Introduction

In developing as well as developed countries, industrial energy constitutes the largest portion of total energy consumption. Depending on the extent of industrialization, this quantity will vary. The higher the degree of industrialization is, the greater will be the industrial energy consumption. Considerable hydrocarbon resources are used, both as feedstocks and as fuel, in power generation, fertilizer, petrochemical, refining, and other industries. A typical sector-wise energy consumption breakup is shown in figure 1-1. Energy consumption by the industrial and transport sectors constitutes more than 60% of energy consumption. From the standpoint of energy management, these two sectors should be given priority over others. Industrial energy consumption will be greater in highly industrialized countries like Japan. There is a strong relationship between per capita energy consumption and national productivity, which is expressed by the per capita gross national product (GNP). Hence, energy efficiency improvement has a direct impact on energy productivity and GNP growth, besides reducing environmental pollution.

Figure 1-1: Typical sector-wise energy consumption pattern developing country

The energy consumption pattern is dynamic and varies with the industrialization level, population growth, agricultural production, and standard of living of the country. From the point of view of energy efficiency improvement and optimization, it is essential to identify the energy-consuming sector and accord priority based on the consumption level. Not only is this approach more result oriented, but it will yield fast results. In the industrial and transport sectors, for example, energy efficiency improvement must be accorded priority. If x represents the...