Market Transformation in Energy Efficiency: A Success Story of the MSME Sector in India

Neha Sharma

Global Green Growth Institute, Seoul, South Korea

Mariam Megha Paul

Global Green Growth Institute, Seoul, South Korea

Girja Shankar

Energy Efficiency Services Limited, New Delhi, India
Corresponding Author:

Cite this article

Sharma, N., Paul, M. M., Shankar, G. (2024). Market Transformation in Energy Efficiency: A Success Story of the MSME Sector in India. In Proceedings of Energise 2023- Lifestyle, Energy Efficiency, and Climate Action, pp 319–329, Alliance for an Energy Efficient Economy.


  • Successful models for scaling up energy efficient technologies in the MSMEs
  • Cost reduction- Bulk procurement
  • Model for scale-up and replication


This paper illustrates successful cases of financing through bulk procurement for the scale-up of standard energy-efficient technologies in the MSME sector via innovative business models. The study analyses success factors and implementation methods seen in the UNIDO-EESL-MoSME programme “Promoting Market Transformation for Energy Efficiency in the MSME Sector” under GEF-5 and will highlight its achievements, with Surat and Jorhat clusters as examples. The authors attempt to highlight the challenges and mitigation mechanisms involved while exploring opportunities for involving private sector ESCOs similarly. Secondary research methods and stakeholder consultations were adopted during paper development. There is potential to scale-up these technologies in MSME clusters pan-India through programmatic models resulting in substantial emission reductions, development of indigenous supply chains, job creation, and creation of green-growth pathways, making it crucial for India’s net-zero and NDC targets. A similar model, developed by GGGI with EESL, addressing the barriers for replication and scale-up, is also showcased.


MSME Sector Decarbonization, Energy Efficient Technologies, Demand Aggregation, Innovative Business Models, Bulk Procurement


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