Besides solar and wind energy, India is significantly increasing its focus on green hydrogen to reduce dependence on fossil fuels, mainly diesel, which is currently the mainstay for driving its long-haul vehicles
According to power ministry estimates, India will witness a more than 83 percent increase in investments in renewable energy projects to around $16.5 billion in 2024 as the country focuses on energy transition to reduce carbon emissions.
This aligns with India's ambitious target of achieving 500 GW of renewable energy by 2030 and its resolve to reduce overall power generation capacity from fossil fuels to less than 50 percent. By 2070, India is committed to achieving net zero emissions.
However, Union Power and New & Renewable Energy Minister R. K. Singh has said on many occasions that as much as 65 percent of power generation capacity would be from non-fossil fuels by 2030, which would be higher than the set target of 50 percent.
In an interview with PTI, Singh said, "India is likely to witness 25 GW of renewable energy capacity addition entailing an investment of Rs 1,37,500 crore (about $16.5 billion) in the 2024 calendar year, which would be higher than 13.5 GW with an investment of Rs 74,250 crore (nearly $9 billion) seen in 2023."
Apart from solar and wind energy, India has increased its focus on green hydrogen in a big way to reduce dependence on fossil fuels, mainly diesel, which is required for long-haul vehicles.
India is a diesel-based economy, with most of its commercial vehicles for passenger and freight services running on diesel. The Union Cabinet signed off on the National Green Hydrogen Mission in January 2023, with an outlay of Rs 19,744 crore.
Later in July, the Solar Energy Corporation of India (SECI) called for bids for incentives for producing 4,50,000 tonnes of green hydrogen and 1.5 GW of electrolyser manufacturing facilities annually.
As many as 21 firms, including Reliance Electrolyser Manufacturing, Adani New Industries, L&T Electrolysers, and Bharat Heavy Electricals, have bid for the incentives for manufacturing 3.4 GW of electrolysers.
Fourteen companies have evinced interest in producing 5,53,730 tonnes of green hydrogen under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-I).
Among the other bidders are Hild Electric Private, Ohmium Operations, John Cockerill Greenko Hydrogen Solutions, Waaree Energies, Jindal India, Avaada Electrolyser, Green H2 Network India, Advait Infratech, ACME Cleantech Solutions, and Oriana Power.
Matrix Gas and Renewables, HHP Seven, HomiHydrogen, Newtrace, C. Doctor & Company, Pratishna Engineers, and LiveHy Energy also participated in the bidding.
The 14 companies that have shown interest in incentives to set up production facilities of green hydrogen were ACME Cleantech Solutions, Torrent Power, UPL, GH4INDIA, Aneeka Universal, Sembcorp Green Hydrogen India, Greenko ZeroC, and CESC Projects.
Others were JSW Neo Energy, Welspun New Energy, Avaada GreenH2, Reliance Green Hydrogen and Green Chemicals, HHP Two, and Bharat Petroleum Corporation.
The National Green Hydrogen Mission aims to make India a global hub for manufacturing this clean energy source. By 2030, the project seeks to establish two green hydrogen hubs in its initial phase and increase its production capacity to five million metric tonnes annually.
Three significant ports, Deendayal, Paradip, and V O Chidambaranar (Tuticorin) Ports, have been identified for development as hydrogen hubs. Singh mentioned that India has 7.8 million tonnes of green hydrogen capacity at various stages of development.
The SIGHT scheme, with a backing of Rs 17,490 crore, aims to promote the production of green hydrogen, develop the necessary ecosystem, and facilitate industrial decarbonisation.
India's commitment to environmental sustainability aligns with the global shift towards green hydrogen and its derivatives, according to Vineet Mittal, chairman of industry body CII's Taskforce on Green Hydrogen and co-chairman of the CII Renewable Energy Council.
However, India must meet the additional renewable energy demand and establish a robust ecosystem to achieve its green hydrogen and green ammonia targets. Mittal, also the Chairman of Avaada Group, believes India can leverage its renewable energy potential and emerge as a production hub to meet the escalating demand for green hydrogen derivatives.
Rahul Munjal, Co-Chairman of the CII Renewable Energy Council, noted that the outlook for renewable energy in 2024 is positive, expecting continued investment and technological advancements, particularly in renewable energy and battery storage.
Munjal, who is also the Chairman and Managing Director of Hero Future Energies, said that the ambitious plan laid out by the Central Electricity Authority (CEA) in its "Optimal Generation Mix by 2030" report aims to achieve 292 GW of solar, 100 GW of wind, and 18 GW of hydropower, creating opportunities for diverse investments in the sector.
To accomplish the target of 292 GW of solar installations and 100 GW of wind installations by 2030, Shekhar Dutt, Director General of the Solar Power Developers Association (SPDA), recommends that Renewable Energy Implementing Agencies (REIAs) should issue large-scale tenders, up to 5 GW, to maximise the capabilities of developers.
He also suggests mandating Green Hydrogen Consumption Obligations (GHCOs) for key industrial sectors to promote the usage of green hydrogen.
According to Girishkumar Kadam, Senior Vice President and Co-Group Head, Corporate Ratings at ICRA, India's installed renewable energy capacity, excluding large hydro, is estimated to increase to about 170 GW by March 2025 from the level of 132 GW as of October 2023.
Furthermore, he mentioned that the increase in capacity is expected to be backed by a substantial improvement in tendering activities during the ongoing fiscal year. To date, over 16 GW projects have been bid out; another 17 GW bids are in progress by the central nodal agencies.
He added that this aligns with the government's announcement of a 50 GW annual bidding trajectory in March 2023.