ESSL collaborates with MSME Ministry, GEF, UNIDO for clean energy projects

State-owned Energy Efficiency Services Ltd. (EESL) has collaborated with the Global Environmental Facility (GEF), Micro, Small and Medium Enterprises (MSME) ministry, and the United Nations Industrial Development Organisation (UNIDO) to implement a project on promoting market transformation for energy efficiency in the MSME sector.

"EESL, a joint venture under the Ministry of Power, has joined hands with the Ministry of MSME, Government of India, United Nations Industrial Development Organisation and the Global Environmental Facility to implement a national project in India titled 'Promoting Market Transformation for Energy Efficiency in Micro, Small and Medium Enterprises (MSME)'," EESL said in a statement.

The project aims to deploy 35 energy-efficient technologies that have the maximum possibility of replication and the potential to improve the energy productivity of fellow MSMEs units.

The project also aims to adopt various business models of ESCO (energy servicing company) where the MSME unit is expected to pay back to the investor from the monetised energy savings in a period of time.

To facilitate information dissemination on the project to the MSME industries, a technology exhibition-cum-workshop was held on Saturday at Hotel Niharika, Kolkata. EESL has signed pacts with industry associations for extending mutual support to meet the project targets. EESL has also signed an agreement with four MSME units for the implementation of technologies.

EESL General Manager (Technical) Girja Shankar said, "Under this project, EESL plans to upscale 35 technologies in 12 clusters, including Howrah. We are currently implementing the world's largest portfolio for energy efficiency, and industrial energy efficiency is one of our key focus areas."

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Debojit Das, National Project Coordinator of UNIDO, said, "The project aims at implementing innovative finance mechanism to push energy efficiency in the cluster."

Vivek Adukia, Chairman of Steel Re-rolling Mill Association and Vice-Chairman of Indian Foundry Association, emphasised the importance of cost savings. "Energy is the key contributor to the production cost and steps must be taken to optimise energy cost to the extent possible."

Under the project, 12 MSME clusters across India have been identified including the Howrah mixed cluster, wherein the identified technologies will be demonstrated. EESL has to date identified four technologies applicable for the steel re-rolling and foundry industries located in the clusters.

Three out of the four technologies have been successfully demonstrated in the cluster, while one technology is under implementation. As a phase II of the project, EESL intends to replicate these technologies to a larger number of industries in the region, thus helping the industries to become energy-efficient and cost-competitive. EESL has been entrusted as the technical partner and the project management consultant for the region.

The project is expected to save around one million tonnes of carbon dioxide annually, with an investment potential of around $150 million.