A big jump in energy conservation can be achieved by adopting latest technologies and switching over to energy saving devices, he said in his address at the seminar on energy conservation organised by CII southern region and Tamil Nadu Electricity Board.

India has a long way to go before becoming a major global player. India does not have the technology advantage nor many internationally acclaimed brands. It is `still a very inefficient producer and not a globally benchmarked processor', he said.

The industrial sector is the largest consumer of electrical energy, accounting for 50 per cent of the total electricity produced. It is estimated that73 per cent of industrial consumption is by electric motors, 11 per cent for electrolysis process, nine per cent for lighting, three per cent for electric arc furnaces and four per cent for others.

According to a study presented by G Sivakumar, senior executive (energy management), Crompton Greaves Ltd, the total cost of energy as a percentage of total cost varies from 10 per cent based on the industrial sector. It has been proved by actual studies, that a reduction in energy consumption by about 10-15 per cent is realisable by implementing various energy conservation measures at unit level.

The return on investment on energy conservation at 50 per cent to 75 per cent is said to be more profitable than expansion, modernisation or diversification.The other incidental benefits include lower production cost and higher profits, better competitive position, improved ability to withstand future energy cost increase or energy curtailment, improvement in productivity and above all reduction in the damage toenvironment.

Need for energy service companies

Energy conservation plans are slow to take off owing to reason like lower priority in the organisation, perceived risk of failure and lack of required expertise. All these barriers could be overcome by `Energy Service Companies' (ESCOs) as in the developed countries.

ESCOs make energy efficiency happen at the customer's facility and get paid for it from the savings achieved. The user organisation can go on with its own core business. ESCOs will upgrade facilities with no front-end cost, cut operating cost, capture a positive cash flow from wasted energy, guarantee results and shed risks.