EESL buys UK-based utility Edina for ₹ 493 cr

PTI Mumbai | Updated on March 20, 2018 Published on March 20, 2018

State-run Energy Efficiency Services (EESL) today acquired the England-based combined heat and power (CHP) utility Edina for ₹ 493 crore to further its strategy of adopting natural gas-based technologies to halve power cost, for large commercial establishments.

The acquisition, a first-of-its-kind venture by an entity under the Union power ministry, is carried out through EESL’s British subsidiary EnergyPro Assets.

“We have been exploring opportunities to include gas engines to produce cooling, heat and electricity to halve power cost for establishments like hotels, hospitals and malls. This Rs 493- crore acquisition is a step in that direction,” EESL managing director Saurabh Kumar told PTI here.

The combined heat and power technology is a tri-generation model most suited for operations where there is a 24-hour requirement of all the three -electricity, hot water and cooling.

“Through this acquisition, EESL intends to bring CHP technology to the country, providing an integrated service offering to industries that would enable them to receive equipment maintenance, electricity, heat and power at no upfront cost for installation,” he said.

Kumar said the technology has a potential of 20,000 MW in the country and in the initial phase the company is targeting 1,000 MW to be achieved in the next couple of years.

“To begin with, we have identified industrial establishments, airports, hospitals, and hotels among others.

Apart from that, we have also signed agreement with Tata Motors and Mahindra & Mahindra for providing these services at their factories and other establishments,” Kumar said.

He further said EESL will invest $600-700 million for this over a period.

Under this deal, Edina has agreed to service Sterling & Wilson India’s subsidiary in Britain to develop short-term operational reserve by supplying gas generating units that will provide 26 MW power.

“England-based servicing opportunities with India- based clients, like Sterling & Wilson, will help EESL in its expansion plans. On the one hand, EESL aims to tap into the Rs 53,782-crore energy efficiency market in Britain, expanding the offering in the energy service contract model for CHP technology,” Kumar said.

Commenting on the deal, Edina joint managing director Tony Fenton said, “we are looking forward to this new chapter in our growth story, of replicating our success in new markets while leveraging EESL’s experience across the globe.

“The opportunities in a vibrant and dynamic economy like India’s are particularly attractive for us, and we’d like to be able to introduce Indian industry to the benefits of CHP and our unique service offering.”

Published on March 20, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.