Kunal A. Gadre , I. P. Keswani

Abstract

The rapid economic growth in India has significantly increased the energy demand in the country. The growing energy deficit coupled with fluctuating global energy prices has led to generate focus on energy efficiency as energy generation has its own limitations. Also there is increasing in need of minimizing carbon foot print due to global warming. In this direction, in order to improve energy efficiency, this thesis tracks limitations of energy auditing, factors affecting energy auditing and way forward to maximize implementation of energy conservation projects. Further this thesis leads to track the growth of the Energy Service Companies (ESCOs) in India during the last couple of decades. It also identifies the growth potential of the ESCO industry and the associated growth drivers. Thesis further explains the major growth barriers and the way forward for the ESCO industry. It has been observed that conventional energy audits give a broad idea on how to save energy. In the form of Detailed Energy Audit Report, it gets documented; here savings are calculated and presented in most lucrative ways. Unless implemented, savings calculated on paper remains on paper. In contrast, the industry wants to save on energy consumption significantly. After such a herculean task (as felt by industry) the biggest uncertainty lies on the point “whether the savings will happen or not”. So, there is a need to find suitable solution. This study finds that now the time has reached to opt for ESCO centric implementation of energy conservation projects and thus achieving substantial reduction in energy consumption and its cost. Energy Service Company (ESCO), the term itself recites that its core business is to deliver energy savings and not primarily sell of energy efficient equipments or projects. ESCO gain is through a part of energy cost saved for its clients thus whole risk bearer is ESCO.