At the time of the project, there were more than 380 clusters of micro, small and medium-sized industrial enterprises (MSMEs) in India, and industry accounted for more than a third of the country’s electricity consumption. These industrial MSMEs operate in a rapidly involving and uncertain market and generally lack access to financing, which means that most are unable to invest in equipment to increase energy efficiency. This REEEP-supported project aimed to build the capacity of SME industrial clusters to improve their energy efficiency as a measure to increase their financial sustainability.
The pilot project worked with an SME cluster of rice mills. Its goals were to involve the local trade association or the Chamber of Commerce and the Indian Renewable Energy Development Agency (IREDA) to explore options for financing energy efficiency equipment by pooling the cluster’s demand, to use a carbon financing mechanism and then to disseminate this model to other nearby clusters.
Photo: H K Singh