Shree Cement just proved that one of India’s most energy-intensive industries can run predominantly on sunshine—and it’s profitable, not philanthropic. The company commissioned a 20-megawatt-peak solar power plant in Chitrakoot, Uttar Pradesh, directly powering its Etah grinding unit through Wheeling and Banking mechanisms. This addition raises Shree Cement’s total installed solar capacity to 313.5 MWp across India, enabling the company to source over 60% of its total electricity from renewable sources. With a cement production capacity of 56.4 million tonnes per annum and a total power capacity nearing 1,085 megawatts—including 582 MW from green power sources—Shree Cement has become an industry leader in sustainable manufacturing.
Managing Director Neeraj Akhoury explained: “More than just a clean energy source, the Chitrakoot plant showcases Shree Cement’s leadership in transforming energy use across operations—each new plant is an opportunity to innovate, integrate renewable energy, and lead the cement sector toward a sustainable, low-carbon future.” Once fully complete, the Chitrakoot plant will offset approximately 22,000 metric tonnes of CO₂ emissions annually while providing 30-40 daily employment opportunities for local communities. The facility supplies renewable electricity to the Etah unit using Wheeling and Banking routes—mechanisms that enable the use of grid infrastructure for clean power delivery between locations. Phase 1 received verification from the Uttar Pradesh State Load Dispatch Centre, with Phase 2 expected to be operational by the end of Q4 FY25-26.
Cement Industry’s Energy Challenge Meeting Solar Solution
With cement production responsible for up to 8% of India’s total carbon emissions, the sector faces intense pressure to reduce its environmental footprint while maintaining production growth. Shree Cement’s approach to “green cement” aligns with global trends pushing for lower carbon footprints by integrating solar, wind, and waste heat recovery across its national network. In 2025 alone, the company commissioned a 60.3-megawatt solar project in Jodhpur, Rajasthan, accelerating its renewable energy transition beyond incremental improvements. Shekhar Singal, Managing Director of Eastman, observed: “Shree Cement’s steady growth in renewable capacity sets the tone for India’s cement industry—a sector with among the highest energy demands.” By using clean energy for key operations, Shree Cement lowers costs while securing competitive advantages as carbon regulations tighten globally.
This dual benefit—environmental and economic—explains why renewable integration isn’t corporate social responsibility theatre but a strategic business transformation addressing fundamental cost structures. The Chitrakoot solar project demonstrates how industrial-scale renewable energy deployment solves practical business problems rather than merely satisfying environmental reporting requirements. Industry experts project India’s cement sector will further reduce its carbon footprint as solar, wind, and waste heat recovery adoption accelerates through the decade, driven by both regulatory pressure and economic logic favoring renewables.
Local Impact Beyond Emission Reductions
Beyond sustainability reporting metrics, Shree Cement’s Chitrakoot solar plant delivers tangible benefits to local communities, including job creation, healthier air quality, and economic resilience. The project provides 30-40 daily employment opportunities for local residents in operations, maintenance, and support roles that didn’t exist before commissioning. The plant’s operationalization demonstrates strong collaboration between industry and government, serving as a blueprint for responsible energy development in India’s hinterland regions. The project supports grid stability as Uttar Pradesh ramps up its solar investments—key to the state’s own renewable targets under national climate commitments.
Amit Banka of WeNaturalists notes that balancing biodiversity concerns with large-scale renewables remains essential for continued progress, avoiding environmental trade-offs. The Chitrakoot facility’s design considered local environmental conditions, grid integration requirements, and community impact assessments, ensuring the renewable energy transition benefits rather than disrupts surrounding populations. With this project, Shree Cement isn’t just meeting regulatory compliance requirements but also driving regional economic growth through green infrastructure, creating employment, and demonstrating viable development models. The 22,000 metric tonnes of annual CO₂ emission offsets represent a measurable environmental improvement, while the employment generation and infrastructure development deliver immediate economic benefits that communities experience directly, rather than through abstract sustainability metrics.
Setting Precedent for Industrial Decarbonization
With this commissioning, Shree Cement not only deepens its leadership in green energy but also sets a precedent for other manufacturers facing similar energy-intensive operations and decarbonization pressures. Its total installed renewable portfolio of 313.5 MWp provides a roadmap for integrating sustainable technologies into high-impact sectors that have historically relied entirely on fossil fuels. The achievement of sourcing over 60% of total electricity from renewable sources in cement manufacturing—one of the most energy-intensive industries—demonstrates the technical and economic feasibility.
This precedent matters because it removes excuses from other industrial players claiming that renewable transitions aren’t possible at scale in energy-intensive manufacturing contexts. As more industrial players emulate Shree Cement’s solar and green power model, India moves closer to its climate goals while gaining new competitive advantages. The Wheeling and Banking mechanism, which allows renewable electricity transmission between generation sites and consumption points, enables geographic optimization—placing solar plants where the sun shines brightest rather than where cement gets ground. This infrastructure utilization demonstrates how existing grid networks can support renewable integration without requiring complete infrastructure rebuilds that would delay transitions for decades.
Shree Cement’s Chitrakoot solar commissioning represents more than adding 20 megawatts to renewable capacity—it demonstrates how India’s most energy-intensive industries can achieve majority renewable electricity sourcing profitably.The cement sector’s 8% contribution to India’s total carbon emissions makes its transformation critical for national climate commitments, while Shree Cement’s leadership shows competitors how renewable integration delivers both environmental and economic benefits simultaneously.
The 22,000 metric tonnes of annual CO₂ offsets from Chitrakoot alone represent a measurable environmental improvement, while 30-40 daily employment opportunities demonstrate how renewable transitions create local economic value beyond abstract sustainability metrics. Whether other cement manufacturers successfully replicate this model depends on sustained investment commitment, regulatory support for Wheeling and Banking mechanisms, and recognition that renewable transitions address fundamental cost structures favoring solar over fossil fuels as technology costs decline. The precedent is set—industrial decarbonization at scale is technically feasible, economically viable, and strategically necessary for companies competing in increasingly carbon-conscious global markets where environmental performance affects market access and competitive positioning beyond mere regulatory compliance.