Energy Management in the Large-Scale Manufacturing (LSM) Industries of Pakistan; Current Status, Barriers and Drivers /

Abstract

The industrial sector of Pakistan is the largest consumer of energy and accounts for 37% of the total energy consumed in the country. The sector is witnessing a growing demand for energy which is expected to accelerate even further due to the expanded industrial activity under China Pakistan Economic Corridor (CPEC) project. Moreover, circular debt in the power sector, the weak financial condition of energy firms, high dependency on fossil fuel imports (85% of crude oil and POL demand) and decline in domestic gas output aggravates the energy problem. Several studies have found that increased energy generation is not the only way to solve such issues; effective energy management is also important for sustainable development. Pakistan is one of those countries that still lack a standardized management framework for energy. The aim of this study was to evaluate the level of implementation of energy management practices, barriers that hinder energy efficiency improvements, and drivers which boost the adoption of energy efficiency measures in the industry. The focus of this research is the Large-Scale Manufacturing (LSM) industries, the most important industrial sector of the country. A systematic survey was conducted in 90 LSM industries from 13 major industrial subsectors. Based on the minimum requirements outlined by the study, only 20% of industries were found to practicing energy management. Financial constraints, absence of incentives from the government, and lack of staff awareness were highlighted as the most notable barriers to energy management activities. The cost savings resulting from efficient use of energy and top management commitment were found as the greatest driving forces for industrial energy efficiency improvement. The findings of this would be useful to business decision-makers and government policymakers.