India’s aluminium industry is on track to integrate 18–20 gigawatt (GW) of solar and wind energy capacity by 2030, supported by 104 megawatt (MW)/416 megawatt-hour (MWh) energy storage systems, as per a recent report by JMK Research & Analytics. This green transition is anticipated to involve an investment of approximately $5 billion (around ₹42,500 crore).

Recognised as one of the most energy-intensive sectors, the aluminium industry currently depends heavily on captive coal-based power plants to fulfil the high electricity demands of smelters. With energy consumption averaging 14–15 MWh per tonne of aluminium, key players like Hindalco, Vedanta, and NALCO operate their own captive power plants (CPPs), sometimes also supplying surplus electricity to the national grid.

Dominated by three major companies, the aluminium sector has set decarbonisation targets in alignment with India’s net-zero commitments. The JMK report highlights that producers have significant opportunities to leverage wind-solar hybrid systems and battery energy storage technologies, well-suited for aluminium smelting due to their complementary energy generation profiles and ability to ensure round-the-clock power supply.

The study outlines three potential growth scenarios for the sector by 2030:

1. Meeting 50% of the additional aluminium capacity requirements through renewable energy,
2. Completely transitioning the share of grid electricity currently used in smelting operations to renewable sources, and
3. Replacing five per cent of the energy used in alumina refineries with green hydrogen—particularly in high-temperature processes such as calcination.
   

According to the report, the aluminium industry plans to expand capacity by an additional 4.5 million tonnes per annum by 2030. Fulfilling this through renewable energy sources is expected to significantly curb incremental carbon emissions and align with India’s broader climate goals.

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