India's small steelmakers could cut power bills by about a third with renewables

Electricity is up to 40% of operating costs for small producers

India’s smaller steel companies, responsible for nearly 40% of the country’s crude steel production, could cut their electricity bills by about a third and sharply reduce carbon emissions by switching to renewable energy, according to a report released Wednesday.

The report, “Powering India’s Secondary Steel Transition,” found that renewable electricity could reduce annual power costs by about 22 million to 24 million rupees ($250,000 to $275,000) per unit, or up to 34%.

Electricity accounts for up to 40% of operating costs for many small steel producers, making it one of the industry’s largest expenses, the report found.

Profit margins at many of India’s smaller steel companies have been affected by rising fuel costs resulting from the Iran war, according to the report.

The report said switching to renewable electricity would sharply reduce the companies’ carbon emissions along with their power costs.

A consortium of environmental groups and industry bodies jointly produced the report, including the Confederation of Indian Industry, WWF-India, the nonprofit group Climate Catalyst and the think tank JMK Research.