No upfront cost, lower power bills: Kerala's new scheme for large establishments

THIRUVANANTHAPURAM: The Kerala government has unveiled a zero-cost scheme to help large industrial and commercial establishments reduce electricity bills by replacing outdated, power-hungry equipment.

The initiative, developed by the Energy Management Centre (EMC) under the Power Department, will be implemented through Energy Service Companies (ESCOs), which specialise in energy-efficiency projects.

Under the scheme, establishments with monthly electricity bills exceeding Rs 2.5 million will receive guidance from the EMC before signing agreements with ESCOs. The companies will inspect the premises to identify where electricity is being wasted, including through ageing air conditioners, inefficient motors, compressors with air leaks and boilers.

ESCOs will bear the entire cost of replacing inefficient equipment. In return, participating establishments will share a portion of the savings from lower electricity bills with the service provider under an agreement designed to recover the investment made in upgrading the equipment.

As only a limited number of ESCOs operate in Kerala, the EMC has compiled details of similar companies in other states to support the implementation of the scheme.