India’s cement sector aims to use 40 percent renewable energy

Indian cement sector will use 40 percent renewable energy in 2025 financial year

The Indian cement sector is making significant strides towards integrating renewable energy into its operations. According to ICRA, a prominent ratings agency, the cement industry in India is set to increase its reliance on renewable energy to 40 percent during the 2025 financial year. This ambitious target will necessitate the addition of 537MW of new renewable power capacity.

In the preceding financial year that ended on 31 March 2023, cement producers in India already utilised renewable energy for 35 percent of their operations. This indicates a positive trend towards greater adoption of clean energy sources.

ICRA predicts substantial cost savings for the industry, estimating approximately US$240 million in annual savings from 2025 onwards due to the scale-up of renewables. This cost-saving opportunity encompasses various renewable sources, including solar, wind, and waste heat recovery. It is anticipated that these savings will correspond to a notable 15-18 percent reduction in estimated energy costs for the 2025 financial year.

Concurrently, ICRA anticipates a rise in the usage of blended cements, with projections indicating that blended cements will constitute a significant portion of cement sales. Blended cements are projected to account for 81 percent of total cement sales during the 2025 financial year, an increase from the 78 percent observed in the 2023 financial year. This suggests a growing preference for environmentally sustainable cement options in the Indian market.

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