Interview with Oswald D’Souza: power quality is shifting from an operational expense to a strategic investment

Cospower Engineering Limited is a leading provider of power quality and electrical engineering solutions, serving industrial, infrastructure, commercial, and public sector customers across India. Founded in 2004 as a partnership firm by Oswald D’Souza and Felix Kadam, the company started in a small workshop in suburban Mumbai, before being incorporated as a private limited company in 2010 and converting into a public limited company in 2020. The company designs and manufactures reactive power compensation systems, harmonic filters, high and low tension capacitors, electrical panels, and substation structures, and has supplied its products to industries including steel, cement, textiles, ferro alloys, chemicals and fertilisers, oil and gas, and paper. As Indian industries continue to prioritise energy efficiency and reliable power systems, Power Peak Digest spoke with Oswald D’Souza, Whole-Time Director and Co-Founder, Cospower Engineering, on the company’s growth since its early years, its approach to power quality challenges, and the road ahead for reactive power compensation and harmonic mitigation in India.

1. The IMARC report projects the Indian power quality equipment market to grow from USD 637 million in 2025 to over USD 1 billion by 2034. What changes are you seeing on the ground that are driving this growth?

The power quality equipment market is expected to grow significantly in the coming years. In the past, power quality was often viewed as an operational expense and was prioritised only when major electrical issues or losses occurred. Today, it is increasingly recognised as a strategic investment, with businesses understanding that reliable and efficient power supply directly impacts productivity, equipment life and operating costs.

This shift is being driven by several structural changes. India’s manufacturing sector is expanding rapidly, supported by initiatives such as Make in India, while industries are simultaneously embracing automation, digitalisation and smart manufacturing technologies. At the same time, renewable energy integration is increasing, and rising electricity costs are encouraging businesses to focus more on energy efficiency and power optimisation.

Customer awareness has also evolved significantly. Earlier, most companies focused on improving power factor to avoid utility penalties. Today, discussions extend beyond power factor correction to include harmonics, voltage stability, grid stability, energy efficiency and overall power quality, as businesses recognise their impact on operational reliability and long-term performance.

2. Which industries are currently adopting power quality solutions the fastest? Is the demand primarily coming from new industrial projects or from retrofitting existing facilities?

Demand is coming from both greenfield projects and existing facilities, although the nature of the requirement differs. For example, new industrial projects are incorporating power quality solutions right from the design stage because they recognise that prevention is far more cost-effective than addressing problems after commissioning.

On the other hand, demand has increased significantly as older facilities upgrade their electrical infrastructure to accommodate automation, dynamic reactive power compensation, variable frequency drives, rooftop solar installations and higher connected loads.

The fastest adoption is currently coming from sectors such as data centres, automotive and EV manufacturing, electronics and semiconductors, pharmaceuticals and chemicals, and renewable energy. Solar, Battery Energy Storage System and wind projects have become especially important because maintaining grid stability and ensuring reliable operation require robust reactive power compensation and harmonic mitigation.

The increasing electrification of industrial processes and the growing dependence on sensitive electronic equipment mean that almost every industry now recognises power quality as a business necessity rather than optional.

3. What are the most common power quality issues you encounter in Indian industrial facilities today? How have these changed over the past five years?

Today, industrial facilities face a much broader range of power quality challenges, including harmonics, voltage fluctuations, load imbalances and transient disturbances. Automation and the wider use of variable frequency drives, robotics, UPS and other power electronic equipment have led to numerous electrical disturbances. Voltage fluctuations, load imbalances and frequent transients have also impacted production processes negatively.

The growing integration of renewable energy has added another layer of complexity, as solar plants and battery energy storage systems require more sophisticated power quality management to ensure uninterrupted operations.

4. How are technologies such as automation, rooftop solar, battery energy storage systems and EV charging infrastructure changing power quality requirements within industrial facilities?

The changes to the technological environment are transforming industrial power systems. Modern factories rely on power electronics much more than they did some ten years ago. Automation systems, robotics, and variable frequency drives make operations more efficient, but at the same time they produce harmful harmonics if they are distributed improperly.

Rooftop solar systems and battery energy storage systems have made power flow bidirectional, therefore more intelligent reactive power management is required. At the same time, the electric vehicle charging stations are responsible for creating new dynamic and fluctuating load profiles in commercial and industrial enterprises with a number of charging stations.

As a result, conventional power systems are no longer sufficient to meet today’s industrial power quality requirements. The modern companies need more integrated solutions that involve capacitor banks, harmonic filters, active power factor correction panels, and intelligent monitoring systems capable of responding to changing working conditions.

5. As renewable energy penetration increases, do you expect power quality challenges to become more significant for industrial consumers? If so, why?

Renewable energy developers and grid operators are responsible for ensuring that power supplied to the consumers is of good quality and free from excessive harmonic distortion by installing appropriate harmonic filters at their end.

