The Energy Conservation and Commercialization (ECO) project is a joint project supported by United States Agency for International Development/India (USAID/I) and the Government of India (GoI). The project grant agreement between GoI and USAID was signed on January 28, 2000 with Ministry of Power and Bureau of Energy Efficiency as (BEE) its counterpart partners. ECO project aims to promote widespread commercialization of energy efficiency technologies and services in India, thereby contributing to the reduction in growth of greenhouse gas emissions. It has two main components: (1) Energy Efficiency Market Development and Financing ("Markets" Component), and (2) Energy Efficiency Policy and Institutional Reforms ("Policy" Component). To achieve the purpose of the project, a series of program approaches and activities at the central and state levels were established under the two components.

Under the Energy Conservation Act 2001, the Central Government established Bureau of Energy Efficiency (BEE) in March 2002, as a statutory body. USAID ECO-I Project supported GoI in the development of BEE by setting up procedures and authorities, establishing office facilities and assisting in several activities leading to the development of BEE's Action Plan.

To support policy and market interventions aimed at enhancing both private and public sector capabilities to deploy market-based mechanisms for end-use investments in energy efficiency technologies and services, ECO-I provided technical assistance and training on the organization of Demand Side Management (DSM) Cell, development of load research program and an innovative loan program to finance market development activities. ECO-I Project also provided vital inputs to BEE for the implementation of its Action Plan such as financing mechanisms and training of energy efficiency financing with lenders like State Bank of India, SIDBI, Rajasthan Finance Corporation, IDBI,; Energy Service Companies (ESCOs)development program through numerous training activities, and providing them with vital tools including model performance contracts, project financial analysis and screening software, model financial feasibility study format for lender approval, and Monitoring and Verification  protocols. ECO-I also assisted BEE in the development of an energy auditor certification program.

In ECO phase II, technical assistance and training support was provided to BEE to implement portions of its Action Plan such as implementation of Utility Demand Side Management (DSM) in selected Indian State Utilities; DSM capacity building within state electric utilities; development and implementation of a set of demonstration projects -Municipal Water pumping projects, one each at Nasik Municipal Corporation and Karnataka Urban Supply and Sewerage Board; BESCOM Efficient Lighting Program (BELP); energy efficiency for government buildings, etc. The most important assistance provided by ECO-II was in the development of a) Energy Conservation Building Code for five Climatic Regions of India and b) State Energy Conservation Action Plan for the state of Maharashtra. In addition, various programs were implemented and funded under the Loan Fund Component. These included Bagassse Cogen Project, Distribution Upgrade project with Noida Power Company Ltd, Street-lighting efficiency project with ESCO and the Waste Heat Recovery Project with Sterlite Industries (India) Limited.

Presently, ECO-III’s activities are aligned with BEE’s focus areas as proposed in the 11th Five year Plan. The focus is on developing institutional capacity at the state level by working with energy development agencies and continue to work on developing the implementation framework for energy efficiency in the buildings (new and existing) and the municipal sector. Mandatory enforcement of ECBC will require fundamental changes in the way commercial buildings are being designed and constructed vis-a-vis building’s envelope, lighting, and HVAC system.