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This is despite the fact that energy saving initiatives can reduce revenue expenditure over the whole organization with very low capital investment requirements and can continue to do so over a very long period.Among the reasons given for this has been shortage of capital to invest and short-term company policies and it has been difficult for energy managers to gain the necessary support for energy saving projects.
The fact that electricity is the only practical form of energy does not mean that it should be used without proper consideration.
While thermal savings are keenly monitored and can readily be measured, much less attention has been paid to the money that can be saved by attention to the design, specification and installation of electrical plant and power systems.
India is one of the many developing countries, which is suffering from acute power shortages.
Almost all the states of India are not able to manage the demand from the three main sectors, viz., domestic, agriculture and industrial sectors.
On the other hand, cables are least efficient when fully loaded, so generous rating of cables can substantially reduce running costs.
Power losses in electrical equipment are due to the electrical resistance in conductors and losses in the magnetic material and occur primarily in motors, transformers and in all cabling.
This is in addition to the energy wasted by running equipment for longer than necessary.
Electricity is the most expensive form of energy available – about 8 times the cost of coal and six times the cost of gas – this expensive fuel must be used wisely.
No organization, whatever its size, can afford to overlook the improvement in profit and competitive position which can be achieved from the careful and thorough application of energy saving initiatives.
When investment opportunities are being assessed and compared by management, energy saving initiatives are too often given a much lower priority than production and development projects.