The document discusses access to clean energy for MSMEs in India. It notes that MSMEs contribute significantly to India's economy and employment but face challenges in promoting energy efficiency. UNIDO currently has 17 projects in India totaling $83 million focused on inclusive and sustainable industrial development, energy efficiency, and renewables. One project aims to promote energy efficiency and renewable energy in 12 energy-intensive MSME clusters, demonstrating technologies and financing models for replication. Further support such as comprehensive policy, technological assistance, and capacity building is still needed to fully realize clean energy opportunities for India's MSME sector.

1. ACCESS TO CLEAN ENERGY FOR THE
INDIAN MSMES: CHALLENGES &
OPPORTUNITIES
(Accelerating Clean Energy 2017”,
The Claridges, New Delhi, Nov 28, 2017)
Debajit Das
National Project Coordinator
UNIDO

2. 2
MSME SECTOR IN INDIA : A GLIMPSE
 Vast network of over 50 million units
 Creates employment for over 120 million
 Manufacturers over 8000 products
 Contributes about 37% of country’s manufacturing
output
 About 46 % of exports, directly and indirectly
 Contributes around 7% of the manufacturing GDP
 31% of the GDP from service activities
 There are more than 380 clusters of MSMEs in
India, and industry accounts for more than a third
of the country's electricity consumption.
 Has the potential to spread industrial growth across
the country

3. 3
CHALLENGES IN PROMOTING EE IN MSMES

4. 4
INHERENT BARRIERS

5. 5
UNIDO INDIA CURRENT PORTFOLIO
• Current portfolio of 17 ongoing projects with total value of
~ USD83 million
• DIPP – UNIDO International Centre for Inclusive and Sustainable Industril
Development Centre (1)
• Inclusive Economic Development (5)
• Energy Efficiency, Innovation and Renewables (7)
• Chemicals and Chemicals Waste (3)
• South-South Cooperation (1)
• Diversity of sectors
• Textile, foundry, ceramics, dairy, automotive, hospitals, cement, leather, pulp and
paper, bicycles, etc.
• Target MSME sector, 25+ clusters
• Geographic coverage
• Gujarat, Karnataka, Maharashtra, Odisha, Punjab, Rajasthan, Sikkim, Telangana, Tamil
Nadu, Uttar Pradesh, West Bengal
• Upcoming sustainable cities: Bhopal, Jaipur, Vijayawada, Guntur and Myosore
https://open.unido.org/projects/IN

6. 6
ENERGY EFFICIENCY
Process Optimization
Reducing/changing
number of steps
Efficient Equipment
Introducing new and
efficient equipment
Optimum Capacity
Utilization
Best Shop floor
Practices
Waste Minimization
Reducing rejections
/Optimum Utilization of
Resources
Automation
Behaviour Change
How we think ??
Training and Capacity
Building
Fuel Switching

7. 7
RENEWABLE ENERGY
Photovoltaic
Wind
Biomass
• Power generation
• Process Heat
• Hot water Generation
• Steam Generation
• Refrigeration and Air Conditioning
Solar Thermal

8. PROMOTING MARKET TRANSFORMATION FOR ENERGY EFFICIENCY
IN MSMES
 Objective
To promote the
implementation
of energy
efficiency in the
MSME sector
To create and sustain a
revolving fund mechanism
to ensure replication of
energy efficiency measures
in the sector
Scaling-up energy efficiency
measures and consequently
promote a cleaner and more
competitive MSME industry
in India.
1 2 3
 Project Components
Programme to
identify energy
intensive clusters
and replicable
technologies
Demonstration
projects and
aggregation of
demand for
demonstrated
technologies in the
clusters.
Financing models
to support
replication of
energy efficiency
projects in MSMEs.
Monitoring
and
Evaluation
GEF-UNIDO INITIATIVE -1

9. Objective: Develop and promote a market environment for
introducing energy efficiency and enhanced use of renewable energy
technologies in process applications in the 12 selected energy-
intensive MSME clusters in India with expansion to more clusters later
Project Value: 7.17 million USD (45.9 Crores @ INR 64 /US $)
Project closing date: December 2019
Project Partners: GEF, BEE, UNIDO, MOMSME and MNRE
GEF-UNIDO-BEE project : PROMOTING ENERGY EFFICIENCY
& RENEWABLE ENERGY IN SELECTED MICRO SME CLUSTERS IN INDIA
Sectors and Clusters:
Foundry
• Coimbatore
• Belgaum
• Indore
Brass
• Jamnagar
Ceramic
• Khurja
• Thangadh
• Morbi
Hand Tools
• Nagaur
• Jalandhar
Dairy
• Gujarat
• Sikkim
• Kerala*
* Discussions are in final stage
GEF-UNIDO INITIATIVE -1I
PROMOTING ENERGY EFFICIENCY AND RENEWABLE ENERGY
IN SELECTED MSME CLUSTERS IN INDIA

10. Clean technology and energy efficiency
for micro, small and medium enterprises
(MSMEs)
◦ Annual Cleantech business competitions, Extensive
outreach activities, Capacity building, Mentor
Program, Enabling policy and regulatory
environment created
Facility for Low Carbon Technology
Deployment
◦ Collaborating innovative low- carbon technologies
strengthened, Adoption of improved low-carbon
technologies in the Indian economyy,
Establishment of an innovation ecosystem for
deployment support of low carbon technologies
GEF-UNIDO-BEE project : PROMOTING ENERGY EFFICIENCY
& RENEWABLE ENERGY IN SELECTED MICRO SME CLUSTERS IN INDIA
UNIDO INITIATIVE -1II

11. 11
Innovative Projects
• Energy Efficient BLDC Motor
• 65 % savings in electricity
• 3 years manufacturing
warranty
• Power factor is more than
0.94
Ordinary Fan
75 W
EE Fan
28 W
3. Nine Energy
Management
Centers (EMC)
2. Demand
Aggregation for
28W EE Ceiling
Fans
1. Power
Quality
Improvement

12. 12
WHAT FURTHER IS REQUIRED
• Comprehensive policy
push
• Technological support/
handholding
• Innovative financial
support
• Holistic capacity building

13. 13
THANKS
Debajit Das
National Project Coordinator
United Nations Industrial Development Organisation
Promoting Market Transformation for Energy Efficiency in MSMEs
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National Project Office
O/o DC MSME, Ministry of MSME
East Block 7, Level 5, Sector 1, R.K. Puram, New Delhi - 110066.
Phone: +91-9971865550