Promoting market transformation for energy efficiency in micro-, small- and medium enterprises (MSMEs)

Context

The project promotes the implementation of energy efficiency in the MSME sector. The goal is to create and sustain a revolving fund mechanism to ensure replication of energy efficiency measures in the sector, and to address the identified barriers for scaling-up energy efficiency measures. The overall aim is to promote a cleaner and more competitive MSME industry in India. The focus of the project is on sector specific energy-efficient process technologies, and to facilitate investments through a combination of reduction of technical risks (standardization and localization of technology), and reduction of financing burden (through market aggregation and innovative, energy service-based funding model).

The project covers 12 MSME clusters around India.

Cluster	Sector
Surat	Textile
Jorhat	Tea
Ankleshwar	Chemical
Howrah	Mixed
Vellore	Rice
East and West Godavari	Ceramics
Sundergarh	Sponge Iron
Medak	Pharma
Aurangabad	Mixed
Batala, Jalandhar & Ludhiana	Casting & Forging
Varanasi	Textile
Muzaffarnagar	Paper

Activities

1. Programme to identify energy intensive clusters and replicable technologies: identification of 10 energy intensive clusters based on objective criteria and technologies that have the maximum impact on the respective clusters.
2. Demonstration projects and aggregation of demand for demonstrated technologies in the clusters.
3. Establishment of financing models to support replication of energy efficiency projects in MSMEs.

Expected Impact

The project aims to accelerate adoption of energy-efficient technologies in the sector by removing its key barriers. It is expected to deploy 33-35 technologies in selective MSME clusters in the country which have the maximum possibility of replication and potential to improve the energy baseline of fellow MSMEs units.