The cost of green hydrogen in India, a country with ambitious goals in the renewable energy sector, is expected to decrease by up to 40 per cent due to the government’s support and incentives, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research.
The levelised cost of green hydrogen in India may fall to between ₹260 and ₹310 per kg with the help of incentives, affordable renewable electricity, a waiver of ISTS open access charges, distribution and transmission fee exemptions, and a reduction of the GST rate on hydrogen to 5 per cent. Electrolyser manufacturers are projected to achieve a 7–10 per cent reduction in total system costs over the first five years, with Rs2,960/kW (US$36/kW) being the average annual realisable base incentive, according to the report’s key findings.
The report states: “While the green hydrogen scheme is an important step for India, refinements are needed to promote long-term investment and project viability.”
Titled India’s $2.1bn Leap Towards its Green Hydrogen Vision, the Executive Summary of the report states: “At the core of the National Green Hydrogen Mission (NGHM) is the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which introduces two distinct financial incentive mechanisms. These mechanisms aim to incentivise domestic manufacturing of electrolysers and green hydrogen production.”
The summary further highlights: “The US$2.1 billion Strategic Interventions for Green Hydrogen Transition (SIGHT) programme forms the foundation of India’s grand plan to become a green hydrogen powerhouse by leveraging the nation’s access to affordable renewable energy. Enthusiastically received by industry, the scheme requires fine-tuning to attract start-ups, remain competitive for global players, and establish a robust supply chain to secure long-term industry viability.”
In July 2023, the Solar Energy Corporation of India (SECI) issued a request to establish 1,500 megawatts (MW) of electrolyser manufacturing capacity in India.
The report was prepared by Jyoti Gulia (Founder) and Kapil Gupta (Manager) of JMK Research & Analytics, with Vibhuti Garg (Director, South Asia, IEEFA) and Charith Konda (Energy Specialist, IEEFA) as co-authors.
“The green hydrogen definition framework needs enhancement with globally accepted definitions for critical aspects such as how green hydrogen is produced (additionality), its origin (deliverability) and timing (temporal matching) to make a global impact,” is another key findings of the report mentioned.
