Solar Goldmine for Steelmakers: Save Money, Cut Emissions, Go Green Says Ember Reports

Unknown Apr 02, 2026 1,000 Views

A new report by energy think tank Ember showcases the revolutionary role of solar power in India's steel industry. With the integration of solar energy, steel producers can reduce costs by as much as 10% in standalone electric arc furnace (EAF) operations. This transition also supports India&...

Cost Savings Potential:

Solar power would cut production costs by as much as 10% in independent EAF steelmaking operations.
Savings for direct reduced iron-electric arc furnace (DRI-EAF) steelmaking would be between 2–5%.

Sector-Specific Opportunities:

The steel industry represents 9.4 GW of the 20 GW solar open-access market opportunity due to high grid electricity prices.
Cement and aluminum industries together provide an additional 11 GW market but have lower cost-saving potential because they are captive to coal power.

Environmental Impact:

Shifting to solar would cut 29 million tonnes of CO₂ emissions every year, playing a vital role in India's climate aspirations.

Regional Focus:

Almost 40% of solar potential is in Odisha and Chhattisgarh, old-industrial states with positive open-access policies.
The states are on the cusp of becoming green manufacturing centers, drawing international climate funding and investment.

Strategic Benefits:

Transitioning to renewable energy will enable steelmakers to keep pace with India's green steel taxonomy, securing entry into premium markets and offsetting risks associated with carbon border levies such as those of the EU.

Policy Support:

Exemption on cross-subsidy surcharges and other charges makes renewable energy transition more viable for industrial segments.

Challenges and Future Outlook:

It is essential to achieve economies of scale for renewable energy deployment beyond 50% with cutting-edge storage technology and regulatory change.
Near-24/7 renewable energy supply is becoming a standard for industrial decarbonization.

Sources: Tribune India, Financial World, PV Magazine India, Economic Times Energy

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