JK Cement Renewable Power Push Gains Pace

JK Cement has moved to secure 7 MW of renewable electricity from a new 40 MW solar project in Prayagraj, Uttar Pradesh, marking another step in the cement industry’s shift towards cleaner and more cost-stable energy sources. The arrangement highlights how heavy industries are increasingly using captive renewable models to reduce emissions, control power costs and improve long-term resilience.

The company will source electricity through a group captive structure from Mehrauni Electro Power, a project vehicle linked to solar developer Onward Solar Power. Under the model, industrial users take an ownership stake in a generation asset while consuming the electricity produced, helping lower dependence on conventional grid supply. JK Cement has acquired a 9.77% equity interest in the project vehicle through an investment of ₹2.1 crore, according to publicly available disclosures. The procured energy is expected to support operations at the company’s manufacturing facility in Prayagraj, where energy intensity remains a major operating cost factor. For India’s urban economy, the significance extends beyond one corporate power contract. Cement is central to housing, highways, metro systems, logistics parks and water infrastructure. Cleaner power in cement manufacturing can gradually reduce the carbon footprint embedded in buildings and public assets, a growing concern for developers, planners and institutional investors.

Power costs also play a direct role in cement pricing. By locking in renewable supply through long-term structures, producers can gain better visibility over operating expenses compared with volatile fossil fuel markets. Analysts say this is becoming especially relevant as infrastructure demand rises and cities seek faster yet more sustainable construction.JK Cement has been steadily increasing renewable procurement. Public filings show its green power share rose to 51% in FY2025 from 19% in FY2020, with more than 100 MW sourced from wind and solar assets. The company has also indicated a target of raising green power procurement to 75% by FY2030. The broader sector is following a similar path. Cement manufacturers across India are investing in waste heat recovery, alternative fuels, solar, wind and captive open-access energy contracts. This is driven by both economics and regulation, as future construction demand is increasingly linked to lower-emission supply chains.For Uttar Pradesh, the project adds to the state’s growing role in industrial renewable deployment. Manufacturing clusters around major cities are emerging as key demand centres for open-access solar, helping diversify local energy supply while attracting further industrial investment.

Urban planners note that decarbonising basic materials such as cement is essential if cities are to meet climate goals without slowing development. Residential towers, transport corridors and public utilities all rely heavily on cement-intensive construction.The immediate next step will be execution and reliable supply from the Prayagraj project. If successful, the model may encourage more building-material companies to combine ownership stakes with renewable procurement, accelerating India’s transition towards lower-cost and lower-carbon industrial growth.

Also Read: Nuvoco Cement Prices Rise Amid Fuel Pressures

JK Cement Renewable Power Push Gains Pace