India could be spending around $5 billion (£3.4bn) on energy efficiency projects by 2020.
That is the estimated amount to be invested through the government’s Perform-Achieve-Trade (PAT) scheme, according to a report by consultancy Sustainable Outlook.
The PAT scheme was launched in 2008 and aims to increase energy efficiency in industries by trading energy saving certificates in power intensive sectors.
The goal is to make the iron, steel, aluminium, cement and fertiliser industries – which account for 60% of India’s primary energy consumption in 478 covered facilities – more efficient.
The majority of the investment would be spent in specific process innovation techniques, stated the report.
Technologies such as variable frequency drives and waste heat recovery systems are said to account for 21% and 24% of the potential investment.