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[16th April 2025] The Hindu Op-ed: India, rising power demand and the ‘hydrogen factor’

PYQ Relevance:

[UPSC 2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.

Linkage: India growing energy needs and the role of a specific low-carbon source, which is relevant in the broader context of exploring other low-carbon alternatives like hydrogen for industrial use.

 

Mentor’s Comment:  To achieve a net-zero economy, we need to significantly increase the use of electricity in various sectors. Currently, fossil fuels are used not only to generate electricity but also to provide heat and raw materials for industries. For example, carbon from coal is used in steel production, and hydrogen from natural gas is used to make ammonia for fertilizers. In the steel industry, hydrogen can replace carbon. So, a net-zero economy would involve using more electricity and hydrogen in industrial processes.

Today’s editorial discusses the important role of hydrogen fuel in industries to help achieve a net-zero economy. This content is relevant for GS Paper 3 in the mains exam.

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Let’s learn!

Why in the News?

To achieve a net-zero economy, which requires more use of hydrogen, hydrogen production and electricity storage need to work together efficiently.

What is hydrogen’s role in achieving net-zero emissions, particularly in industry?

  • Replacement for Carbon in Steel-making: Hydrogen can replace carbon (from coal) to reduce iron ore in the steel industry, enabling low-emission steel production. Eg: Jindal Steel is implementing hydrogen-based Direct Reduced Iron (DRI) processes in its steel plants in Angul, India.
  • Feedstock for Fertilizer Industry: Hydrogen is used to produce ammonia, a key input for fertilizers. Currently sourced from natural gas, it can be replaced with green hydrogen to cut emissions. Eg: Green hydrogen is being utilized in ammonia plants to decarbonize agricultural inputs. ​
  • Energy Carrier for Hard-to-Electrify Sectors: Hydrogen provides high-temperature heat and energy where direct electrification is not feasible, such as in cement and chemical industries. Eg: Hydrogen-powered kilns are being explored in cement production to reduce carbon emissions.​
  • Storage and Use of Surplus Renewable Energy: Surplus electricity from solar and wind can produce hydrogen via electrolysis, storing energy for industrial use. Eg: Electrolysers operating during solar peak hours produce hydrogen for later industrial use, aiding in grid balancing.​
  • Enabler of Circular and Low-Carbon Economy: Hydrogen supports closed-loop industrial systems and enables the transition to a low-carbon industrial ecosystem. Eg: Industrial parks are utilizing shared hydrogen infrastructure for multiple processes, promoting sustainability.​

Why is nuclear vital for meeting India’s future power needs?

Reason Explanation Example
Reliable Base Load Power Provides continuous, 24/7 electricity, unlike intermittent solar and wind. Kakrapar Atomic Power Station in Gujarat supplies stable power, reducing reliance on coal.
Low-Carbon Energy Source Emits very low greenhouse gases, essential for India’s net-zero targets. One nuclear plant avoids millions of tonnes of CO₂ compared to coal-fired plants of similar capacity.
High Energy Density & Land Efficiency Produces large energy output from a small land area, ideal for land-scarce regions. A 700 MW PHWR needs far less space than an equivalent-capacity solar farm.
Energy Security & Indigenous Capability Indigenous PHWR tech reduces import dependency, boosting self-reliance. Bharat Small Reactors (BSRs) initiative supports local nuclear plants for industrial use.
Supports Industrial & Developmental Goals Meets growing electricity demand from industries, EVs, and digital infrastructure. Indian Railways is exploring nuclear power to sustainably meet part of its future electricity requirements.

How do electrolysers help avoid flexing nuclear plants?

  • Utilize Surplus Electricity: Electrolysers consume excess electricity (especially during low demand or high renewable generation), preventing wastage. Eg: During off-peak hours, nuclear plants continue running at full power, and electrolysers convert surplus electricity into hydrogen.
  • Avoids Technical Challenges of Flexing Nuclear: Flexing (ramping up/down) nuclear plants is technically complex and not cost-effective. Electrolysers provide a flexible load instead. Eg: Countries like France prefer operating electrolysers over reducing nuclear output to balance grid load.
  • Reduces Need for Electricity Storage: By producing hydrogen instead of storing electricity in batteries, electrolysers lower reliance on expensive energy storage systems. Eg: A hybrid system with electrolysers and minimal battery backup is more economical than large-scale battery-only setups.
  • Creates Industrial Value from Surplus Power: Hydrogen produced by electrolysers can be used directly in industries like steel and fertilizer, giving value to otherwise curtailed energy. Eg: Surplus nuclear power at night is used to produce hydrogen for ammonia production, supporting the fertilizer sector.
  • Maintains Economic Efficiency of Nuclear Plants: Electrolysers help nuclear plants operate at full capacity, maximizing their economic return by avoiding part-load inefficiencies. Eg: Operating a 700 MW PHWR continuously at full load ensures lower per-unit cost and higher return on investment.

Which policy changes improve the synergy between hydrogen generation and electricity storage?

  • Redefining Green Hydrogen as Low-Carbon Hydrogen: Broaden the definition to include hydrogen from nuclear and other low-carbon sources, not just solar/wind. Eg: If hydrogen from nuclear is included under “low-carbon,” it becomes eligible for government incentives and boosts its adoption.
  • Integrated Planning for Hydrogen and Storage Infrastructure: Encourage policies that promote co-location of electrolysers and battery storage to optimize power use. Eg: A hybrid facility that stores electricity when prices are low and runs electrolysers when solar/wind generation is high.
  • Incentives for Grid-connected Electrolyser Projects: Offer financial and regulatory support to industries that install grid-responsive electrolysers. Eg: Time-of-use electricity pricing policies that make hydrogen production cheaper during surplus power hours.
  • Mandating Industrial Use of Green/Low-Carbon Hydrogen: Introduce mandates for sectors like steel and fertilizers to shift partially to low-carbon hydrogen. Eg: A policy requiring steel plants to use 10% green hydrogen by 2030 encourages investment in electrolysers.
  • Support for Hybrid Hydrogen-Storage Business Models: Develop regulations that allow joint operation and revenue models for battery storage and hydrogen production. Eg: A private power developer earns incentives both for stabilizing the grid (via battery) and producing green hydrogen.

Where has the NPCIL planned the deployment of new 700 MW Pressurized Heavy Water Reactors (PHWRs) in India?

  • Kakrapar Atomic Power Station (KAPS), Gujarat: KAPS is already home to two operational 700 MW PHWR units (KAPS-3 and KAPS-4), with plans for further expansion. The successful commissioning of these units has demonstrated the robustness of the 700 MW PHWR design.
  • Rajasthan Atomic Power Station (RAPS), Rajasthan: RAPS-7, India’s third indigenously designed 700 MW PHWR, achieved first criticality in September 2024. RAPS-8 is under construction and is expected to be operational by 2026.
  • Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP), Haryana: GHAVP is set to host four 700 MW PHWR units, with GHAVP-1 and GHAVP-2 under construction and expected to be operational by 2028 and 2029, respectively.

Way forward: 

  • Accelerating Infrastructure Development: India should fast-track the construction of 700 MW PHWR units across key sites like KAPS, RAPS, and GHAVP, ensuring timely completion to meet future energy demands and reduce reliance on coal.
  • Policy Support for Hydrogen and Nuclear Synergy: Government policies should incentivize the integration of nuclear power with hydrogen production, promoting hybrid systems that can utilize surplus nuclear energy for green hydrogen generation and enhance industrial decarbonization efforts.

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