Evaluating Industrial Energy Efficiency A Study of Haryana’s Manufacturing Sector

Abstract

India has identified the manufacturing sector as having a crucial role in its growth strategy for the future and has experienced greater growth in energy demand compared to other sectors. This sector alone consumes 41 per cent of the country's total energy. The manufacturing sector in Haryana is a key driver of the state's economy. Haryana has established itself as a prominent industrial hub, and almost all types of manufacturing industries are in Haryana (Annual Survey of Industries (ASI), (MOSPI), 2021 -22). However, to achieve the joint goals of accelerated industrial growth, sustainable energy demand and supply, and minimal environmental degradation, the manufacturing sector needs to improve its energy efficiency. To achieve this goal significant research and development efforts are needed to identify existing energy use inefficiencies and highly intensive industries in the sector and potential avenues for mitigating them. This study adopts an exploratory and descriptive research design to evaluate energy intensity across various sectors. The data has been taken from ASI. The study covers a time span of 14 years, from 2008-09 to 2021-22. Energy intensity has been measured as the ratio of fuel expenditure to the value of output. Few industries out of the 71 manufacturing industries were selected because of their high energy intensity. The study also includes calculations of the Compound Annual Growth Rate (CAGR), descriptive analysis, and the share of total output and total energy consumption of these selected industries relative to all manufacturing industries. The findings reveal that the industries with the highest energy intensity are NIC-231 (Glass and Glass Products), NIC-201 (Basic Chemicals, Fertilizers, and Plastics), NIC-239 (Non-Metallic Mineral Products), and NIC-192 (Refined Petroleum Products). NIC-192 also leads in high energy consumption and total output and has the highest CAGR in both total energy consumption and total output, along with notable variability in energy use. NIC-241 (Basic Iron and Steel) has high total output.