ABB’s Energy Efficiency Investment Survey 2022 found that 32% of companies plan to improve their energy efficiency this year. 7 out 10 companies are also upgrading their equipment to achieve best-in class energy efficiency ratings. Half of those planning or investing in energy efficiency identified production as their top priority area. Facilities, such as lighting and HVAC, were next.
In the wake of a UN report, which called for countries to take concerted actions to reduce greenhouse gas emissions faster, the Energy Efficiency Investment Survey 2022 was created. India pledged to combat climate change last year at the Glasgow COP26 conference. It also promised to reduce its greenhouse gas emissions by net zero by 2070 and to achieve 50% renewable energy by 2030. This is consistent with the survey’s key findings, which reveal that Indian industries are investing more in energy efficiency over the next five year as the race to Net Zero intensifies.
The results showed that large numbers of companies feel confident about investing in energy-efficient technology, putting India on the right path to fulfilling its ‘Panchamrit” promise to meet five key commitments to combat climate change. This is great news for the environment, people and industries. This is a commitment to make this a reality for customers and partners in India. We will continue to accelerate decarbonization through smart, energy efficient solutions that are tailored to customer needs,” stated Sanjeev Arora, President, Motion Business Area, ABB India.
Here are more key findings from India
- 63% of respondents plan to reach their Net Zero targets in 5 years
- 90% of respondents say rising energy prices are at most a minor threat their profitability. This highlights the importance of energy efficiency
- Energy usage accounts for approximately 23% of annual operating expenses
- The main drivers for energy efficiency investments were cost savings, corporate sustainability engagements, and improved competitiveness.
- Only 32% of people plan to make energy efficiency improvements in the current year, with 61% planning to do so within the next 2 or 3 years.
- Half of those who plan to invest or are investing in production emphasized the importance of making their energy use more efficient.
- 72% of the equipment being upgraded to achieve best-in class energy efficiency ratings in order to be more efficient
- 94% of respondents expect that their investment in energy efficiency will increase over the next five years.
The global survey was carried out as a part of the #energyefficiencymovement, a multi-stakeholder initiative launched by ABB in 2021. Sapio Research conducted the interviews online in February 2022. The survey targeted 2,294 companies from 13 countries, including India. They ranged in size from 500 to more than 5,000 employees. The survey was completed by 254 Indian companies. 71% of them were in the manufacturing sector. 9% belonged the transportation and heavy industry, while the rest belonged the energy generation or light industries.