Investigating Energy End-Use Efficiency in Small and Medium Scale Enterprises for Sustainable Industrialization

Abstract

Industrial policies in Africa seem silent on energy efficiency measures for small and medium scale enterprises (SMEs) in the continent. Existing literature indicates that SMEs in Nigeria are unaware of energy end-use efficiency. Towards identifying policies for achieving the Sustainable Development Goals (SDGs) 7, 9, and 13, energy end-use efficiency issues within one hundred (100) manufacturing SMEs were empirically analyzed. Probability Proportional to Size (PPS) technique was used to select the firms based on recent framing of enterprises by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The study utilized structured questionnaires and interviews to capture cross-sectional data. The research identified some enablers of energy end-use efficiency in the companies. Factors identified equipment/appliance selection, capital and financial incentives, information and technical capacity, management commitment, smart manufacturing, and government policy or legislation. Contrary to the view in existing studies, the outcome of the study shows a strong awareness of energy end-use efficiency among 93.81% of the sampled firms. We recommend the roles of relevant stakeholders and some strategic measures essential for the improvement of energy end-use efficiency in SMEs towards decarbonizing the industrial sector and achieving sustainable development.