摘要：Currently, India is facing an energy crisis and lots of efforts are being put in order to reduce this widening gap between energy demand and supply. One of the most cost effective ways of reducing this gap is by implementing Energy Efficiency (EE) projects. These projects have a very high potential in India as it is estimated that it can generate energy savings worth $ 730 million per year. But, this is not being utilised properly due to various hurdles. One of the major obstacles is financing of these EE projects. Most financial institutions are not familiar with the aspects of EE projects. Also, weak credit strength of Energy Service Company (ESCOs) and perceived lack of collateral or guarantees also hinder the implementation of such projects. Added to this, financial institutions lack the appraisal capacities required for these projects. In this paper, appraising of EE projects is discussed and the benefits of financing EE projects are highlighted. Also, the paper discusses certain schemes and policies that could be implemented in order to make these projects more attractive to the Financial Institutions. Five Basic methods of appraisal i.e. promoter appraisal, technical appraisal, financial appraisal, environmental appraisal and legal appraisal are necessary when it comes to EE projects. In addition, different perspectives of different stakeholders like Promoters, Lenders, Government, ESCOs, etc. are observed and understood in this paper. Also, the paper shall discuss in the detail about new financing mechanisms i.e. PRGF (Partial Risk Guarantee Fund) and VCF (Venture Capitalist Fund) and also along with ESCOs ability to benefit from these financing mechanisms.
关键词：Appraisal;Energy Efficiency;Energy Service Companies;PRGF;VCF
