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Energy Efficiency in MSME

Financing Energy Efficiency in MSMEProgramme (FEEMP)

The Small Industries Development Bank of India (SIDBI) and Bureau of Energy Efficiency (BEE) are jointly implementing a Global Environment Facility (GEF) and World Bank funded project, which aims to promote energy efficiency in micro, small and medium enterprises (MSMEs) in four clusters, viz. Tiruppur, Erode, Ranipet, and Viruudhachalam.

CII-Godej GBC was assigned to provide project development support for the Tirupur cluster. The main objective of the project was to create a demand for energy efficiency investments in the cluster. CII, with the support of its local implementing partner VRnC, completed cluster profiling and detailed resource efficiency audits in 72 units, and provided implementation support in 13 units for energy efficiency project implementation.

From the identified and proposed energy and clean saving opportunities, CII has supported all the 72 units with implementation support.

A total of 117 energy efficiency projects, have been implemented in these clusters, with implemented energy efficiency investment (EEI) of INR 420.4 Lakh (fully and partially) and implemented emissions reduction (ER) of 47,145 tCO2 (lifetime). As many MSMEs are still implementing the projects, the current achievement is 30% of the energy savings when compared with the energy savings achievable from the implementation of all identified energy efficiency measures.

Duration: 2017-2019

Funders and Supporters: SIDBI, The World Bank

Cluster Level Activities in Dairy Sector under GEF - UNIDO-BEE Project "Promoting EE/REin Selected MSME Clusters in India"

The aim of the project was to develop and promote a market environment for introducing energy efficiency and enhanced use of renewable energy technologies in process applications in Kerala and Sikkim Dairy Cluster. This will enable improvement in the productivity and competitiveness of units, as well as reduce overall carbon emissions and improve the local environment. The main objective of the project was to increase the capacity of local services providers and suppliers of EE/RE technologies and services. It also aimed at implementing the identified projects and technological practices by MSMEs.

CII was an implementation partner and provided technical support for implementing project activities and included detailed energy audits, awareness programme, benchmarking study, preparation of best operating practice document and common monitorable parameter poster, implementation support, and technical support.

Detailed energy audits were conducted in eight dairy units, which resulted in annual savings of INR 2.08 Crore, with an investment of INR 4.20 Crore. More than 300 stakeholders were trained through eight capacity building programmes. Detailed benchmarking study of all major processes/equipment were carried out in all the units in the cluster. The project also resulted in facilitation of 20+ technology suppliers to these clusters.

Duration: 2018-2019

Funders and Supporters: BEE, GEF and UNIDO

Baseline Study for CNC, VMC& Injection Moulding Technologies in India

The Global Climate Partnership Fund (GCPF) and their partner financial institution in India are planning to develop a green lending portfolio that comprises CNC (Turning & Milling), VMC (Drilling & Milling), and Injection Moulding (Plastic Moulding) technologies. To identify the current potential for financing, GCPF commissioned a study for CNC, VMC and Injection Moulding technologies, with objective of assessing market scenarios, establishing benchmarks for energy efficiency performance, and develop a tool to assess the energy savings and potential GHG mitigation by implementation of such technologies.

CII-Godrej GBC partnered in this project to conduct a Baseline Study and develop a 'Report & Tool' on to compare the various parameters of CNC, VMC, and Injection Moulding technologies in India. Visits to manufacturing (machine tool) companies across India were conduced to gather, analyse and compare performance parameters of these machines, and to assess actual techno-economic feasibility of various possible technological improvements.

Based on the market and technical assessment, it was found that the conventional technologies are widely used in the sectors, and that there is good potential for energy consumption reduction in these technologies. As part of the project, plant energy consumption was also benchmarked with latest technologies in CNC Machines & Injection Moulding.

Duration: Feb 2019-April 2019

Funders and Supporters: GCPF, ResponsAbility Investments AG

Asian Cleantech MSME Financing Network (ACMFN)

CII has made sustainability one of its theme areas, working closely with the Indian industry in equipping the stakeholders gain a competitive advantage. A step towards this direction was the launching of the Asian Cleantech MSME Financing Network (ACMFN) programme, which has evoked an excellent response from the stakeholders from Indonesia and China.

As part of this initiative, CII has been working with 20+ MSME units, a part of the supply chain of an Original Equipment Manufacturer (OEM) based in Pune, Chandigarh, and 70+ MSME units in the Industry Association at Tiruppur.

CII facilitated introducing some of the latest and emerging resource conservation measures, energy management measures, and clean technologies, all the while minimizing their overall operational costs.

Under the ACMFN project, CII has launched:
• PACT -- Platform for Accelerating Clean Technologies: This online platform pools the latest clean technologies, comprising technologies from Renewable Energy, Energy Efficiency, Waste Management, Water Management, and IoT solutions, with more than 30 products listed on the platform, and more than 100 products in the pipeline. This platform facilitates faster adoption and easy access to technologies and global stakeholders.
• Clean Tech Expo: A three-day event where new and innovative start-ups have B2B interactions with over 150 organisations, representing various sectors of the Indian industry. A total of 45 clean-tech companies have participated and showcased their innovative solutions to the industry.

