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Creating Opportunity, IFC Supports Energy Efficient Cities in India

April, 17, 2014 - In India, street lighting consumes over 8,000 GWh of electricity annually. Implementing energy efficient technologies and practices can cut this by 40 to 60 percent. IFC is working with local municipal corporations in the country to improve street lighting infrastructure and reduce energy consumption.

“Globally, urban bodies have realized the potential of energy efficient street lights to mitigate climate change effects and a number of business models are emerging in this space to leverage private sector expertise and efficiencies,” said Serge Devieux, IFC Director for South Asia.

Devieux said energy-efficient street lighting fits well with IFC’s strategic priority of addressing climate change impacts while meeting basic infrastructure needs. He emphasized that lessons and best practices from India and other emerging markets will empower municipal authorities to undertake projects that ensure cities are better lit, climate-friendly, and safer for citizens, especially women.

Government agencies, particularly municipal authorities and urban local bodies, in India are well placed to realize significant reduction in both energy costs and greenhouse gas emissions by adopting energy efficiency measures in street lighting projects. However, various factors such as lack of financing, limited awareness, technical challenges, and capacity constraints have led to municipal energy efficiency market remaining largely untapped.


IFC has assisted the state governments of Odisha and Rajasthan on two street lighting public-private partnership projects in the cities of Bhubaneswar and Jaipur. In Bhubaneswar, IFC worked closely with city’s municipal corporation in designing, structuring, and managing the bid process to identify a private sector partner to manage the street lighting system.


“We believe cities can be centers of excellence, can be competitive, can be more efficient in delivering services and can change lives more rapidly. Street lighting is a very important ingredient to all those elements,” said World Bank Country Director for India Onno Ruhl.


For more information, contact Sankalp Saini, South Asia/Communications Practice Group.

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