Transcript Slide 1

Financing mechanisms for
energy efficiency
improvement in SMEs
Summary of day 1
Dolf Gielen
New Delhi, 19 November 2009
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• Session I: SME sector and opportunities in India
• Session III: Available financing mechanisms and
instruments in India
• Session III: Discussion
• Large new BEE initiative for SMEs
• 3 GEF projects: UNDP, UNIDO, World Bank
– Coverage >20 clusters/target >1000 companies
• Financing mechanisms combined with technical
assistance: SIDBI (WB, JICA), IREDA, MSME (TEQUP)
• International experience: IFC, Thailand
• Indian implementation experience: TERI, SDC
Finance is only one of many
barriers:
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Other management priorities
Lacking energy management
Lacking audit capacity
Lacking technical solutions
Conservative management (risk aversion)
Cluster level business service supply
Cluster level demonstrations
Fear of production loss
These are cluster specific, high dependence on capacity
of individuals
Finance barriers
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Few companies have heard of support schemes
Funding of technology development/scaling
Funding demonstrations
Bankable investment projects
Quality of financial accounts
Collateral micro/small enterprises, sick units
Blueprint DPRs
Local bank involvement/knowledge/interest
High risk perception regarding efficiency projects
Possible solutions
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Define target group better: (M)SME, 150 or 300 or 2000 clusters, 13 million or
26 million enterprises
Adequate policy incentives: pricing, regulation etc – more coordination
between ministries, federal and state governments
Better metering, energy use reporting and benchmarking
Presence in the clusters is key – build credibility
Train service providers
Fund demonstration projects
Develop sustainable regional/cluster capacity – coordinate the existing
networks better
Equipment rating
Focus on productivity/quality improvement/social co-benefits
Select active partners
Consider “clusters of clusters”
Better monitoring, evaluation and reporting of activities and outcomes:
combined activity coordinating committee and BEE ?
Thank you
for your
attention
[email protected]
www.unido.org
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