Indian aluminium’s RE open access as a part of heavy industries to benefit net-zero goals

In the dynamic industrial landscape of India, heavy industries such as aluminium, steel, and cement are on the brink of a renewable revolution. Traditionally reliant on captive coal generation, these sectors now face a transformative 20 GW solar open access opportunity, a prospect that promises to slash production costs and reduce carbon emissions by up to 29 million tonnes annually. For instance, the steel sector alone, which contributes around 9.4 GW to this market, could see production costs drop by up to 10 per cent in setups like standalone arc furnaces, thanks to a shift from expensive grid power to open-access solar. Meanwhile, cement and aluminium, despite their ongoing reliance on captive coal, add another 11 GW to the potential.

Aluminium, a cornerstone of India’s power sector, is widely used in overhead conductors, power cables, aircraft, building materials, and even consumer appliances like refrigerators. Yet, the path to decarbonising aluminium production is fraught with both financial and technical challenges.

According to the Council on Energy, Environment and Water (CEEW), achieving near net-zero emissions in existing aluminium plants will require a capital investment of around 2,18,241 lakh crore (USD 29 billion) and an additional annual operating expenditure of approximately INR 26,049 crore (USD 3.5 billion). CEEW’s study further reveals that utilising renewable energy can abate 49 per cent of emissions, equivalent to 38 million tonnes of CO₂, though near-net-zero aluminium is nearly 61 per cent more expensive than its conventional counterpart.