India’s cement sector to invest $4 billion in 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 already installed over 1,800 MW of renewable energy, with 58% coming from solar and wind.

The report outlines distinct decarbonisation opportunities and challenges for integrated and grinding cement units. Grinding units, which purchase electricity from the state grid at high costs, present a significant opportunity for renewable energy adoption. However, as renewable energy use grows, energy storage systems (ESS) will be crucial for these units due to the absence of thermal captive power plants (CPP).

Integrated units, which heavily depend on captive thermal CPPs for the clinkerization process, face greater challenges in shifting to green energy. Despite this, innovative solutions like the electrification of rotary kilns are expected to enhance renewable energy adoption in these units.

The report highlights the cement industry’s pivotal moment as it moves towards decarbonization. With most major cement companies targeting Net Zero emissions by 2050, the sector is poised for a significant transformation in its energy practices.