Power loss causes USD 68 bn GDP loss; biz spend Rs 3.4 cr annually on energy
Updated: Oct 05, 2013 03:07:21pm
New Delhi, Oct 5 (KNN) Power losses have cost India a GDP loss of USD 68 billion annually and businesses including small and medium enterprises (SMEs) annually spend an average of Rs 3.4 crore on energy, according to a study.
The Schneider Electric India, in partnership with AEEE (Alliance for an Energy Efficient Economy) had conducted a national study on the energy consumption profile of Indian businesses and drivers for clean energy investment.
The survey conducted in September involved 300 respondents including small and medium enterprises across metro and Tier II cities in India providing details on how they look at their energy consumption.
Unveiling the study, Managing Director and Country President, Schneider Electric India, Anil Chaudhry said, “We’re seeing rising energy costs impact bottom-lines across the industries in the country, especially impacting the SME sector. Rising energy costs is further compounded by lack of reliable grid supply.”
According to industry reports, power losses are reportedly costing India a GDP loss of USD 68 Bn annually. In such a situation, we are seeing that industrial consumers of power are keen to embrace new solutions on energy efficiency and management that can bring down costs or at least keep them constant.
According to the study, businesses in metro cities spend more on energy compared to the businesses in non-metro areas.
“The average annual energy spends of the respondents was INR 3.4 crores, out of which businesses spend approximately INR 1 crore on diesel as fuel for generators and other processes,” revealed the study.
Electricity and diesel are the two most common sources of energy identified by the respondents and they pay three times more per kilowatt-hour from diesel as compared to the average electricity tariff from the grid.
“60 per cent of the respondents did not have someone in the organization responsible for energy management,” the study said.
Approximately 55 per cent of the respondents do not track their energy use in terms of specific energy use or energy use intensity metrics. Of the ones that did track their energy use intensity, the most common ways of tracking energy spend are rupees spent per unit manufactured per year, or kilowatt-hours of energy consumed per unit manufactured per year.
According to the survey, nearly one third of the respondents wanted to reduce their energy costs, but did not have a goal for doing so.
The cities included in the study are four metros - Delhi, Mumbai, Bangalore and Kolkata and eight Tier II cities - Ludhiana, Jaipur, Rajkot, Nasik, Lucknow, Vijayawada, Kochi and Patna.
170 (57 per cent) respondents belonged to the manufacturing and also small business sector, 110 (37 per cent) respondents were from the building and construction sector, and the balance 6 per cent represented miscellaneous industry.
Sub-sets of industry verticals included food and beverage companies, textiles, automobiles and auto ancillaries, pharma and the building and construction sector.
Nearly 80 per cent of the respondents were small and medium businesses, with over 50 responses from large enterprises. 54 per cent of the respondents were from Metros, while the rest belonged to Tier II cities. (KNN/SD)
The Schneider Electric India, in partnership with AEEE (Alliance for an Energy Efficient Economy) had conducted a national study on the energy consumption profile of Indian businesses and drivers for clean energy investment.
The survey conducted in September involved 300 respondents including small and medium enterprises across metro and Tier II cities in India providing details on how they look at their energy consumption.
Unveiling the study, Managing Director and Country President, Schneider Electric India, Anil Chaudhry said, “We’re seeing rising energy costs impact bottom-lines across the industries in the country, especially impacting the SME sector. Rising energy costs is further compounded by lack of reliable grid supply.”
According to industry reports, power losses are reportedly costing India a GDP loss of USD 68 Bn annually. In such a situation, we are seeing that industrial consumers of power are keen to embrace new solutions on energy efficiency and management that can bring down costs or at least keep them constant.
According to the study, businesses in metro cities spend more on energy compared to the businesses in non-metro areas.
“The average annual energy spends of the respondents was INR 3.4 crores, out of which businesses spend approximately INR 1 crore on diesel as fuel for generators and other processes,” revealed the study.
Electricity and diesel are the two most common sources of energy identified by the respondents and they pay three times more per kilowatt-hour from diesel as compared to the average electricity tariff from the grid.
“60 per cent of the respondents did not have someone in the organization responsible for energy management,” the study said.
Approximately 55 per cent of the respondents do not track their energy use in terms of specific energy use or energy use intensity metrics. Of the ones that did track their energy use intensity, the most common ways of tracking energy spend are rupees spent per unit manufactured per year, or kilowatt-hours of energy consumed per unit manufactured per year.
According to the survey, nearly one third of the respondents wanted to reduce their energy costs, but did not have a goal for doing so.
The cities included in the study are four metros - Delhi, Mumbai, Bangalore and Kolkata and eight Tier II cities - Ludhiana, Jaipur, Rajkot, Nasik, Lucknow, Vijayawada, Kochi and Patna.
170 (57 per cent) respondents belonged to the manufacturing and also small business sector, 110 (37 per cent) respondents were from the building and construction sector, and the balance 6 per cent represented miscellaneous industry.
Sub-sets of industry verticals included food and beverage companies, textiles, automobiles and auto ancillaries, pharma and the building and construction sector.
Nearly 80 per cent of the respondents were small and medium businesses, with over 50 responses from large enterprises. 54 per cent of the respondents were from Metros, while the rest belonged to Tier II cities. (KNN/SD)
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