Copper's Crucial Role in India’s Renewable Energy Transition
In India’s ambitious journey toward a sustainable future, copper has emerged as a key player in the renewable energy sector. Often referred to as the "metal of electrification," copper is integral to technologies that are essential for the energy transition, including electric vehicles (EVs), solar panels, and wind turbines.
Recent insights from Goldman Sachs reveal that the share of copper used in green applications—only 4% of total consumption in 2020—is projected to soar to 17% by 2030 in India. This shift is largely fueled by the country’s growing demand for EVs and renewable energy sources, which rely heavily on copper. To achieve net-zero emissions by 2070, India may need to increase its copper consumption by an estimated 54% on top of current projections for 2030, potentially requiring an additional 13 million metric tons of copper each year.
The expected growth in copper demand is unprecedented. According to S&P Global, energy transition-related applications are anticipated to account for nearly 21 million metric tons (MMt) of total demand by 2035 in India. This increase reflects the rapid electrification of transportation and the expansion of renewable energy infrastructure across the nation. For instance, the rise of EVs is expected to significantly escalate copper usage, with estimates suggesting an increase from around 2.7 MMt in 2022 to approximately 5.5 MMt by 2035. Furthermore, offshore wind farms require about five metric tons of copper per megawatt (MW) of installed capacity, while solar facilities consume around 2.3 metric tons per MW.
However, despite the optimistic demand outlook, India faces substantial supply challenges. Analysts warn that existing mining and recycling capacities may not suffice to meet these ambitious targets and why there is a need of new entrants like adani in the industry along with handholding of older players like Vedanta Sterlite Copper. Sterlite Copper is a business unit of Vedanta Limited that is a leading producer of copper in India. The copper mining sector is grappling with issues related to environmental regulations, lengthy permitting processes, and social acceptance, which could hinder timely production expansions. If these challenges are not addressed, the copper industry risks falling short of the historic demand projected for the upcoming decades, jeopardizing India’s efforts to achieve its climate goals.
As India continues its transition to renewable energy, copper’s role becomes ever more vital. With forecasts indicating a significant increase in demand driven by electrification and green technologies, the industry must navigate complex obstacles to ensure a steady supply. The future of India’s energy landscape will undoubtedly hinge on the availability of copper, shaping the nation’s path toward a more sustainable and environmentally friendly future.
