2070 has been set as the target year for achieving net zero emissions. But, with the current industrial processes in place, India imports almost 40% of the energy it produces. To add to this, over the last two decades energy consumption in the country has increased by 100%.
We stand at a precipice where a shift to cleaner energy-based resources is of paramount importance. The energy sector in India is going through major changes, with a strong shift towards renewable energy. As per the Annual Energy Statistics, over the last decade, thermal power generation has dropped by 8% and hydroelectric power generation has increased by 14%.
But, if we are to truly achieve net zero emission on all fronts, SMEs have a strong role to play in the process. In 2023, the World Resources Institute identified the gaps that exist in order for the SME sector to access renewable energy.
SMEs with a Mission, But Obstacles Ahead
Although obstacles such as lack of funding exist, many SMEs in India are actively working to uphold the renewable energy sector. Startups such as Greenway Grameen are innovating solutions to reduce household emissions in rural India. They have developed stoves that use biofuel and reduce carbon emissions by almost 80%.
Bio-fuel and green hydrogen have become a major part of the net-zero emission goals that India has set forth. India also aims to become an exporter of green hydrogen soon.
Apart from SMEs that specialize in non-renewable energy products, many cannot make the shift. This is why the Indian government has created schemes that can help these businesses make the shift to renewable energy. The SME sector in India has over 50 million businesses and uses a huge amount of energy. So, to truly reach the sustainability goals, this is a sector whose energy movement will prove to be crucial.
The Bureau of Energy Efficiency has set up the BEE-SME scheme which can provide specific financing for this particular purpose. There are also further funds available from organizations such as IREDA.
Transformative Growth for the Nation
The path that we have set forth in terms of energy goals is not easy, to say the least. And while larger industries can require massive amounts of effort and time to shift their entire operations to renewable energy-based processes, for SMEs the process can be much easier.
And to add to the zero carbon emission goals, India also wants to become a global leader in the renewable energy sector. So, it is now almost a mission for the SME sector in the country to try and make the shift to renewable energy as much as possible.
