How Energy Efficiency can support MSME
Micro, small and medium enterprise (MSME) industries in India have been great assets to socio-economic development contributing 29% towards GDP, 48% in export growth, and employing millions of people. Further, with government push and policies towards MSME, it is visible that a lot can be explored to support the sector. Likewise, there is a massive need and potential to improve energy efficiency & productivity to increase output and become more competitive. Although many initiatives have been taken to improve these efficiencies, a lot can be done for the MSME ecosystem to make them more consistent in terms of energy.
The ministry of MSME is taking various initiatives to promote the sector, such as developing inland water transportation methods that will reduce logistics costs. Also, more reliance on renewable energy can further help the industry to bring down the expenditure cost with grid electricity being charged at Rs 11 per kWh when the cost of solar energy has been reduced to Rs 2.40 kWh. The deployment and development of innovative energy-efficient devices at a reduced cost for MSMEs and encouraging more renewable energy usage can help the industry reduce the total demand and cost of grid power.
Current trends & challenges of energy efficiency in MSME
Moving towards an energy-efficient solution can help MSME increase their profit share as they are currently operating at a thin margin, which is often as low as 5-10%. Thus, the current focus is to bring more innovative technology in the sector to help them perform more efficiently.
The government is taking the initiative to promote IoT in MSME. Recently the government tested few IoT enabled devices in MSME industries where the result proved to be favorable. Technology can be a great contributor to energy efficiency. In every segment of MSME industry, IoT will be contributing to lead towards cost-saving and better tomorrow.
It will support the small manufacturers to set up green manufacturing & enhance supply chain with reduced inventory price & minimize the capital risks. It can help the owners diagnose the cause of negative growth and, accordingly, take the corrective measure to resolve the problem, and in addition, it will also eliminate the requirement for damage manipulated through spending on pressing and costly maintenance.
Another key innovation that will play a vital role in the growth of MSME is 5G technology. In terms of connectivity, the MSME sector can access a larger share of clients by going online, which will be supported by the enhanced speed. With online presence, MSMEs are going global with the
increased client from all over the world. But 5G technology is more than just connectivity. With 5G technology MSMEs are connecting more to their clients with their information and using social media interests for their different requirements, and further it can also automate a unique segment of their businesses for higher efficiencies. Digital infrastructure can play an important role in helping automate their procedures at a nominal cost. For client on-time delivery and quality is the peek priority. With the help of automation technologies & solutions, this can be achieved in the given timeframe.
The adoption of renewable sources for power generation can help MSME to reduce their energy cost and increase the profit margin. Several states are working on their solar policies that can benefit the MSMEs. Like in Gujarat the policies have been changed to help MSME setting up larger rooftop solar unit and open access projects that can benefit them to reduce power costs and enables them to procure solar energy from the external sources. Further, they can sell the additional solar energy to the government at the cost of Rs 1.75 kWh.
But the road to green glory also has some challenges that are needed to be addressed. In the absence of consolidated data, it is difficult to raise awareness among MSMEs, which encourages them to choose the energy and cost-saving options credited with attractive payback on investments.
Monitoring and minimizing wastage of resources also gives massive opportunities to improve energy efficiency and productivity among MSMEs. Like during aluminum melting the level of losses is around 4-6% in India whereas in developed countries its 1-2%. To reduce waste, save energy, and cost innovative solutions in technologies must be found in process optimization.
Role of Delta in supporting MSMEs sector to adopt energy-efficient technologies and solutions
At Delta, the focus is to keep innovating energy-efficient solutions to enhance the vision of a greener tomorrow. Our R&D team is working to ensure that with each passing day, we are leading to provide more progressive technology and solutions that are sustainable in nature. We offer diversified cutting-edge technology with a portfolio of energy-efficient solutions, strengthening the rising demand for power and energy infrastructure.
Delta Electronics India has a legacy of operating in India with market leadership in Telecom Power Solutions, Renewable Energy Solutions (Solar Inverters), and Display Solutions. It is also a leading provider of Industrial Automation Solutions, Communication & Information Solutions, EV Charging Solutions, Smart City Solutions, Rail Transportation Solutions, Energy Storage Solutions, DC Fans & Blowers, and Components.
We offer products and solutions that are IoT and Industry 4.0 compliant. Delta is all about Smart Manufacturing. We integrate our automation products, equipment networking, system software, IoT technology, and big data analysis to build innovative and reliable green automation solutions.
With our multinational presence, we have been witnessing worldwide telecom developments. We have introduced a wide range of high-efficiency power solutions, including IP-65 variants for power needs in 5G. Smaller-capacity Li-Ion batteries, pole-mount power solutions, remote power, and remote communication are some of our current markets’ expertise.
In renewable energy solutions, we at Delta offer the comprehensive product range of high efficient indoor and outdoor solar inverters, accessories, and services to our partners and installers and the best photovoltaic systems to maximize profit. We identify the emerging trends and adapt it accordingly. Our new Renewable Power Inverters (RPI) and megawatt inverters have a wide range of frequency and voltage tolerances, single and dual Maximum Power Point Tracking topologies with a dynamic and adaptive algorithm to give higher efficiencies coupled with competitive pricing.
For MSME, time is one of the most critical elements. Thus along with providing technology and solutions, it is also important to offer a service that can help them in having a relief and stay focused. We are one of the few companies in our space in India who have and provide service even at the component level with one large facility in Gurugram. Besides, a reliable service quality assurance team seeks a lot of feedback at the product level, which is then used to improve the product. Our field application engineers spread across India give first-hand information on any product or application issues. For us, the goal is to have maximum connect with our customers and provide them the significant technology and solutions necessary for business growth.
We understand the growing demand of the market and how energy efficiency is becoming critical to focus on cost optimization and power savings. For us what makes us different is the trust of our partners and stakeholders to repose faith in us which is our zeal to provide innovative, clean, and energy-efficient solutions for a better tomorrow.’ For us, the primary focus is to keep innovating products and solutions that meet the growing demand of the market and showcase the DNA of our belief of ‘Powering Green India.’
Industry Statistics (Source: Media Reports)
Disclaimer: The views and information contained on this blog is for general information purpose only. For further details please contact us at email@example.com