CII is also partnering with various financial institutions, viz. PFIs and NBFCs, for facilitating easy access to finance and other supporting mechanisms, for faster and effective project implementation. So far, more than Euro 1.2 million has been facilitated, through self and bank financing. As part of this project, CII facilitated bringing in new clean-tech concepts and technologies, and offered new networking and partnership opportunities to the stakeholders.

Funders and Supporters: European Union (EU)

Capacity Building of Local Service Providers (LSP) Under GEF-UNIDO-BEE Project "Promoting EE/REin Selected MSME Clusters in India"

The aim of the project was to develop and promote a market environment for introducing energy efficiency and enhanced use of renewable energy technologies in process applications in the Dairy cluster (Gujarat Kerala & Sikkim), Jamnagar Brass Cluster, and the Hand Tool cluster (Jalandhar & Nagpur). This will enable improvement in the productivity and competitiveness of units, as well as reduce overall carbon emissions and improve the local environment. The objective of the project was to increase the capacity of suppliers of EE/RE product and service providers. It also aimed at implementing the identified projects and technological practices by MSMEs.

CII was an implementation partner and provided technical support for implementing project activities. Key activities include: mapping of local service providers, awareness programme, preparation of training modules and detailed project reports, implementation support, and technical support.

More than 500 stakeholders, including service providers and unit employees, were trained through 22 capacity building programmes. About 60 DPRs were made under this project, on the latest EE/RE technologies, and 18 projects were implemented with savings of INR 1.2 Crore and investment of INR 2.72 Crore. The project also resulted in a facilitation of 50+ technology suppliers to these clusters, and also helped local service providers become the distributors of major OEMs.

Duration: 2017-2018

Funders and Supporters: BEE, GEF & UNIDO

Post Implementation Energy Measurements in 20 Steel Rerolling Mill Units under Up-scaling Energy Efficient Production in Small Scale Steel Industry in India

UNDP is implementing a project titled "Up-scaling Energy Efficient Production in Small Scale Steel Industry in India". With this project, UNDP seeks to facilitate the diffusion of energy efficient technologies in the small scale steel industry to bring down end-use energy level, improve productivity and cost competitiveness, and reduce associated emissions of greenhouse gases (GHG) and related pollutant levels.

CII was appointed as Monitoring & Verification Consultant for the project. The M&V activity aimed at carrying out post-implementation measurement for the selected SRRM units to quantify the energy savings, production, and productivity improvements achieved in the project. The units are located in area of Wada, Nashik, Goa and Silvassa cluster.

Post-implementation energy measurements were conducted for 20 SRRM units in the cluster. Evaluation of energy performance and productivity parameters was carried out. Key activities include: project inception report, M&V study at individual facilities, and report preparation.

Duration: 2014-15

Funders and Supporters: United Nations Development Programme (UNDP)

Manual on Energy Efficiency in MSMEs

To facilitate market transformation for energy efficiency and energy conservation products and services, a simplified and user-friendly manual was prepared for the use of financial institutions and stakeholders.

The manual covered the energy saving potential for industries, technologies available for energy efficiency improvement, equipment suppliers, government policies and incentives available, and schemes available by leading financial institutions.

The manual outlined energy conservation methodologies and case studies in 10 major industrial sectors, and eight commonly used equipment in the Indian Small & Medium enterprises.
The report highlighted that the MSMEs consume more than 8,000 MW, and have a savings potential of more than 1,000 MW.

The manual served as a knowledge-sharing document, and contributed to the development of a market for energy efficient equipment and suppliers in the Indian industry.

Partners: IREDA

Duration: 2004-2005

Measurement and Verification for Implemented Energy Saving Measures in Indian Small and Medium Enterprises

As a part of Global Environmental Facility (GEF) Programmatic Framework Project for Energy Efficiency (EE) in India, a project was launched with the objective of increasing the demand for Energy Efficiency investments in targeted Micro, Small and Medium Enterprise (MSME) clusters, and to build their capacity to access commercial finance.

Phase I of the project involved conducting energy audits, identifying energy saving opportunities and assisting the units in implementing energy savings projects. These activities were carried out by individual consultants.

CII was appointed to undertake the Monitoring & Verification for the implemented measures. The Monitoring & Verification activity not only covered evaluating the energy savings achieved, but also covered, in brief, an evaluation of the environment and social benefits achieved by the companies in implementing energy saving projects.

CII conducted M&V in more than 450 units, and submitted the unit-wise individual reports, cluster-wise reports, and Environment & Social Management Framework (EMSF) cluster profile report. As part of the project, CII also conducted more than 40 capacity building workshops in more than 30 clusters.

Duration: 2014-17

Funders and Supporters: The World Bank and SIDBI