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Renewable Energy Could Cut Tariffs For Small And Medium Steel Units
Steel

Renewable Energy Could Cut Tariffs For Small And Medium Steel Units

The India Green Steel Coalition released a Renewable Energy Attractiveness Index to build the business case for accelerating renewable electricity adoption in the country's secondary steel sector. The coalition is a joint initiative of WWF-India and the CII-Godrej Green Business Centre and the index was unveiled at the Confederation of Indian Industry Green Steel Summit in Raipur. The report was presented as a policy and market assessment aimed at identifying where cluster level procurement could be most effective.

The index ranks 22 secondary steel clusters on five parameters: state policy, cost-saving potential, electricity consumption, untapped renewable-energy market potential and land availability. Raipur, Belagavi (Belgaum), Shimoga, Rajkot and Bhavnagar emerged as the top five clusters according to the assessment. The methodology combined cluster level data with grid and resource mapping to estimate where renewables could substitute for conventional power at scale.

The analysis indicates renewable electricity could lower tariffs for small and medium steel units by up to 34 per cent, producing annual savings of Rs 22 million (mn) to Rs 24 million per unit depending on cluster and unit size. With electricity accounting for up to 40 per cent of operating costs, the report suggests renewable procurement offers an immediate avenue to reduce both costs and carbon emissions. The study emphasises that savings depend on contract design, access to land and local policy support.

The report, Powering India's Secondary Steel Transition: The Business Case for Cluster-Based Renewable Electricity Procurement, also uses Raipur and Rajkot as case studies to model representative unit investments and projected returns from switching to renewable electricity. The modelling outlines capital requirements, tariff trajectories and payback periods under different procurement arrangements. The coalition recommended that industry bodies and state governments prioritise the identified clusters to scale projects and accelerate decarbonisation across the secondary steel sector. The findings aim to inform policymakers and firms considering cluster based renewable energy solutions.

The India Green Steel Coalition released a Renewable Energy Attractiveness Index to build the business case for accelerating renewable electricity adoption in the country's secondary steel sector. The coalition is a joint initiative of WWF-India and the CII-Godrej Green Business Centre and the index was unveiled at the Confederation of Indian Industry Green Steel Summit in Raipur. The report was presented as a policy and market assessment aimed at identifying where cluster level procurement could be most effective. The index ranks 22 secondary steel clusters on five parameters: state policy, cost-saving potential, electricity consumption, untapped renewable-energy market potential and land availability. Raipur, Belagavi (Belgaum), Shimoga, Rajkot and Bhavnagar emerged as the top five clusters according to the assessment. The methodology combined cluster level data with grid and resource mapping to estimate where renewables could substitute for conventional power at scale. The analysis indicates renewable electricity could lower tariffs for small and medium steel units by up to 34 per cent, producing annual savings of Rs 22 million (mn) to Rs 24 million per unit depending on cluster and unit size. With electricity accounting for up to 40 per cent of operating costs, the report suggests renewable procurement offers an immediate avenue to reduce both costs and carbon emissions. The study emphasises that savings depend on contract design, access to land and local policy support. The report, Powering India's Secondary Steel Transition: The Business Case for Cluster-Based Renewable Electricity Procurement, also uses Raipur and Rajkot as case studies to model representative unit investments and projected returns from switching to renewable electricity. The modelling outlines capital requirements, tariff trajectories and payback periods under different procurement arrangements. The coalition recommended that industry bodies and state governments prioritise the identified clusters to scale projects and accelerate decarbonisation across the secondary steel sector. The findings aim to inform policymakers and firms considering cluster based renewable energy solutions.

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