ADEETIE Scheme

The ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments) Scheme is a significant initiative launched by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, Government of India. The scheme aims to boost energy efficiency across Micro, Small, and Medium Enterprises (MSMEs), helping them enhance their competitiveness, reduce costs, and contribute to India’s climate action goals.

Key Features of the ADEETIE Scheme:

1. Target Audience:

   • Micro, Small, and Medium Enterprises (MSMEs) that are Udyam-registered are eligible for this scheme.

      

2. Objectives:

   • Catalyzing Energy Efficiency: Encourages the adoption of technologies that can lead to at least 10% energy savings in industrial operations.

   • Boosting Competitiveness: Energy efficiency can lower operating costs for MSMEs, making them more competitive in the global market.

   • Contributing to Climate Goals: The scheme aligns with India’s climate action targets by reducing overall energy consumption and supporting sustainable industrial practices.

3. Financial Assistance:

   • Interest Subvention:

     • 5% subvention for Micro and Small Enterprises on loans for energy efficiency projects.

     • 3% subvention for Medium Enterprises.
       This makes energy-saving investments more affordable and accessible.

   • Technical and Financial Support: The scheme offers comprehensive assistance, including:

     • Investment Grade Energy Audits (IGEA): To identify energy-saving opportunities.

     • Detailed Project Reports (DPRs): To plan energy-efficient project implementation.

     • Post-Implementation Monitoring and Verification (M&V): Ensures the success and sustainability of the energy-saving projects.

4. Capacity Building:

   • BEE will help upskill MSMEs through its ADEETIE online platform, offering resources and guidance on financing and implementing energy-efficient projects.

   • The platform will provide tools for MSMEs to better understand available technologies, processes for applying for loans, and how to track energy savings.

5. Key Technologies:

   • The scheme targets technologies with a proven potential to improve energy efficiency by at least 10%. This includes:

     • Energy-efficient machinery and equipment.

     • Upgrades to lighting systems, HVAC systems, and motor systems.

     • Automation and process optimization.

Why ADEETIE Matters for MSMEs and India:

• Cost Reduction: MSMEs often operate on thin profit margins. By improving energy efficiency, these enterprises can cut down on their operational costs.

• Sustainability and Climate Action: Energy efficiency is a cornerstone of India's climate action under the Paris Agreement. By encouraging MSMEs to adopt green technologies, the scheme helps reduce carbon footprints.

• Increased Global Competitiveness: With the rise of global environmental standards, industries adopting energy-efficient technologies can position themselves as leaders in the international market, especially in eco-conscious industries.

• Job Creation: The scheme also focuses on job creation by fostering the development of green technologies and training in energy-efficient practices, thus contributing to the overall growth of the green economy.

• Boost to MSME Sector: MSMEs are the backbone of India's economy, contributing significantly to employment and GDP. By assisting these businesses in modernizing their operations, the scheme strengthens the broader industrial ecosystem.

Expected Outcomes:

• Reduction in Energy Consumption: MSMEs that implement energy-efficient technologies can save 10% or more of their energy consumption, leading to a significant decrease in overall industrial energy demand.

• Enhanced Industrial Efficiency: The increased adoption of energy-efficient technologies will improve operational efficiency and contribute to the overall growth of India’s industrial sector.

• Contribution to India’s NDCs: The scheme aligns with India’s Nationally Determined Contributions (NDCs) to reduce energy intensity and increase the share of renewables in the energy mix.

Conclusion:

The ADEETIE Scheme is a forward-thinking initiative that addresses both industrial competitiveness and climate action goals. It provides financial and technical assistance to MSMEs, ensuring that they can transition to energy-efficient technologies with the support they need to succeed. This is a step toward a more sustainable, competitive, and resilient industrial ecosystem in India.