Cement industry to add 4-5 GW renewable energy by 2030

India’s cement sector plans to add 4-5 GW of renewable energy capacity by 2030, requiring an investment of over $4 billion, according to JMK Research. As of FY24, leading cement companies have installed over 1,800 MW of renewable energy, with 58% sourced from solar and wind.

The report highlights the distinct decarbonisation opportunities and challenges faced by integrated and grinding cement manufacturing units. Grinding units, which purchase electricity from the state grid at Rs 8-10 per unit, represent a significant opportunity for renewable energy adoption. However, as renewable energy penetration increases, energy storage systems (ESS) become essential for grinding units to meet their continuous operation needs due to the lack of thermal captive power plants (CPP).

Integrated units, which rely heavily on captive thermal CPP for the energy-intensive clinkerization process, find the shift to green energy more challenging compared to grinding units. Despite this, innovative solutions like the electrification of rotary kilns, where most emissions occur, are expected to drive renewable energy adoption in integrated units.

The report emphasizes that India’s cement industry, one of the country’s most energy-intensive sectors, stands on the brink of a significant transformation. Leading cement companies are committed to decarbonizing their operations and achieving Net Zero targets, with most aiming to reach net zero by 2050.