Energy storage for small and medium-sized enterprises

What are small and medium-sized enterprises (SMEs)?

Small and medium-sized enterprises (SMEs) are a central part of economies worldwide, comprising 99% of enterprises and providing about 60% of employment.

Why is capacity building important for SME energy eficiency projects?

SMEs are typically too small to absorb the fixed costs associated with debt issuance in the financial market. For all these reasons, capacity building for local financial institutions is increasingly seen as a pre-requisite to ensure the availability of appropriate financial products for SME energy eficiency projects.

What is a Micro-Small & Medium Enterprise Project?

The overall goal of the project is to strengthen the capacity and resilience of micro-, small and medium enterprises (MSMEs) in developing countries and economies in transition to mitigate the economic and social impact of the global COVID-19 crisis.

Why do small enterprises cost more than large enterprises?

Reaching a greater number of small entities costs more than targeting fewer large enterprises. Energy savings opportunities are smaller per entity and distributed more widely, typically leading to higher programme administration costs. This makes it harder for practitioners to argue for programme funding.

Can energy management systems save energy?

Experience with energy management systems in large enterprises shows that energy savings of about 30% are possible within a short time, with additional annual savings of about 2% to 5% (IEA, 2012). SMEs could achieve similar savings by implementing energy management systems.

How can corporations help SMEs achieve energy eficiency projects?

Involving corporations may help to motivate and scale up SME energy eficiency projects. Supply chain programmes can further ofer governments and stakeholders an efective way of reaching SMEs, a notoriously dificult policy target because of the large number of small businesses and their diverse nature.