Advancing energy efficiency in SMEs: A case study-based framework for non-energy-intensive manufacturing companies

Abstract

The manufacturing industry increasingly needs to shift toward energy-efficient production patterns to address both environmental pollution reduction and higher energy prices. Despite efforts to enhance energy efficiency and to close the energy efficiency gap in small- and medium-sized enterprises (SMEs) limited awareness, lack of know-how, and restricted financial and human resources still hinder large-scale adoption. This is partly because current research on energy flow analysis (EFA) often lacks structured and detailed methodologies and neglects a suitable evaluation of potential greenhouse gas (GHG) emission reductions. In response, we derived a framework from existing literature and applied action research to tailor it to identify energy flows and cost-effective reduction potentials for GHG emissions in SMEs. The framework aims to improve awareness, transparency, and decision-making regarding energy consumption and environmental protection within SMEs by combining GHG accounting with comprehensive EFA to enhance energy efficiency. Furthermore, the framework outlines specific activities to guide SMEs through the implementation process. Two case studies were conducted in partnership with companies operating in the automotive and environmental sectors to develop and validate the framework. Although the case studies focused on non-energy-intensive industries, they revealed untapped potential for reducing energy consumption. Both case studies showed reductions in energy use through the identified measures, achieving reductions of 900,000 kWh and 1,300,000 kWh, respectively. At 2021 energy price levels, these reductions led to a significant drop in energy costs: a 16% drop in case one and 22% in case two. Additionally, insights from the case studies have led to further refinements of the framework, emphasizing the necessity of tailored solutions and resource considerations for SMEs. These findings helped to identify opportunities for future research directions toward optimizing energy management practices in SMEs.