India is progressively becoming a favoured destination for investment in renewables, according to the Economic Survey 2022-23 tabled in Parliament on Tuesday. It said that as per the ‘Renewables 2022 Global Status Report’, during the period 2014-2021, total investment in renewables stood at $78.1 billion in India. “Investment in renewable energy has been close to or higher than $10 billion per year since 2016, except for a dip in 2020 likely due to various Covid-19 restrictions.” The survey quoted the Central Electricity Authority (CEA) saying that it has projected the optimal generation capacity mix to meet the peak electricity demand and electrical energy requirement for 2029-30. “The likely installed capacity by the end of 2029-30 is expected to be more than 800 GW of which non-fossil fuel would be more than 500 GW. The CEA has also estimated that the average emission rate will decline by about 29 per cent by 2029-30 compared to 2014-15.” According to a NITI Aayog report released in June 2022, in the case of India, renewable tariffs have fallen in recent years, and electrolyser costs are expected to fall in the future. “A recent report by the International Renewable Energy Agency suggests that the cost of electrolysers is crucial for making green hydrogen economically viable,” it added. NITI Aayog’s report estimated the cumulative value of the green hydrogen market in India to be $8 billion by 2030 and $340 billion by 2050. Whereas, the electrolyser market will be about $5 billion by 2030 and $31 billion by 2050, added the survey. “In addition, the adoption of green hydrogen will also result in 3.6 gigatonnes of cumulative CO2 emission reduction by 2050. This will also generate enormous energy import savings, ensure stability in industry input prices, and strengthen foreign exchange reserves in the long run,” it said.
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Renewable tariffs have fallen in recent years, and electrolyser costs are expected to fall in the future
