Electrifying Industrial Heat in India

This report by Energy Innovation analyzes the economic and environmental potential of electrifying industrial heat in India, arguing that solar-powered electrification is often the cheapest energy option and can significantly reduce pollution and energy use.

• India's industrial sector is a major economic driver, employing 19.5 million people and contributing 17 percent to the national GDP, but it relies heavily on fossil fuels. Nearly half of the sector's final energy use is industrial, with over 40 percent coming from onsite coal and 27 percent from petroleum and natural gas.
• Electrifying industrial heat is currently more cost-effective than using biomass, natural gas, or petroleum across all industrial temperature requirements. It is also cheaper than coal-based heating in three of five temperature bands (<100°C, 100-200°C, and 1,000-1,800°C), which represent 55 percent of combustion-based industrial heating in India.
• Transitioning to clean energy-backed electrification could reduce industrial energy use by 22 percent and cut CO2 emissions by more than half. This shift would also significantly lower non-GHG pollutants: particulate matter (PM2.5) by 38 percent, sulfur dioxide (SO2) by 60 percent, and nitrogen oxide (NOx) by 53 percent.
• The public health benefits of electrifying all eligible industrial processes in India are substantial, with the potential to save nearly 794,000 lives every year and reduce the occurrence of various nonfatal health complications by half.
• Solar energy is a highly competitive option for Indian industry, with recent auctions showing a levelized cost of electricity (LCOE) below ₹2.5 per kilowatt-hour (kWh). Solar remains often the cheapest option even when including grid fees and energy storage costs for captive renewables.

APA

Brown, L. (2026). Electrifying Industrial Heat in India. Energy Innovation. https://energyinnovation.org/report/electrifying-industrial-heat-in-india/

Chicago

Brown, Lydia. Electrifying Industrial Heat in India. Energy Innovation, 2026. https://energyinnovation.org/report/electrifying-industrial-heat-in-india/.

Wikipedia

{{cite report |last1=Brown |first1=Lydia |title=Electrifying Industrial Heat in India |publisher=Energy Innovation |date=28 April 2026 |url=https://energyinnovation.org/report/electrifying-industrial-heat-in-india/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brown2026electrifying, author = {Brown, Lydia}, title = {{Electrifying Industrial Heat in India}}, institution = {Energy Innovation}, year = {2026}, month = apr, url = {https://energyinnovation.org/report/electrifying-industrial-heat-in-india/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }