Energy Storage and Green Hydrogen Set to Transform India’s Renewable Energy Landscape

Context:

  • In the coming five years, energy storage systems and green hydrogen are expected to fundamentally transform India’s renewable energy (RE) ecosystem.

  • These technologies will help India overcome the challenge of renewable intermittency and achieve its ambitious clean energy transition targets.

Key Highlights:

Energy Storage as a Game Changer

  • Renewable sources like solar and wind are inherently variable.

  • Energy storage technologies enable RE to provide:

    • Firm and dispatchable power supply

    • Reliable electricity for more than four hours

    • Support for Round-the-Clock (RTC) power delivery

  • Battery-backed and hybrid RE projects can now compete with coal-based base load plants.

National Green Hydrogen Mission Targets

  • The National Green Hydrogen Mission aims to achieve:

    • 5 million tonnes production capacity by 2030

  • This scale is expected to reduce costs through:

    • Competitive renewable electricity

    • Domestic electrolyser manufacturing expansion

Investment and Financing Requirements

  • India’s goal of 500 GW non-fossil fuel capacity by 2030 requires:

    • Approx. ₹30 lakh crore investment

  • Innovative financing mechanisms include:

    • Green bonds

    • Blended finance models (public + private capital)

    • Greater participation of global long-term investors

Role of Green Hydrogen in Hard-to-Abate Sectors

  • Green hydrogen will be crucial for decarbonising sectors where emissions are difficult to eliminate, such as:

    • Steel

    • Cement

    • Fertilisers

    • Heavy transport

Grid Infrastructure and System Upgrades

  • Achieving the clean energy transition requires more than new power plants. Key needs include:

    • Green Energy Corridors

    • Transmission system strengthening

    • Localised battery storage for grid stability

Relevant Prelims Points:

  • Issue: Renewable energy intermittency limits reliability.

  • Causes: Solar depends on sunlight; wind depends on weather conditions.

Government Initiatives

  • National Green Hydrogen Mission (5 million tonnes target by 2030)

  • Expansion of electrolyser manufacturing

  • Development of Green Energy Corridors for transmission support

Benefits

  • Reliable RTC renewable power

  • Reduced dependence on coal

  • Supports India’s climate commitments

  • Enables clean industrial transformation

Challenges

  • High initial investment requirement

  • Need for large-scale storage deployment

  • Grid integration and stability concerns

  • Cost competitiveness of green hydrogen in early stages

Impact

  • Accelerates India’s shift toward a low-carbon economy

  • Strengthens energy security

  • Positions India as a global leader in green hydrogen production

Relevant Mains Points:

  • Green Hydrogen Definition: Hydrogen produced using renewable-powered electrolysers.

  • Energy Storage Importance: Ensures firm supply and supports renewable grid integration.

  • Blended Finance: Mobilising private capital using public/development support.

  • Green Energy Corridors: Transmission networks enabling renewable flow from RE-rich states.

Significance

  • Helps meet India’s 500 GW non-fossil capacity goal

  • Decarbonises hard-to-abate industrial sectors

  • Encourages clean technology manufacturing and innovation

Way Forward

  • Strengthen policy incentives for storage and hydrogen adoption

  • Scale domestic electrolyser and battery manufacturing

  • Expand green financing tools and attract global investment

  • Upgrade transmission infrastructure and decentralised storage systems

UPSC Relevance (GS-wise):

  • GS 3: Environment & Ecology – Clean energy transition, green hydrogen, storage technologies

  • GS 3: Economy – Green investments, blended finance, industrial decarbonisation

  • Prelims: Concepts like Green Hydrogen, Electrolyser, Green Energy Corridors, Blended Finance

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