India's Road to Clean Energy: Urgent Support Needed for Offshore Wind and Green Hydrogen
Key Ideas
- India is progressing well towards its 2030 clean energy goals for solar power and battery energy storage systems.
- Immediate government support is crucial to accelerate the deployment of offshore wind and green hydrogen.
- Offshore wind requires significant additional support to leverage India's potential, while green hydrogen needs substantial financial aid to bridge cost gaps.
- Investing in clean energy technologies now, including high-cost sectors like offshore wind and green hydrogen, will ensure India's global competitiveness and long-term resilience.
A new report emphasizes that India is on track to meet its 2030 clean energy goals for solar power and battery energy storage systems but highlights the need for immediate government support to accelerate the deployment of offshore wind and green hydrogen (GH2). The report, jointly produced by CSTEP and IISD, reveals that offshore wind and GH2 face significant cost gaps, with existing government support falling short. To exploit India's 71 GW offshore wind potential, approximately Rs 9,000 crore per GW will be required. Similarly, GH2 stands at a cost gap of Rs 2.8 lakh crore until 2030. While solar PV and BESS are progressing well with current subsidies, GH2 will not be cost-competitive with grey hydrogen until after 2050. Further support beyond 2030 is crucial. The report suggests that the government may need to revise GH2 targets and extend subsidy tenures. By scaling up investments in clean technologies, both central and state governments can spur economic growth, create jobs, reduce emissions, and enhance public revenue. Investing in clean energy technologies now, especially in high-cost sectors like offshore wind and green hydrogen, will ensure India's global competitiveness and long-term resilience.