Decarbonization of Indian Railways

This report by the Climate Policy Initiative analyzes the cost-effectiveness and feasibility of decarbonizing Indian Railways (IR) by 2030. It evaluates various pathways for the traction and non-traction segments, concluding that transitioning to renewable energy—specifically through captive generation at an accelerated rate—is significantly cheaper than a business-as-usual scenario. The report emphasizes the necessity of full electrification and identifies regulatory barriers regarding state-level net metering and open access policies.

• Indian Railways (IR) is a major energy consumer, using approximately 18 TWh of electricity per year (about 2% of India's total power generation) and 2.6 billion liters of diesel annually (3.2% of the transport sector's total diesel consumption). Its energy demand is projected to reach 49 TWh by 2030 due to rising passenger volumes.
• Decarbonization of the traction segment is more cost-effective than a business-as-usual approach across all analyzed pathways. The most efficient method is captive generation at an accelerated rate, which is 32% cheaper and 66% less volatile in terms of yearly cash outflows than business-as-usual. All traction decarbonization options are at least 15% cheaper in net present value terms.
• The non-traction segment offers even greater potential for cost savings than the traction segment. Captive generation at an accelerated rate is 69% cheaper in yearly cash outflows than business-as-usual, and all decarbonization pathways for this segment are at least 33% cheaper in net present value terms, with the accelerated captive generation option providing 50% savings.
• A mix of solar and wind power is recommended over an all-solar pathway because it provides a more balanced generation profile and lower balancing costs, despite being only 6% more expensive in terms of pure generation costs.
• Implementation of decarbonization faces barriers including poor execution of state policies on open access and net metering. To mitigate this, IR is advised to engage with states that have already encouraged net metering, specifically Andhra Pradesh, Delhi, Tamil Nadu, and West Bengal. Additionally, load balancing is required for intermittent renewables; current feasible options include power banking and net metering with state DISCOMS, while battery storage and flexible thermal plants are expected to be feasible within five years.

APA

Climate Policy Initiative (2017). Decarbonization of Indian Railways. https://www.climatepolicyinitiative.org/publication/decarbonization-indian-railways/

Chicago

Climate Policy Initiative. Decarbonization of Indian Railways. 2017. https://www.climatepolicyinitiative.org/publication/decarbonization-indian-railways/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Decarbonization of Indian Railways |date=8 March 2017 |url=https://www.climatepolicyinitiative.org/publication/decarbonization-indian-railways/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2017decarbonization, author = {{Climate Policy Initiative}}, title = {{Decarbonization of Indian Railways}}, institution = {Climate Policy Initiative}, year = {2017}, month = mar, url = {https://www.climatepolicyinitiative.org/publication/decarbonization-indian-railways/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }