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India Plans Pooled Green Power for Industrial Heat

India Plans Pooled Green Power for Industrial Heat
Pooled green power plan for MSMEs, industrial heating in the works - Industry News · financialexpress.com

India wants factories to use more clean electricity for heating instead of gas.

The Solar Energy Corporation of India is considering combining the heating needs of many factories.

By joining their demand, smaller businesses might obtain renewable electricity at a lower cost.

This could help steel, cement and aluminium producers use electric furnaces.

Many small factories still use gas because changing their equipment can be expensive.

They would first need to install electric heating systems.

The plan is linked to India’s efforts to improve energy security and reduce industrial emissions.

A report said electric heat may already be cheaper than gas and oil in India for many temperature ranges.

International forecasts also expect renewable electricity to play a larger role in industrial heating through 2030.

Key facts

Lead agency
Solar Energy Corporation of India (SECI)
Target users
Manufacturers and MSME clusters
Potential sectors
Steel, cement and aluminium
Proposed approach
Aggregate industrial heat demand and procure renewable electricity through tenders
Current challenge
Many smaller industries rely on gas-based furnaces and face high electrification costs
India electricity-cost finding
Energy Innovation found electric heat could be cheaper than natural gas and oil across all studied temperature ranges in India
Global projection
The International Energy Agency projects industrial heat demand to grow 14% between 2025 and 2030
Renewables projection
Renewable electricity is expected to provide nearly 80% of the growth in renewable industrial heat consumption from 2025 to 2030

Quotes

An official privy to the development

An official familiar with SECI’s industrial heat-demand aggregation proposal

“As the energy sector evolves, SECI is now looking at new avenues of demand aggregation given its established model for renewable energy demand aggregation. It has already entered in demand aggregation of green ammonia. Aggregation of heat demand from industries is another area SECI is looking at.”
financialexpress.com

Sources

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