Rising power consumption in India and the ‘hydrogen factor’

Net-Zero Economy and Energy Use in India

• Achieving a net-zero economy requires massive electrification of end uses of energy.

• Fossil fuels are used for generating electricity and providing heat and molecules for industrial processes.

• Examples include carbon in steel making to reduce iron ore and hydrogen in the steel industry to make ammonia.

• A net-zero economy would require electrification of end uses and the use of hydrogen for many industrial processes.

Power Demand and Nuclear Power Plans

• The Government of India has set an aspirational target to reach 100 GW of installed capacity based on nuclear power by 2047.

• The Nuclear Power Corporation of India Limited (NPCIL) has announced an ambitious programme to set up several 700 MW Pressurized Heavy Water Reactors (PHWRs).

• The NPCIL has invited proposals from the industry for setting up 220 MW PHWRs, christened as Bharat Small Reactors (BSRs).

Low Carbon Sources and Solutions

• The share of electricity provided by low-carbon sources, such as hydro, nuclear, solar, and wind, will increase.

• Flexing coal-fired power plants and letting solar and wind continue to operate lowers carbon emissions from electricity generation.

• Flexing nuclear power plants is technically challenging and not cost-competitive.

• Producing hydrogen by electrolysers when there is surplus electricity in the system is a solution based on mature technologies.

• The government has defined hydrogen produced by electrolysers using electricity from solar and wind as green and has provided incentives.

Need for Synergy

• The current distinction between electricity storage and hydrogen production needs to be changed.

• Hydrogen generation and electricity storage need to be synergised to improve overall economics.

• Two policy changes are recommended: changing the taxonomy by replacing green hydrogen with low-carbon hydrogen, and synergising electricity storage and hydrogen production.