Renewable energy could cut India’s heavy industry emissions by 17% by 2030

Electrification based on renewable energy sources could play a key role in avoiding 17% of projected carbon dioxide emissions from India’s heavy industry by 2030, according to a new report by energy think tank Ember.

The report identifies possible short-term and long-term strategies to split emissions as India negotiates mechanisms with the EU bloc to align with the Carbon Border Adjustment Mechanism (CBAM). CBAM is a regulatory framework that imposes a carbon tariff on imports into the EU.

To completely eliminate carbon emissions from electricity consumption and remain competitive in the global market, Indian heavy industry will need 120 GW of dedicated renewable energy capacity by 2030.

The report focuses on the steel, cement, petrochemicals, aluminum and ammonia sectors. Decarbonizing these carbon-intensive “heavy” industries has the potential to significantly benefit both the Indian industrial sector and the renewable energy ecosystem.

Currently, 11% of energy consumption in heavy industry comes from electricity, with the remainder from heat generated from fossil fuels.

Based on industry development forecasts, electricity demand in heavy industry is expected to increase by 45%.

Meeting this increased demand with renewable energy could help avoid 180 million tonnes (Mt) of CO2 emissions, equivalent to the total annual emissions of the Netherlands.

Duttatreya Das, an independent consultant and lead author of the report, said: “In addition to being one of the most promising levers for industrial decarbonization, renewable electrification offers many additional benefits.”

“It allows industry to benefit from cheap renewable energy, improves network flexibility and, most importantly, improves air quality in industrial facilities. Immediately switching to renewable energy sources and ensuring clean air in industrial facilities must be a people-first strategy for heavy industry, says Das.

The report states that for the deep decarbonization of the industry in the long term, it is crucial that key technologies for the electrification of thermal processes become commercially viable. If these new technologies and the government’s green hydrogen mission are successful, the share of electricity in the industrial energy mix could triple by 2050, reaching around 700 GW and avoiding 737 Mt of emissions.

However, developing these technologies to achieve commercial viability and widespread implementation remains a challenge, the report adds.

Aditya Lolla, Asia Programme Director at Ember, said: “With emissions-related trade regulations such as CBAM expected to come into force soon, understanding the potential for near-term emission reductions is critical for India’s heavy industry. Renewable electrification also offers many co-benefits to India’s broader energy ecosystem. It can open up multi-billion dollar opportunities for private investment, boost India’s clean energy sector and propel India towards becoming a global leader in clean energy.