India, Rising Power Demand and the ‘Hydrogen Factor’
16-04-2025
08:30 AM

Context
- Achieving a net-zero economy is one of the most pressing challenges of the 21st century.
- As nations around the world transition toward sustainable energy systems, electrification of energy end-uses emerges as a foundational pillar in this shift.
- However, this transformation extends beyond simply replacing fossil fuels with renewable electricity.
- It requires a comprehensive reimagining of industrial processes, energy generation, and storage, placing nuclear power and hydrogen at the forefront of the strategy.
The Necessity of Electrification and Hydrogen Integration
- The bulk of current fossil fuel usage is for purposes beyond electricity generation, notably in providing heat and essential molecules in industrial processes.
- For instance, carbon from coal is a critical component in steel production, while hydrogen derived from natural gas is vital in manufacturing ammonia, a key input in fertiliser production.
- Transitioning to a net-zero economy mandates replacing these fossil-derived molecules with cleaner alternatives.
- In this context, hydrogen becomes indispensable, not just as an energy carrier but also as a feedstock substitute in industrial operations.
- In steel manufacturing, for example, hydrogen can substitute carbon, enabling a cleaner reduction of iron ore.
- Similarly, widespread electrification must be complemented by strategic deployment of hydrogen, especially where direct electrification is impractical or inefficient.
Rising Power Demand and the Role of Nuclear Energy
- Forecasts by energy researchers indicate a significant increase in power demand as India progresses toward a developed, net-zero economy.
- While solar, wind, and hydroelectric power are critical components of the energy mix, they alone cannot meet the growing electricity requirements.
- Nuclear energy, with its capability to provide stable and continuous power, becomes an essential complement.
- Recognising this, the Indian government has set an ambitious goal of achieving 100 GW of installed nuclear capacity by 2047.
- The Nuclear Power Corporation of India Limited (NPCIL) is actively working to realise this vision through the deployment of Pressurised Heavy Water Reactors (PHWRs).
- Several projects are already underway across Gujarat, Rajasthan, and Haryana, with a planned fleet of 26 PHWRs rated at 700 MW.
- Furthermore, NPCIL is promoting the development of 220 MW Bharat Small Reactors (BSRs) for captive industrial use, leveraging indigenous capabilities and manufacturing infrastructure.
Challenges in Balancing Low-Carbon Energy Sources
- The Challenge of Grid Stability in a Low-Carbon Future
- As nations transition toward low-carbon energy systems, one of the most pressing operational challenges is balancing electricity supply and demand in real time.
- In a fossil fuel-dominated system, this balancing act is relatively straightforward, conventional coal or gas-fired plants can be ramped up or down as needed to match demand.
- However, in a system dominated by low-carbon sources like solar, wind, hydro, and nuclear, maintaining grid stability becomes far more complex.
- Intermittency and Operational Constraints of Renewables
- Solar and wind energy, while environmentally sustainable, are inherently intermittent and variable.
- Solar generation peaks during the day and drops to zero at night, while wind patterns are less predictable and can vary by region and season.
- Hydroelectric power is more consistent but is constrained by geography and seasonality.
- Nuclear energy, on the other hand, provides a stable and continuous source of power but is typically designed to operate best at a constant, "base load" output rather than being flexed to follow demand fluctuations.
- Limitations of Flexing Nuclear Power for Load Balancing
- As the share of renewable energy increases and fossil generation is phased out, a new paradigm for grid balancing must emerge, one that does not rely on carbon-intensive methods.
- While some experts suggest the possibility of flexing nuclear power plants to match grid demand, this approach faces significant limitations.
- Technically, altering the output of nuclear reactors is challenging due to the complexity of their operation and the long-term planning required for fuel cycles.
- Economically, it is also inefficient: nuclear plants are capital-intensive assets designed for constant operation to maximize their return on investment.
- Operating them at partial load levels reduces their cost-effectiveness, especially since variable costs do not decrease proportionally with reduced output.
The Way Forward
- Hydrogen Electrolysis as a Grid Balancing Solution
- Given these constraints, the need for innovative, non-fossil solutions to balance low-carbon electricity becomes paramount.
- One such promising solution is the integration of hydrogen production through electrolysis.
- Electrolysers can serve as dynamic and flexible loads on the grid, absorbing excess power when supply exceeds demand, such as during peak solar or wind generation hours.
- This not only prevents the wastage of renewable electricity but also helps stabilise the grid without compromising the continuous operation of nuclear plants.
- Decoupling Supply and Demand Through Hydrogen Production
- The use of grid-connected electrolysers introduces an elegant solution: instead of curtailing solar or wind energy or flexing nuclear reactors, surplus electricity can be redirected to produce hydrogen, a versatile energy carrier and industrial feedstock.
- This approach effectively decouples electricity supply from immediate demand, creating a buffer that supports grid reliability and emissions reductions.
Conclusion
- The road to a net-zero economy is complex and multifaceted, requiring a coordinated transformation of energy generation, industrial practices, and policy frameworks.
- Electrification, coupled with the strategic use of hydrogen, holds the key to decarbonizing end-use sectors.
- Nuclear power, with its base-load stability, must be integrated into the energy mix to meet growing demand.
- Forward-looking policy changes, such as redefining hydrogen categories and promoting integrated energy solutions, can unlock synergies and accelerate the transition.
Q1. Why is balancing low-carbon energy sources challenging?
Ans. Balancing low-carbon energy sources is challenging because solar and wind are intermittent, and nuclear power plants are designed to operate continuously at a constant output, making it difficult to adjust generation based on fluctuating demand.
Q2. Why isn't flexing nuclear power plants a preferred solution?
Ans. Flexing nuclear power plants is not preferred because it is technically complex and economically inefficient due to their high capital costs and the minimal reduction in variable costs when operating at lower power.
Q3. What current method helps balance solar generation in India?
Ans. In India, coal-fired power plants are currently flexed—meaning their output is adjusted—to balance the electricity supply during periods of high solar generation.
Q4. How can hydrogen help balance the grid?
Ans. Hydrogen can help balance the grid by using surplus electricity to power electrolysers, which produce hydrogen, thereby preventing waste and maintaining grid stability.
Q5. What advantage does hydrogen production offer over battery storage?
Ans. Hydrogen production offers the advantage of serving both as a grid-balancing tool and as a valuable industrial input, often at a lower cost and with greater flexibility than large-scale battery storage.
Source:The Hindu