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India Plans Pooled Green Power for Industrial Heat
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.
The Solar Energy Corporation of India is developing a mechanism to pool industrial heat demand and procure renewable electricity.
The plan would support electric furnaces replacing gas-fired systems in sectors including steel, cement and aluminium.
Demand aggregation could make green electricity more affordable for smaller manufacturers and MSME clusters.
Smaller industries would first need to electrify their heating systems and adopt more attractive alternative heat sources.
An Energy Innovation report found electric heat could be cheaper than natural gas and oil across studied temperature ranges in India.
- Who
- The Solar Energy Corporation of India, industrial manufacturers and MSME clusters.
- What
- SECI is exploring pooled procurement of renewable electricity for industrial heating and electric furnaces.
- Where
- India, with broader implications for global industrial heat use.
- When
- The proposal is being developed amid the West Asia war; cited forecasts cover 2025-2030, and the Energy Innovation report was published in April 2026.
- Why
- To improve energy security, reduce industrial emissions, make green electricity more viable for smaller businesses and support the replacement of gas-fired furnaces.
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








