The Micro, Small and Medium Enterprise (MSME) industries are still majorly dependent on fossil fuels for their energy requirements, making them particularly susceptible to increasing fuel prices. With energy costs having a substantial share in the overall manufacturing costs, the need for sustainable alternatives is crucial. Decarbonisation of MSMEs is necessary to reduce fossil fuel dependency in the industrial sector. However, this potential currently remains unrealised due to factors such as low awareness and lack of access to low-cost finance. Moreover, energy-efficient technologies have technical limitations, which constrain their decarbonisation potential. Thus, the need for examining deep decarbonisation measures is imperative.
Considering these challenges, CSTEP conducted a scoping study to assess the potential for deep decarbonisation in the MSME manufacturing sectors. The objective was to evaluate the overall scope for implementing decarbonisation technologies via demand electrification and fuel switching. The study estimated the potential for mitigating GHG emissions and analysed the techno-economic feasibility of decarbonisation technologies. Seven energy- and emission-intensive MSME manufacturing clusters were selected across India.
The implementation of a combination of the recommended Energy Efficiency (EE) measures, Renewable Energy (RE) solutions, and Advanced Technologies showed potential savings in emissions of 1,36,581 tCO₂, energy usage of 3,85,383 GJ, and energy costs of INR 37 crore. It is important to note that while all clusters experienced decreased energy costs, an exception was found in Asansol.
The findings of this study have been documented as seven cluster-wise reports for cluster-specific details on the recommended measures and technoeconomic assessments; one policy brief to highlight policy recommendations; and a full-length report with comprehensive documentation of the research data, study gaps, methodology, and major takeaways.
The cluster reports and the full report can be accessed on this page, while the policy brief is available here.
Click here to read the press release.
