
India's future green hydrogen and green ammonia production will require an estimated 70.5 GW of renewable electricity by 2031-32, as per the National Electricity Plan (NEP) released by the Central Electricity Authority (CEA). This energy requirement could power over one crore Indian households for a month.
The Ministry of New and Renewable Energy (MNRE) is now exploring ways to ensure round-the-clock green power supply to meet this demand while also maintaining grid stability.
What Qualifies as ‘Green’ Hydrogen or Ammonia?
For hydrogen or ammonia to be classified as "green," its entire production must be powered by renewable energy (RE). The current projected demand—70.5 GW—is lower than the 125 GW estimated when the National Green Hydrogen Mission (NGHM) was first launched but still represents a significant infrastructure challenge.
Electricity Demand Patterns and Grid Challenges
According to the NEP report:
- Electricity demand for green hydrogen and ammonia will peak during solar hours.
- About 45% of demand will continue during evening peak hours, and 55% during night off-peak periods.
- To avoid overloading the grid during non-solar hours, companies may need to restrict ammonia production to evening/night hours only if energy storage systems are unavailable.
Key Regional Hubs and Their Power Requirements
Gujarat is expected to be a key player:
- Mundra Green Hydrogen Hub: 22 GW renewable energy required
- Kandla Port Hub: 10.3 GW renewable energy required
Together, Gujarat will need approximately 32.3 GW of green electricity for its two hydrogen hubs alone.
Broader Power Sector Outlook by 2031-32
- India’s peak power demand is projected to reach 388 GW
- Total required generation capacity: 997 GW
- Target from clean energy sources: 500 GW
This highlights the growing share of renewable energy in India's overall energy mix and the urgency to scale up RE infrastructure.
India’s Green Hydrogen Mission: A Net Zero Strategy
Launched on January 4, 2023, the National Green Hydrogen Mission (NGHM) aims to produce 5 million tonnes of green hydrogen annually by 2030.
- Total budget: ₹19,744 crore
- Incentives: ₹17,490 crore
- ₹13,050 crore for green hydrogen production
- ₹4,440 crore for electrolyser manufacturing
NGHM is part of India's broader commitment to achieving net zero emissions by 2070, a goal that requires balancing greenhouse gas emissions with carbon removal measures.