A new report from Siemens Financial Services illustrates the enormous cost saving potential in industrial sector through the use of energy-efficient technologies. Industrial enterprises could save crores of rupees on their electricity bills by implementing variable speed drives (VSDs) on motors in their production environment. A new report from Siemens Financial Services (SFS) has calculated that up to Rs 36,600 crore of energy cost savings could be gained by industry with the full implementation of VSDs over the next five years.

VSDs optimise the voltage and frequency supply to an industrial motor to change its speed of operation, rather than the traditional method of "choking" constant speed motors, thus greatly reducing consumption of electricity. Electric motor systems use approximately 40 per cent of total global electricity (according to Electric Motor Systems Motor Policy Guide published in January 2011).