TERI and the Institute of Energy Economics, Japan (IEEJ) organized the 6th Annual Energy Management Network (EMAK) workshop on the theme ‘Promoting energy efficiency in SMEs, and waste heat recovery measures in India’ at Taj Palace Hotel, New Delhi on 25th February 2015. The event was attended by around 80 participants comprising entrepreneurs, SME industry associations, local service providers, technical experts, energy consultants, representatives from BEE, MNRE, PCRA, SIDBI, MSME-DIs, Ministry of Steel, public sector banks and private banks, Japanese research organizations such as IEEJ and ECCJ, and Japanese companies like Kawasaki, Hitachi, Nippon Steel, etc. The workshop was moderated by Dr Patrick Crittenden, Director, Sustainable Business Pty Ltd, Australia. The presentations and videos of the speakers are available on the link http://www.iea.org/workshop/energy-management-action-network-emak-workshop-6.html
During the sessions, speakers from India, Japan and Australia made the following points to provide perspective for the discussions.
- Japan, like India, depends heavily on imported sources of energy. To meet this challenge following the oil crises of the 1970s, Japan established the Energy Conservation Law (ECL) in 1979 and has implemented energy conservation measures in every sector of its economy through a combination of regulations, taxes and incentives. The effectiveness of these measures is evidenced by the fact that the high economic growth achieved by Japan in the past few decades has been matched by lower energy costs—for instance, heavy industries like cement, chemicals, pulp & paper, and steel have shown marked improvements in energy intensity.
- India and other nations could draw valuable lessons and models for improving energy conservation from Japan’s experience, and through sharing information and experiences with one another. EMAK was established in 2009 to support this strategy.
- In the past decade, the Indian economy has grown by around 8% overall, while specific energy consumption has dropped by about 25%—indicating success in energy conservation measures, particularly among large industries like cement and fertilizer plants. However, it is still a challenge to promote energy efficiency in the SME sector, which is largely unorganized and hence difficult to influence through regulatory measures.
- The major barriers to improving energy efficiency in SMEs are in the realms of finance, technology, information and skills. These barriers can be addressed through well-structured programs undertaken by government institutions in partnership with industry and other stakeholders. Examples of such institutionalized initiatives by government are BEE in India; ‘actsmart’ in Australia [http://www.actsmart.act.gov.au/] and TurSEFF in Turkey [http://www.turseff.org/].
Five aims were established for the workshop. The aims, and the outcomes of the discussions around them, are summarized below.
1. Learn about and share experiences on designing and implementing energy efficiency policies and programmes for SMEs
- Thirteen presentations from highly respected Indian and international speakers were delivered.
- Participants’ perspectives, on the challenges and opportunities in promoting energy efficiency in SMEs, were explored through interactive small group discussions.
- In the final session, a distinguished panel shared their perspectives on the issues raised throughout the workshop.
2. Identify innovative ways of financing energy efficiency projects
- A presentation and discussion was led by the TERI co-author of the recently published report Enabling Finance for Scaling up Energy Efficiency in MSMEs.
- The Deputy General Manager of the Energy Efficiency Centre of Small Industries Development Bank of India (SIDBI) presented and participated in the panel session.
- Participants shared their perspectives on the challenges and opportunities to improve access to finance for energy efficiency projects.
- Follow up meetings have been arranged between bank representatives, researchers and SMEs to further explore appropriate financing initiatives.
3. Better understand the technical opportunities to reuse waste heat in industrial organisations
- Five presentations were made, covering waste heat recovery (WHR) options in India and the approach being adopted in Japan to establish a policy framework to support the uptake of WHR projects.
- A number of follow-up meetings have been established: for example, between a cluster-level industry association and Hitachi Zosen India to explore a potential waste-to-energy project.
- Further dialogue is anticipated regarding the policy framework that India might adopt to support the uptake of WHR projects.
4. Initiate and develop networks within and across SMEs, the finance sector, industry associations and government policy-makers at both national and international levels
- Participants from India, Japan and Australia contributed local, national and international perspectives on the topics of energy efficiency in SMEs and WHR opportunities and technologies.
- Lessons learned about SME energy efficiency programmes around the world were shared through a presentation based on research for the forthcoming IEA publication titled ‘Policy Pathway on Energy Management Programmes for SMEs’.
5. Contribute towards domestic and international dialogue and capacity-building on energy efficiency measures
- The workshop was videographed and a workshop report is being prepared. These will be made available on the International Energy Agency’s website to ensure that the workshop outcomes are widely shared with policy makers and practitioners.
- Insights from the workshop will inform the IEA’s Policy Pathway on Energy Management Programmes for SMEs, which is currently under development.
- Insights on energy efficiency policy and practice that emerged at the workshop will be presented to the Indian government nodal agency for energy efficiency—Bureau of Energy Efficiency (BEE) under the Ministry of Power.