United Nations Industrial Development Organisation (UNIDO) with support from the Global Environment Facility (GEF) had initiated a project in September 2011, titled 'Promoting energy efficiency and renewable energy in selected MSME clusters in India' in collaboration with BEE, the ministry of MSME (MoMSME) and the ministry of new and renewable energy (MNRE).
Focus of the projects are on development and promotion of a market environment for introducing energy efficiency (EE) and enhanced use of renewable energy (RE) technologies for process applications in 12 selected MSME clusters under five energy-intensive MSME sub-sectors.
These clusters have been chosen based on their total energy consumption as well as their energy-intensity levels.
The total energy consumption of these 12 clusters based on data collated by TERI is estimated at about 1.44 million tonnes of oil equivalent (mtoe).
The project will address a few important barriers such as lack of technological solutions and capacities at cluster levels and the paucity of reliable data at policy levels.
The broad goals of the $33 million, five-year project (lasting from September 2011 to August 2016) include increased capacity of suppliers of energy-efficient and renewable energy-based products, service providers and financing institutions; increasing the levels of end-use demand and implementation of energy efficiency and renewable energy technologies and practices by MSMEs; scaling up of the project to national level; and strengthening policy, institutional and decision making frameworks.
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