Assessment of energy efficiency improvement and CO2 emission reduction potentials in Indiaʹs cement and iron & steel industries

Indiaʹs cement industry accounted for over six percent of the worldʹs annual cement production and its iron and steel industry accounted for nearly five percent of the worldʹs annual steel production in 2010. We analyzed 22 and 25 energy efficiency measures applicable to Indiaʹs cement and iron and steel industries. A forward looking bottom-up Conservation Supply Curve (CSC) model utilizes forecasted Indian cement and iron and steel demand, current adoption estimates for energy efficiency measures, and a stock roll-over methodology for each industry. From 2010 to 2030 cumulative cost-effective electricity savings are 83 TWh, with an associated 82 Mt CO2 emissions reduction; and cumulative cost-effective fuel savings are 1029 PJ, with associated CO2 emission reduction of 97 Mt CO2 for Indiaʹs cement industry. In India steel sector, cumulative cost-effective electricity savings are 66 TWh, with an associated 65 Mt CO2 emissions reduction; and cumulative cost-effective fuel savings are 768 PJ, with associated CO2 emission reduction of 67 Mt CO2. The estimates from this study give a comprehensive perspective to the Indian cement and iron and steel industries and policy makers about the energy efficiency potential and its associated costs over the next twenty years.