National Hydrogen Mission can be a game changer for India’s rising energy demands. Discuss the benefits and challenges associated.
Finance Minister in budget of 2021-22 announced a National Hydrogen Mission to give a boost to Green Hydrogen fuel in India’s energy mix.
India’s current energy status:
- Goal – 450 GW by 2030.
- Current status – 136 GW, 38% of total installed capacity.
Rising energy demands: Reasons
- Rapid urbanization.
- Increasing lifestyle changes, (270 million out of poverty, between 2005 to 2016, according to UNDP).
- Boost to manufacturing sector – Aatmanirbhar Bharat, Make in India.
- World’s services exporter.
- Rise of disruptive technologies like AI and Big Data needs energy in processing.
National hydrogen mission: A game changer
- Green hydrogen generation
- Hydrogen economy
- Increased share of hydrogen in energy mix
- Benefits of hydrogen for India’s energy demand:
- Fulfill India’s INDC commitments of reducing fossil fuel mix in India’s energy basket.
- Reduce dependence on import of fuel for strategic autonomy.
- Save India’s Forex reserves through local fuel dependence.
- Reduce problem of air pollution in India.
- Abundant natural resource and favourable geographical conditions for its production.
- Cost effective nature of hydrogen ensures energy security and scalability.
- Sustainable development by powering remote areas.
- Expensive research and development on scaling is needed.
- High Initial investment in hydrogen fuel cells.
- Storage and transport infrastructure would require Investments.
- Green hydrogen – cost of carbon capture and storage.
The PPP model for investment as well as policy boost can help the mission succeed to become a game changer in energy sector.