Energy Efficiency In Indian Industry Environmental Sciences Essay

Industry is India ‘s largest energy user, already accounting for approximately 52 % of entire commercial energy ingestion ; demand is expected to surge to 588 billion kWh by 2014, from 138 billion kWh in 2004-05. This means that energy efficiency lies at the bosom of India ‘s clean industrial revolution

Industrial energy ingestion could be reduced by 15-25 % , avoiding the demand for the building of 10 GW of power capacity by 2012.

Energy efficiency is predicted to be the most valuable low-carbon market scheme for India, deserving $ 477 billion by 2020, up from $ 15 billion in 2009. The market for industrial efficiency will be deserving $ 26 billion in 2020.

The above energy nest eggs would compare to 148.6 million metric tons of avoided CO2 emanations per annum.

The National Mission on Enhanced Energy Efficiency ( NMEEE ) is expected to account for one-year fuel nest eggs in surplus of 23 million metric tons by 2014. It besides seeks to accomplish a cumulative avoided electricity capacity add-on of 19 GW, and salvage 98 million metric tons CO2 emanations per twelvemonth.

The Perform, Achieve, Trade ( PAT ) strategy to be introduced in April 2011 and applicable to 600 units across eight energy intensive industries, purposes to salvage ten million metric tons of energy by 2014, with the market for certifications expected to be deserving $ 3 billion.

India is among the top 10 states in the universe for industrial production and industry is the state ‘s largest consumer of energy and emitter of GHGs. Demand for energy in 2004-05 by India ‘s industrial sector at 138 billion kWh accounted for about 52 % of the entire commercial energy ingestion. At jutting growing rates this is expected to surge to 588 billion kWh by 2014, with a attendant addition in emanations.

For Indian industry, climate alteration could increase the costs of making concern and in some instances may interrupt supply ironss. Apart from the direct impacts on substructure, industrial works and conveyance webs, increasing public consciousness and concern for the environment – both domestically and internationally – may take to companies perceived as “ dirty ” being shunned by consumers and seeing their entree to finance and markets restricted. Government policies that impose energy efficiency and procedure criterions may besides ensue in regulative hazard for companies that have non invested in cleaner engineerings, a state of affairs that will be exacerbated as they fall behind those following newer, more resource efficient and therefore more competitory production methods.

On the plus side, nevertheless, India can go a leader in developing and following engineerings and procedures that are energy efficient and more sustainable in the long tally. There are really existent economic chances available from cut downing costs associated with the energy strength of GDP growing. This is peculiarly so given India ‘s power shortage and over-dependence on dodo fuel imports.

Energy efficiency therefore offers the most attractive low-carbon scheme for India as it provides chances to assist the state meet increasing demand, while cut downing both cost and C emanations. The big energy preservation potency in Indian industry could take to significant decreases in the cost of production and immense nest eggs in fossil fuel and electricity ingestion, while at the same assisting industry to be sustainable in the competitory international market.

It is hard ( and expensive ) to follow new engineerings and patterns one time workss have been set up and production procedures established. India is at the phase of making monolithic industrial and capital assets and can choose for efficient, clean and energy-efficient engineerings to do possible an epoch of low-carbon growing. Early action will therefore be of import to avoid lock-in from large-scale capital investings.

Potential energy and cost nest eggs from improved industrial energy efficiency

The World Bank ‘s survey of energy efficiency financing in Brazil, China and India provides a comprehensive estimation of the efficiency potency within the Indian economic system [ ref ] . The study drew upon informations from 2003 and 2004 and concluded that the energy-efficiency potency in all sectors of the Indian economic system could be every bit high as 50 TWh ( terawatt hours ) yearly.

Table 2 shows the aggregative energy nest eggs possible along with the investing potency of India ‘s industrial, commercial, municipal, agricultural and lighting sectors.

Table 2: Potential energy nest eggs and investing potency

Market type

Investing potency ( INR billion )

Energy nest eggs ( billion kWh )

Energy nest eggs ( MW )

Industrial: generic EE steps




Industrial: procedure EE steps





















At INR 5 per kWh, the energy nest eggs translates to INR 917 billion or USD20 billion.

Beginning: Asiatic Development Bank

While all sectors offer immense chances, industry entirely accounts for about 27 % . The investing chance for energy-efficiency undertakings in India in the industrial sector sums to around INR 121 billion – consisting INR 42 billion for generic energy efficiency and INR 79 billion for procedure energy efficiency – which could save 7 GW in avoided capacity usage. By manner of contrast, the sum installed power bring forthing capacity in the province of Bihar is merely 584 MW.

