns across India, including the entire state of Tamil Nadu;
  • Significant carbon dioxide reductions.

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Project Information

Programme sector: 

Energy Efficiency (EE) (Business&Finance)

Stage of project: 



2007 - 2011


€ 201,504 including co-funding from USAID, IFC

Implementing agency: 

Alliance to Save Energy

Tamil Nadu cities reduce energy consumption
18-03-2008 · Bangalore

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