India’s Green Hydrogen Push Needs INR 10.6 Lakh Crore by 2030
India’s push for green hydrogen will require INR 10.6 lakh crore in investment by 2030. The massive outlay is essential to support the deployment of 135 GW of renewable energy and 74 GW of electrolyser capacity to meet the national green hydrogen production target and drive the country's clean energy transition.
September 16, 2024. By EI News Network
As per the report, the substantial investment will be directed towards deploying 135 GW of additional renewable energy (RE) capacity and developing 74 GW of electrolyser capacity. The deployment of this RE capacity will require INR 7.6 lakh crore (USD 92 billion), while the electrolyser capacity will need INR 3.03 lakh crore (USD 37 billion).
The report highlights that achieving the National Green Hydrogen Mission's goal of producing 5 million tonnes of green hydrogen annually by 2030 will significantly impact India's power system. This ambitious target necessitates a major expansion in grid-connected renewable energy beyond the existing 500 GW non-fossil-based capacity target for 2030.
The report notes that currently,over 80 percent of India’s renewable energy capacity is concentrated in just six States, creating challenges for the transmission of renewable energy across the country.
The increase in demand for green hydrogen will drive up national peak electricity requirements by 67 GW, pushing the peak demand to 409 GW from the current 342 GW. This will necessitate integrating an additional 135 GW of RE capacity into the grid, including 51 GW of solar and 84 GW of wind. Gujarat and Tamil Nadu are expected to be major contributors, hosting 43 percent and 24 percent of this incremental RE capacity, respectively.
The integration of large-scale green hydrogen production will also require an additional 74 GW of electrolyser capacity. Despite the higher RE installed capacity, the requirement for battery energy storage systems (BESS) will decrease by 6 GW due to surplus renewable energy being utilised for hydrogen production rather than being stored or curtailed.
The report underscores that without leveraging the inter-state transmission system (ISTS) for green hydrogen production, the required additional renewable energy capacity would increase by 10 GW, and the levelised cost of hydrogen production would rise from USD 3.6/kg to USD 4.1/kg, adding an extra INR 20,500 crore (USD 2.5 billion) in costs.
These findings underline the critical need for strategic investment and infrastructure development to support India’s green hydrogen ambitions and ensure a sustainable transition to a low-carbon energy system.
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