Assessing the Impact of Green Hydrogen Production on India’s Power System

Table of Contents

• About CEEW 5
• Contents 7
• Executive Summary 1 7
• 1. Introduction 5 7
• 2. Approach and methodology 7 7
• 3. Key findings 10 7
• 4. Recommendations 23 7
• 5. Limitations 25 7
• Annexure 26 7
• Acronyms 40 7
• References 41 7
• The authors 43 7
• Executive Summary 9
• A. Key Insights 10
• B. Impact of 11
• C. Recommendations 11
• 1. Identify green hydrogen production hubs to guide national and state transmission planning 11
• 2. Recognise electrolysers as a flexible resource under the Central Electricity Regulatory 12
• Commission CERC Ancillary Services Regulation 2022 12
• 3. Develop grid connectivity standards for electrolysers 4. Facilitate the establishment of an industry-led consortium to pilot large-scale grid-connected 12
• GH2 projects 12
• 1. Introduction 13
• Objectives of the study 14
• 2. Approach and methodology 15
• 2.1. Methodology adopted 15
• MAPS 16
• 2.2. Approach to estimate state-wise green hydrogen production 17
• 2.3. Approach for estimating the green hydrogen scenario load profile 17
• 3. Key findings 18
• 3.1. India will need 135 GW of additional grid-connected RE capacity to produce 5 MT green hydrogen by 2030 18
• 3.2. India should meet GH2 target in a cost-effective way with large-scale grid- connected projects 20
• 3.3. Indias peak demand will increase by 67 GW to serve the green hydrogen load in 2030 21
• 271 GW 22
• Peak demand 22
• BAU scenario 22
• 3.4. Green hydrogen scenario with ISTS support leads to a 5 per cent reduction in curtailment and a 6 GW reduction in storage requirements compared to BAU scenario 24
• 3.5. Grid flexibility requirements increase fourfold in green hydrogen scenario 2030 compared to 2022 25
• Flexing requirement increases 26
• 3.6. Increased cheaper RE penetration in green hydrogen scenario will lead to 2 per cent reduction in system cost compared to BAU scenario 28
• 3.7. Congestion will increase by 2 per cent of the hours in Uttar Pradesh Punjab and Haryana to meet the green hydrogen electricity demand 29
• 3.8. Investment of INR 10.6 lakh crore USD 129 billion is required to meet national green hydrogen target 30
• INR 1061000 crore 30
• 4. Recommendations 31
• 4.1. Identify green hydrogen production hubs to guide national and state transmission planning 31
• 4.2. Recognise electrolysers as a flexible resource under the Central Electricity Regulatory Commission CERC Ancillary Services Regulation 2022 32
• 4.3. Develop grid connectivity standards for electrolysers 32
• 4.4. Facilitate establishment of an industry-led consortium to pilot large-scale grid-connected GH2 projects 32
• 5. Limitations 33
• Annexure 34
• Annexure 1 Modelling the power system 34
• Annexure 2 Installed capacity considerations 2022 and 2030 38
• Annexure 3 Electricity demand for green hydrogen 41
• Annexure 4 Resource requirement for GH2 production 46
• Acronyms 48
• References 49
• The authors 51