Functional Information for SMEs : Energy Conservation
The industrial sector uses about 50% of the total commercial energy available in India. Of the commercial sources of energy, coal, lignite, and oil and natural gas are mainly used. The Indian energy sector is highly energy intensive and efficiency is well below that of other industrialized countries. Efforts are made on a regular basis to promote energy conservation in these countries as this will help reduce the cost of production.

There is considerable scope for improving energy efficiency in industries dealing with iron and steel, chemicals, cement, pulp and paper, fertilizers, textiles, etc. If such industries can promote energy conservation, it could lead to substantial reduction in their costs of production.

Energy management is very important as all well-planned actions can help reduce an organization’s energy bills and minimize the damage it does to the environment. The two main energy management strategies are conservation and efficiency. This requires the establishment of a system of collection, analysis, and reporting on the organization’s energy consumption and costs.

In the industrial sector, the major consumers of energy are fertilizer, textile, sugar, cement, and steel. It has been estimated that the total conservation potential of this sector is around 25% of the total energy used by it.

Conservation initiatives

Conservation of energy in different industrial equipment/applications

What the industries should do

Lighting options

Energy Conservation Act, 2001

Click on the logo for Energy Conservation Act, 2001