INDUSTRY REPORT
Data from the same industrial facilities shows that SMEs improving processes such as cooling, space heating or demand management saved 50 % more on average of their annual energy costs per implemented efficiency measure than larger facilities. This probably reflects several factors. SMEs often pay higher energy prices and have greater untapped efficiency potential. They are also less likely to implement efficiency measures, have dedicated energy management systems or be covered by mandatory energy audits,” it continued.
“ At the firm level, implementing more than one efficiency measure can compound savings, with each additional measure contributing more than the first measure. A typical SME adopting four measures can save nearly five times as much on annual energy costs as one adopting only a single measure. Across facilities, SMEs can save more: around 12 % of annual energy costs on average, compared with about 8 % for larger facilities.”
Because SMEs are particularly exposed to macroeconomic shocks, smaller firms tend to be disproportionately affected by policy uncertainty. Yet policies focused on SMEs remain relatively rare. Of the 85 countries and jurisdictions that announced or implemented new energy efficiency policies in 2025 and 2026, only nine included measures targeting SMEs, compared with 36 targeting industry more broadly, confirmed the IEA.
This matters because policies designed for larger firms are often less effective for SMEs, unless they address the specific obstacles they face – including limited staff capacity, lack of information and difficulty accessing finance.
An eye on sustainability
An increasing regulatory focus on decarbonisation and environmental sustainability is reshaping the power generation landscape.
“ Governments and regulatory bodies are implementing stringent emission norms and promoting clean energy adoption through incentives, subsidies and policy frameworks. Technology providers are integrating digital solutions such as artificial intelligence, predictive analytics and cloud-based energy management systems to optimise generation performance and enable real-time monitoring. As the global energy transition accelerates and the demand for reliable and low-carbon electricity grows, power generation technologies are becoming critical for building resilient, efficient and environmentally sustainable energy systems,” outlined analyst, Grand View Research.
“ The transition towards cleaner energy sources, coupled with stringent emission regulations, is accelerating investments in renewable power generation such as solar, wind and hydropower, alongside the modernisation of conventional thermal and nuclear power plants. Additionally, ageing generation infrastructure in developed regions is driving refurbishment, efficiency upgrades and the deployment of advanced generation technologies to improve output and reduce environmental impact,” it added.
“ A significant opportunity lies in the integration of digital technologies, energy storage systems and distributed energy resources within power generation networks. Emerging economies in the Asia Pacific, the Middle East and Africa are witnessing substantial investments in new power generation capacity to meet rising electricity demand and support economic development. The increasing deployment of hybrid energy systems combining renewable and conventional sources, along with advances in battery storage and green hydrogen production, is creating new avenues for market growth and innovation in the global power generation landscape,” concluded the analyst.
In Europe, for example, countries across the region are phasing out coal-based power plants and increasing investments in wind, solar and hydropower generation.
Continuous innovation in clean energy technologies and grid integration solutions is expected to strengthen market competitiveness and support the long-term growth of the global market
Image: Shutterstock. com.
Image: Brandon Morgan, Unsplash.
In conclusion
“ As global electricity demand continues to rise and the energy transition accelerates, power generation companies are focusing on expanding capacity, modernising ageing infrastructure and diversifying their energy mix. Strategic collaborations, cross-border energy projects and investments in emerging markets remain key growth strategies for industry participants,” outlined analyst, Grand View Research.
“ Ongoing developments in distributed energy resources, digital energy platforms and decentralised power generation systems are reshaping the competitive landscape. Continuous innovation in clean energy technologies and grid integration solutions is expected to strengthen market competitiveness and support the long-term growth of the global market,” it concluded. n
Image: Shutterstock. com.
22 | ismr. net | ISMR September 2026