By 2030, the aluminum sector is projected to require a 104 MW/416 MWh energy storage system, necessitating a $5 billion investment in RE transition.
The sector is expected to integrate 18-20 GW of solar and wind capacity, which will require an energy storage system with a capacity of 104 MW/416 MWh by 2030.
JMK Research estimates that the RE transition in India and the Asia Pacific markets will require an estimated investment of around $5 billion (Rs 425 billion).
According to the research, India’s aluminum industry is among the nation’s most hard-to-abate, energy-intensive, and challenging sectors, significantly affecting the country’s industrial carbon footprint.
| Renewable Energy Solutions for Aluminium Capacity |
| • Meeting 50% of additional aluminum capacity demand through renewables. |
| • Transitioning grid electricity consumption to renewable energy for quick decarbonization. |
| • Adopting green hydrogen in alumina refineries for high-temperature processes. |
| • Assuming 5% replacement of coal energy by 2030. |
Source: JMK Research
The Indian aluminum industry is implementing renewable energy sources to reduce carbon emissions and achieve net-zero targets, despite significant capital expenditure and intermittency challenges.
The industry relies on captive coal-based power plants (CPP) to meet the high electricity demands of smelters.
Major producers operate CPPs, occasionally supplying surplus power to the state grid. Aluminum smelters consume 14-15 MWh of electricity per ton, offering an opportunity for renewable energy.
India’s aluminum production sector is dominated by three major companies, Hindalco, Vedanta, and NALCO, all aiming for decarbonization in line with India’s net-zero emissions commitment.
The RE transition scope:
RE transition and integration strategies include sourcing renewable energy for new capacity, transitioning existing grid electricity to RE sources, and using green hydrogen in alumina refining processes to reduce reliance on fossil fuels.
On its part, the Indian government is promoting renewable energy and supporting aluminum industry decarbonization through policies like anti-dumping duties on imported solar components and the development of a carbon capture, utilization, and storage (CCUS) ecosystem.
In this regard, renewable energy solutions, especially wind-solar hybrid systems and renewable energy combined with energy storage, offer promising ways to decrease emissions in the aluminum sector.
Opportunity for the aluminum industry:
WSH systems are particularly well-suited for aluminum smelters due to their complementary generation profiles, which require stable, continuous power.
The integration of renewable energy with battery energy storage could provide a reliable, round-the-clock power supply.
Leading producers aim to increase aluminum capacity by 2030, aiming to reduce emissions and transition the sector towards a low-carbon future through renewable power.
Aluminum producers have a significant opportunity to transition to renewable energy for future capacity expansions, despite the integration of existing captive coal-based power plants into their operations.
Growth scenarios:
The aluminum sector is projected to experience three mutually inclusive growth scenarios by 2030 due to upcoming opportunities.
As aluminum capacity expands, 50% of additional electricity demand could be met through renewables, reducing the need for new CPPs. Transitioning grid electricity consumption to renewables and adopting green hydrogen in alumina refineries can also contribute to decarbonization and emission reductions.
