What does replacing an old SCR induction furnace save in kWh per tonne?
In a Raipur steel unit TERI reported in June 2026, a 12 t furnace measured at 842 kWh per tonne of liquid metal was replaced by a new one measuring 792. That 50 kWh a tonne came to about 14.4 lakh kWh and Rs 86 lakh a year, for Rs 180 lakh: a 2.1 year payback.
The case in numbers
- Two SCR controlled induction furnaces of 12 t a heat; one audited at 842 kWh per tonne of liquid metal.
- TERI's recommended level for that furnace: 750 kWh per tonne.
- New furnace of the same rating, still SCR type: 792 kWh per tonne after installation.
- Saving: about 14.4 lakh kWh a year, Rs 86 lakh; cost Rs 180 lakh. The second furnace is being replaced too.
What the numbers imply
14.4 lakh kWh over a 50 kWh per tonne gain means the furnace melts about 28,800 t a year. Power cost about Rs 6 a kWh. And the new furnace is still 42 kWh above the 750 benchmark, so charge practice, superheat and lid use are worth checking next. A new furnace sets a better ceiling; operating discipline decides where you land under it.
Your own before and after
- Fit or read a dedicated kWh meter on the furnace panel, not just the main bill.
- For a month, record kWh and tonnes tapped for every heat, with charge mix (scrap or sponge iron).
- Repeat after commissioning at a similar charge mix.
- Compare kWh per tonne of liquid metal, which is the figure a lender or energy auditor will ask for.
CBAM and your footprint
For iron and steel goods, CBAM leaves electricity out of the embedded emissions, so this saving does not lower a billet's CBAM figure. It does lower your Scope 2 and the footprint buyers in India and abroad ask for, and it is the kind of measured efficiency gain lenders look at for energy efficiency loans.
The Raipur furnace, CO2 a year (estimate)
- Saving: 14.4 lakh kWh x 0.675 kg = 972 t CO2 a year
- TERI reported 1,138 t at an older grid factor
- Per tonne of liquid metal: 50 kWh x 0.675 = 33.8 kg CO2 less
Case data from the SAMEEEKSHA newsletter, June 2026 (TERI). The unit is not named in the source. Annual tonnage is derived from the reported saving. CEA FY 2025-26 grid factor.
What Senseible does here
Senseible reads your monthly electricity bills into CO2 per tonne melted, so the before and after for a loan or a buyer is traced to each bill.
- Check green loan readiness
- Induction furnace kWh benchmark
- Green loan for a furnace upgrade
- Scrap shearing and furnace power
Sources: SAMEEEKSHA newsletter, June 2026: secondary steel case studies (TERI).pdf), Regulation (EU) 2023/956 establishing CBAM, consolidated, CEA, CO2 Baseline Database for the Indian Power Sector, version 22.0
Last reviewed 2026-11-01.