Project detail - Energy Mark PTE. Ltd

Who is our prospective customer?

Energy Mark PTE. Ltd. is a Singapore Holding company set up by Eversource Capital, a well-known partner to FMO. Eversource Capital is India’s largest climate investor with a track record of incubating platforms across several climate focused sectors such as renewables, e-mobility, green finance and water management.

What is our funding objective?

Energy Mark will focus on the smart meter industry and participate in tenders that will be launched by Indian distribution companies. The aim of Energy Mark is to win contracts under a so-called DBFOOT model (Design Build Finance Own Operate Transfer-model) and to deploy smart meters in specific Indian states. These smart meters will be in compliance with the advanced metering infrastructure concession framework which has been drafted by the Indian government under the envisaged private-public partnership.

Why do we want to fund this investment?

A major challenge for the Indian power market is the high aggregate technical and commercial (“AT&C”) losses of approximately 22%, versus 8% globally. The Indian government has set an ambitious target to reduce losses with 50% by 2025, by investing in smart meters. These meters are at the core of smart grids and have several benefits that contribute to climate mitigation. The Indian government is aiming to install 250 million smart meters by 2025, providing a large market opportunity over the coming years. FMO will be teaming up with Eversource Capital and other investors through Energy Mark PTE Ltd. to fund these bids and to contribute as such to the country’s pursuit of more efficient energy transmission.

What is the Environmental and Social categorization rationale?

This investment has E&S risk category B, in line with the broader sector assessment by Eversource Capital. Energy Mark will apply FMO’s standard E&S requirements encapsulated in its Environmental and Social Management System. Dedicated capacity will be hired at Energy Mark PTE. Ltd. to oversee the different projects (bids) under management, and Environmental and Social Action Plans (ESAPs) will be agreed with the implementation partners and contractors. In addition, it is important to note that under the advanced metering infrastructure concession framework, clear E&S specifications are made to which bidders need to adhere. These include, among others, the development of a consumer engagement plan, data privacy and cyber security plans, compliance with ISO certifications and detailed technical requirements.