India has nearly three million Small and Medium Enterprises (SMEs), which constitute more than 80 percent of the total number of industrial enterprises in the country. SMEs contribute nearly 35 percent in direct export and 45 percent in the overall export from the country, and provide employment to over 30 million persons.
Despite recent reductions in overall energy intensity in Indian industry, the SME sector has fallen behind larger industries’ achievements in terms of energy efficiency. SMEs, especially those for whom energy costs represent a large portion of total production costs, can reap economic benefits by improving energy efficiency in their facilities.
Numerous barriers have prevented widespread adoption of energy efficient techniques and technologies in SMEs. Key barriers are:
- Lack of technical skills and scientific approach, to monitor energy performance of equipment
- Lack of capacity to take up energy conservation projects and perceive their cost effectiveness
- Low credibility of service providers such as energy auditors/consultants, and dearth of champions in SMEs
- Lack of opportunities to see proven energy efficiency practices and technologies adopted in real situations; Prevalence of tendency “Seeing is Believing”
Bureau of Energy Efficiency has initiated a major program for energy efficiency improvement in several SME clusters. To supplement such initiative, USAID through its ECO-III Project is supporting the establishment of a Regional Energy Efficiency Center (REEC) to deal with some of the barriers mentioned above.
Objectives
- Train and raise awareness on energy efficiency of SMEs plant managers & furnace operators, energy professionals, and service providers to SMEs
- Provide live demonstration of energy efficiency techniques and technologies on pilot/lab scale furnace models
- Serve as platform for sharing information on best practices amongst SMEs
- Develop energy consumption baseline and benchmark for various metallurgical furnaces in SMEs such as re-rolling, forging, foundries, etc.
Accomplishments
- Construction of REEC building is underway. REEC facilities including model demonstration furnaces and diagnostic thermal equipment have been procured and commissioned.
- SEE-Tech has been organizing series of training programs in the Centre. Live demonstrations of the furnace facilities coupled with on-line computer based tools are being utilized for highlighting energy efficiency concepts, practices and technologies in training programs.
- With funding from the Bureau of Energy Efficiency’s SME Cluster Program, SEE-Tech has undertaken a number of activities which include demonstration and monitoring of energy savings in three units in ceramic cluster, capacity building of local service providers, preparation of detailed project reports to facilitate financing of project implementation.
- With support from Energy Efficiency Services Limited, SEE-Tech plans to undertake a study on one or two SMEs clusters in the State of Chhattisgarh and identify various financial schemes for SMEs for implementation of energy efficiency projects.
- The World Bank and the Small Industry Development Bank of India have shown interest in utilizing REEC services under its technical assistance and capacity building program for SMEs in India.
Documentary
- U.S. Department of Energy - Industrial Assessment Centers
