Energy audits: Punjab to help 1,875 MSMEs cut costs, power

Chandigarh: To improve energy efficiency and reduce operational costs of industry, the Punjab Energy Development Agency (PEDA) will conduct comprehensive energy audits of 1,875 micro, small and medium enterprises (MSMEs) across the state.The initiative is intended to help MSMEs understand their energy consumption patterns and identify areas for savings. For enterprises operating on thin margins, even small reductions in energy use could lower costs, improve competitiveness and support decarbonisation efforts.Under the project, the audits will assess energy consumption patterns, identify energy conservation and process improvement measures, and estimate potential savings in energy, costs and carbon dioxide emissions.

The exercise will also lead to the preparation of bankable and implementable audit reports, besides establishing a state-level energy efficiency baseline for MSMEs.The audits will include investment-grade energy audits (IGEA) to determine the existing energy performance of each unit. Major energy-consuming systems such as motors, boilers, furnaces, kilns, cooling towers and compressors will be examined, and unit-specific energy-saving interventions recommended.

A techno-economic evaluation will also be undertaken to assess the feasibility of the proposed measures, including payback analysis and internal rate of return (IRR)-based financial evaluation.Officials said the audits will analyse at least 12 months of historical utility data, including electricity and fuel consumption, along with production profiles and operational parameters such as working hours and equipment schedules.

A detailed implementation roadmap will also be prepared.The exercise will cover electrical, thermal, utility and process systems, while also exploring the scope for rooftop solar, solar thermal applications and waste heat recovery.The initiative is being undertaken in consultation with the department of industries and commerce under the Raising and Accelerating MSME Performance (RAMP) scheme. PEDA has initiated the process of hiring a consultant for the project, which is to be completed within nine months.Officials said the initiative is expected to provide MSMEs with actionable insights to reduce energy use, cut costs and move towards more sustainable operations.