However, when industrial consumers install renewable energy sources for captive power generation within their own facilities, they are likely to encounter power quality issues arising from harmonics and power electronic converters. As the adoption of captive renewable energy systems continues to grow, addressing power quality challenges through effective harmonic mitigation and reactive power compensation will become increasingly important in the years ahead.

6. In practical terms, how do harmonics, poor power factor and voltage fluctuations affect industrial operations, equipment performance and electricity costs? Could you explain the roles of power factor correction systems, harmonic filters and capacitor banks?

The quality of power affects the efficiency of operations and the cost of running businesses. Harmonics cause overheating of transformers, cables and motors, which leads to failures of equipment far too early, and outages at unexpected times. Voltage variations have an impact on processes which are sensitive to changes in supply voltage. Poor power factor creates the need for consuming reactive power, thus increasing the costs of electricity.

This is where power quality solutions play a critical role. Capacitor banks offer support in terms of reactive power and improve power factor in the system. Automatic Power Factor Correction (APFC) panels are used to continuously monitor the power factor and automatically switch capacitor banks in order to maintain the system’s optimal power factor. Harmonic filters help decrease frequency distortions caused by modern electric devices and at the same time improve the reliability of the system.

Integrated and hybrid solutions are the best way to see real energy efficiency, greater longevity of the equipment, lower operating costs and improved reliability.

7. What is the typical payback period for investments in power quality solutions? Beyond electricity savings, what business benefits do customers generally realise?

The payback period depends on the application and the customer’s load profile, but in most industrial installations, investments in power quality solutions typically deliver a payback within 6 to 12 months through lower electricity costs, reduced power factor penalties and improved energy efficiency.

Beyond direct savings, customers benefit from fewer equipment failures, efficient protection system reduced downtime, longer equipment life, improved process reliability and better productivity. Stable power quality also helps companies protect sensitive automation systems, maintain product quality and reduce maintenance costs, making these solutions a long-term investment in operational performance rather than simply an energy-saving measure.

8. Since Cospower’s establishment in 2004, how have customer requirements evolved? Are clients approaching power quality today for different reasons than they did a decade ago?

A decade ago, most customers approached us primarily to improve power factor and avoid utility penalties. Today, the conversation is far more strategic. Industries are looking for comprehensive power quality solutions that improve energy efficiency, equipment reliability and operational continuity.

With the growing adoption of automation, renewable energy and digitally controlled manufacturing, customers require solutions that ensure cleaner power, greater grid stability and more efficient electrical systems.

At Cospower, we have evolved alongside these changing requirements by expanding our manufacturing capabilities, introducing products such as Low Voltage Series Reactors, Damping Resistor strengthening in-house manufacturing and continuously investing in new technologies to offer a broader and more advanced product portfolio. This evolution enables us to address increasingly complex industrial power quality challenges.

9. Could you provide an overview of Cospower Engineering’s current product portfolio and the key industries it serves? Which product categories are seeing the strongest demand today? Are there any new products, technologies or business segments that Cospower plans to expand into over the next few years?

Cospower Engineering has evolved into a comprehensive power quality solutions provider with a strong focus on manufacturing and engineering. Our product portfolio includes Low Tension (LT) and High Tension (HT) capacitors, APFC, RTPFC and SVG panels, Active Filter, Passive Harmonic Filters turnkey power quality projects and hybrid solutions designed to meet diverse industrial requirements.

Over the years, we have expanded our manufacturing capabilities and strengthened our in-house production to enhance quality, efficiency and reliability. A key milestone has been the introduction of our Low Voltage Series Reactor, Damping Resistors reflecting our continued focus on innovation and product development. We have also built strong expertise in harmonic filters, power quality studies and customised engineering solutions to address increasingly complex electrical systems.

Our solutions are deployed across industries including steel, cement, oil & gas, fertilisers, pharmaceuticals, railways and renewable energy. Demand is particularly strong for APFC panels, capacitor banks, harmonic filters and solutions supporting renewable energy applications.

Looking ahead, we see significant opportunities in the renewable energy sector, where demand for advanced solutions continues to grow. Supported by our record turnover, a strong renewable energy order book and ongoing investments in manufacturing expansion and new product development, we are well positioned to meet the evolving needs of the industry.

10. Looking ahead, what trends do you expect to shape India’s power quality market over the next five years, and where do you see the biggest opportunities for industry?

Over the next five years, India’s power quality market will be shaped by the electrification of industry, grid modernisation, renewable energy expansion, Transmission of huge power through Statcom, data centres and digital manufacturing. As industrial operations become increasingly connected and energy-intensive, the need for reliable, efficient and intelligent power quality solutions will continue to grow.

These developments will drive greater demand for advanced reactive power compensation, harmonic mitigation and intelligent monitoring systems that can respond to changing operating conditions in real time.

We see the biggest opportunities in renewable energy, infrastructure, process industries and next-generation manufacturing, where reliable power quality will be essential for improving productivity, supporting sustainability goals and optimising operating costs. With continued investments in manufacturing capacity, product innovation and engineering capabilities, Cospower is well positioned to support these evolving industry requirements.