The Benefits of Energy Efficiency in Small and Medium Enterprises

Abstract

Small and medium enterprises (SME) play a major role in the economy of any nation. They are considered as the engines of economic growth. Their contribution to direct export has crossed 35 percent while indirect export is to the tune of 15 percent, recently. But, they are being threatened with closure due to higher levels of pollution. They lack cleaner production methods and increase in energy efficiency in SMEs not only reduces pollution but result in reduced costs. Energy management studies carried out in India and other countries are explored. It is found that SMEs/MSMEs activities contribute significantly to GHG emissions. The current manufacturing practices in MSMEs are analysed and compared with better practices found in the literature. It is found that there is a greater need for improving the energy efficiency. Cleaner production alongside technology up-gradation is found to be beneficial.