Green H2 in India

The strength of green hydrogen is to act as a complement to the decarbonization and electrification processes already progressing rapidly in India.

Globally, India has the fastest growth in renewable energy and the fastest growing consumer of energy. However, the current energy system in India is still strongly dominated by fossil fuels (76%,IEA^[1]) and the third largest importer of oil – correspondingly in excess of ⅘ part of the country’s consumption. The potential of renewable electricity production – offshore wind, onshore wind and solar PV – is estimated at 1546, 22,200, and 20,900 TWh, respectively. In projecting future demand for power, a growth rate of 6.5% per year leading to requirements for a source of 3800 TWh in 2040 is expected. This gives India a huge edge in green hydrogen production. As of 31^st of March 2020, almost 36% of India’s installed electricity generation capacity is from renewable sources and India’s renewable energy sector is ranked as one of the most attractive energy markets in the world.

The continued development of PV and wind technology, alongside with the expected cost reduction of electrolysers, will make green hydrogen competitive with grey or blue hydrogen. A recent study by Bloomberg New Energy Finance (BNEF) confirms that GH is set to become cheaper than blue hydrogen in 2030, providing an emission free and cost effective solution to decarbonize hard-to-abate sectors that cannot be electrified.

Mr. Kant, the CEO of the Indian Think Tank, NITI Ayong, emphasized in a speech in April 2021 that green H2 assists in achieving a twin goal for India; the need for increased energy security due to a high import dependency and the need for increased decarbonization. As of today, only 18% of the total energy consumption is in the form of electricity. The remaining 82% need other forms of “deep-decarbonization”.