India’s Micro, Small and Medium Enterprises (MSME) sector is a key driver of economic growth but remains highly energy-intensive, with energy costs accounting for up to 35–40% of total manufacturing costs. Despite significant potential for energy savings through technology upgrades, adoption of energy-efficient solutions has been limited due to low awareness, financing barriers, and the absence of standardized implementation models.

To address these challenges, the project deploys standardized energy efficient technologies through an Energy Service Company (ESCO) mechanism. It will implement a proof of concept across three MSME clusters, Karnal (Rice Cluster), Panipat (Textile Cluster), and Kundli (Mixed Cluster), focusing on demand aggregation, development of bankable business models, and private sector participation to enable scalable adoption of energy efficiency solutions.

SEET is the first of its kind in India to involve private ESCOs through a demand aggregation approach, in collaboration with EESL.

The project envisages the saving of more than 1.5 million tons of carbon emissions in the next couple of years. This project also has the investment potential of around 20-30 million USD by replication standard energy efficiency technologies across pan India MSME clusters through EERF that is in the process of establishment by EESL.

The project aims to design, implement, and scale the deployment of standardized energy-efficient technologies across MSME clusters through an ESCO-based approach. It will develop a national framework to support Energy Efficiency Services Limited (EESL) in strengthening the ESCO market in the MSME sector, while establishing a roadmap for the effective operationalization of the EERF.

Energy consumption during manufacturing processes constitutes a substantial portion of MSMEs’ overall production cost, often accounting for 35-40% of the total manufacturing expenses in India. However, the sector still faces challenges in adopting energy-efficient (EE) technologies due to a lack of awareness, technical know-how, and barriers to investment.

Between 2017-2022, EESL and UNIDO with support from Global Environment Facility (GEF) initiated to the creation of a conducive environment for Energy Service Companies (ESCOs) in 9 SME clusters. The primary aim was to introduce energy-efficient technologies that SMEs could readily embrace to reap the benefits like reduced consumption costs, lowered greenhouse gas emissions etc. This initiative laid the foundation for a bankable ecosystem, setting the stage for accelerated investments through the EERF.

In 2022, GGGI with EESL aimed to enhance the ESCO market scalability and establish a National Framework for the implementation of SEET in MSMEs clusters through Proof-of-Concept.

This led to the identification of 7 EE technologies for implementation across 3 key clusters: 1) Rice Mill Cluster in Karnal, 2) Textile Cluster in Panipat, and 3) Mixed Cluster in Kundli.

The project’s Interactive webpage, featuring Standard Energy Efficient Technologies, serves as a valuable resource for interested MSMEs to register their interest and access relevant information. Interested MSME’s can visit Standard Energy Efficient Technologies (ficci.in) to know more and https://rb.gy/qr3v2 to take part in this project.

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