Green hydrogen as energy storage could be as low as Rs 6/kWh: RK Singh
Union Minister of Power and New & Renewable Energy, RK Singh, announced on September 15 that India is gearing up to invite bids for a pilot project aimed at generating 100 MW of round-the-clock (RTC) power using green hydrogen as a storage solution.
This move comes after preliminary studies conducted by the government explored the use of green hydrogen and green ammonia as energy storage systems to meet the nighttime or non-solar electricity demand in the country.
Singh emphasized the cost-effectiveness of this approach, stating, “Our estimates suggest that dispatchable power or round-the-clock renewable power will cost just about Rs 6 per kWh if we use green hydrogen as energy storage. It is cheaper than gas-based power.
It is cheaper than using battery energy storage systems (BESS) which cost us as much as Rs 10/kWh when we floated the tender for BESS.” He made these remarks during the Fourth International Conference and Exhibition on Clean Energy, organized by the Confederation of Indian Industry (CII) and the Ministry of New & Renewable Energy (MNRE).
He further disclosed that the government is in the process of preparing a pilot bid for the development of 100 MW of green hydrogen as an energy storage system, with the intention of establishing a benchmark in this domain.
Singh also highlighted that once green hydrogen and green ammonia are firmly integrated into the energy storage sector, concerns related to the supply chain of critical minerals like lithium will become less significant. He noted, “Issues of whether we have any reserves of lithium or we have lithium processing facilities in India at all or not will go away. The fact that 88 percent of lithium processing facility lies with a single country in the world will also not matter as much.”
India aims to become the largest producer and exporter of green hydrogen and ammonia globally due to its abundant and affordable renewable power sources. The launch of the National Green Hydrogen Mission by the government is expected to accelerate the production of green hydrogen and ammonia within the next two to three years.
Singh also mentioned that India may need to add 25 GW to 30 GW of thermal electricity generation capacity in addition to the existing 41-50 GW that is already in progress to meet the country’s growing power demand. He explained that while India is actively pursuing round-the-clock renewable energy, additional thermal power capacity may be necessary to support the nation’s economic growth and rising power demand.
In addition to these developments, Minister Singh unveiled a CII-EY report on AatmaNirbhar Bharat in RE (Renewable Energy) manufacturing, which focuses on India’s energy transition and its potential to become a global leader in advancing renewable energy innovation and manufacturing.
The report highlights the importance of local manufacturing capacities to reduce dependence on imports and enhance supply chain resilience, benefiting both India and the rest of the world. Additionally, he launched a dashboard called the “Energy Transition Investment Monitor,” which serves as a collaborative analytics platform tracking over 900 projects in the pipeline across renewable energy services and technology supply chains.
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