Energy storage, green hydrogen to reshape RE sector, Pg 10

Key Highlights:

• Energy storage technologies are identified as the "game changer" for addressing the variable nature of solar and wind power, enabling the delivery of firm, dispatchable, and reliable supply for over four hours.
• The National Green Hydrogen Mission aims for a production capacity of 5 million tonnes by 2030, which is expected to drive down costs through scaled electrolyser manufacturing.
• India’s transition to 500 GW of non-fossil capacity by 2030 will require an estimated investment of ₹30 lakh crore.
• Green hydrogen is set to play a transformative role in "hard-to-abate" sectors such as steel, cement, fertilizers, and heavy transport.

Detailed Insights:

• Traditionally, RE has been viewed as intermittent (only available when the sun shines or wind blows). Battery-backed solutions and hybrid projects are now allowing RE to provide Round-the-Clock (RTC) power, effectively competing with traditional coal-fired base load plants.
• As the National Green Hydrogen Mission gains momentum, the cost of production is expected to fall sharply. This is driven by two factors: the increasing competitiveness of renewable power and the scaling up of domestic electrolyser manufacturing.
• To meet the ₹30 lakh crore requirement, India is looking toward innovative financing. This includes green bonds, blended finance structures (combining public and private capital), and increased participation from global investors looking for long-term stable returns.
• Achieving this vision requires more than just power plants; it necessitates significant upgrades to the grid via Green Energy Corridors, transmission system improvements, and localized battery storage systems to ensure grid stability.

Key Concepts Involved:

• Green Hydrogen: Hydrogen produced by splitting water into hydrogen and oxygen using an electrolyser powered by renewable energy sources.
• Blended Finance: A strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging and frontier markets.
• Green Energy Corridors: An intra-state and inter-state transmission system being built in India to facilitate the flow of renewable energy from RE-rich states to the rest of the country.