Editorial 1: India, rising power demand and the ‘hydrogen factor’

Context

To reach a net-zero economy, where we reduce harmful emissions, we will need to use more hydrogen. So, making hydrogen and storing electricity should work closely together.

Introduction

To reach a net-zero economy, we need to use electricity for most of our energy needs. Right now, fossil fuels are not only used to make electricity but also to produce heat and certain materials needed in industries. For example, coal is used in making steel, and natural gas provides hydrogen to make ammonia for fertilizers. While using fossil fuels for heat is common and well-known, we can replace some of their uses—like using hydrogen instead of carbon in steel-making. So, moving towards a net-zero economy means switching to electricity for most energy uses and using hydrogen in many industrial processes.

Rising Electricity Demand for Net-Zero India

• Experts predict a sharp rise in electricity demand to achieve net-zero emissions for a developed India.
• Solar, wind, and hydro energy alone cannot meet the full demand.
• Nuclear power must be a key part of India’s energy mix.
• The Indian government has set a goal to reach 100 GW of nuclear capacity by 2047.

Nuclear Power Expansion by NPCIL

• NPCIL (Nuclear Power Corporation of India Limited) is planning to build several 700 MW Pressurized Heavy Water Reactors (PHWRs).

Status of 700 MW PHWRs:

• 2017: NPCIL announced a plan to build 10 PHWRs.
• March 2025: NPCIL announced 10 more PHWRs.
• Total: 26 units of 700 MW PHWRs planned.
• Public Sector Units (PSUs) like Indian Railways are also exploring nuclear energy use.

Bharat Small Reactors (BSRs)

• NPCIL is inviting industry proposals for 220 MW PHWRs called Bharat Small Reactors.
• BSRs are upgraded versions of NPCIL’s existing small reactors.
• Indian industry has the capability to manufacture all PHWR components domestically.

Rise of Low-Carbon Energy Sources

• Future electricity will increasingly come from low-carbon sources:
  Hydro, Nuclear, Solar, Wind.

• Currently, coal-fired power plants are adjusted ("flexed") during the day to balance with solar supply, reducing emissions.

Challenges in Flexing Nuclear Power

• Flexing nuclear plants is not ideal because:
  • High capital cost makes it inefficient to reduce output.
  • Variable cost remains almost the same at low or high output.
  • Technically complex and not cost-effective.
  • Some future advanced reactors may support flexible operation.

Solution: Hydrogen Production with Surplus Electricity

• Instead of flexing nuclear or curtailing solar/wind:
  • Use electrolysers to produce hydrogen from extra electricity.
  • This hydrogen can be used in industries, not reconverted to electricity.
  • It reduces the need for expensive electricity storage.
• Benefits of Electrolysers:
  • Low-cost and can run at varying power levels.
  • Help shape demand and ensure better grid balance.

Green vs. Low-Carbon Hydrogen

• India promotes green hydrogen (from solar and wind-powered electrolysis).
• A certification scheme allows hydrogen to be classified as green if:
  • It emits ≤ 2 kg CO₂ per kg of H₂.
• Rename the category from "green hydrogen" to "low-carbon hydrogen".
• Allow hydrogen from nuclear power to be included under this definition, as its life-cycle emissions are similar to renewable sources.

Conclusion: Need for synergy

Right now, electricity storage and hydrogen production are seen as separate activities. But this needs to change. We should combine both processes to make them more cost-effective. Our case studies show that when hydrogen production and battery storage work together, the overall costs go down. We suggest two key policy changes: Firstly, replace the term "green hydrogen" with "low-carbon hydrogen". Secondly, combine electricity storage and hydrogen production to improve efficiency and economic.