Rs.34,000 Crore Energy Efficiency Investment Opportunity Awaits Indian Industry

Industrial Energy efficiency is Rs 34,000 crore market with cross sectoral interventions such as Variable Frequency Drives (VFD), Waste Heat Recovery Systems (WHR) accounting for 21% and 24% of the estimated investment potential respectively and key sectoral BATs accounting for 52% according to a detailed bottom-up model created by Sustainability Outlook and AEEE to assess the investment opportunity in PAT sectors (excluding thermal power sector). Enhanced technical competencies of service providers, need for market making mechanism and robust ESCO financing models are ingredients for faster scaling up of energy efficiency investments, are some of the key focus areas highlighted in the May issue of PAT Pulse for realizing this potential. 

According to Dr. Satish Kumar, Executive Chairman, AEEE, ““The quantification of the potential market size for industrial energy efficiency investments for the key PAT sectors apart from thermal power sector would help in a) PAT scheme being viewed as a market development mechanism and increase the focus of industries on process and ecosystem innovation instead of adopting the business as usual approach; b) the development of energy services market as both ESCOs and Financial Institutions would scale up their offerings to serve this key market.”

The January 2016 issue of PAT Pulse assessed the types of projects that were undertaken by Designated consumers (DCs) in Phase 1 and found that almost 60% of projects carried out were relevant across sectors (and not sector specific) and were characterized by low capital investment and small payback period. The May issue elaborates that as the industry moves to the next PAT cycle, the trend of investment will switch from cross-sectoral techniques and the focus will tilt towards process improvements.   

As per Mr. Shashank Jain, Programme Manager (Industry), Shakti Sustainable Energy Foundation, “This energy saving potential will have a repercussive impact on Indian society. Exploiting it will not only move the country towards energy security but also bring in large economic gains in terms of reduced energy import, increase in GDP and creation of new job opportunities. The co-benefit of reduced GHG emission due to this will be icing on the cake”

“The key to realizing enormous investment opportunity presented by energy efficiency interventions in Indian industry is to align the ecosystem  including technology and service providers, financial Institutions and industry so as to create a conducive environment for investing”  according to Aparna Khandelwal, Sr. Engagement Manager, Sustainability Outlook. 

The May issue of PAT Pulse also provides updates policy regarding terms and Conditions for Exchange of Energy Savings Certificates and the roles of multiple entities associated with the trading. It also provides a sneak peek into some of the upcoming innovative solutions such as IoT (Internet of Things) driven lighting and process automation, coating process for textiles, power converters and CO2 recovery solutions.  

The complete issue of PAT Pulse is available for download here

PAT Pulse, a quarterly briefing series on PAT with DCs, policy makers, catalysts and industry experts to capture the pulse of the energy efficiency market in India has been produced by Sustainability Outlook and Alliance for Energy Efficient Economy (AEEE) in collaboration with Shakti Sustainable Energy Foundation. The objective of  PAT Pulse is to provide evidence based, market assessment tool to present the stakeholder view point, enable higher uptake of PAT through peer learning and incubate industry and policy action on energy efficiency.

About Sustainability Outlook
Sustainability Outlook, a division of cKinetics, is a market intelligence, discovery and collaboration platform facilitating sustainability linked actions amongst businesses, policy makers and investors. Sustainability Outlook actively tracks and provides market insights in resource management with focus on policy, technology and finance to work towards creating closed loop systems.  Solutions offered by Sustainability Outlook include State of Sector Reports, Market development platforms, tools and frameworks for enabling and promoting resource sustainability within the industry, Regulatory and policy analysis and Resource inventorization studies amongst others.
http://sustainabilityoutlook.in

About Alliance for Energy Efficient Economy (AEEE)
AEEE is an industry association created for the specific purpose of convening companies and organizations (manufacturing companies, end users, service providers, utilities, academic and R&D institutes and other non-profit organisations) interested in creating a thriving energy efficiency sector in India and providing a unique platform to actively participate and support in energy efficiency policy formulation and analysis.
http://aeee.in/

About Shakti Sustainable Energy Foundation
Shakti Sustainable Energy Foundation works to strengthen the energy security of India by aiding the design and implementation of policies that support energy efficiency and renewable energy
http://shaktifoundation.in/
 

Contact Information

Anushua Chowdhury

Analyst

Sustainability Outlook

(91) 11.4050.7277

achowdhury@sustainabilityoutlook.in