India's National Green Hydrogen Mission is poised to attract an investment of Rs 10.6 trillion by 2030, aiming to produce 5 million tonnes of green hydrogen annually. This mission will add 135 GW of renewable energy capacity, mainly from wind and solar power, to facilitate hydrogen production. It is a key element of India’s strategy to decarbonize its energy sector and reduce fossil fuel dependency.

A report by the Council on Energy, Environment, and Water (CEEW) states that green hydrogen production will require 84 GW of wind energy and 51 GW of solar energy. Gujarat and Tamil Nadu will be crucial in this transition, contributing 43% and 24%, respectively, of the total renewable energy needed. Other states, including Maharashtra, Andhra Pradesh, and Rajasthan, will also play significant roles in this energy shift, contributing to India's goals of reducing carbon emissions and ensuring energy security.

The green hydrogen initiative involves a massive financial commitment aimed at building renewable energy infrastructure and electrolyzer capacity. India will need 74 GW of electrolyzer capacity to meet its hydrogen production targets. This effort will help decarbonize major industries like fertilisers, refineries, and methanol production, which currently rely heavily on conventional energy sources. The production of green hydrogen is expected to boost India’s peak electricity demand by 67 GW by 2030, with states like Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, and Karnataka becoming key hubs for this energy transition.

A central goal of the Green Hydrogen Mission is to reduce India's reliance on fossil fuels and decrease imports. As the global shift towards cleaner energy continues, India aims to position itself as a leader in renewable energy, potentially becoming a major exporter of green hydrogen to markets such as Japan, South Korea, and the European Union. This initiative will also support India's goal of achieving net-zero emissions by 2070.

To support green hydrogen production, India's power grid will need to become more flexible to accommodate the fluctuating supply of solar and wind energy. Electrolyzers, capable of adjusting output quickly, will play a vital role in maintaining grid stability. This flexibility will help reduce the need for additional battery storage systems, cutting system costs. Additionally, the integration of renewable energy through the inter-state transmission system (ISTS) is expected to save an estimated Rs 205 billion.

As renewable energy's share increases, India's power system will require greater grid flexibility. Coal and hydroelectric plants will continue to balance the grid during non-solar hours. The report also projects a 2% decrease in the average cost of power generation due to the rising contribution of renewable energy, lowering the cost from ?3.83 per kWh to ?3.76 per kWh and resulting in annual savings of Rs 188 billion.

India's green hydrogen mission is a critical step toward a low-carbon economy. The additional 135 GW of renewable energy and the production of 5 million tonnes of green hydrogen annually will help decarbonize key sectors and reduce the nation's carbon footprint. As global demand for green hydrogen rises, India's investment in this sector could establish it as a significant player in the international energy market. The mission represents not just a move toward cleaner energy but also a pathway to a more resilient and sustainable future for India’s power system.

(ET)