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India’s Cement Industry to Add 4-5 GW RE Capacity by 2030
India's cement industry plans to add 4-5 GW of renewable energy capacity by 2030, investing over USD 4 billion. Current installations exceed 1,800 MW, focusing on solar and wind energy.
August 14, 2024. By EI News Network
India’s cement industry is poised to significantly increase its renewable energy capacity, with plans to add between 4 and 5 GW by 2030. This ambitious expansion will require an investment exceeding USD 4 billion, as per JMK Research.
It sadi that as of FY24, the sector has already made considerable strides, installing over 1,800 MW of renewable energy capacity, with about 58 percent from solar and wind. This push towards renewable energy is driven by the industry’s commitment to achieving net zero emissions by 2050, aligning with broader decarbonisation goals.
It also highilighted distinct challenges and opportunities faced by the sector during its shift towards renewable energy, depending on the type of cement manufacturing unit. The report said that the grinding units, which purchase electricity from the state grid at rates between INR 8 and 10 per unit, represent a significant opportunity for adopting renewable energy. These units will increasingly rely on energy storage systems (ESS) to ensure continuous operation as renewable energy penetration grows. The lack of thermal captive power plants (CPP) in these units further underscores the need for effective energy storage solutions to maintain operational stability.
In contrast, integrated cement units, which heavily depend on captive thermal power for the clinkerization process, face more significant hurdles in transitioning to green energy. It further pointed out that despite these challenges, innovative approaches, such as the electrification of rotary kilns, where the majority of emissions are produced, are expected to facilitate renewable energy adoption in these units. Overall, the cement industry, known for its high energy intensity, is on the cusp of a major transformation as it advances towards its net zero targets, reflecting a broader shift in industrial energy consumption in India.
It sadi that as of FY24, the sector has already made considerable strides, installing over 1,800 MW of renewable energy capacity, with about 58 percent from solar and wind. This push towards renewable energy is driven by the industry’s commitment to achieving net zero emissions by 2050, aligning with broader decarbonisation goals.
It also highilighted distinct challenges and opportunities faced by the sector during its shift towards renewable energy, depending on the type of cement manufacturing unit. The report said that the grinding units, which purchase electricity from the state grid at rates between INR 8 and 10 per unit, represent a significant opportunity for adopting renewable energy. These units will increasingly rely on energy storage systems (ESS) to ensure continuous operation as renewable energy penetration grows. The lack of thermal captive power plants (CPP) in these units further underscores the need for effective energy storage solutions to maintain operational stability.
In contrast, integrated cement units, which heavily depend on captive thermal power for the clinkerization process, face more significant hurdles in transitioning to green energy. It further pointed out that despite these challenges, innovative approaches, such as the electrification of rotary kilns, where the majority of emissions are produced, are expected to facilitate renewable energy adoption in these units. Overall, the cement industry, known for its high energy intensity, is on the cusp of a major transformation as it advances towards its net zero targets, reflecting a broader shift in industrial energy consumption in India.
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