The Hindu Business Line : 126 cos saved Rs 450 cr a year through energy saving measures: CII

MORE than 100 companies across a range of industries have saved at least Rs 450 crore annually, for the past three years, through energy conservation, according to the Confederation of Indian Industry.

Another 550 units have achieved annual recurring savings of Rs 155 crore through energy audits conducted by the CII.

Sharing these figures with the press on Thursday, Mr Pradeep Dhobale, Chief Executive, ITC Ltd - Paperboards & Specialty Papers Division, and Chairman, energy and environment sub-committee, CII - Southern Region (CII-SR), said that the figure of Rs 450 crore annual savings had been arrived at during presentations made by 126 companies for the national award for excellence in energy management.

The saving options: These 126 companies, he said, were from sectors such as cement, pulp and paper, refineries and steel plants. They had reduced their energy consumption either by completely changing the process technology or by using energy efficient equipment like pumps or lighting systems. The first instance was capital intensive but reduced power consumption by 30-40 per cent. The second option, while not being as expensive, resulted in energy consumption coming down by 10 per cent. "The thumb rule is that you walk into any office, you can save 10 per cent energy by relatively small capital investment," Mr Dhobale said.

These companies had told the CII during their presentations that the payback period for their investments in reducing energy consumption was two years. They would have invested about Rs 900 crore, he said.

Energy audit: The CII, he said, was involved in conducting energy audits in process industries to transform them into world class units as far as specific energy consumption — energy consumed for one tonne of finished product — was concerned. The CII was working with the cement industry and would extend it to power plants, pulp and paper, and automotive industries.

Mr Dhobale said it was lot cheaper to save power than to add generating capacity. The installed capacity in the country was now over 110,000 MW and with demand growing by 10 per cent annually, the generating capacity would have to increase up by at least 10,000 MW every year. However, given the "dismal" track record in adding capacity, energy saving and conservation gained importance. It was expected that the Bureau of Energy Efficiency would come out with energy consumption norms for offices, hotels and business process outsourcing units.

The Electricity Act 2003 offered scope for open access and captive power generation. However, the State utilities had to frame rules for offering open access while some States were levying a cess on captive generation, which would make it unattractive.

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126 cos saved Rs 450 cr a year through energy saving measures: CII