Rising power demand in India and the Hydrogen Factor

Context: India is the third highest energy consumer in the world. As India’s economy is expanding, India faces twin challenges- meeting growing energy demand and production of sustainable energy. In this context, India can rely on two alternatives – Nuclear Energy and Hydrogen as an energy source, to achieve a net-zero economy

India’s Net-Zero Imperative

1. Current Energy Landscape

  • The power sector in India is currently dominated by fossil fuels, especially coal.

  • Fossil fuels serve multiple purposes:

    • Electricity generation

    • Industrial heat

    • Chemical feedstocks (e.g., carbon for steelmaking)


2. Path to Net-Zero by 2070

  • India has committed to reaching net-zero emissions by 2070, which demands:

    • Massive electrification of all energy end-uses including:

      • Transport

      • Industrial processes

      • Buildings and homes

  • Electrification must be powered by clean energy sources to be effective in decarbonisation.


3. Limitations of Renewable Energy

  • Solar and wind power are critical but suffer from intermittency (unpredictable and weather-dependent supply).

  • As a result, India must diversify its non-polluting energy mix by:

    • Expanding Nuclear Energy

    • Promoting Green Hydrogen as a storage and industrial fuel alternative


4. Crucial Role of Nuclear Energy

a. Long-Term Capacity Goals

  • India has set a target of 100 GW of installed nuclear power capacity by 2047.

  • As of January 2025, the current capacity stands at 8.18 GW (8180 MW)—a significant gap to bridge.

b. Expansion Plans

  • Nuclear Power Corporation of India Limited (NPCIL) is leading expansion efforts:

    • Plans include 26 new reactors, each with 700 MW capacity using Pressurized Heavy Water Reactors (PHWRs).

    • These PHWRs represent a scalable and indigenous technology, central to India’s nuclear roadmap.

c. Interest from Other Sectors

  • Public sector undertakings (PSUs), including Indian Railways, are exploring the deployment of captive nuclear plants.

  • NPCIL has invited industry proposals for 220 MW PHWRs, branded as “Bharat Small Reactors”, tailored for industrial and institutional use.


Conclusion

To achieve its net-zero goals, India must:

  • Transition from fossil fuels to clean and reliable sources of energy.

  • Electrify key sectors using low-carbon energy.

  • Overcome the limitations of renewables by investing in baseload options like nuclear power and green hydrogen.

  • Ensure institutional, financial, and regulatory support to scale up nuclear capacity dramatically over the next two decades.

Green Hydrogen or Low-Carbon Hydrogen: A Strategic Energy Solution

1. Role in Future Energy Systems

  • As India’s electricity mix shifts toward low-carbon sourceshydro, nuclear, solar, and wind—there will be periods of surplus generation.

  • This excess energy can be effectively converted into green hydrogen using electrolysis, solving two major challenges:

    • Energy storage

    • Sustainable fuel production


2. Green Hydrogen Production

  • Electrolysers:

    • Relatively low-cost equipment.

    • Operate flexibly across varying power levels, making them ideal for fluctuating renewable output.

  • Green hydrogen is produced using electricity from 100% renewable sources.

  • Low-carbon hydrogen includes hydrogen produced using low-emission sources, like nuclear energy.


3. Applications of Green Hydrogen

  • Hydrogen can be used across high-emission sectors, including:

    • Steel and cement industries

    • Chemical manufacturing

    • Long-haul transport

    • Energy storage systems

  • It serves as both a fuel and industrial feedstock, replacing fossil-derived hydrogen.


4. Strategic Importance for India

  • Green and low-carbon hydrogen help:

    • Utilise surplus renewable or nuclear electricity

    • Decarbonise hard-to-electrify sectors

    • Reduce fossil fuel imports and strengthen energy independence

  • Complements nuclear expansion by offering a flexible outlet for off-peak power generation.


5. Policy Imperative

  • To meet the net-zero target by 2070, India needs a robust, integrated energy policy that:

    • Expands nuclear capacity

    • Invests in electrolyser technology and hydrogen infrastructure

    • Creates demand-side incentives for industries to adopt hydrogen

    • Establishes clear standards and certifications for green/low-carbon hydrogen

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