India’s steel, cement, and aluminium industries can tap into a 20 GW solar open access market despite relying on captive coal, according to Ember’s latest analysis. Renewable procurement could lower production costs and cut emissions by up to 29 million tonnes of CO₂ annually.
Steel alone accounts for 9.4 GW of this opportunity due to its dependence on costly grid power, which solar can replace. Secondary steelmakers using standalone arc furnaces could cut production costs by 10%. Cement and aluminium, though reliant on captive coal, add another 11 GW to the potential.
Heavy industries in Chhattisgarh and Odisha make up nearly 40% of this 20 GW market. These states offer a strong case for renewables with open access policies and cost reductions on cross-subsidy surcharges.
“Odisha and Chhattisgarh have been industrial hubs due to their mineral reserves. By adopting renewables, they can lead the shift to green manufacturing. Odisha is already planning green industrial parks for an export-driven, low-carbon future,” said Duttatreya Das, Asia Analyst at Ember.
Lower emissions can help steelmakers qualify under India’s new green steel taxonomy, granting access to markets that offer a green premium. This boosts long-term competitiveness, especially as regions like the EU prepare carbon border taxes.
Neshwin Rodrigues, Senior Energy Analyst, at Ember, said “Sourcing up to 50 per cent of electricity from variable Renewable Energy (RE) is already cost-competitive for heavy industries. However, pushing beyond this threshold requires more advanced strategies.”
“Cost-competitive, near-24/7 renewable energy will drive industrial decarbonisation and reshape corporate power purchases,” he adds.
Ember’s modelling found that reaching 80% renewable energy is achievable with a moderate cost increase—about 1.4 times the cost of plain solar—due to energy storage and surplus power management. Increasing to 90% RE raises costs to 1.6 times that of solar but remains a viable investment considering decarbonisation goals and rising global clean energy mandates.
The report highlighted that achieving 100% RE is currently difficult. Full renewable power in India could cost ₹8 to ₹11 per unit, nearly 3.5 times the cost of solar. Battery storage alone makes up 60% of this cost. Reaching this level would require significantly expanding RE capacity and scaling up storage infrastructure.
“Renewables already offer cost-effective solutions for Indian industries. This report shows companies can make major strides toward round-the-clock clean energy today while innovation in storage and flexible demand will help achieve full 24/7 supply at competitive rates,” said Killian Daly, Executive Director at EnergyTag.
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