Hydrogen For Net-Zero Economy, Government Policy, Challenges

Hydrogen For Net-Zero Economy, Government Policy and Challenges

Hydrogen for Net-Zero explores the role of clean hydrogen in achieving global climate goals by reducing carbon emissions across industries, transportation, and energy sectors for a sustainable future.

Table of Contents

Context: For India to achieve a net-zero economy, hydrogen is a promising substitute for future electricity needs.

Rising Power Demand in India

Development-driven consumption: As India transitions into a developed economy by 2047, electricity demand is expected to grow significantly due to urbanisation, industrial expansion, electric mobility, and digital infrastructure.
- Eg., According to the National Electricity Plan 2023-2032, published by the Ministry of Power, India’s peak demand is forecast to reach 458 GW in 2032—an 83% increase from 2024.
Shift to electrification: Sectors such as transport (EVs), cooking (electric stoves), and industry (electric arc furnaces, e-boilers) are increasingly shifting from fossil fuels to electricity, further increasing demand.
Net-zero commitment: India’s commitment to reach net-zero emissions by 2070 implies a cleaner, more electrified economy. This adds pressure to ensure sufficient, reliable, and low-carbon electricity generation.

Limitations of Conventional Renewable Sources

Intermittency of solar and wind: While solar and wind are key to India’s renewable push, they generate power only during specific hours or weather conditions, making them unreliable for continuous supply.
Hydropower limitations: Large hydro projects face environmental, resettlement, and geographical constraints. In addition, climate change impacts water availability, affecting hydroelectric generation.
Flexibility challenges: Currently, coal-fired plants provide flexibility to balance renewable intermittency, but this is not sustainable for a net-zero future.

Hydrogen as a Strategic Game-Changer (“Hydrogen Factor”)

Industrial decarbonization: Hydrogen can replace fossil fuels in hard-to-abate sectors like steel (as a reducing agent), cement (high-temperature heat), and fertilisers (as feedstock in ammonia production).
Grid balancing tool: Hydrogen production through electrolysis can be timed during surplus solar/wind power generation, acting as a buffer to stabilise the grid and reduce curtailment of renewables.
Energy storage substitute: Hydrogen can store excess renewable electricity in chemical form, offering longer-term and scalable energy storage compared to batteries.
Export potential: With abundant solar potential, India could become a major exporter of green hydrogen and its derivatives like green ammonia, tapping into global demand from Europe and Japan.

Nuclear Power In India

As of September 2024, India has 23 operational nuclear reactors with a total installed capacity of 8,180 MW, contributing approximately 3% to the country’s electricity generation.

Nuclear Power In India

Expansion Targets

Target: 100 GW of nuclear installed capacity by 2047 (from ~8 GW today).
Current Plan: Setting up 26 new 700 MW PHWRs across India (including those at Kakrapar, Rajasthan, Haryana).
Launch of Bharat Small Reactors (BSRs) – 220 MW units for captive use in industries and PSUs like Indian Railways.

Challenges with Nuclear Power

Challenge	Description
High Capital Cost	Nuclear plants are expensive to build, with long gestation periods (10+ years).
Inflexible Operation	Not ideal for load-following — can’t be easily scaled up/down like solar or hydrogen.
Safety and Public Perception	Long-standing concerns about radiation, nuclear accidents (e.g., Fukushima), and waste disposal.
Water Requirements	Nuclear plants require large quantities of water for cooling, which is a concern in water-scarce regions.

Government Push and Policy Support

National Green Hydrogen Mission: Launched with a budget of ₹19,744 crore, the mission aims to produce 5 million tonnes of green hydrogen annually by 2030 and develop domestic electrolyser capacity.
Incentives and certification: India offers production incentives and is working on a green hydrogen certification scheme.
- There is also discussion to broaden the term to “low-carbon hydrogen” to include nuclear-based hydrogen.
Public-private collaboration: Leading PSUs like NTPC, Indian Oil, and private firms are investing in pilot projects for green hydrogen production, storage, and use in transport and refineries.

Challenges Ahead

High cost of green hydrogen: Green hydrogen is currently more expensive than grey (fossil-based) hydrogen due to the high cost of electrolysers and renewable electricity.
Infrastructure gap: Hydrogen storage, transport pipelines, and refuelling infrastructure are still underdeveloped in India.
Technology readiness: Electrolysers and hydrogen-based industrial processes are still evolving; scaling them up efficiently is a major task.
Policy clarity needed: Regulatory certainty, carbon pricing, and a well-defined taxonomy (e.g., distinguishing green, blue, and nuclear hydrogen) are needed to build investor confidence.

Conclusion

India’s rising power demand, driven by development and decarbonization goals, creates both a challenge and an opportunity. Hydrogen—especially green and low-carbon variants—emerges as a key enabler in this transition. With the right mix of policy, technology, and infrastructure, the ‘hydrogen factor’ can help India not only meet its net-zero ambitions but also position itself as a global clean energy leader.