From a fiscal position, implementing efficiency steps will add INR 2.3 million crore ( $ 505 billion ) to India ‘s GDP between 2009 and 2017 – compared with India ‘s entire GDP of INR 4.2 million crore ( $ 911 billion ) in 2007-2008 [ ref ] .

Opportunities for energy efficiency in Indian industry

Although India boasts some of the most efficient industrial works in the universe, with the state going one of the universe ‘s lowest-cost manufacturers of both aluminum and steel, its mean specific industrial energy ingestion is much higher than in the industrialized states. Table 3 compares the energy ingestion for selected industries in India with other major states.

Table 3: Specific energy ingestion of choice industries ( kWh/tonne )




Pulp & A ; Paper







United kingdom





United states












Beginning: [ ref ]

The additions, hence, from, following best-in-class engineerings are potentially immense, as shown in Table 4.

Table Omega: Share of energy cost and energy preservation potency in industries

Government Actions

The Government of India recognizes the importance of bettering industrial energy efficiency for keeping fight, cut downing aggregative energy demand and cutting nursery gas emanations. The National Mission on Enhanced Energy Efficiency ( NMEEE ) [ ref ] is expected to account for one-year fuel nest eggs in surplus of 23 million metric tons by 2014. It besides seeks to accomplish a cumulative avoided electricity capacity add-on of 19 GW and to salvage 98 million metric tons CO2 emanations per annum. Further decreases in industrial energy usage are being driven by compulsory industrial energy audits under the 2001 Energy Conservation Act ( ECA ) and by repairing specific energy decrease marks for the top emitting industries as portion of the 2008National Action Plan on Climate Change ( NAPCC ) . The NAPCC besides calls for financial and revenue enhancement inducements to advance efficiency, an energy-efficiency funding platform, and a trading market for energy nest eggs certifications. The Perform Achieve Trade ( PAT ) strategy to be implemented in 2011 will enable houses that have exceeded their required nest eggs degrees to sell certifications stand foring this overachievement to houses that have non.

The ECA besides identified a list of energy intensive sectors that account for over 60 % of the entire energy consumed by the industrial sector. Figure X compares sector-wise energy ingestion and GHG emanations in 2020 against their awaited growing by 2030.

Figure 1-1: Sector wise Energy Consumption and ghg Emissions in the twelvemonth 2020 and 2030

Energy efficiency potency in cardinal industrial sectors

Iron and Steel

India is the 2nd largest manufacturer of Fe and steel in the universe. However, per capita steel ingestion in India is about 40 kilogram ( kg ) , compared to a universe norm of 170 kilograms [ ref ] . With its rapid economic growing and abundant Fe ore militias of 23 billion metric tons [ ref ] , the state has immense range for increasing steel production to run into domestic and export demand. Already the largest industrial consumer of energy in the state, the sector uses about 10 % of the entire electricity and 27 % of the coal used by Indian industry [ ref ] ; spread outing production with current procedures and engineerings would necessarily drive further energy ingestion and emanations.

Although there has been an promoting downward tendency in specific energy ingestion and a decreasing usage of coking coal per metric ton of ore processed, much more can be achieved. It is estimated that over 50 % of the energy presently used in incorporate steel workss in India is lost as fumes and byproduct gases that could be used for electricity coevals or low-heat steam production [ ref ] . With an estimated steel production of 200 million metric tons in 2020, the energy salvaging possible for the sector is about 563 TWh [ ref ] . Case Study 4 provides one illustration of how steel companies have started to accomplish major efficiency additions through fuel permutation, going more competitory as consequence.

Case Study 4: Coal pitch injection in blast furnaces as an alternate fuel, Tata Steel, Jamshedpur [ ref ]

Established in 1907, Tata Steel is Asia ‘s first and India ‘s largest private sector steel manufacturer. The company has achieved a discovery in coal pitch injection engineering in blast furnace as a addendum for coke – the calorific value of coal pitch is 36,000 kJ/kg ( kilojoules per kg ) , which is higher than coke. The system consists of a coal pitch storage armored combat vehicle, a pumping station for the pitch, a method for commanding the heat of the pitch, conveyance lines to provide the pitch to the blast furnaces and distribution and injection systems. The entire investing for the undertaking was INR 5 million, drawn wholly from internal resources, bring forthing an one-year nest eggs of INR 9.1 million with a payback of seven months.


