that is, a reduction in the material-intensity (and thus the energy-intensity) of production, is another main measure which can be adopted through industries. It involves
1 Reduction in the material content of products, for example, in car bodies or drinks cans, where thinner metals can be used without any reduction in the needed strength;
2 Substitution of less energy-intensive materials, as in the use of plastics on the other hand of steel for car bumpers/bodies.
Although, the application of DSM ideas to the industrial sector is still extremely limited though it holds large potential especially in the context of implementation of Energy Conservation Act, 2001 in sectors such as cement, chlor alkali, steel, paper, fertilizer, aluminium, textile, etc. It is expected that DSM activities would receive a boost under the EC Act and power utilities would be able to capture a vital role for overseeing the implementation and verification of savings. By now, you might be wondering: Why do majority of industrial firms not take benefits of the opportunities for energy savings available in the industrial sector? We list some of the purpose below.
a.) Energy costs are commonly a small fraction of the total industrial costs. This means in which the typical firms pay only limited attention to their energy bills.
b.) For most firms, capital is scarce. Energy-efficiency projects are considered non-strategic and take low priority while industrial firms allocate capital.
c.) The links among improvement in energy efficiency and improvements in plant productivity, environmental emission requirements, product quality, and labour and materials efficiency are commonly not well understood. Besides, relevant details are not frequent shared in the public domain.
The complex issues impacting the industrial sector have to be addressed at many levels including the specific sector associations, academics and researchers besides the industry experts. Perhaps, BEE would be able to address this issue as a kind of its mandate. We end this section through presenting an example of DSM implementation through a power utility in an industry.