India is exactly in the middle of energy transition, with its non-fossil fuel capacity exceeding 50 per cent of the national power mix. By 2032, the aim is to achieve 68 per cent of renewable and nuclear power capacity of the total energy mix. With this, the wake-up call for energy-intensive industries becomes explicit that the adoption of renewable energy is no longer optional. Particularly for the aluminium industry, which is one of the most electricity-hungry industrial sectors, the implications are sharp, but the path is far from straightforward.
India’s reliance on coal and why so
Not judging, but Indian aluminium industry is still heavily reliant on coal-fired electricity for its operations. Reasons are many, such as the need for round –the-clock power supply. An aluminium smelter typically needs 14-15 megawatt-hours of power per tonne of aluminium throughout the day, leaving no room for interruptions. Renewable sources, such as solar and wind, although cheaper per unit (INR 4–4.3 per kWh) than coal (INR 6 per kWh), are inherently intermittent. As Tata Power CEO Praveer Sinha pointed out, India’s climate variability is one of the main reasons for its reliance on coal or fossil-fueled electricity. Moreover, India has abundant and easy availability of coal, and thus smelters for decades have coal-integrated power infrastructure. These facilities cannot be retrofitted or replaced overnight. So, what should aluminium industry do now when the nation is eyeing to replace coal-fired power plants with renewable energy capacity?