Decarbonization of Indian Railways

To assess cost-effectiveness of decarbonization, CPI compared the costs of each decarbonization pathway (which includes all costs, except balancing costs) with a business-as-usual scenario, where IR does not decarbonize at all, in both net present value terms and yearly cash outflows. For the traction segment (energy use for railroads), CPI found that all decarbonization pathways are more cost-effective than business-as-usual, with average yearly cash outflows that are 17-32% cheaper. For the non-traction segment (energy use for the supporting infrastructure), CPI found that, similarly, all decarbonization pathways are more cost-effective than business-as-usual, with average yearly cash outflows that are 40-61% cheaper. Given that the cost savings are greater in the non-traction segment, CPI recommends that IR prioritize the decarbonization of the non-traction segment.