India is the world's third-largest energy consumer due to its rapid industrialisation and economic progress. However, the energy available worldwide is fixed, and natural resources are depleting daily.
In such a condition, the national green hydrogen mission launched by the Government of India marks its tremendous efforts to popularise sustainable energy.
Here, we will explore India and how it journeys towards a sustainable future using green hydrogen.
Challenges that India Faces in the Context of Green Energy Transition
The electrolysis of water generates green Hydrogen, power for electrolysis is using other renewable energy like air, water, or wind.
Although India has been progressing remarkably toward a green hydrogen economy, there are a few challenges. Some of these core challenges are:
1. Balance Growth and Sustainability Together
India's economic boom requires an ever-growing need for fossil fuels. There are several industries in India, including heavy industries, that use several tons of fuel every day just to sustain their operations.
This shows that energy-hungry industries will always divest their resources to find a cheaper and greener alternative. However, the amount of green Hydrogen and its effectiveness is a doubt that experts and industrialists often face.
Therefore, balancing growth and sustainability without sacrificing output might concern industrialists. To meet this requirement, the Indian government intends to increase solar and wind capacity to 500 GW by 2030.
These data indicate that there is a greater chance of the production of green Hydrogen and, consequently, the implementation of India's green hydrogen transition.
2. Building a Complete Ecosystem
Hydrogen derived from conventional fuel sources is comparatively cheaper than green Hydrogen. This cost disparity between the two sources of the same fuel types is creating problems for the Indian industries.
The need to make green Hydrogen not only requires cost-effective measures but also ensures continuous production for plants to keep themselves operational. Moreover, Hydrogen is a volatile fuel and requires proper storage infrastructure.
With the current industries, these kinds of supportive infrastructures cannot be expected. Thus, to fully benefit from the National Green Hydrogen Mission, industries should develop a complete ecosystem.
If possible, the private and government sectors need to collaborate to make such strategic changes.
3. Infrastructure Related Challenges
Land availability, water scarcity, and infrastructure limitations are some of the urgent problems. Without proper connections to underground pipelines and even vacant spaces to keep the hydrogen tanks, it can be problematic.
However, to facilitate green hydrogen production, the Indian government approved an incentive plan of ≈ USD 2.07 billion (INR 174.9 billion), which is 10% of the cost needed to produce green Hydrogen. New Delhi has also announced a waiver of transmission fees to help in the production of green hydrogen facilities.
With these initiatives, India is set to battle the infrastructure challenges and build renewable energy production facilities effectively.
4. Challenges Related to Finance
It is not something new that production efforts under the National Green Hydrogen Mission will require money. There are a number of factors during the production that increase the overall costs of the initiative.
Firstly, the cost of green Hydrogen, due to its complicated separation and collection techniques, costs 2 USD more than traditional Hydrogen. Secondly, installing or diverting the power sources of Indian Industries suddenly from traditional hydrogen-based methods to green hydrogen methods will require several procedural changes.
Training and mock-ups are needed to ensure proper implementation, which can temporarily hamper operations and business. Thirdly, India expects a rise in the production of green Hydrogen to 125 GW due to production-linked incentives.
Such a production may work for a short period, but it must be kept in mind that India will require higher energy input to develop as one of the top economies in the world.
5. Market Development
Not everyone knows India's vision to transition towards a green hydrogen economy. Thus, there is not much demand for green Hydrogen in the market.
One reason is the high cost of green fuel, and another is that consumers are under-informed about its benefits. They do not know the reason why they must shift towards a green fuel economy. Hence, the awareness and potential of the National Green Hydrogen Mission must be emphasised more.
In addition, the Government of India must cater towards the subsidies and incentives to enhance production and relieve the natural resources from being used up.
About: National Green Hydrogen Mission
With a vision to achieve 'Net Zero' during the 75th Independence Day, Prime Minister announced the National Green Hydrogen Mission.
The background for the mission was to counter the energy demand in India, which could grow by four-fold in 2050. Industries like Steel processing plants and heavier ones are expected to drive demand growth of around 52% of net demand.
Now let us look at some of the highlights of the mission:
● Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per year.
● Over six lakh jobs will be created for the educated youths in the country.
● Reduction in imports of fossil fuels by ≈ USD 11,810 Million (INR 1 Lakh Crore).
● Reducing 50 Million Metric tonnes equivalent of greenhouse gas emissions.
From all these points, we can conclude that the National Green Hydrogen Mission is moving steadily to accomplish the following objectives:
● Making India a leading producer and supplier of green Hydrogen globally.
● Export opportunities for green Hydrogen gas.
● Reduction of dependence on fossil fuels and feedstocks.
● Supporting research and development initiatives.
However, there are some speculations related to the roadmaps for the green energy transition in India.
Roadmap to Green Energy Transition in India
India's roadmap to overall green energy transition is based on certain commitments. Completing each commitment signifies completing a step closer to a green energy transition; the commitments are:
- Meet 50% of the energy requirements from green sources, including Green Hydrogen.
- Reach a non-fossil fuel-based production of 500GW of energy, which will help India's green hydrogen transition.
- Reducing carbon emissions by 1 billion tons, of which 50 million metric tonnes worth of greenhouse gases will be reduced by the green hydrogen shift itself.
- Finally, it reduces carbon intensity by 45%.
Moreover, the Government Authorities estimate that India requires 3.5 trillion units of electricity to support 7.3% economic growth. The availability of reliable energy resources from green Hydrogen can be helpful for numerous industries and their operations.
How Tecnova Drives Success with Energy Industry Consulting & Strategic Solutions
Companies must leverage the opportunities provided by the Government of India to accelerate their growth and success in the renewable energy sector. With extensive experience and a deep understanding of the market, consulting firms like Tecnova Global offer comprehensive support to businesses planning to enter or expand in India’s renewable energy landscape. Here’s how they can help:
- Market Entry Strategies: Tecnova assists businesses in developing tailored market entry strategies that align with India’s regulatory framework and dynamic renewable energy market. From feasibility studies to competitive analysis, they ensure a smooth transition into the Indian market.
- Regulatory Compliance: Navigating India’s regulatory landscape can be challenging. Tecnova guides businesses in obtaining necessary approvals, licenses, and certifications to ensure compliance with government policies and regulations, including tax benefits, subsidies, and other incentives.
- Identifying Partnerships and Collaborations: Tecnova helps companies identify potential local partners for joint ventures, strategic alliances, or vendor partnerships. This enables businesses to leverage local expertise and establish a stronger foothold in the market.
- Site Selection and Setup: Choosing the right location is critical in renewable energy projects. Tecnova provides expert advice on site selection, considering factors like resource availability, logistics, and infrastructure, and supports end-to-end project setup.
- Government Schemes and Incentives: The Government of India offers various incentives, such as subsidies and tax exemptions, to promote renewable energy adoption. Tecnova ensures that businesses are aware of and can fully utilize these benefits, optimizing their investment.
- Supply Chain Optimization: Tecnova assists in building a robust supply chain, connecting businesses with reliable local suppliers and manufacturers to ensure cost efficiency and timely delivery of resources.
- Sustainability and ESG Goals: Tecnova supports companies in aligning their operations with global Environmental, Social, and Governance (ESG) standards, which is increasingly critical in the renewable energy sector.
- Ongoing Support and Advisory Services: Beyond the initial setup, Tecnova provides continuous support through market intelligence, strategy updates, and operational guidance to help companies sustain and expand their operations in India.
By partnering with a consulting firm like Tecnova, businesses can ensure they not only enter the Indian renewable energy market successfully but also establish a strong foundation for long-term growth.
Refrence
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