About the Energy Savings Assessment Tool

As a part of World Bank and GEF’s initiative, the “Financing Energy Efficiency at MSMEs” project has created a substantial Data pool based on various reports prepared i.e. IGDPRs, ICRs, and M&V reports, from Resource Efficiency studies including Energy Audits in over 800 MSMEs across various MSME Sectors / Clusters throughout the country. The need to collate this data and upload it on an Application based Database arose from the fact that:

  • a) Data was significantly large and diverse,
  • b) Significant number of MSMEs covered in each Sector / Cluster,
  • c) Pertains to real Energy Efficiency Implementations by MSMEs in various Sectors / Clusters,
  • d) Implemented EE measures are Credible and Verified by Third-Party Independent Agencies

Such a Database would naturally be of immense use to similar MSME sectors in India for replications.

Taking this vision further ahead, SIDBI along with funding support from Shakti Sustainable Energy Foundation developed the Tool to generate simplified Benchmarking for MSMEs belonging to various Sectors i.e. Foundry, Forging, Textile, Engineering, Plastic, etc. The Tool Assesses the MSME units, Analyses the findings by comparing with Existing Reports on the Database, and offers suitable Energy Efficiency Measures (EEMs). It also offers guidance on Monetary Implications such as Savings, Investment required and Payback period.

Broad functions of the tool include:

  • a) Assessment of Current Scenario to Benchmark the MSME based on existing MSMEs in the Database
  • b) Recommend suitable EE Measures
  • c) Calculation of Monetary, Energy & Emission Reduction implications of the same
  • d) Provide EE measures implemented in nearby MSMEs locations

This tool can help

  • Benchmark their unit in terms efficiency
  • To undertake a simplified opportunity / feasibility analysis
  • Possible EEMs
  • Improve reliability of assessment (WTA) in order to make an informed decision for DEA; justify cost for DEA as WTA assessment is structured and standardized
  • Identify potential lending opportunities for EE projects in the SME sector
  • Understand the monetary implications of implementing EEM without extensive technical knowledge
  • Benchmark customers in terms of energy efficiency
Energy Experts / Professionals
  • Improve quality of output by using a standardised / structure tool; as WTA so far is based on individual experience and not very structured, not supported by a tool which covers the whole process
  • To provide timely advise and to reduce gap between assessment / factory visit and WTA report

About the Stakeholders

Small Industries Development Bank of India (SIDBI) along-with Bureau of Energy Efficiency (BEE) are jointly executing a project titled “Financing Energy Efficiency at MSMEs” in select MSME clusters in India. The project is funded by Global Environment Facility (GEF) through national implementing agency the World Bank. The project is aimed at improving resource efficiency and reducing Green House Gas (GHG) emissions of MSMEs. Within this project, walk-through energy audits in more than 1200 MSMEs, Detailed Energy Audits in more than 800 MSME units and Investment Grade Detailed Project Reports (IGDPRs) have been prepared in these MSME clusters all across India.

Location Sectors
Ankleswar Chemical
Faridabad Mixed Type Sectors-Sheet Metal, Forging, Foundry, Engineering, Electroplating etc
Pune Forging and Heat Treatment
Kolhapur Foundry
Tirunelveli Lime Kilns
Delhi-NCR Mixed Type Sectors- Forging & Heat Treatment, Foundry, Engineering etc
Ludhiana Mixed Type Sectors- Textile, Engineering, Forging etc
Varanasi Mixed Type Sectors-Textile, Engineering, Polymer, Foundry etc
Thane Mixed Type Sectors- Die Casting, Food Processing, Engineering, Textile etc
Dehradun Mixed Type Sectors- Pharma, Packaging, Engineering etc

Apart from the technical support, handholding support also provided to MSMEs towards implementation of suggested EE measures under the project which results more than 625 MSMEs have gone for implementations. So far, 150 Crore have been made by these MSMEs which are paid back in 2-3 years with 1.12 Million lifetime emission reductions as verified through independent third party M&V process. Furthermore, other co-benefits i.e. reduction in SOx, NOx, PM levels, improved working environment inside plant operation due to reduction in surface temperature of equipments, Productivity enhancement, improvement in safety of workforce and the machines, lean operations, cleaner productions etc. have been implemented and verified by third party independent agency. Some of the Implementations are shown below.

1. Foundry-SCR Technology to IGBT Technology

2. Sand mixer-Conventional to Automated with timer control

3. Air Compressor from No Control to Auto auto-unload cutoff

4. FO Fired Aluminum Furnace to Electrical Aluminum Furnace

5. FO Fired Forging Furnace to Electrical Induction Billet Heater

6. Providing Lid Cover for Aluminum Electric Melting Furnace

This is probably the first energy efficiency project worldwide of its kind wherein such a large number of MSMEs have implemented the recommended energy efficiency measures. Further the scope is also widening from focus on only energy efficiency to resource efficiency in Indian MSMEs.

