The National Motor Replacement Programme (NMRP), led by EESL, is an initiative firstly launched in India in 2018 and designed to promote the use of energy-efficient motors in the industrial sector.
In 2017-18, India’s national electricity consumption reached 1,130.2 terawatt-hours (TWh), with the industrial sector consuming a substantial 41.48%, equivalent to about 468.8 TWh. Motors and motor-driven systems for about 69% of industrial electricity consumption.
The NMRP focuses on the replacement of outdated motors (often sub-IE1) with IE3-rated motors. The program operates under two main business models:
- Supply Contract/Project Management Consultancy (PMC) Model: the industrial user bears the full cost of the motor replacement. EESL provides project management support, including the estimation of baseline energy consumption, finalization of motor specifications, procurement through transparent bidding and coordination of delivery.
- Shared Saving, ESCO Model: EESL covers the initial investment, including motor procurement and installation, while the user repays EESL through a shared-savings arrangement. Repayments are typically set at 50-70% of the savings achieved.
In terms of measurable outcomes, the first phase of the program (2018-2019) achieved moderate but promising success. The replacement of approximately 5,000 motors in both large industries and SMEs resulted in significant energy and cost savings. The estimated annual savings from the first phase include:
- Energy Savings: 9,150 megawatt-hours (MWh)
- Cost Savings: $902,112 USD
- CO2 Emissions Reduction: 8,050 tonnes
Do you think the NMRP is adequately designed to address the barriers hindering motor replacement in industry? Which of the 2 business models could be more successful in your opinion?
Ivan / EU-MORE Team
