Aluminium is widely used in all industries, from automobile and construction to packaging and technological devices. It is a highly sought-after metal due to its varied capabilities. But who would have thought it would also find its place in the renewable energy industry? Sustainability within the aluminium industry is a big topic around the globe, and experts are constantly working towards attaining carbon neutrality. But how does aluminium fit in the renewable energy sector?
Aluminium is playing a vital role in shifting to clean energy. A World Bank report states that aluminium is the only high-impact and cross-cut metal in all potential clean power technologies. Due to its lightweight and corrosion-resistant properties, the metal is used in making solar panels, on-shore and off-shore wind projects, turbines, and more. An overview of the use of aluminium in Europe and India's renewable energy industries is provided in this write-up to understand its place and utility better.
European aluminium in the renewable energy sector:
The European Commission introduced the European Green Deal on December 11, 2019. It is an umbrella policy framework comprising proposals ranging from climate and energy to the environment and industrial policy. The goal was to kickstart the decarbonization of Europe and restructures its economy. With this agenda in mind, Europe is looking to alter the renewable energy sector with more scalable, economical and sustainable options. Keeping in mind all the requirements, aluminium is an appropriate choice.
Europe has a well-established and complete aluminium value chain - from mining to recycling. Aluminium lies at the core of Europe's clean energy transition. Aluminium alloys consistently exceed other metals for mechanical stability, dampening, thermal management, and reduced weight. These are used in wind and solar power installations to alternative fuel cells and hydrogen production.
The World Bank suggests that 85 per cent of European aluminium is used in solar panels, support structures and other solar power applications. The European Commission predicts that European aluminium demand for solar installations will increase to 1,300,000 tonnes by 2050. Aluminium is also being used in on-shore and off-shore wind power projects. By 2050 the European aluminium demand for wind turbines will reach up to 140,000 tonnes, as the European Commission estimates.
How is India leveraging the benefits of aluminium in its renewable energy sector?
Solar energy is one of the primary renewable energy sources in sun-soaked countries like India. Currently, India stands 5th in the world in installed solar energy capacity. Aluminium is used in most clean energy technologies, especially in solar, where it accounts for 85 per cent of most photovoltaic (PV) components in the form of the frames and mounting structures that hold the PV panels together and support them.
Aluminium producers in India, like Vedanta Aluminium, India's largest producer and exporter of billets, can expedite clean energy transformations. The Indian aluminium industry currently has a production capacity of 4.1 MTPA, which can take care of domestic demand. Domestic producers are heavily investing in research and development to produce high-performing alloys. Vedanta has developed alloys for various industry sectors previously imported from other countries.
Aluminium is steadily making its way into the renewable energy market. Besides adding 100 GW of solar capacity in the next 2 to 3 years, the Indian Government levied a 40 per cent anti-dumping duty from April 1, 2022. The agenda is to encourage domestic production.
However, India needs more flexible policies and financial support to ensure the stable stride of aluminium in the renewable energy industry. Lack of funds, rigid policy structures, scale, and competition from low-priced Chinese imports has impeded India's domestic module manufacturing growth. Therefore, the country still relies on imports of solar cells, solar inverters, etc.
Aluminium has several economic advantages, and now it is India's turn to strengthen and cement its place in the global renewable value chain. The country can meet domestic demand and establish itself as the manufacturing hub in aluminium solar PV components worldwide.
Summary:
The use of aluminium will undoubtedly revolutionize the renewable energy industry, and it is likely to intensify the adoption of clean energy in several other energy-intensive sectors. It is time decarbonization and carbon neutrality are taken seriously to ensure sustainable development, prolonged growth, and availability of resources for future generations.