Small Industries Development Bank of India (SIDBI) was established on April 2, 1990 under an act of Indian Parliament. It is the principal financial institution for the promotion, financing and development of Micro, Small & Medium Enterprises (MSMEs). Over the years, SIDBI has evolved itself as a one-stop institution to meet the various types of credit requirements of the MSME sector by offering specialized fund based and non-fund based financial products. In keeping with the spirit of innovation and entrepreneurship, the Bank has also evolved its bouquet of offerings over the years. One such growing area is the financing energy efficient, green technologies which also offer a tremendous opportunity for the banking sector.

In order to improve productivity and competitiveness of MSME sector through energy efficiency (EE) measures, SIDBI has undertaken a number of initiatives which include lines of credits from World Bank, Japan International Cooperation Agency (JICA), KfW and AFD. Further, it has setup an Energy Efficiency Centre (EEC) at New Delhi which is implementing various developmental projects along-with BEE, EESL, GiZ, World Bank, etc. EEC also serves as a Project Management Unit (PMU) for executing World Bank – GEF Project: Financing Energy Efficiency at MSMEs and also for the Partial Risk Sharing Facility for Energy Efficiency (PRSF) Project.

M/s India SME Technology Services Limited (ISTSL) is a public limited company incorporated under the Companies Act 1956 on 17th November 2005. It is a Joint Initiative of Small Industries Development Bank of India (SIDBI) and four public sector banks including State Bank of India (SBI), Indian Bank, Oriental Bank of Commerce (OBC) and Indian Overseas Bank (IOB).

ISTSL is empanelled with Bureau of Energy of Efficiency (BEE) as Grade - 2 Energy Service Company (ESCO and with Ministry of New Renewable Energy (MNRE) has as an expert PSU for installation of Grid connected solar rooftop systems/projects. Recently, ISTSL has also been empanelled by Quality Council of India (QCI), as a Lean Manufacturing Consultant.

ISTSL is working closely with industrial units in the Micro, Small and Medium Enterprises (MSME) sector in the fields of Energy Efficiency (End-to-End Energy Efficiency (4E) Solutions), Measurement & Verification (M&V) Audits, Consultancy and Technology Advisory, Renewable Energy (particularly solar) and Finance Syndication including Techno-economic Evaluation.

Present Activities/Services

End to End Energy Efficiency (4E) solutions

Under 4E, ISTSL provides facilitation support to the MSMEs so that they are able to avail the services of suitable technical consultants at reasonable cost with assurance of quality of services / results. ISTSL has facilitated around 180 Detailed Energy Audits of MSMEs in different sectors under 4E Scheme in 14 Indian States. Through these audits, around 900 Energy Efficiency measures (EEMs) have been identified for a cumulative investment of Rs. 135 crore which resulted in an annual energy cost savings of Rs. 53 crore and annual GHG reduction of more than 35,500 tCO2e.

Facilitation of Measurement & Verification Energy Audit for TEQUP Scheme

ISTSL is supporting the MSME units for Measurement and Verification (M&V) Audit which is required under MSME’s TEQUP Scheme. Under this scheme, ISTSL has facilitated more than 100 M&V Audits, verifying an annual energy cost savings of Rs. 901 lakhs and annual GHG reduction of around 11,000 tCO2e. Realizable subsidy benefitting these 100 MSMEs stands at around Rs. 8 crore.

Renewable Energy

ISTSL provides Project Management & Consultancy (PMC) services to following ministries of Govt. of India for implementation of grid connected rooftop solar PV projects for cumulative capacity of 40 MW in their offices /institutions:

  • a) Ministry of MSME
  • b) Ministry of Earth Sciences
  • c) Ministry of HRD
  • d) Ministry of Panchayati Raj
  • e) Ministry of Food Processing Industries

Out of this, projects aggregating 500 kW have been implemented and electricity generation has commenced. Projects for around 25 MW is in various stages of implementation. These projects will result in annual electricity generation of more than 31.7 Million kWh and GHG offset of around 26,000 tCO2e /year. Apart from above ministries, ISTSL is also motivating MSME units in various clusters to adopt Solar rooftop PV systems. ISTSL is also rendering Lender’s Engineer service for SIDBI’s Loan scheme for financing small solar PV Rooftop projects (for existing MSME units) in Faridabad Cluster.

ESCO Activities

ISTSL is providing Project Management Consultancy support to SIDBI for implementing replacement of energy efficient lighting system (LED) through ESCO mode at 11 offices of SIDBI resulting into reduction in energy consumption by 40%. The project is expected to save around 91,700 kWh on annual basis.


ISTSL is also one among the very few agencies selected for conduct of Zero Defect –Zero Effect (ZED) Scheme Awareness Workshops among MSMEs. Around 10 workshops have been conducted in various clusters throughout India creating awareness to more than 500 MSMEs.

New Services

ISTSL has started expanding into new markets areas like:

  1. Development of Proposals for banks for CSR activities
  2. Entering into new services like Solid Waste Management (SWM), Waste Water Management (WWM)
  3. Capacity Building of the Energy Consultants in new areas like Lean manufacturing, Cleaner Production

Shakti Sustainable Energy Foundation works to strengthen the energy security of India by aiding the design and implementation of policies that support renewable energy, energy efficiency and the adoption of sustainable transport solutions.