India is the 2nd largest cement manufacturer in the universe [ ref ] . In malice of rapid growing due to tremendous substructure development and a lodging roar, per capita cement ingestion of around 100 kilogram is still compared to the universe norm of 270 kilograms [ ref ] .

The cement industry has made enormous paces in upgrading to the latest engineering. As a consequence, CO2 emanations per metric ton of cement in India today are 750 kilograms compared with 850 kilograms in the US [ ref ] . Nevertheless, energy histories for approximately 50 % of the entire fabrication cost and cement is still amongst the largest emitters of nursery gases in India [ ref ] . Harmonizing to BEE, there is the possible to cut down energy ingestion by 15 % , amounting to INR 14.25 billion per annum in nest eggs [ ref ] .

Some of the major countries for betterment are shown in Table 5.

Table 5: Areas for betterment from different engineerings:

Area of Improvement

Future Use % ( 2015 )

Likely GHG Reduction ( % )

Blended Cements



CNG fuel



Waste Derived Fuel



Non-Conventional Energy



Energy Efficient Plant/Machinery



The chief path to cutting CO2 emanations is by switching from coal to take down C fuels. Despite holding abundant handiness of biomass and natural gas, their usage by cement companies remains low. Up to 25 % -30 % of the entire power required could besides be supplied through cogeneration of heat and power, utilizing waste heat from works fumes or from pre-heater or cooler issue gases. The usage of secondary stuffs like scoria and wing ash for fabrication blended cement and the usage of waste fuels as a portion replacing for coal are besides possible. In add-on, computerisation and improved kiln control and better furnace lining liner can heighten energy efficiency by up to 5 % . Case Studies 5 and 6 provide illustrations of the successful application of energy-saving steps in India ‘s cement industry. If extended across the sector, they would travel a long manner to capturing the sum available

Case Study 5: JK Cements Ltd [ ref ]

A undertaking completed in 2007 involved utilizing the heat from the exhaust gases from Preheat and Air Quenching Chambers in a works of JK Cements Ltd. These issue gases contained 35 % of the entire heat generated in the works. Waste heat recovery confined power workss were set up which contained six boilers with a combined capacity of 76.15 metric tons per hr to drive a steam turbine generator with a capacity of 13.2 MW. The undertaking reduces 70,796 metric tons CO2 emanations per annum.

Case Study 6: Shree Cements Ltd [ ref ]

Shree Cements Limited ( SCL ) is among the top five cement groups in India with a turnover of more than $ 773 million and one of the highest operating net income borders. The company is the market leader in Delhi, Rajasthan and Gujarat. The company has besides been a leader in following energy-efficiency steps and has been appointed leader of the Cement Sector Task Force for the 7th back-to-back twelvemonth by BEE. The company has amongst the lowest power and fuel ingestion degrees in the industry and remains the benchmark for other companies in footings of overall energy efficiency.

SCL has developed three successful CDM undertakings under the Kyoto Protocol. It was the first cement company to hold CERs issued for its ‘Optimal Use of Clinker ‘ undertaking where fly ash is added to cut down the sum of content of cinder, which is associated with high emanations. The undertaking reduces on-site emanations from clinkerisation and off-site emanations at thermic power workss for the grinding of blended cement, kiln operations and processing of additives per unit of cement produced. SCL has received 450,000 Certified Emission Reductions ( CERs ) for this undertaking.


India is the universe ‘s 8th largest manufacturer and 5th largest consumer of aluminum [ ref ] . Demand for aluminum is expected to turn by approximately 9 % per annum and Indian manufacturers are spread outing their production capacity [ ref ] .

Energy cost is about 35 % of the entire cost of production and efficiency nest eggs of 8-10 % are possible with new engineering [ ref ] . Options include:

Replacement of rotary kilns by Gas Suspension Calcinesr ;

Adoption of tube digestion systems ;

Execution of better agitation techniques ;

Use of big size filters and additives ;

Installation of home base heat money changers ; and

The execution of assorted energy salvaging steps in smelter operations.


