Tamil Nadu's Growing Electricity Demand Due to Green Hydrogen Production
Key Ideas
- Tamil Nadu is projected to have an additional electricity demand of 7,000 MW due to green hydrogen and green ammonia production, contributing significantly to the state's power needs.
- The Union Ministry of New and Renewable Energy (MNRE) is overseeing plans for green hydrogen and green ammonia manufacturing hubs in several coastal areas across India, including Tamil Nadu's Tuticorin.
- By 2026-27, the electricity demand for green hydrogen and green ammonia production is expected to rise to about 10,500 MW, with Tamil Nadu accounting for 1,500 MW.
- Manufacturers are exploring different strategies to optimize electricity demand, such as producing green hydrogen and green ammonia only during solar generation hours and utilizing a mix of solar, wind, and storage for round-the-clock operation.
The National Electricity Plan-Transmission, released by the Central Electricity Authority under the Union Ministry of Power, indicates a substantial surge in electricity demand in Tamil Nadu due to the production of green hydrogen and green ammonia. According to the plan, Tamil Nadu would see an additional electricity demand of 7,000 MW, attributed to green hydrogen and green ammonia production. The Union Ministry of New and Renewable Energy (MNRE) has outlined plans to establish green hydrogen and green ammonia manufacturing hubs in coastal areas of states like Odisha, West Bengal, Gujarat, Andhra Pradesh, and Tamil Nadu (specifically Tuticorin). By the year 2026-27, the overall electricity demand for green hydrogen and green ammonia production is projected to reach around 10,500 MW, with Tamil Nadu expected to contribute 1,500 MW to this demand.
Manufacturers in the sector are devising innovative approaches to manage electricity demand effectively. Some manufacturers plan to produce green hydrogen and green ammonia exclusively during solar generation hours to reduce electricity consumption during non-solar hours significantly. Additionally, there are plans to integrate solar, wind, and storage technologies to ensure continuous operation, with electricity demand peaking during solar and wind generation hours. By 2031-32, the electricity demand for green hydrogen and green ammonia production is estimated to escalate to about 70,500 MW. While MNRE is reassessing the electricity demand for this period, the transmission system has been strategically planned to cater to all green hydrogen and green ammonia production hubs.
The transmission system will be implemented progressively in alignment with the establishment of manufacturing hubs to ensure efficient power delivery. Some manufacturers anticipate electricity demands ranging from 1-5 MW, particularly at inland locations, and these sites will be connected to the existing network based on developer preferences. Overall, the shift towards green hydrogen and green ammonia production is set to transform the energy landscape in Tamil Nadu and other coastal regions in India, ushering in a sustainable and renewable energy future.