India's Secondary Steel Sector to Focus on Decarbonization Beyond Energy Efficiency

Secondary steel producers in India are working to improve energy efficiency, but further emission reductions require measures beyond efficiency gains. The National Strategy for Sustainable Secondary Steel (NSSS) is designed to help the sector overcome financial and technological hurdles in decarbonization.

MSMEs face specific challenges in three key areas: renewable energy adoption, material efficiency, and process efficiency with alternative fuels. The Ministry of Steel estimates that a 43% renewable energy penetration could reduce emission intensity by 7.5%. Utilizing scrap steel can significantly cut greenhouse gas emissions and iron ore consumption. Automated process controls and alternative fuels like biochar and hydrogen are also being considered, though financing and infrastructure remain barriers.

NSSS Design and Conditions

The NSSS is expected to offer results-linked finance for proven technologies through guaranteed loans and interest rebates for verified emission reductions. For first-of-a-kind technologies, such as hydrogen use in rotary kilns, milestone-based capital grants are proposed.

Support from the NSSS will be contingent on units meeting specific conditions: achieving energy efficiency benchmarks, avoiding new or expanded coal-based capacity, and holding at least a ZED Bronze certificate for quality and environmental standards.

Gujarat Plans Nuclear Capacity Expansion Amid Rising Electricity Demand

Gujarat is planning to expand its nuclear capacity with a proposed 4,200 MW project, established through a Memorandum of Understanding (MoU) with NPCIL. This initiative is part of the state's long-term strategy to address growing electricity consumption.

On October 16, Gujarat's electricity grid experienced a peak demand of 29,822 MW, marking a 36% increase compared to the same period last year. This surge in demand is attributed to factors such as persistent heat, increased industrial activity, and agricultural irrigation needs. Reduced generation from wind and hydropower sources due to low wind speeds and below-normal rainfall has also contributed to the situation.

To manage the immediate demand, Gujarat has secured short-term power procurement arrangements totaling 2,990 MW for October, 1,740 MW for November, and 1,335 MW for December. Additional supplies are expected from NTPC's Farakka plant, central allocations from Assam, and the Centre’s unallocated power pool.

In addition to nuclear power, Gujarat is expanding its battery energy storage systems (BESS) to bridge the gap between sunset and peak demand hours. Currently, 192 MW of storage capacity is operational, contracts for 2,742 MW/5,517 MWh have been finalized, and a new tender for 1,000 MW/4,000 MWh is in progress. The state is also pursuing additional thermal and hydro capacity, including central allocations of over 1,300 MW of thermal power and more than 1,200 MW of hydropower, and an 800 MW thermal unit at Ukai slated for commissioning in 2029.

NTPC to Conduct Feasibility Studies for New Nuclear Projects in India

NTPC, a state-owned entity, is set to begin feasibility studies for new nuclear power projects in more states, such as Uttar Pradesh. This initiative is part of its strategy to increase non-fossil fuel energy capacity to at least 2 GW by 2032. The company's long-term goal is to develop 30 GW of nuclear projects by 2047, supporting the government's target of 100 GW nuclear capacity for India.

Feasibility studies have already been completed in Madhya Pradesh, Bihar, and Odisha, identifying Banka, Basai, and Nabarangpur as potential sites. The process involves submitting studies to the Department of Atomic Energy, followed by review from the Standing Site Selection Committee and the Atomic Energy Commission.

Developing 1 GW of nuclear power capacity typically requires an investment of Rs 15,000-20,000 crore and a minimum of three years for completion. NTPC is also exploring collaborations with international energy companies, including Westinghouse, Rosatom, and EDF, for large pressurized water reactor projects in India. The Central Electricity Authority estimates that Rs 15 lakh crore will be needed to achieve the 100 GW nuclear capacity target by adding approximately 91 GW to the current 8.8 GW.