Cement Firms’ Green Power Capacity to Reach 6 GW by FY28: ICRA

Green Power is turning cement’s decarbonisation challenge into a major cost-saving opportunity.

India’s major cement companies are expected to increase their green power capacity to 5.8–6.0 GW by March 2028, up from around 4 GW in March 2026, according to rating agency ICRA. The sector is likely to invest ₹12,000–13,000 crore over the next two years to expand renewable power capacity. ICRA estimates the additional capacity could generate annual savings of ₹6,200–6,700 crore, resulting in an attractive payback period of just 1.8–2.2 years. Rising fuel-price volatility, energy costs and decarbonisation targets are encouraging cement manufacturers to shift towards green power. The agency said every 5% increase in green-power replacement could reduce power and fuel costs by ₹15–16 per tonne. A 25% replacement level could deliver savings of ₹75–80 per tonne and potentially improve operating margins. The industry is also adopting blended cement, alternative fuels, clinker efficiency and green financing to accelerate decarbonisation.