India is the 3rd largest manufacturer and consumer of fertilizers in the universe, with the sector accounting for about 18.3 % of its industrial energy ingestion [ ref ] . Energy salvaging steps and efficient processing engineerings workss have improved energy efficiency over the past few decennaries ( see Case Study 7 ) . The entire GHG extenuation potency for the Indian fertilizer industry is estimated to be 34 MtCO2e with immense possible benefits under the CDM [ ref ] . The potency for energy nest eggs is estimated to be in the scope of 10-15 % , taking to considerable cost nest eggs. Switching production to outdo pattern in new workss can better the overall efficiency by 25 % with a corresponding lessening in GHG emanations of approximately 30 % [ ref ] . Tax returns on investing can be really high as illustrated in Case Study 7.

Case Study 7: Alteration in CO2 system in Indo-Gulf Fertilisers Ltd, Jagdishpur

Investings made by Indo-Gulf Fertilisers Ltd of INR 44.1 million [ US $ 980,000 ] to modify its CO2 systems have generated one-year nest eggs of INR 27.1 million [ US $ 600,000 ] and a payback period of 18 months.

Use of older coevals engineering meant that 32 metric tons per hr of steam was required for renewing CO2-loaded K2CO3 solution, but blinking at lower force per unit area generates steam and helps better regeneration. As a consequence, a low-pressure tower is used alternatively of a high-pressure tower. The new system required installing of extra equipment ( such as pumps, money changers and a brassy vas ) .

Pulp and Paper

The sector employs more than 1.5 million people and contributes INR 25 billion [ US $ 554 million ] to the authorities treasury [ ref ] . Per capita ingestion of paper is one of the lowest in the universe at merely seven kgs [ ref ] . This is set to increase tremendously with economic growing.

Paper fabrication is an energy-intensive procedure, with the mean energy cost for Indian Millss is around 20-25 % of the entire production cost. The fact that this figure is 12-14 % in the US and Scandinavia gives an indicant of the possible additions. Consumption of energy salvaging engineerings has been accelerated by regulative and policy accent on energy efficiency every bit good as attempts by the Indian Paper Manufacturers Association and research administrations such as the Central Pulp and Paper Research Institute. It is estimated that the energy salvaging possible for this industry in India is 20-25 % [ ref ] , while exchanging from coal to other lower C fuels and spread outing cogeneration would farther assist cut down emissions..

Case Study 8 gives an illustration of how engineering alteration can supply cost-efficient energy nest eggs.

Case Study 8: ITC

With a market capitalization of over $ 30 billion and a turnover of $ 6 billion, ITC is one of India ‘s foremost private-sector companies. The company ‘s concern encompasses fast-moving consumer goods, paper and packaging, agro-industry and nutrient, cordial reception and information engineering.

ITC is a innovator in sourcing cost-efficient, sustainable pulpwood. Its programme to 2008-09 benefited over 16,000 villagers and sequestered 3.7 Mt ( megatonne ) CO2, doing the division ‘Carbon Positive ‘ for the 4th twelvemonth in a row. The undertaking uses high-yielding, disease-resistant and site-specific ringers and helps make an expansive green screen that contributes to groundwater recharge, dirt preservation and C segregation [ ref ] .


The 2nd largest employer after agribusiness and lending approximately 27 % of national export net incomes, the sector histories for 10.9 % of the state ‘s entire commercial energy ingestion and has an energy preservation potency of around 20-25 % [ ref ] . The energy saved between 2002 and 2007, the period of the 10th Five Year Plan set by the Indian Planning Commission, was 877 MW. However, the mark for the 11th Five-Year Plan ( 2007-2012 ) is 10GW [ ref ] . The major energy-saving chances come from:

Installation of wireless frequence desiccants

Smaller wrap diameter spindles

Single-stage bleaching procedures

Use of rosin coating

Low-energy bleaching procedures

Low temperature hardening of pigment prints

Use of froth techniques for printing and coating.

Case Study 9: Energy preservation in Arvind Mills:

Established in 1930, Arvind Mills is the largest manufacturer of jean in the universe. The company has one of Asia ‘s largest wastewater contrary osmosis systems. It is the first jean factory in the universe to have Eco-Tex Certification from Germany.

A undertaking identified during an internal audit exercising involves interconnectedness of ACW and VAHP sumps and discharge lines so as to exchange off ACW system during favorable winter conditions. The benefits achieved in the undertaking include greater flexibleness of operation and nest eggs of 241,920 kWh of power per annum through efficiency that has resulted in nest eggs of 241,920 kWh of power per annum. The undertaking was executed in 2005 with an investing of INR 0.01 million that was to the full financed internally and ensuing in one-year nest eggs of INR 0.77 million and a payback of less than one month [ ref ] .