From Financialexpress · FE Bureau · · 1m 40s
Time for a heat pump mission
Heat pumps could slash India's oil imports by 50% with quick payback.
In brief
Heat pumps could slash India's oil imports by 50% with quick payback. India's heat pumps can cut oil and gas imports by 50% in industrial sectors with payback under three years. Originally reported by Financialexpress.
India's oil import bill
India spends hundreds of billions of dollars yearly on oil and gas imports, with the last financial year's net bill at $117.5 billion.
Hidden energy economy
About 40% of Indian industry's energy goes into generating heat, using diesel, furnace oil, LPG, and piped gas.
Heat pump efficiency
Heat pumps deliver two to four units of heat for every unit of electricity consumed, far more efficient than boilers.
Indian heat pump use
Largely Indian-made heat pumps already operate in automotive plants in Pune, pharmaceutical factories in Bengaluru, and textile plants near Bhubaneswar.
Cost savings
Heat pumps cut heating costs by 50 to 75% in industries, with payback periods under three years for low- to medium-temperature heat.
Market potential
India could install 50 gigawatts of heat-pump capacity over 15 years, reducing oil and gas use by 54 million tonnes of carbon dioxide annually by 2040.
Policy gap
India's heat-pump market is small due to upfront capital costs, low awareness, imported compressors, and lack of dedicated policy.
Policy solutions
Cutting GST on heat-pump water heaters from 18% to 5%, interest subvention for MSMEs, and production-linked incentives could close the policy gap.
The mission
India's factories, hotels, and homes prove heat pumps work here, the gap between 1 Gw and 50 Gw is a policy gap, not a technology gap.
At a glance
India's heat pumps can cut oil and gas imports by 50% in industrial sectors with payback under three years.
